IMPORTANT POINT
The cancellation of a Fair Price Shop dealer's authorization must follow due process, including a fair inquiry and provision of reasons, as mandated by the Control Order, 2018.

ORDER :

(Venkateswarlu Nimmagadda, J.) :

The present Writ Petition is filed under Article 226 of the Constitution of India, seeking the following relief:

“... to issue a writ order or direction more particularly one in the nature of Writ of Mandamus to declaring the action of the 2nd Respondent cancelling the authorization without conducting enquiry passing the impugned order in Rc No.453/2021-B, dated 06.10.2023 is illegal, arbitrary and violative of natural justice and consequently set-aside the same order and pass such other order or orders …”

2. The petitioner herein was appointed as Fair Price Shop dealer in respect of Shop No.0712028, Kaza Village, Mangalagiri Mandal, Guntur District. From the date of appointment in the year 2018, the petitioner has been continued as Fair Price Shop dealer for the above said shop and distributing essential commodities to the card holders in the village without any remarks.

3. While so, a show cause notice was issued on 31.07.2021 framing two charges that are the petitioner did not distribute the commodities to the card holders, and there are variations in respect of PMGK Rice and RG Dall by which the petitioner indulged in clandestine business and Respondent No.3 directed the petitioner to submit an explanation within seven days from the date of receipt of the copy of the show cause notice, failing which the action will be initiated basing on the records available in the office. Then, the petitioner filed an explanation to the show cause notice dated 16.08.2021 to drop charges framed against the petitioner and explained the reasons for the shortage of Rice and Dall where occurred due to distribution among the card holders during bad signals in network and non response of ePos device. Additionally, it was emphasized that her shop did not receive any allocation of Red Gram Dall under the Intergrated Child Development Services (ICDS) program. In the absence of allocation makes it impossible for the alleged discrepancies to exist, thereby indicating a lack of proper verification by the complainant. Even if we were thoroughly examined the details of the allocation and stock deliveries, it would have become evident that Red Gram Dal was not supplied to her shop through ICDS.

4. Learned Government Pleader for Civil Supplies filed counter affidavit on behalf of Respondent No.3/the Revuenue Divisional Officer, Guntur wherein it is stated that on 24.07.2021 at about 3.00 PM on receipt of credible information and as per the instructions of the District Administration, the Civil Supplies Deputy Tahsildar, Mangalagiri along with VRO, Kaza Village rushed to Kaza Village of Manglagiri Mandal and inspected the F.P. shop No.0712058 run by Meda Shoba Rani, W/o. Vekata Rao. During the inspection the following variations were noticed in ECs with reference to epos device report and physical stock on ground.

5. It is further stated that as per the AEPDS online report, it clearly discloses that the ECs were distributed in the month of July, 2021 with the proper working of ePos device. Hence, the explanation offered by the Petitioner is not satisfactory, Respondent No.3 herein viz., the Sub Collector, Tenali had cancelled the authorization vide Rc.No.2453/2021-B, dated 06.10.2023 by observing due procedure of law and also conducted the detail inquiry and dealer statement were also recorded at the time of inquiry, personal hearing opportunity was also provided to the dealer. Immediately as per the provisions and basing on the recommendation of the Tahsildar, Mangalagiri, the VRA concerned was permitted to lift and distribute the ECs to ensure prompt distribution of essential commodities to the targeted