The court upheld the validity of amendments regulating the public distribution system, ruling no fundamental rights were violated by limiting fair price shop allotments to three per agency.

1. All these writ petitions under Art.226 of the Constitution of India relate to challenge the validity of policy - decision for transportation of food - grains to fair price shops which abstains marketing societies or consumer stores to carry both the works together of lead agency and fair price shops. Constitutional validity of imposition of condition whereby maximum limit of three fair price shops has been incorporated in Public Distribution System (Control) Order, 2004 (for short "O.2004") for allotment of shops to various agencies. Issuance of public notice inviting tenders by the State Civil Supplies Corporation Ltd., for transportation of foodgrains, and vires of Clause 9(1)(2)(3)(4) of the Order, 2004 as substituted vide notification dated 21-3-2006. Having common questions for decision all these petitions are taken together, and are being disposed of by this common order.

2. The Essential Commodities Act, 1955 , (for short, "the Act, 1955") has been enacted by the Union of India with the object of equitable distribution and supply of essential commodities to the public at large. On being delegated the State is also competent to enact such statutory orders under S.3 of the Act, 1955 for attaining the avowed purposes of the Act, 1955 including distribution of essential commodities to the ration card holders of public at large through fair price shops. For the first time, erstwhile State of M.P. enacted M.P. Foodstuffs Distribution (Control) Order, 1960 (for short, "O.1960) under which Government fair price shops were established to run by appointment of retailers. In the year 1981 State of M.P. framed a scheme known as M.P. (Foodstuffs) Civil Supply Public Distribution Scheme, 1981 (for short, "Scheme 1981") whereby allowed preference in allotment of fair price shops to Co - operative Societies. In order to achieve the objectives, the Registrar, Co - operative Societies, M.P., vide circular / order dated 2-5-1981 fixed criteria of Co - operative Societies who would be eligible to run the fair price shops and thereby authorized Primary Credit Co - operative Societies and their branches, Large Aadimjati Multipurpose Co - operative Societies (LAMPS), Marketing Co - operative Societies and their branches and Wholesale Consumer Co - operative Societies and their branches. Pursuant to it, fair price shops were withdrawn from the private individuals and allotted to these societies.

3. Pursuant to Scheme, 1981, the Registrar, Co - operative Societies, issued a well considered Circular No. 6152/4736/29/2/81, dated 12-8-1981 and started a new scheme of appointing the lead society which society would undertake the task of receiving essential commodities at par and on behalf of the fair price shops and would further store and supply such commodities to the fair price shops, Primary Co - operative Marketing Societies were selected and to promote their work, they were accorded financial assistance. Some of the Primary Co - operative Credit Societies were also appointed as lead society to perform the said work. The societies authorized with work of lead agency continued their work uninterruptedly since long.

4. In the year 2001 another Scheme called as Chhattisgarh Public Distribution System (Control) Scheme, 2001 (for short, "the Scheme 2001") was enforced and private individuals were also inducted in the business. In the year 2004 State of Chhattisgarh enacted the statutory order known as Chhattisgarh Public Distribution System (Control) Order, 200