The cancellation of a fair price shop dealer's authorization must adhere to natural justice and inquiry procedures, ensuring a fair hearing and proper assessment of justifications.

ORDER :

1. The present Writ Petition came to be 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 declaring the order passed by the 2nd respondent through petitioner appeal No. CS3/115/2020 dated 03.07.2020, thereby dismissing his appeal by confirming the order of the 3rd respondent in proceedings No.Rc.CS.3/124/2019 dated 23.03.2020, thereby cancelling petitioner authorization for the Shop No.I382150 of Kumool (urban), Kurnool District, as illegal, irregular, irrational, violative of principles of natural justice, provisions of the Essential Commodities Act, 1955 Andhra Pradesh State Public Distribution Control Order, 2008 and offends Articles 14, 19(1)(g) and 21 of Constitution of India and consequently direct the respondents to set-aside the order passed by the 2nd respondent in proceedings No CS3/115/2020 dated 03.07.2020 for the petitioner as Fair Price Shop No.1382150 of Kurnool Urban, Kurnool District and restore the petitioner authorization for distribution of commodities to the card holders and to pass such….”

2. Brief facts of the case are that the petitioner herein was appointed as a fair price shop dealer in the year 2001 for the shop No.1382150 of Kurnool district and has been distributing essential commodities to the cardholders ever since, without there being any complaint.

3. While the matter stood thus, due to alleged political pressures, the 5^th respondent has inspected the petitioner's fair price shop on 15.10.2019 alleging that certain complaints were made against the petitioner and upon inspection, the respondent officials found some discrepancies in the ground stock. Subsequently, the 5^th respondent has submitted a report to the 2^nd respondent with a request to take action against the petitioner, pursuant to which a show cause notice dated 28.10.2019 was issued to the petitioner seeking explanation from the petitioner as to why her authorization of the fair price shop should not be cancelled. Pursuant to the said show cause notice, the petitioner has submitted her explanation duly denying the allegations leveled against her.

4. Thereafter, the 3^rd respondent directed the 5^th respondent to obtain a detailed enquiry report from the 4^th respondent; accordingly, the 4^th respondent has submitted his report to the 3^rd respondent basing on which, the 3^rd respondent vide proceedings No.Rc.Cs.3/124/2019, dated 23.03.2020 cancelled the petitioner's authorization of the fair price shop, which was also confirmed by the 2^nd respondent in the appeal filed by the petitioner, vide order dated 03.07.2020. Aggrieved by the same, the present petition is filed.

5. The 2^nd respondent has filed a detailed counter affidavit stating that the petitioner herein committed grave irregularities in maintenance of the fair price shop and upon certain complaints, the respondent officials have inspected the petitioner's fair price shop and certain excess stocks were found. During the inspection, one cardholder was present at the scene who stated that though the his biometrics were taken for 15 kilograms of rice, the petitioner supplied only 4 kilograms of rice. As the respondent authorities found that the petitioner was indulging in malpractices in distribution of essential commodities to the cardholders, they have seized all the excess stock under a cover of panchanama. As contemplated under clause 8(4) of the APSTPDS Control