Kerala High Court directs state govt to utilize Agricultural Promotion Fund to conserve paddy lands, wetlands

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The Kerala High Court has directed the state government to utilize the Agricultural Promotion Fund for the conservation of paddy lands and wetlands in the state.

The court’s decision comes in response to two public interest litigations (PILs) filed by a petitioner highlighting the non-utilization of the fund for its intended purpose.

The Division Bench of Chief Justice Nitin Jamdar and Justice S Manu noted that the Kerala Conservation of Paddy Land and Wetland Act, 2008, mandates the constitution of an Agricultural Promotion Fund to promote the growth of the agricultural sector and sustain the ecological system in the state.

However, despite collecting over ₹1510 crores as conversion charges, the state government has failed to deposit the amount into the fund and utilize it for the specified purposes.

The court observed that the state government’s actions are in contravention of the provisions of the Act and the Rules of 2008.

The court held that the amount collected under Section 27A of the Act must be deposited into the Agricultural Promotion Fund and utilized according to Rule 14 of the Rules of 2008.

The court issued several directions to the state government, including the direct crediting of amounts collected under Section 27A of the Act into the Agricultural Promotion Fund from December 1, 2024, onwards.

The court also directed the state government to transfer 25% of the amount collected as fees under Section 27A of the Act to the Agricultural Promotion Fund within four months and the remaining 75% in a phased manner over the next 12 months.

Furthermore, the court directed the state government to conduct a yearly audit of the Agricultural Promotion Fund and publish the results on the website of the concerned department.

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