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CASE NO.: Writ Petition (civil)  274 of 2005

PETITIONER: U.P. Roller Flour Mills Association & Ors

RESPONDENT: Govt. of India & Ors

DATE OF JUDGMENT: 05/10/2007

BENCH: Dr. ARIJIT PASAYAT & P. SATHASIVAM

JUDGMENT: J U D G M E N T

WRIT PETITION (C) NO. 274 OF 2005   

Dr. ARIJIT PASAYAT, J.  

1.      In this petition under Article 32 of the Constitution of  India, 1950 (in short the ’Constitution’) the petitioners have  highlighted that that there has been alarming increase in  diversion of food stocks meant to be supplied under the Public  Distribution System (in short ’PDS’).  It is stated that highly  subsidized wheat stocks supplied by the Central Government  for distribution through PDS under several schemes are being  diverted to rolling flour mills of different States.  These stocks  have been procured by the Central Government from Food  Corporation of India (in short ’FCI’).  Special reference has  been made to the State of West Bengal and North-East States.   It is alleged that instead of supplying them to the needy  consumers and the intended beneficiaries they are being  diverted to the open market.  Several statistical data have been  furnished. The States of Assam and West Bengal have filed  counter affidavits and have denied the allegations and have  submitted that all possible measures have been adopted to  ensure that the foodgrains reach the intended beneficiaries.   

2.      Learned counsel for the petitioners have referred to some  newspaper reports indicating that foodgrains worth more than  rupees thirty one thousand crores have been siphoned off from  public distribution system.   3.      These allegations have been refuted by the learned  counsel for the different States.  It is to be noted that the  Government of India, Ministry of Food and Consumer Affairs,  Department of Food and Civil Supplies, by letter dated 13th  December, 1997 brought to the notice of the Food Secretaries  of all State Governments and Union Territories Administration  that the scheme of custom milling was extended for a period of  one year upto 31.10.1997 on the express conditions stipulated  by letter dated 4th November, 1996.  It was stated that the  scheme was further reviewed and it was decided not to extend  it further.  The scheme of custom milling of PDS wheat stood  withdrawn/discontinued.   

4.      The Government of Assam, it is urged by learned counsel  for the State, took follow up action on the basis of the  aforesaid letter.  A writ petition was filed before the Gauhati  High Court questioning the action taken by the Assam  Government in terms of aforesaid letter of the Government of

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India. The impugned annexures were quashed by a learned  Single Judge.  The matter was carried in writ appeals before  the Division Bench which set aside the orders of the learned  Single Judge.  However, direction was given to work out the  modalities to ensure that the beneficiaries are not affected.      5.      It appears that the Government of Assam found that the  beneficiaries were not interested in taking the whole grain and  instead wanted Atta.  This aspect was also examined by the  Central Government.  It was noted that the workers in the tea  gardens had shown reluctance to take whole grain and instead  preferred Atta.  The Government of India also took note of the  request of the Assam Government for continuation of milling  Above Poverty Line (in short ’APL’) into wholemill Atta for  distribution through PDS. It was suggested by learned counsel  for the Government of Assam that the distribution can be  made through Gram Panchayats who in turn can get the  wheat converted into Atta for supply to the beneficiaries.      

6.      Learned counsel for the petitioners on the other hand  submitted that it would not be desirable to adopt such a  course as there is possibility of manipulations and lack of  accountability.  It is undisputed that the distribution under  the PDS is done through the Fair Price Shops (in short ’FPS’).   

7.      Considering the intention behind the programme, we  direct following modalities to be adopted:        

(1)     The concerned Associations/Gram Panchayats/Local  bodies shall assess the need of wheat for the intended  beneficiaries.  The need shall be indicated to the State  Government.  (2)     They shall indicate the quantum of wheat which is to be  converted into Atta to be given to the beneficiaries on the  basis of their option.  In other words, those beneficiaries  who want to take wheat shall indicate to them and those  who want to take Atta shall similarly indicate their  option. On the basis of such intimation as noted above,  Associations/Gram Panchayats/Local bodies shall  convey the requirement to the State Government.            (3)     The quantity indicated for conversion into Atta shall be  given to the Mills, who after converting wheat into Atta,  shall supply it to the FPS so that the intended  beneficiaries can get them from the FPS at rates fixed by  the concerned governments. (4)     The State Governments shall ensure that the actual  requirement is being projected by the Associations/Gram  Panchayats/Local bodies and similarly whether after  milling the supply is made to the FPS to be supplied  finally to the consumer. (5)     The State Governments shall quarterly submit the  necessary data for the information of the Central  Government who shall also ensure that all possible steps  are being taken by the State Governments to fulfil the  intended objectives.  

8.      The writ petition is accordingly disposed of.