Supreme Court to hear Punjab's plea for release of rural development funds from Centre

New Delhi: The Supreme Court on Wednesday said it will list for hearing an interim plea of the Punjab government seeking release of over Rs 1,000 crore urgently by the Centre on account of dues claimed by the state towards the Rural Development Fund.

As soon as a bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra assembled for the afternoon hearing, a counsel representing the Punjab government said the interim plea was listed for hearing on September 2 but it could not be taken up.

Seeking an urgent hearing, the counsel said in the meanwhile, a notice should be issued to the Centre on the plea so that a response could be filed before the matter is taken up for hearing.

"We will list the IA (interim application) for the hearing," the CJI said but did not issue notice to the central government on the petition.

Earlier in the day, senior advocate Abhishek Singhvi, also appearing for the state's Aam Aadmi Party (AAP) government, mentioned the plea for an urgent hearing.

The top court had on August 30 assured the Bhagwant Mann-led government that the plea will be taken up September 2.

The state government has filed an interim 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 Punjab government had in 2023 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 claimed 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 has the prerogative of determining the market fee and the RDF for the purposes of procurement of food grains as it was recognised under the Constitution, it said.