SHAKTI INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) The present petition under Article 226 of the Constitution of India seeks quashing of the communication dtd. 4/2/2020 issued by the respondent/Ministry of Food Processing Industries (hereinafter referred to as 'the MOFPI'), whereby the petitioner's prayer for release of the second instalment of grant-in-aid under the Scheme for Technology Upgradation/ Establishment/ Modernization (hereinafter referred to as 'TUEM Scheme'), was rejected. Consequently, the petitioner, also seeks a direction to the respondent, to forthwith release the balance amount payable towards the second instalment under the TUEM Scheme for grant-in-aid.

(2.) On 10/4/2007, the MOFPI launched the TUEM Scheme, with a view to advance the technology used in the industry by reducing the wastage of agricultural and horticultural produce, for the purpose of assisting entrepreneurs to set up food processing units. All eligible food processing units under various sectors were to be provided financial assistance of 25% of the cost of the plant, machinery and technical civil works, subject to a ceiling of Rs.50.00 lakh in general areas and of 33.33%, in difficult and North-Eastern areas with a ceiling of Rs.75.00 lakh.

(3.) As per the guidelines, issued under the TUEM Scheme, the Banks/Financial Institutions were assigned the responsibility of receiving the application of grants-in-aid, calculating the grant payable under the guidelines, uploading the online requisition of the grant through the E-portal, verifying the documents required to be submitted by the firm and then forwarding these documents to the MOFPI through the Nodal Bank of the applicant. Under the TUEM Scheme, the grants-in-aid were also to be released to the concerned Bank, which was then responsible for the disbursement of the grant to the beneficiaries.