Dimapur: The Kacharigaon-Phevima Village Council (KPVC) and its Village Development Board (VDB) have levelled serious allegations against Nagaland’s Rural Development (RD) Department, accusing it of illegal deductions from funds allocated under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
The revelations, made during a press conference held in Dimapur, have sparked wider political reactions, including a strong condemnation from the Nagaland Pradesh Congress Committee (NPCC), which is now demanding an official probe.
Led by KPVC Chairperson Vitho Zao, the council alleged that the RD Department has been routinely deducting 30 percent from the wage component and 50 percent from the material component of MGNREGA funds sanctioned for their village. These deductions, they claimed, were made without any formal notification, receipt, or official record.
“The daily wage is ₹234 per person. Out of that, the department is demanding 30 percent. We cannot comply with this,” Zao said, explaining that the unofficial deductions have triggered mistrust among villagers. “The job card holders are blaming the VDB secretary, the chairman, and the Gaon Buras, thinking we are misappropriating funds. And they have every reason to believe so—because there’s no receipt for the money we’re forced to return.”
On May 31, 2025, KPVC held a general meeting where members unanimously passed a resolution to reject the RD Department’s demands. A formal letter conveying this decision was sent to the department.
Zao also revealed that, according to their 2023–24 audit report, ₹6,78,255 from the material component was returned to the department without any official documentation. He claimed this practice is part of a larger pattern of systemic corruption.
“All VDB secretaries are made to sign for the full amount, and only afterward are we asked to return a portion—in hard cash, not via cheque or bank transfer. There is no official trail for these transactions,” Zao said. He also flagged the chronic delay in the release of the material component, which often arrives months late, making project implementation difficult and defeating the purpose of MGNREGA.
“We’re not opposing any individual but the system that has plagued this department since the beginning of NREGA. I do not believe there is any central directive allowing such large deductions,” he said. “We will no longer return any funds. How long can we be blackmailed like this? If we don’t comply, they withhold our work. This has been the practice for years.”
The KPVC also claimed that the problem is not confined to their village alone but is prevalent across Nagaland, urging other village councils to speak out against what they described as a corrupted system within the RD Department.
At the time of filing this report, the RD Department had not issued any public response.
Congress Reacts, Demands Urgent Investigation
In response to the KPVC’s allegations, the Nagaland Pradesh Congress Committee issued a strongly worded statement expressing “profound outrage and grave concern” over what it described as an entrenched pattern of corruption within the RD Department.
“Recent public revelations, particularly the damning exposé by the Kacharigaon-Phevima Village Council on June 7, have once again highlighted a long-standing issue where substantial portions of MGNREGA funds—meant for rural development—are being allegedly extorted by departmental officials,” the NPCC said.
The party stressed that these funds are critical for grassroots infrastructure and serve as a lifeline for marginalized communities. Describing the reported deductions as an “insidious practice of extortion,” the NPCC claimed such actions are not isolated, but indicative of a systemic failure across the state.
“This is not an isolated incident,” the statement said. “It reflects a deeply rooted culture of corruption perpetuated under the current administration.”
The Congress unit has demanded immediate intervention from the State’s Rural Development Minister and the government, calling for a transparent investigation and legal action against those responsible.
“We demand accountability and justice for the rural people of Nagaland, who are being robbed of their rightful entitlements due to this criminal exploitation,” the party stated.
As of now, the Nagaland RD Department has not responded to either the KPVC’s allegations or the Congress party’s call for action.
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