A recent Ministry of Rural Development investigation has revealed massive irregularities under MGNREGA, with over 11 lakh cases detected across 55 districts in 25 states and Union Territories, amounting to Rs 302 crore in financial misuse between April and November 2025. The audit found fake work, inflated muster rolls, payments to deceased beneficiaries, contractor collusion, and poor record-keeping, with Andhra Pradesh, Tamil Nadu, and West Bengal among the worst-affected states.

The report highlighted artificial splitting of projects, non-existent works, and engagement of contractors where prohibited, while procurement lapses and weak monitoring allowed corruption to flourish. Cases from Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh included canal cleaning schemes left incomplete, job cards with no work, and middlemen siphoning off funds.

Post-2014 reforms such as Aadhaar seeding, geo-tagging, direct payments, and asset photography have improved oversight, but irregularities persist at the panchayat level. Recovery efforts have recouped over Rs 293 crore of the misused funds. Officials emphasized that while employment days and financial allocations have increased under the revamped G RAM G scheme, vigilance and strict monitoring remain critical to ensure transparency and that benefits reach actual workers.