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2025 Supreme(Online)(Ker) 48602
IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. Nagresh, J
Forum of Akshaya Centre Entrepreneurs – Appellant
Versus
State of Kerala – Respondent
W.P.(C) No. 29740 of 2025 | W.P.(C) No. 30756 of 2025
For the Appellants/Petitioners: Sri. Manas P Hameed, Smt. Ipsita Ojal, Smt. Ardra P, Sri. Amaljith
For the Respondents: Sri. Rajeev Jyothish George
The court affirmed the government's authority to set service charges, emphasizing the contractual relationship between Akshaya Entrepreneurs and the government.
Headnote:(A) Relevant laws - Various Government Orders associated with service charges for Akshaya Centres. (Paras 1-2)
(B) Legal principle - The relationship between service providers and the government is contractual, and service rates can be fixed without consultation with the providers. (Paras 6-10)
Facts of the case:
Petitioners are challenging the recent government order fixing service charges at rates lower than before. They argue this decision ignored inflation and their prior representations.
Findings of Court:
The fixed rates are legal, reflecting a contractual relationship without a right for petitioners to dictate service fees.
Issues: Whether the government can fix service charges without consultation with Akshaya Centre Entrepreneurs was central.
Ratio Decidendi: The court found that the government has the authority to set service rates, binding the petitioners to contract terms.
Result: Writ petitions dismissed.
| Table of Content |
|---|
| 1. challenge to government service charges based on prior order. (Para 1 , 2) |
| 2. arguments on impact of new charges ignoring inflation. (Para 3 , 4 , 5) |
| 3. court's reasoning on the nature of service centres. (Para 6 , 7 , 8 , 9) |
| 4. court confirms government authority to fix service rates. (Para 10) |
JUDGMENT
The 1st petitioner in W.P.(C) No.29740/2025 is the Forum of Akshaya Centre Entrepreneurs and the 2nd petitioner is the President of the Forum. The petitioner in W.P. (C) No.30756/ 2025 is All Kerala Akshaya Entrepreneurs Confederation. They are aggrieved by GO(Rt) No.185/2025/ITD dated 06.08.2025 of the Government of Kerala fixing fees for K-smart services.
2. The petitioners state that they have been submitting representations to the Government demanding enhancement in service charges. The rates of fees to be levied by Akshaya Centres were last revised in the year 2018. There are issues of inflation and the rising cost of other services and materials. Without taking into account any of the relevant factors, the Government has once again fixed service charges at rates equal to or even lower than those set in the year 2018.
3. The Local Self Government Department had earlier issued an order dated 06.04.2022 allowing online service providers, including Akshaya Centres, to charge ₹10/- per page for data entry and ₹5/- per page for scanning. The benefit provided under the said order has been taken away by the present order. The impugned order sets a flat service charge of only ₹40/- to ₹60/- in total, irrespective of the volume of work involved.
4. The petitioners state that the Akshaya Centre Entrepreneurs invest ₹10 lakhs to ₹15 lakhs to set up requisite infrastructure. The Government does not extend any financial aid for this purpose. On 04.11.2022, the 3rd respondent- Director of Akshaya Project had convened a meeting to discuss rate chart revision. Suggestions were forwarded to the Government. It was decided that whenever the authority proposes to fix the charges for any departmental services, a Committee shall be constituted for that purpose. The Committee will include representatives of the Akshaya Centre Entrepreneurs and the final decision will be taken only after due discussion within the committee.
5. However, without any consultation, Ext.P7 Government Order dated 06.08.2025 has been issued. The Government has revoked the benefits now extended to the Akshaya Centre Entrepreneurs. The Government Order fixing uniform service charges without regard to the volume of work, the resources involved or the operating cost, is highly illegal and arbitrary.
6. The petitioners therefore urge to stay the implementation of the Government Order dated 06.08.2025 issued by the Department of Electronics and Information Technology and to consider the representations of the petitioners.
7. I have heard the learned counsel for the petitioners and the learned Government Pleader representing the respondents.
8. Akshaya Centre Entrepreneurs are running common service centres on the basis of agreement / contract executed by them with the Government from time to time. The petitioners are representatives of the Entrepreneurs. The Akshaya Centre Entrepreneurs are bound to run the Centres on the basis of rates fixed by the Government from time to time.
9. The Akshaya Centres are service centres. Akshaya Centres cannot be treated as business centres, enabling the franchisees to run the centre with profit motive alone. The Akshaya Centres are intended to serve the common man. The Centres intended to connect the general public with government services, which otherwise are to be provided by the Government to citizens without levying service charges. The Centres are intended to make good the issue of digital illiteracy and digital divide among the general public.
10. The petitioners cannot be heard to contend that rates for Akshaya Centre services can be fixed only in consultation with the petitioners. The relationship between the petitioners and t
