The Kerala High Court recently issued a significant ruling emphasizing the proper utilization of funds collected under the Kerala Conservation of Paddy Land and Wetland Act, 2008. The directive mandates the state government to transfer ₹1,510 crore, collected as paddy land conversion fees, to the Agricultural Promotion Fund (APF) within a stipulated timeline. This decision, delivered by a bench comprising Chief Justice Nitin Jamdar and Justice S. Manu, is a response to a public interest litigation (PIL) highlighting the mismanagement of these funds.
Background of the Case
The PIL, filed by T.N. Mukundan, questioned the state's adherence to statutory requirements under the Kerala Conservation of Paddy Land and Wetland Act, 2008. The Act and its accompanying rules mandate that fees collected for converting paddy land must directly fund activities like paddy cultivation promotion, field restoration, and related conservation efforts. However, the state government admitted to crediting these fees into the Consolidated Fund and reallocating only a portion for the intended purposes. This diversion, the petitioner argued, hindered effective conservation and development of agricultural activities.
Court’s Findings and Observations
The court identified critical lapses in fund management and allocation, emphasizing that the current practice violated the Act's provisions. Specifically, it noted:
- The ₹1,510 crore collected since the Act's inception had not been appropriately transferred to the APF.
- Rules 12 and 14 of the Act explicitly dictate that funds collected for paddy land conversion should be deposited into the APF and utilized for specific agricultural purposes.
- Numerous orders issued by district collectors to restore illegally converted paddy lands remained unimplemented due to inadequate funds.
- Financial constraints also delayed payments to paddy cultivators who sold their produce to the Civil Supplies Corporation, further exacerbating the issue.
Court’s Directives
To rectify these issues, the court outlined a phased plan for transferring the funds:
- Initial Transfer: Within four months, the government must transfer 25% of the total amount.
- Subsequent Installments: The remaining 75% should be transferred in three equal installments over the next 12 months.
- Future Collections: All future fees collected under Section 27A(3) of the Act must be directly credited to the APF without routing through the Consolidated Fund.
Additionally, the court mandated:
- Annual audits of the APF by the State Audit Department to ensure transparency.
- The state government to define and publish minimum allocation percentages for various fund applications within two months.
Implications for Agricultural Conservation
This directive has profound implications for Kerala's agricultural sector. By ensuring that funds are used as intended, the ruling aims to:
- Enhance paddy field reclamation efforts.
- Promote sustainable agricultural practices and bolster food security.
- Support financially struggling farmers by improving fund accessibility for compensations and loans.
The decision underscores the judiciary's role in holding the executive accountable and ensuring compliance with legislative mandates. It also highlights the importance of financial discipline in achieving environmental and agricultural sustainability goals.
Challenges Ahead
Implementing the court's directives will require robust administrative efforts. Ensuring timely fund transfers, auditing compliance, and transparent fund utilization pose logistical and operational challenges. Furthermore, public awareness and vigilance will be crucial in monitoring the process and preventing future lapses.
This judgment marks a pivotal step in strengthening Kerala's commitment to agricultural development and environmental conservation. By aligning financial practices with legislative objectives, it paves the way for more responsible governance in managing natural resources and supporting rural livelihoods.
This case emphasizes the significance of judicial intervention in upholding environmental and agricultural laws and safeguarding public welfare.
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