The legal principle established confirms that factual discrepancies in operation of licensed entities under statutory control are grounds for license cancellation.

1. The petitioner has challenged an order dated 10.07.2018 passed by the Sub-Divisional Magistrate, Sadar, West Tripura cancelling the petitioner's license for running a Fair Price Shop on the ground of established irregularities.

2. Brief facts are as under:
The petitioner was granted a license for running a Fair Price Shop at Hapania on 29.08.1997. It appears that on 28.04.2018 an inspection of the petitioner's Fair Price Shop was carried out by the authorities upon which following irregularities were noticed:
"Whereas, the undersigned along with Food Inspector under Sadar Sub-Division have inspected Hapania No. - 2 F.P. Shop on 28/04/2018 at 5 PM and found the following irregularities and discrepancies.

From the above, it established that the dealer has drained out 100 kg PDS rice and 50 ltrs K.oil on diversion the PDS stock into the open market for his personal gain and thus he has contravened the provision of the clause no 6(4) of the PDS Control O.2001 u/S. 3 of the E/C Act, 1955.
And
Whereas, it is allegedly by the PDS customers that the dealer used to measure by beam scale in place Electronic and always supplied less quantity of ration articles which may not be accepted as per provision of the PDS control order.
And
Whereas, the dealer did neither issue Cash memos against the sale of ration commodities nor obtain signature / LTI of the PDS customers into the sale register as a token receipt."

3. A show - cause notice was, therefore, issued on 04.05.2018 giving 7 days time to the petitioner to respond to the said allegations. The petitioner replied to the same on 17.05.2018 and doubted the measurements carried out by the inspecting team leading to the shortfall in the stock. Another communication was issued by the Sub-Divisional Magistrate on 22.05.2018 in which it was further conveyed that on the date of inspection the petitioner was found absent from the Fair Price Shop which was without obtaining prior permission to leave the headquarters. The petitioner replied to this communication on 24.05.2018 but in which she admitted shortfall of 100 kgs. of rice on the date of inspection.

4. The Sub-Divisional Magistrate passed the impugned order on 10.07.2018 and on the basis of the irregularities cancelled the license of the petitioner. The petitioner thereupon preferred appeal before the appellate authority. Such appeal was dismissed by the Secretary to the Government of Tripura by an order dated 09.11.2018, relevant portion of which reads as under:
"6. The case records have been called for and examined in details. The grounds contained in the Memo of Appeal submitted by the appellant have also been carefully examined. While disposing of this Appeal - Petition, the undersigned, as per statutory provision, has given the appellant a patient hearing on 06.10.2018, in presence of learned Counsel of the appellant Shri Sankar Bhattacharya. The Appellant, during the hearing, tried to take different pleas viz her technical ignorance, receiving refilled bags from godowns, occurrence of certain latches due to her absence etc. for the 'admitted' shortage. On perusal of records on file, the undersigned is convinced of the fact that there is no doubt of detection of shortage of 100 kgs of rice in the physical stock of the FPS during the said inspection, especially since the appellant has clearly admitted the shortage in her reply dated 24.05.2018 to the show cause notice of the Licensing Authority. She, however, cited some flimsy reason and tried to substantiate the shortage, which is not acceptable at all. Moreover, there is no doubt about detection of the shortage since the inspection was done in presence of the SDM, Sadar himself and the physical stock was measured by cent percent weighment.
This is the reason that the app