Chhattisgarh HC Orders Acceptance of KMS 2023-24 Custom Milled Rice by May 10; Portal to Reopen if Needed - 2025-05-12

Chhattisgarh High Court Directs Authorities to Accept Custom Milled Rice from Millers by May 10

Bilaspur, Chhattisgarh - The High Court of Chhattisgarh, in a significant directive, has ordered state authorities to accept the balance Custom Milled Rice (CMR) for the Kharif Marketing Year (KMS) 2023-24 from numerous rice millers by May 10, 2025. The court also mandated that the online portal, reportedly closed and preventing submissions, be reopened if necessary to facilitate these deposits.

The common order, delivered by Hon'ble Shri Justice Amitendra KishorePrasad on May 8, 2025, addressed a batch of writ petitions filed by aggrieved rice millers, with WPC No. 2373 of 2025 (Prateek Agro Industries vs. Union of India & Ors.) serving as the lead case. The millers sought intervention against the refusal of authorities, including the Chhattisgarh State Market Federation (Mark-Fed), to accept their CMR.

Background of the Dispute

The petitioners, various rice milling industries, had entered into agreements with the District Marketing Officer for the custom milling of paddy for KMS 2023-24. Prateek Agro Industries, the lead petitioner, stated it had lifted paddy (29,490 Quintals of FCI paddy and 22,260 Quintals of Naan paddy) and was obligated to return 67.67% as CMR. While a significant portion was deposited, a balance of 3,155.11 Quintals of FCI CMR for KMS 2023-24 remained undelivered.

The primary contention was that the online portal for CMR submission had been closed since December 2024, rendering them unable to fulfill their contractual obligations despite their willingness. This issue persisted even though a state notification dated March 26, 2025, had extended the deadline for CMR submission for KMS 2023-24 to May 10, 2025. The millers also claimed they were being discriminated against, as other similarly situated millers had allegedly been permitted to deposit CMR under court orders.

Arguments in Court

Counsel for the Petitioners , Mr. Akhtar Hussain and Mr. Nitesh Jain , argued that the closure of the online portal was the sole impediment to depositing the CMR for both KMS 2023-24 and the current year 2024-25. They highlighted the existing deadline extension and sought directions for acceptance of the pending CMR and protection from punitive actions like confiscation of bank guarantees. They invoked principles of natural justice, citing administrative inaction.

Counsel for the Respondents , including Mr. Khulesh Sahu (for the State), Mr. Shreyansh Mehta (for Mark-Fed), and Mr. Roop Ram Naik (for the Union of India), countered that the petitions were premature. They argued that the millers should have approached the authorities to deposit the CMR, given the extended deadline of May 10, 2025, instead of "rushing to this Court." Mr. Mehta, for Mark-Fed, also pointed to a state government correspondence dated March 26, 2025, which stipulated that rice deposited into the state pool must be exclusive of any shortages identified during Joint Physical Verification (JPV).

High Court's Decisive Intervention

After hearing counsels from all sides, Justice Prasad observed that the "bone of contention" was similar across all clubbed writ petitions. The Court noted the existing notification dated March 26, 2025, which extended the CMR deposit deadline to May 10, 2025.

While mildly critical of the petitioners for making a "hue and cry when the last date is going to expire on 10.05.2025" instead of attempting to deposit the CMR first, the Court decided to issue directions without delving into the merits of the case.

The judgment stated: > "Since, according to the notification dated 26.03.2025, the last date fixed for depositing the CMR is 10.05.2025, as such, without entering into the merits of the case, considering the prayer made by the petitioner, it is directed that the balance Customed Milled Rice (CMR) be allowed to be deposited by the petitioner on 10.05.2025..."

This direction is subject to two conditions: 1. Compliance with the state government's correspondence regarding shortages identified during Joint Physical Verification (JPV). 2. Verification of the quantity and quality of the rice being deposited.

Crucially, the Court ordered: > "If the online portal is not opened, it may be opened so that the petitioner may deposit the rice."

The respondents were directed to urgently inform Mark-Fed and other concerned authorities to ensure compliance with the order.

Implications of the Ruling

The High Court's order provides immediate relief to the rice millers, allowing them an opportunity to fulfill their contractual obligations for KMS 2023-24 by the stipulated deadline. It addresses the administrative hurdle of the closed online portal, ensuring that millers are not unduly penalized.

While facilitating the millers, the Court also acknowledged the state's regulatory concerns by making the deposits subject to JPV norms and quality/quantity checks. The decision effectively balances the interests of the millers with the procedural requirements of the state procurement agencies. All writ petitions were disposed of with these directions.