Today(on 30th Aug),The Supreme Court is scheduled to hear the Punjab government’s plea on September 2, 2023, seeking the urgent release of over Rs.1,000 crore from the Centre. The funds are claimed to be crucial for the state’s Rural Development Fund and procurement operations.
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NEW DELHI: Today(on 30th Aug), The Supreme Court of India is set to hear an important plea from the Punjab government, led by the Aam Aadmi Party (AAP), seeking the urgent release of over Rs.1,000 crore from the Central government. The hearing is scheduled for September 2, 2023. This amount is allegedly owed to Punjab as part of the Rural Development Fund (RDF), which the state claims is crucial for maintaining the smooth operation of its procurement processes.
Background of the Dispute
The dispute between the Punjab government and the Centre has been ongoing, with Punjab asserting that the Central government has withheld significant dues that belong to the state under the RDF. The state claims that these funds are critical for its rural development initiatives and for ensuring that the procurement of food grains continues without any hindrance.
In 2023, the Punjab government, under Chief Minister Bhagwant Mann, approached the Supreme Court, accusing the Centre of not releasing the RDF and withholding a portion of the market fee. According to the state, the Centre owes Punjab a total of over Rs.4,200 crore, which includes the RDF and the market fee that is essential for the effective functioning of the procurement process.
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Today(on 30th Aug), the Supreme Court bench, consisting of Chief Justice D Y Chandrachud, Justice J B Pardiwala, and Justice Manoj Misra, was briefed by lawyer Shadan Farasat, who is representing the Punjab government. Farasat expressed concern that the case was not listed on the Supreme Court’s website for the September 2 hearing, despite earlier assurances.
He emphasized-
“I was assured that the matter will be listed on that day,”
to which the Chief Justice responded-
“We will see.”
The CJI further assured that the matter would indeed be taken up on the scheduled date.
The Punjab government has filed an interlocutory application (IA) as part of an ongoing lawsuit against the Centre. This application seeks the urgent release of the over Rs.1,000 crore as an interim measure to mitigate the immediate financial strain on the state.
Importance of the Rural Development Fund (RDF)
The Rural Development Fund (RDF) and the market fee are vital components of Punjab’s agricultural framework. These funds facilitate the efficient operation of procurement processes, which are essential for the state’s agrarian economy. Punjab argues that the state government has the prerogative to determine the rates for both the market fee and the RDF, a power recognized under the Constitution.
The plea filed by Punjab underscores the significance of these funds in ensuring that farmers are paid on time and that procurement operations run smoothly. Without the release of these funds, the state government fears a disruption in the procurement process, which could adversely affect the agricultural sector in Punjab.
