Court Quashes Cancellation of Fair Price Shop Dealer's Authorization, Orders Fresh Inquiry

Background

The case involves a fair price shop dealer, Meda Shoba Rani , whose authorization was canceled by the Sub Collector & Sub Divisional Magistrate, Tenali. Meda Shoba Rani had been operating the fair price shop in Kaza Village, Mangalagiri Mandal, Guntur District since 2018 without any issues.

Arguments

The authorities alleged that Meda Shoba Rani did not distribute commodities to cardholders and there were variations in the stock of PMGK Rice and Red Gram Dal. Meda Shoba Rani submitted an explanation, stating that the variations were due to distribution during network issues and non-responsive ePos devices. She also denied receiving any Red Gram Dal allocation under the ICDS program.

Court's Analysis and Reasoning

The court found that the authorities did not conduct a proper inquiry as required under the A.P. State Targeted Public Distribution System (Control) Order, 2018. The court noted that the authorities did not record reasons for rejecting Meda Shoba Rani 's explanation and did not examine relevant witnesses or officers to ascertain the genuineness of her claims.

The court relied on previous judgments that emphasized the need for a fair and detailed inquiry, with the opportunity for the dealer to participate and contradict the evidence, before canceling the authorization.

Decision

The court set aside the order canceling Meda Shoba Rani 's fair price shop authorization and directed the authorities to conduct a fresh inquiry in accordance with the law, after affording her a reasonable opportunity to be heard. The court also ordered the authorities to restore Meda Shoba Rani 's authorization and allow her to continue operating the fair price shop until the completion of the fresh inquiry.