Kochi: The Kerala High Court has ordered that the entire Rs 1,510 crore collected by the state government as fees for land conversion (land regularisation) from landowners must be exclusively used to promote paddy cultivation. The amount is to be transferred to the Agricultural Promotion Fund, designated for the protection of paddy fields.
A division bench comprising Justices Nitin Jamdar and S. Manu directed that 25% of the amount be transferred within four months, with the remaining 75% to be disbursed in three instalments over one year. Additionally, fees collected from December 1 onwards must be directly deposited into the fund.
The government has been instructed to decide within two months on the specific purposes for which the fund will be utilised and to publish the details on the Revenue Department’s website. The court also mandated annual audits of the fund by the State Audit Department, with the accounts to be made publicly available.
Court’s response to petition
The directions were issued in response to a petition filed by T.N. Mukundan, a resident of Thrissur. The Kerala Conservation of Paddy Land and Wetland Act, 2008, mandates the creation of an Agricultural Promotion Fund to protect paddy fields and reclaim converted lands for cultivation. However, the petitioner argued that the funds had not been utilised for restoring paddy fields and wetlands.
The court observed that in the 1970s, paddy cultivation in Kerala covered 8 lakh hectares but has since declined to just 2 lakh hectares, adversely affecting the state’s socio-economic conditions.
Misuse of funds
According to an affidavit submitted by Land Revenue Commissioner Dr A. Kowsigan, the government collected Rs 1,510 crore from land conversions between the enactment of the law and October 18, 2024. However, only Rs 6 lakh was allocated for agricultural promotion.
The court criticised the utilisation of Rs 15.35 crore for staff salaries (temporary), computerisation, and vehicle rentals, stating these expenses could not be considered as promoting agriculture.
The court also highlighted the failure of the Civil Supplies Corporation to pay farmers for procured paddy, noting that loans were being availed for this purpose.
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