U.P. ROLLER FLOUR MILLS ASSOCIATION AND ORS. versus GOVT. OF INDIA AND ORS.

Citation: [2007] 10 S.C.R. 569 · Decided: 05-10-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Disposed off
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Judgment (excerpt)

J 
U.P. ROLLER FLOUR MILLS ASSOCIATION AND ORS. 
A 
v. 
GOVT. OF INDIA AND ORS. 
OCTOBER 5, 2007 
B 
{DR. ARIJIT PASAYAT AND P. SATHASIV AM, JJ.) 
Constitution of India, 1950-Article 32-Allocation of subsidized 
wheat stocks by Government of India through Public Distribution C 
System-State of West Bengal and Assam diverting the same to open 
market on subsidized rates instead of intended beneficiaries, causing 
loss of several crores-Writ Petition before Supreme Court-Held: 
Directions issued to the concernedAssociations/Gram Panchayats/ 
Local bodies to assess the need of wheat/atta for the intended 
beneficiaries which would be conveyed to the State Government who D 
would then supply it to the Fair Price Shop to be finally supplied to . 
the consumer. 
The instant writ petition has been filed to highlight that the State 
of West Bengal and North-East States are diverting highly subsidized E 
wheat stocks supplied by the Central Government for distributicm 
through Public Distribution System under several schemes, to rolling 
flour mills of different States depriving the needy consumers and the 
intended beneficiaries and causing loss of several crores to the public 
exchequer. 
F 
Different states refuted the allegations. However, the Government 
of Assam was directed to work out the modalities to ensure that the 
beneficiaries are not affected. The Government of Assam found that 
the beneficiaries were not interested in taking the whole grain and G 
instead wanted Atta and wanted continuation of milling Above Poverty 
Line into wholemill Atta for distribution through PDS. 
Disposing of the writ petition, the Court 
569 
H 
570 
SUPREME COURT REPORTS 
(2007] 10 S.C.R. 
A 
HELD: Considering the intention behind the programme, the 
following modalities are directed to be adopted: 
(1) The concerned Associations/Gram Panchayats/Local bodies 
shall assess the need of wheat for the intended beneficiaries. The need 
B shall be indicated to the State Government. 
(2) They shall indicate the quantum of wheat which is to be converted 
t 
into Atta to be given to the beneficiaries on the basis of their option. On 
\. 
c 
D 
the basis of such intimation, 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 
Fair Price Shop 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. 
E 
(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 objectiv.es. [Para 7] [572-F, G; 573-A, B, C, D] 
F 
CIVIL ORIGINAL ruRISDICTION : Writ Petition (Civil) No. 274 
of2005. 
(Under Alticle 32 of the Constitution oflndia). 
Dinesh Kumar Garg and V.K. Biju for the Petitioners. 
G 
M.L. Lahoty, Paban K. Sharma and Himanshu Shekhar for the 
Applicant. 
C.A. Sundaram, Riku Sharma, (for Mis. Corporate Law Group), 
Tara Chandra Sharma, Neelam Sharma, Rajeev Sharma, Kishan Datta, 
H G. Prakash, Sunil Roy, R.C. Kathiaand V.K. Verma for the Respondents. 
\ 
U.P. ROLLER FLOUR MILLS ASSOCIATION v. GOVT. 
571 
OF INDIA [PASAYAT, J.] 
The Judgment of the Court was delivered by · 
A 
DR. ARIJIT PASAYAT, J. L 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 B 
(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 b)L the Central Government from Food 
Corporation oflndia (in short 'FCI'). Special reference has been made c 
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 m
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