RAKESH AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ petition is filed for direction to the Government to conduct a thorough audit and investigation by the Comptroller and Auditor General into the Market Intervention Operations (hereinafter referred to as MIO for short) undertaken by National Dairy Development Board at the behest and on the mandate by the Government of India. It is alleged that National Dairy Development Board had deliberately flouted the terms and conditions of MIO as stipulated in the letter dated 6th April, 1989 thereby causing loss to the National exchequer. Reference is made to the report of Mr. P.V. Desai which has mentioned that the Union of India had suffered loss of Rs.71.53 crores as on 31st March, 1992 due to violation of MIO by National Dairy Development Board. This figure includes loss of Rs.10.79 crores on account of excess interest paid to the banks, Rs.14.36 crores loss on reduced value of the inventory, Rs.37.64 crores towards trading loss and Rs.8.74 crores for excess price charged by STC for importing Palmolein. During the course of arguments, our attention was also drawn to the findings and observations in the report of Mr. P.V. Desai, which has been placed on record.

(2.) Learned counsel for the respondent no.2-National Dairy Development Board, on the other hand, has referred to the National Dairy Development Board Act, 1987 (hereinafter referred to as the Act, for short) and stated that the Board is a corporate body. Reliance was placed upon Sections 28, 29 and 47 of the said Act. Our attention is also drawn to the reasons why the MIO was introduced by the Government of India and the facts and figures show that the entire operation was successful and had achieved the desired result.

(3.) In the late 1980's, India was not self-reliant in oil seeds. Oil seeds/edible oil was being imported on payment made in foreign exchange, which was scarce. Indian consumers suffered because they had to pay higher prices due to scarcity and as prices were volatile. In India, the consumer price was four times higher than the price of edible oils available abroad.