LAHOWAL SAMABAY SAMITY Vs. STATE OF ASSAM

JUDGEMENT

(1.) Heard Mr. N. Dutta, learned senior counsel as well as Mr. K. N. Choudhury, learned senior counsel assisted by Mr. G. Z. Ahmed and Mr. H. Buragohain, learned counsel appearing for the writ petitioners. I have also heard Mr. T. C. Chutia, learned Additional Senior Govt. Advocate, Assam, appearing for the respondents.

(2.) The core question that arises for decision in this group of writ petitions is - whether or not the decision of the State Government to engage private parties as Transporters for transportation of the PDS articles for door-step delivery to the Fair Price Shops is in consonance with the Targeted Public Distribution System (Control) Order, 2015 issued under section 3 of the Essential Commodities Act, 1955? Since a common question of law arises for decision in all the writ petitions, I propose to dispose of this batch of writ petitions by this common judgment and order.

(3.) For the purpose of better appreciation of the controversy involved in this group of writ petitions, the facts in WP(C) No.6647/2015 are briefly referred to, treating the same as the lead case. W.P.(C) No. 6647/2015 has been preferred by the Chairmen, Secretaries and shareholders of several co--operative societies from the district of Dibrugarh, Assam, assailing the NIT dated 24.1.2014 inviting bids to issue transportation contract for carrying food grains from the FCI depot as well as the order dated 7.10.15 issued by the Deputy Commissioner, Dibrugarh notifying the transporters appointed the respondents no. 5 and 6 for lifting the food grains in the district under the PDS network for the month of November 2015. It is the case of the writ petitioners they are running the Whole Sale Co-operative Societies (WSCS)/ Gaon Panchayat Samabay Samity Ltd (GPSS) engaged in the business of operating the Public Distribution System (PDS) networks by lifting food grains from the depot of the FCI and ensuring their distribution to the beneficiaries through the Fair Price Shop (FPS) attached to them. Some of the GPSS run by the petitioners have their own transportation facilities and by using the same they have been lifting and transporting the PDS articles. It is the specifically pleaded case of the petitioners that the price of the grains is fixed by the government which cannot be altered by the GPSS/ FPS. Under the prevailing system, the Government pays only an amount of Rs 30/- per quintal to the GPSS for the AAY rice which also includes the commission of Rs 7/- per quintal payable to the respective FPS. Similarly, In case of the Below Poverty Line ("BPL") Scheme, the margin money provided to the GPSS is only Rs. 36 /- per quintal and in case of Above Poverty Line ("APL") Scheme the procurement price is Rs 830 /- per quintal whereas the selling price is fixed by the Government at Rs 926/- per quintal. By operating on a thin margin of profit the respective WSCS and GPSS have been surviving for decades. However, in the garb of implementation of the National Food Security Act, 2013 (for short "NFSA") an attempt is being made by the State Government to engage Transporters/ Contractors for transporting the food grains from the FCI depot for direct delivery to the FPS in a manner which is impermissible under the Targeted Public Distribution System (Control) Order, 2015 (for short "Order of 2015").