AMMDAE DYES PRIVATE LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) ON account of the prevalent power shortage in Rajasthan it was felt necessary to encourage Small Scale Industries to install their own Diesel Generating Sets for generating power to meet their requirements. The State Government therefore made the Rajasthan Grant of Subsidy for Purchase of Diesel Generating Sets Regulation, 1982 (for short `the Regulations) which came into force w. e. f. January 1, 1982. Pursuant to Regulations the petitioner was granted sum of 59,750/- as subsidy by Rajasthan Financial Corporation (RFC) on August 20, 1982. But after 11 years i. e. on August 26, 1993 the RFC served a notice to the petitioner asking the petitioner to deposit Rs. 1,91,972/- on or before September 15, 1993. The petitioner in its reply dated September 6, 1993 informed RFC that subsidy was granted to the petitioner as assistance and not as a loan therefore it was not recoverable. The RFC did not pay any heed to the reply and forwarded the matter to Collector (Recovery) Jaipur, who in turn proceeded against the petitioner under Section 229 of the Rajasthan Land Revenue Act, 1956 and issued notice to the petitioner on August 3, 1995 asking the petitioner to deposit a sum of Rs. 2,14,359/ -. The petitioner in the instant writ petition seeks to quash the aforesaid notices issued by RFC and Collector (Recovery) Jaipur.

(2.) THE RFC filed return with the averments that the petitioner committed breach of conditions of subsidy rules therefore Subsidy Committee in its meeting held on September 4, 1987 withdrew the benefits of subsidy and thus the amount paid to the petitioner was recoverable. It was further pleaded that the petitioner by purchasing old DG Set committed breach of condition No. 6 of the sanction letter.

(3.) FOR these reasons, I allow the writ petition and set aside impugned notices dated August 20, 1982 and August 3, 1995. I restrain the respondents from effecting recovery of subsidy granted to the petitioner in terms of Regulation. There shall be no order as to costs. .