Kerala HC Orders Rs 1,510 Crore Land Conversion Fund to Be Used Exclusively for Paddy Cultivation

Court Criticizes Misuse of Funds and Mandates Audit and Transparency

Kochi: The Kerala High Court has taken a firm stand against the misuse of funds collected for land conversion, directing the state government to allocate the entire ₹1,510 crore toward promoting paddy cultivation. This amount, collected as fees from landowners for regularizing land use, is to be transferred to the Agricultural Promotion Fund specifically designated for paddy field preservation.

The court, comprising Justices Nitin Jamdar and S. Manu, has ordered the transfer of 25% of the fund within four months and the remaining 75% in three instalments over the next year. Furthermore, fees collected after December 1 must be directly deposited into the fund. To ensure accountability, the government must decide within two months on how the fund will be utilized, publish these plans on the Revenue Department’s website, and conduct annual audits by the State Audit Department.

The directives came in response to a petition by Thrissur resident T.N. Mukundan, who highlighted that funds collected under the Kerala Conservation of Paddy Land and Wetland Act, 2008, were not being used to restore paddy fields. The court noted a dramatic decline in paddy cultivation from 8 lakh hectares in the 1970s to just 2 lakh hectares, severely impacting Kerala’s socio-economic landscape.

An affidavit by Land Revenue Commissioner Dr. A. Kowsigan revealed that out of ₹1,510 crore collected, a mere ₹6 lakh had been allocated for agricultural promotion, with ₹15.35 crore spent on staff salaries, computerization, and vehicle rentals. The court criticized these expenditures, declaring them unrelated to agricultural revival. It also pointed out issues like delayed payments to farmers by the Civil Supplies Corporation, forcing reliance on loans.

This judgment aims to ensure the funds are redirected towards sustainable agricultural development, particularly the rejuvenation of Kerala’s paddy fields.

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