This is an archive article published on November 29, 2024
RDF release plea pending in SC, Punjab opens talks channel with Centre — with a climbdown
With the amount now burgeoning to Rs 8,000 crore, including Rs 1,300 crore for paddy procurement this season, state is hoping to secure Rs 5,400 crore as interim amount at the rate of 2 per cent RDF, as offered by the Centre
The Punjab government has decided to open a channel with the Union government to seek release of an interim amount of Rs 5,400 crore, pending with Centre on account of Rural Development Fee (RDF) and against paddy procurement that concluded recently.
This comes even as it waits for the Supreme Court to hear its interim plea seeking release of over Rs 1,000 crore urgently by the Centre against the RDF.
Punjab Finance Minister Harpal Singh Cheema Thursday reached Delhi where he will meet Union Food Minister Pralhad Joshi and discuss the issue. Sources said the government has now decided to seek an interim amount from the Centre had made it clear that it will only pay RDF at 2 per cent instead of 3 per cent, as is being levied by the state.
Punjab levies RDF on foodgrain it procures for central pool. However, for the past three years, the Centre has been withholding the amount saying it can only pay 2 per cent, RDF, a proposal that the state had earlier refused.
At the time in 2023 when state moved the Supreme Court alleging non-release of the RDF and withholding a portion of the market fee, Centre owed it Rs 4,200 crore. The pending RDF has now ballooned to Rs 6,767 crore. An additional amount of Rs 1300 crore has been added on account of procurement of paddy, taking the total amount to Rs 8,000 crore.
“We have decided to ask the Centre to pay some amount. They have already offered to pay us 2 per cent. By that measure, we deserve to get at least Rs 5,400 crore out of the total Rs 8,000 crore. Our Mandi Board is short of funds. It needs money for maintenance of the grain markets and the link roads. If the state gets some money, we can start some works,” said an official.
The official added that the state will continue its legal fight in the top court for its rightful 3 per cent RDF.
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The Supreme Court had first listed the state’s plea for a hearing on September 2 and later on September 19. However, it was not heard. Advocate General Gurminder Singh had then said, “We have pleaded that the Centre is liable to pay us RDF. The suit determination may take time. The RDF is a committed liability and at least Rs 1,000 should be credited immediately”.
In its plea, Punjab has said that Centre is obligated to pay the fee which is constitutionally levied by the state. 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 has 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).
The suit says that Punjab will suffer if Centre is allowed to discontinue the payment of the market fees and the statutory fee, at the rate determined by state. The reduction of the 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,” the suit said.
Earlier, the state had climbed down from its stand on seeking money under National Health Mission by agreeing to change facade of half of its Aam Aadmi Clinics as per the centre’s directions. It had also agreed to sign up for PM-Shri scheme for schools.
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
