The Centre has asked the Punjab Government to explain its utilisation of the Rural Development Fund (RDF) that it gets largely from the Food Corporation of India (FCI).
Rural Development Fund (RDF): It is the 3 per cent cess levied on the purchase or sale of agricultural produce under the Rural Development Fund Act, 1987 which is executed by Punjab Rural Development Board (PRDB) with the Chief Minister as its chairman.
The funding comes mainly from central government’s purchase agency, Food Corporation of India, which buys around 13 million tonnes of wheat and 16 million tonnes of paddy every year.
This fund is supposed to be used for the creation and maintenance of rural infrastructure in and outside mandis.
But there have been charges in the past that it was diverted by the state for other purposes.
