Is a state law hiking levy binding on central govt?
Punjab and the Centre in the Supreme Court, which raises a broader issue: whether state legislation that raises fees for foodgrain procurement under central PDS schemes is binding on the Union government.
Punjab raised the levy to 6% of the minimum support price (MSP) for all foodgrains procured from the state, while the Centre agreed to reimburse only 2% of this levy, a standard rate applied across all states, to cover procurement costs.
This state levy, reimbursed by Centre to states, is over and above the cost of foodgrains it pays to states. These foodgrains are distributed free or at subsidised prices to weaker and vulnerable sections of society under the Pradhan Mantri Garib Kalyan Anna Yojana, Antyodaya and Targeted Public Distribution System.
Raising a Centre-state dispute under Article 131 of the Constitution on the Centre's refusal to reimburse 6% levy mandated under state laws, Punjab has taken a stand that «the state holds exclusive power to determine the statutory charges to be levied on procurement of foodgrains on Centre's behalf».
Centre refuted the assertion and said, «There is no legal right under any parliamentary law which requires Centre to consider, or act upon such determination of levy by a state… As per the MoU entered by the states and Centre, Union govt is entitled to determine the rates concerning procurement of foodgrains for distribution under central schemes.»
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, Developer and
