The Supreme Court of India has agreed to consider an urgent plea from the Punjab government for the release of over Rs 1,000 crore in rural development funds from the Centre. The plea, filed by the AAP-led government in Punjab, highlights a pressing need for these funds to support rural development initiatives.
Chief Justice D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, responded to the request made by lawyer Shadan Farasat, representing the Punjab government. Farasat emphasized the urgency of the situation, stating, “We are only requesting that the interlocutory application be listed next week…if possible. There is an urgent need for funds.”
The Chief Justice agreed to list the plea for an early hearing, recognizing the critical nature of the request.
The contention stems from a broader legal battle where the Punjab government, under Chief Minister Bhagwant Mann, accuses the Central government of withholding significant funds due to the state. The claim involves more than Rs 4,200 crore, which Punjab asserts is owed by the Centre. This sum includes allocations from the Rural Development Fund (RDF) and a portion of the market fee collected, both crucial for the state’s agricultural sector.
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The RDF and market fees are integral to Punjab’s procurement processes, facilitating the effective functioning and management of food grain procurement. The state government has argued that it holds the constitutional prerogative to set the rates for these fees and funds, essential for maintaining the economic stability of its rural areas.
