Hope floats for Punjab as Supreme Court set to hear plea for release of RDF pending with Centre

Talking to the Indian Express, Punjab Advocate General Gurminder Singh said, 'Our plea will be listed tomorrow.'

4 min readSep 19, 2024 08:02 AM IST

The top court had on August 30 assured the Punjab government that the plea will be taken up September 2. (File Image)

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

As soon as a bench led by Chief Justice D Y Chandrachud assembled for the afternoon hearing, a counsel representing the Punjab government said the interim plea was listed for hearing on September 2 but 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 bench, also comprising Justices J B Pardiwala and Manoj Misra, said but did not issue notice to the central government on the petition. Earlier in the day, senior advocate Abhishek Manu Singhvi, also appearing for the state’s Aam Aadmi Party (AAP) government, mentioned the plea for an urgent hearing.

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Talking to the Indian Express, Punjab Advocate General Gurminder Singh said, “Our plea will be listed tomorrow. We have contended that the Centre is liable to pay us the RDF. The suit determination may take time. The RDF is a committed liability and at least Rs 1,000 crore should be credited immediately.”

The top court had on August 30 assured the Punjab 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 Centre owed Rs 4,200 crore to Punjab when the state government had moved the Supreme Court in 2023 alleging non-release of the RDF and withholding a portion of the market fee. The pending RDF has now ballooned to Rs 6,767 crore.

The state government procures foodgrains for the central pool and used to charge 3 per cent RDF. The Centre has told the Punjab government that it can only pay 2 per cent, RDF, a proposal that the state has refused. Punjab has been arguing that levying a statutory fee was the right of the state and the purchaser would have to pay it.

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In its plea, the state has contended that 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.

The state has further contended that the Centre’s actions are also in violation of the Modified Fixation Principles that recognize the autonomy of the state to determine the fees to be levied and subsequently reimbursed with by the defendant (Union government of India).

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The Centre is obligated to pay this fee. The mere fact that this fee is being paid in respect of acquisition, which the state is carrying out for the Centre, does not in any way change this underlying constitutional/ legal position.

It further says that Punjab will suffer if Centre is allowed to discontinue the payment of the market fees and the statutory fees, at the rate determined by the state. Any reduction in statutory charges at this stage would adversely affect the rural infrastructure and economy. Further, the Punjab State Agricultural Marketing Board/ Punjab Development Board will not be able to pay the loans/ liabilities created for development of rural infrastructure in respect of the outstanding payments accrued on account of the market fees and RDF.

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“Thus, there exists a dispute, involving questions of law and fact, between the plaintiff state and the defendant Union of India, regarding the encroachment of jurisdiction and encroachment of legal rights as a state. Hence, this original suit under Article 131 of the Constitution of India is being preferred,” read the petition.

Kanchan Vasdev

Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India. Professional Background Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state. Experience: She previously worked with The Tribune and has played a key role in launching various city editions. Special Projects: Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship. Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river. Recent Notable Articles (Late 2025) Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government: 1. Legislative & Governance Standoffs "Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA. "Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor. "Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas. 2. Political Analysis & Rural Polls "Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections. "AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections. "Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership. 3. Law Enforcement & Bureaucracy "Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government. "Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP. 4. Welfare & Economy "Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program. "Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025). Signature Beat Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens. X (Twitter): @kanchan99 ... Read More

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