Karnataka High Court Upholds Prohibition on Transfer of Fair Price Shop Authorization

Petition Dismissed as Court Reiterates Restriction Under Karnataka Essential Commodities (PDS) Control Order, 1992

In a recent judgment, the Karnataka High Court dismissed a writ petition filed by Lakshmamma, seeking the transfer of authorization to run a fair price shop. The court, presided over by Justice Suraj Govindaraj, reaffirmed the stringent conditions under Rule 13 of the Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, which primarily prohibits the transfer of such authorizations except under specified circumstances.

Lakshmamma, represented by Advocate Sri. Lakshmikanth K., had approached the court to challenge an endorsement dated March 20, 2025, issued by the State authority. The petitioner sought relief in the form of a writ of certiorari to quash the said endorsement and a writ of mandamus directing the respondent to consider her representation for the transfer of authorization.

The court emphasized that Rule 13 explicitly prohibits the assignment or transfer of authorization for running fair price shops, except in the event of the death of the authorized dealer, and even then, only under certain specific conditions. The rule was further amended in January 2021 to allow such transfers under stricter criteria, including age and educational qualifications of the transferee, and must occur within 90 days of the dealer's death, subject to prior government approval.

Justice Govindaraj noted that the petitioner did not have a vested right for the transfer of authorization, which is a prerequisite for issuing a mandamus. Consequently, the court concluded that the petition could not be entertained, thereby dismissing it.

The decision underscores the regulatory framework governing the Public Distribution System in Karnataka, which aims to maintain the integrity and accountability of fair price shop operations.

Bottom Line:

Public Distribution System - Transfer of Authorization - Rule 13 of the Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, prohibits the transfer of authorization for fair price shops, except under certain prescribed conditions.

Statutory provision(s): Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, Rule 13

Lakshmamma v. State of Karnataka, (Karnataka) : Law Finder Doc Id # 2815875