Kerala High Court Asks State To Transfer ₹1510 Crore Paddy Land Conversion Fee To Agricultural Promotion Fund In Next 12 Months

The Kerala High Court has ordered the State to remit the entire amount it collected as application fee for conversion of paddy land since the enactment of Kerala Conservation of Paddy Land and Wetland Act, 2008 to the Agricultural Promotion Funds (APF) in the next 12 months. The State Level Officer responsible for managing the Agriculture Promotion Fund informed the Court that a total amount of Rs. 1510,14,45,300 has been collected under this head. The Division Bench of Chief Justice Nitin Jamdar and Justice S. Manu ordered for this entire amount is to be transferred to the Agricultural Promotion Funds.The order was passed in a PIL filed by T. N. Mukundan pointing out that the APF is not being used for reclamation of paddy fields. Rule 12 of the Kerala Conservation of Paddy Land and Wetland Rules of 2008 framed under the Act mandates that the money collected from the owner of a land for allowing conversion of the paddy land shall be credited to the APF. As per the Act, the Fund shall be managed by a State Level Officer and shall be audited by the State Audit Department. However, the State Government informed the Court that the regularization charges collected under the Act are directly credited to the Consolidated Fund of State Government and from there some amount is used for the purpose of the Act. The Court held that such an arrangement is not permissible within the current statutory framework. It thus directed that the money collected for conversion of paddy field under Section 27A (3) of the Act be credited directly to the APF from December 2024 onwards.It further directed that the money collected under this head until now shall be transferred to the fund within next 12 months. 25% of the amount shall be transferred in the next 4 months. The rest 75% shall be transferred in the next 12 months in a phase-wise manner of 25% every 4 months. The Court also ordered an yearly audit of the fund by the State Audit Department.Rule 14 says that the amount in the APF should be used for the requirements under the Act, for promotion of paddy cultivation, for restoration of paddy fields etc.. The Court was informed about several orders of District Collector to restore illegally converted paddy land have not been implemented due to shortage of funds. The Court also noted that many paddy cultivators who sold their crops to the Civil Supplies Corporation are not being compensated for their produce while loans are being advanced because the funds have not been utilized.It has now directed the State to decide the minimum percentage of amount to be allocated for each head within 2 months and publish the information on the website.Case No: WP(C) 26592 of 2022Case Title: T. N. Mukundan v State of Kerala and OthersCitation: 2024 LiveLaw (Ker) 767Click Here To Read/ Download Order

Kerala High Court Asks State To Transfer ₹1510 Crore Paddy Land Conversion Fee To Agricultural Promotion Fund In Next 12 Months

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Kerala High Court Asks State To Transfer ₹1510 Crore Paddy Land Conversion Fee To Agricultural Promotion Fund In Next 12 Months

Manju Elsa Isac

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