SC to hear Punjab's plea for release of rural development funds on Sept 2

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

A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra was told by lawyer Shadan Farasat, appearing for the state government, that the apex court website does not show the matter listed in the list of business of September 2.

The lawyer said he was assured that the matter will be listed on that day.

We will see, the CJI said, adding the matter will be taken up.

The state government has filed an interlocutory application (IA), in a pending lawsuit against the Centre, and has sought urgent release of over Rs 1,000 crore as an interim measure.

The Bhagwant Mann government, in 2023, had moved the top court alleging non-release of the Rural Development Fund (RDF) and withholding a portion of the market fee by the Centre.

It alleged that the Centre owed Punjab over Rs 4,200 crore.

The plea said the RDF and market fee enabled the effective functioning of the procurement process.

The state government had a prerogative in determining the rates for the market fee and the RDF for the purposes of procurement of food grains as it was recognised under the Constitution, it said.