REGENT COMPUTRONICS PVT. LTD.

MONNET SUGAR LTD. Appellant

V/S

UNION OF INDIA Respondents

Referred Judgements :-

JUDGEMENT

(1.) Writ petitioner filed this peittion basically challenging a press note dated 31st August, 1998 and the notification being numbered SO 808 (E) dated 11th September, 1998, which are as follows: PRESS NOTE

(2.) According to Mr. S. P. Gupta, learned Senior Counsel appearing for the petitioner, de-licensing of the sugar industry by the Union of India respondent No. 1 herein, without amending the Industries Development and Regulation Act (hereinafter called 'the said Act') is wrongful. This is an executive attempt to deregulate the sugar industry by invoking power of exemption under the said Act without parliamentary sanction. It is contrary to Industrial Policy and has far reaching effect on the State Legislation specially with special reference to the State of Uttar Pradesh. Section 29-B of the said Act gives power to the Government to make certain specific exemption which cannot be generalised. By such device the Government has usurped the power of specified in ustry. Section 29-B of the said Act gives power only in respect of the development of the scheduled industry. That does not necessarily mean that the Government should loose the control upon the industry. Development of the industry is to be made by the Central Government in consultation of the concerned State. Both the Central and the State Governments had communicated several other regulations and framed Rules etc. to regulate the supply and to ensure equitable distribution of sugar and related raw material such as sugarcane. The procurement of sugarcane, the sale and price of sugar, the price of the end products of the factory, including molasses, the export etc. of sugar are all controlled by several Acts in all States with specific reference to the State of Uttar Pradesh. Even if the control through licensing under the IDR Act has sought to be eliminated, the control of the several areas of sugar production, procurement of raw-material, sale of the waste products as also the marketing through exports and within the country continue to be regulated through the several Central and State Acts. A list of such Acts is quoted hereunder :-

(3.) Therefore, delicensing policy of sugar industry is arbitrary and does not stand informed by any rationale. While carving liberty to be referred through the various policy notifications issued by the Central Government from time to time, the said guidelines ensured consultation with State Government about setting up new unit. The earlier notification dated 25th July, 1991 was completely changed by the 1998 amendment by de-licensing the sugar industry.

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MONNET SUGAR LTD Vs. UNION OF INDIA

Referred Judgements :-

JUDGEMENT

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