Today, On 18th September, The Supreme Court set to hear Punjab’s petition seeking the release of rural development funds from the central government. Punjab claims that these withheld funds are crucial for ongoing rural projects in the state. The plea emphasizes the need for financial support to ensure the progress of development initiatives in rural areas.
New Delhi: The Supreme Court, On Wednesday, announced it would schedule a hearing for an interim plea filed by the Punjab government, seeking the urgent release of over Rs 1,000 crore from the Centre, which the state claims are dues under the Rural Development Fund (RDF).
During the afternoon session, a bench led by Chief Justice D.Y. Chandrachud, along with Justices J.B. Pardiwala and Manoj Misra, heard the plea from a counsel representing Punjab.
The counsel noted that while the plea listed for hearing on September 2, it had not been addressed.
Requesting an urgent hearing, the counsel also asked for a notice to be issued to the Centre to secure a response before the next hearing.
In response, Chief Justice Chandrachud stated,
“We will list the IA (interim application) for the hearing,”
But did not issue a notice to the central government at that time.
Earlier, senior advocate Abhishek Singhvi, representing the Aam Aadmi Party (AAP)-led Punjab government, had also mentioned the plea, emphasizing the need for an urgent hearing. On August 30, the Supreme Court assured Punjab’s Bhagwant Mann government that the plea would be considered on September 2.
Punjab’s lawsuit against the Centre, which filed earlier in 2023, centers on the alleged withholding of the Rural Development Fund and a portion of the market fee by the central government. The state claims that the Centre owes it over Rs 4,200 crore in total. The RDF and market fee are essential to ensuring the smooth operation of food grain procurement, and the state government maintains that it has the constitutional authority to determine these fees.
Punjab argues that the failure to release these funds is hindering its ability to manage its procurement operations, a critical issue for a state heavily dependent on agriculture.
The plea also argued that determining the market fee and RDF falls under the state government’s authority as recognized by the Constitution.
The Supreme Court’s decision to hear the case could bring significant financial relief to Punjab, which has been struggling with the delayed release of these funds. The outcome will be closely watched, as it could set a precedent for how such financial disputes between states and the Centre are handled in the future.