SC to Hear Punjab Govt’s Plea Seeking Urgent Release of Rural Development Fund on Sept 2

The Supreme Court on Friday stated that it will hear an interim plea from the AAP-led Punjab government on September 2, seeking the urgent release of over Rs 1,000 crore from the Centre, related to alleged dues under the Rural Development Fund.

A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra was informed by lawyer Shadan Farasat, representing the state government, that the matter was not listed on the apex court’s website for September 2. The lawyer noted that he had been assured the matter would be listed on that date.

“We will see,” responded the CJI, indicating that the matter would be addressed.

The Punjab government has filed an interlocutory application (IA) in an ongoing lawsuit against the Centre, seeking the urgent release of over Rs 1,000 crore as an interim measure.

In 2023, the Bhagwant Mann-led government moved the Supreme Court, alleging the Centre’s non-release of the Rural Development Fund (RDF) and the withholding of a portion of the market fee. The state claims that the Centre owes Punjab over Rs 4,200 crore.

The plea argued that the RDF and market fee are essential for the effective functioning of the procurement process. It also asserted that the state government has the prerogative to determine the rates for the market fee and RDF for food grain procurement, as recognized under the Constitution.

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