The West Bengal government on Tuesday announced that it will start disbursing funds for the Banglar Bari housing scheme to 12 lakh beneficiaries after the Centre stopped funding to the state under the Pradhan Mantri Awas Yojana in 2021, The Economic Times reported.

“Today is a historic day,” Chief Minister Mamata Banerjee was quoted as saying. “Despite our restricted resources, the state government with its funds and from its own exchequer, we will start disbursing funds for the people in 21 districts and 12 lakh families.”

Fresh surveys had been conducted to identify the beneficiaries under the Banglar Bari (Rural) scheme, the chief minister said.

Banerjee said that 28 lakh beneficiaries had been identified and funds for the remaining 16 lakh families will be disbursed in the next phase. The 16 lakh families will receive Rs 1.2 lakh each in two instalments before 2026, she added.

West Bengal is expected to head for Assembly elections in or before April 2026.

The chief minister added: “We decided to disburse funds for 11 lakh houses for people and also houses for 1 lakh people, who got affected due to cyclone and other natural calamities in North Bengal.”

Banerjee had said earlier, while announcing the Banglar Bari housing scheme, that it would be run without the Union government’s support. She had accused the Centre of withholding funds allocated to West Bengal under the Pradhan Mantri Awas Yojana for the past three years.

The Pradhan Mantri Awas Yojana was launched in 2015 to provide affordable housing for all in urban areas by 2022. The scheme was extended by two years to facilitate the completion of 1.2 crore houses.

The Union government has alleged irregularities in West Bengal’s implementation of central schemes, including the Pradhan Mantri Awas Yojana.

On December 4, Union Rural Development Minister Shivraj Singh Chouhan said that the Centre has the right to investigate alleged irregularities.

“Investigation was done, irregularities were found,” The Indian Express quoted Chouhan as having said. “Now if any irregularity is found, the Centre will have to take action.”

Chouhan added: “If the specific purpose for which we are giving money is not fulfilled by anyone; the name of the scheme is changed; ineligible people are made eligible, eligible people are made ineligible; big work is given in small instalments to misuse it…”

The withheld funds would be released if the state complies with certain criteria, the Union minister had said.

Banerjee claimed that around Rs 24,000 crore is due from the Centre under the Pradhan Mantri Awas Yojana.

“We don’t beg from them,” Banerjee said. “We are demanding our rightful demands.”

She alleged that no progress had been made on the deadlock despite the Union government having sent 69 investigation teams to the state in the past four years.

The chief minister added that apart from the Pradhan Mantri Awas Yojana, West Bengal had also not received funds for the Mahatma Gandhi National Rural Employment Guarantee Act, the Rural Sadak Yojana and the Other Backward Class scholarships.