text:
Review: SC says that Pension rules must be interpreted in favour of employee when more than one interpretation is possible
Sai Krishna Muthyanolla
September 28, 2022
In this week’s review of Court Judgments, we look at Tripura High Court’s suo motu notice and directions for compensation in a case of custodial torture, Kerala High Court’s observation regarding the extent of liability of vehicle owner regarding the driver’s genuineness of license, Supreme Court’s directions to interpret pension rules in favour of the employee, Bombay High Court’s judgment regarding retirement benefits impacted by misinterpretation of law by Municipal corporation and Delhi High Court’s observation regarding the onus of burden of proof lying with accused.
Kerala HC: Vehicle owner not liable if he was of bona fide belief regarding the genuineness of driver’s license.
In the case  Aisha vs. Xavier & Ors , the appellant was the owner of the stage carrier, while the 2nd respondent was the driver when it met with an accident. The vehicle was insured by National Insurance Co. Ltd. It was proved before the Motor Accidents Claims Tribunal (MACT) that the driving of the respondent was rash and negligent which led to the accident.
The insurer also contended that the driver did not have a valid license and since the owner has entrusted the vehicle to the 2 respondent, she violated the terms and conditions of the policy. Therefore, is not liable to be indemnified by the insurer.
The Tribunal awarded a compensation of Rs. 5.66 lakhs to the injured and directed the Insurance company to deposit the amount. Since the driving license was found to be fake, it allowed the insurance company to recover the compensation amount from both the owner as well as the driver.
Further, the driver was charged under Section 3(1) read with Section 181 of the Motor Vehicle Act, for not having a valid driving license and not being able to produce the same in court.
This decision of the Tribunal was challenged by the owner of the vehicle and an appeal was filed in Kerala High Court. The Appellant i.e., the owner, stated that the driver had produced a diving license which was renewed from a local RTO. The appellant was also content with the competency of the driver to drive the vehicle. Hence, did not further enquire if the license was original. In the appeal, it was asserted that there was no need for the owner to satisfy herself beyond the competency of the driver, and to check the validity of the license.
It was also submitted that since the accident was due to rash & negligent driving and the license was a fake one, the driver was liable to compensate the victim.
With respect to the fake license, the Motor Vehicle Act states that if the renewing authority is different from the initial issuing authority, the same needs to be intimated to the issuing authority. If this was duly followed, the issue of a fake license would have been brought to light. Therefore, in this case, the Appellant cannot be faulted.
The counsel for respondents submitted that if the owner had verified the competency of the driver and the genuineness of the license, she would have realized that the driving license was a fake one. It was also submitted that, since there is no contract between the insurance company and the driver, it cannot recover the amount from the driver.
Justice Sophy Thomas accepted the submission of the appellant that she has been under the bona fide belief that the renewed license was a genuine one. The court relied on the judgment in the case, Rishi Pal Singh vs New India Assurance Co Ltd & Ors, wherein the court observed that the owner is expected to check the skill of the driver before the appointment and is not responsible to verify the genuineness of the driving license.
It further added that the Insurance companies cannot expect the owners to contact the RTOs to check the genuineness of the license. The court also said that the insurance company does not have a case to prove that the owner was aware of the driving license being fake.
It also rejected the contention by the insurance company that it does not have any contract with the driver and hence cannot recover the amount. This was based on the judgment in the case Oriental Insurance Company Ltd. vs. Sivan.
The court observed that the Insurance company is primarily liable to compensate the injured in an accident and that it can recover the amount from the driver.
Supreme Court: Pension rules must be interpreted in favour of employees when more than one interpretation is possible
Supreme Court Bench comprising of Justice Indira Banerjee and J.K. Maheshwari observed that in case of the possibility of more than one interpretation of the Pension Rules, the courts should lean towards the interpretation that favours the employee.
The Apex Court made this observation in the case, State of Rajasthan vs O P Gupta. As per the case details, the issue raised in the writ petition filed before the Rajasthan High Court was whether the service of the Writ Petitioner prior to the resignation from Rajasthan State Agro Industry Corporation should be considered for the purpose of payment.
This writ petition was disposed by the Rajasthan High Court, directing to consider the service rendered by the writ petitioner with both the Rajasthan Agriculture Engineering Board and Rajasthan State Agro Industry Corporation, to compute the total pension. The direction was also issued to release his pension and retiral benefits including arrears of pension with interest @ 9% per annum within 3 months.
The Writ Appeal filed by the State was dismissed by the Division Bench of the High Court. The State contended that the High Court has misconstrued Rule 25(2) of the Rajasthan Civil Services (Pension) Rules, 1996. It contended that resignation would imply the forfeiture of the past service with Rajasthan State Agro Industry Corporation.
The Supreme Court bench observed that pension is a lifelong benefit and the denial of it is a continuing wrong.  It noted that the court cannot be oblivious of the financial challenges faced by the retirees and therefore the interpretation of rules needs to be in favour of the employee.
The Apex court observed that the judgment of the Rajasthan High Court was a purposive interpretation of the said Rule. It proceeded to dismiss the appeal filed by the State.
Tripura HC: Directed State government to pay Rs. 2.5 lakhs as compensation to a woman who was subjected to custodial torture.
The Chief Justice of Tripura High Court took a suo motu notice of a news item in a local daily, which reported the custodial torture of a 28-year-old woman in police lockup. A PIL was filed, and notices were issued to the State-respondents including the Secretary, Home Department and Director General of Police.
The bench comprising of Chief Justice Indrajit Mahanty and Justice S.G Chattopadhyay presided over this case.
The State contended that there was no proof of custodial torture of the victim in police lockup. It was stated that she was called to Police station for interrogation regarding a theft case. She fell ill during the interrogation and was taken to AGMC & GBP hospital, where she was given adequate medical treatment. The State further submitted that the newspaper report was not true.
Amicus curiae submitted that as per the statement of the victim, she was called to the police station on basis of a false and unverified allegation of theft and that she was physically tortured during interrogation. The medical report states that the injuries found on the victim show a history of physical assault.  It was argued that the available evidence points to the fact that the woman was beaten in police custody and hence suffered the injuries.
The court considered the facts and circumstances presented before it and concluded that the police called the victim only on the basis of telephonic information received from a neighbour of the victim, without verifying the facts. The medical reports establish that she was physically assaulted in police custody. Further, there was no formal arrest done by the police. However, she was detained for a substantial amount of time, which entitle her to custodial safeguards and the police were obliged to protect her against all forms of atrocities in the custody. She was deprived of these safeguards and was tortured in custody.
The court found her to be entitled for monetary compensation for the wrong doings on her. It directed the State to pay Rs. 2.5 lakhs to her as compensation.
Delhi HC: Burden of Proof lies on accused when last seen together with deceased.
Dismissing the appeals filed by two men convicted for murdering three people, Delhi High Court said that in a case where the accused is last seen together with the deceased, the prosecution is exempted to provide proof and the burden of proof lies on the accused.
Both persons were convicted of life imprisonment for the murder. This conviction was challenged with the argument that both were convicted based on circumstantial evidence. The two circumstances were – both were found at the place of the incident when the police arrived and the clothes worn by one of the convicted, Gurdeep Singh was found to be stained with blood.
The counsels representing both argued that the conviction was based on circumstantial evidence and the chain of circumstances needs to be established to prove the guilt.
The prosecution argued that only these two persons were found inside the property where the incident took place and there was no other person when the police arrived. The postmortem report confirms that the deceased were murdered.
The court analysed section 106 of the Indian Evidence Act and upheld the conviction. It observed that section 106 is designed to meet certain exceptional cases, where it would be difficult for the prosecution to establish the case. In such cases, the burden of the proof lies on the accused.
Bombay HC: Cannot recover ‘Excess retiral benefits’, after allowing officer to continue beyond retirement date
As per the details of the case, Dr. Prakash Borulkar vs State of Maharashtra and Ors, the petitioner was supposed to retire at the age of 58 on 31 December 2016. As per a Government Resolution in 2015, he was permitted to continue in service up to 31 December 2018, until he attained 60 years of age.  His last drawn salary was Rs. 28,600 based on which his pension and gratuity were fixed.
However, the State Government has clarified in 2022, that the GR was applicable to officers in Public Health Department and not in Municipal Corporations or Councils. This clarification was applied to the petitioner as well, because of which a petition was filed by him in the court.
The high court bench of Chief Justice Dipankar Datta and Justice Madhav J. Jamdar, observed that the petitioner did not seek an increase in the retirement age from 58 years to 60 years. There was no misrepresentation on his part. Further, the Municipal Corporation permitted him to continue in the service for the two extra years.
It was not even a case where the pay was erroneously fixed, as the petitioner has served those two extra years and earned his salary. The mistake, if at all any, lies with the Municipal Corporation for misreading the government resolution and the blame would fall on them. The court said that any recovery from the petitioner would be harsh and will outweigh the Municipal corporation’s right to recover any excess amount paid.
The court observed that the petitioner’s pension and gratuity was fixed based on the length of record of the service and it cannot be reduced. It directed that no money should be recovered and to refund any amount if already recovered.
Featured Image: Review of Court Judgments

created: September 28, 2022


text:
Review: SC says that ‘Retrial’ can be directed only in 'exceptional' circumstances to avert a miscarriage of justice.
Sai Krishna Muthyanolla
October 20, 2021
In this roundup of court judgements, we look at Constitutional Courts’ remarks & directions on principles of retrial, forced labour, functioning of courts in UP, and police brutality.
Supreme Court: Retrial can be directed only in ‘exceptional’ circumstances to avert a miscarriage of justice.
In the case Nasib Singh Vs. State of Punjab, the Supreme Court established principles regarding the power of a court to order a retrial in a criminal case.
In the present case, an FIR was filed against Balwinder Singh, Gurpreet Singh and Sandeep Singh for committing rape. Later, the prosecutrix (female victim) committed suicide leaving behind a suicide note naming Balwinder Singh, Gurpreet Singh and Shinderpal Kaur. In this regard, another FIR (100 of 2012) was lodged against SI Nasib Singh, Balwinder Singh, Gurpreet Singh and Shinderpal Kaur for abetting the suicide of the prosecutrix. SI Nasib Singh was later implicated in the earlier FIR also. The Additional Sessions Judge, Patiala separately tried the cases arising out of two FIRs and convicted three accused but acquitted Nasib Singh. In appeals filed by convicts and the mother of the prosecutrix, the High Court ordered a retrial.
Examining the facts of the appeal, the Supreme Court observed that the parties have not been able to demonstrate that separate trials led to a miscarriage of justice.
The bench of Justices DY Chandrachud, Vikram Nath and BV Nagarathna held that a conviction or acquittal of the accused cannot be set aside on the mere ground that there was a possibility of a joint or a separate trial. To set aside the order of conviction or acquittal, it must be proved that the rights of the parties were prejudiced because of the joint or separate trial.
The SC laid down the following principles regarding the power of a court to order a retrial in a criminal case:
Allahabad HC: Paying ₹ 450 per month is ‘Forced Labour’ & a violation of Article 23.
In the case Tufail Ahmad Ansari Vs. State of UP & others, the Allahabad high court reprimanded the State government for paying Rs. 450 per month as wages to a Class-IV post since his initial engagement in 2001. The court held that this was amounts to a form of “Forced Labour” and strictly prohibited under Article 23 of the Constitution.
The high court was hearing a writ petition filed by Tufail Ahmad Ansari, an employee with the MD Eye Hospital, Prayagraj, since June 2001 on a Class-IV post.  The petition submitted that he was being paid wages at the rate of Rs. 450 per month since his initial engagement.
The petitioner submitted that despite him being entitled to be considered for regularization in terms of 2016 Rules, the case of the petitioner was not being considered.
The Standing Counsel submitted that in terms of a Government Order of 1992, the wages of ‘Kahar’ were increased from Rs. 400 to Rs. 500 per month and that was being paid to the petitioner.
The bench of Justice Pankaj Bhatia observed that it was beyond comprehension as to how the state government could exploit a Class-IV employee by continuing to pay him Rs. 450 per month for the last 20 years, which is less than the minimum wages as prescribed in the State.
The judgement mentions that the question of “other forms of Forced Labour” finds its place in Article 23 of the Constitution. This question came up for consideration before the Supreme Court in the case of People’s Union For Democratic Rights and Others Vs. Union of India and Others; (1982), wherein the plight of the workers engaged in the construction for the Asian Games, was highlighted before the Supreme Court.
In conclusion, the high court directed the state government to pay the minimum wages as prescribed in the State of Uttar Pradesh from the date of the initial appointment of the petitioner after deducting the amounts paid to him.
Further, the high court noted that according to the Uttar Pradesh Regularisation of Persons Working on Daily Wages 2016 rules, persons employed prior to 31 December 2001, are entitled to be considered for regularisation. Therefore, the high court directed that the petitioner be regularized within 4 months of the order.
Allahabad HC: Dissatisfied with UP govt on ‘serious’ issues related to courts functioning.
In the case In Re Vs. Zila Adhivakta Sangh Allahabad, the high court expressed its dissatisfaction over the manner in which the officers of the State are progressing on the serious issues pertaining to the functioning of the Courts in the State of Uttar Pradesh.
The high court was hearing a suo moto case pertaining to the functioning of Courts in Uttar Pradesh.
In 2015, the high court registered a PIL (Public Interest Litigation) after the functioning of the High Court was hindered by unruly advocates. The high court had issued an array of directions to the State Government for making proper arrangements for safety, security and infrastructure of all the courts of State including District courts.
A seven-judge bench Acting Chief Justice Munishwar Nath Bhandari, Justice Pritinker Diwaker, Justice Naheed Ara Moonis, Justice Manoj Misra, Justice Mrs. Sunita Agarwal, Justice Surya Prakash Kesarwani, and Justice Manoj Kumar Gupta heard the case.
With regards to upgrading safety measures for the High Court, the State had agreed that the Electronics Corporation of India would be roped in for the installation of CCTV cameras and their regular maintenance.
With regards to the High Court’s infrastructure or allotment of land for construction of the Courts and residential buildings for the Subordinate Courts, the Administrative Committee of the high court had directed the District Judges to co-ordinate with the District Magistrates to identify land that can be made available for this purpose. Further, the high court also stressed the issue of the unavailability of adequate infrastructure to the POCSO courts in the state.
However, the high court noted that no effective action has been taken though repeated reminders have been sent. In many districts, the process of acquisition has not been completed.
In conclusion, the Advocate General assured the high court that immediate decision on the said issues would be taken by the State Government. The matter was posted for a further hearing on 27 October 2021.
Kerala HC: State sanction not required to prosecute policemen for their ‘illegal acts’.
In the case D. Rajagopal Vs. Ayyappan & Anr. and connected matter, the high court ruled that sanction stipulated under Section 197 Code of Criminal Procedure (CrPC) is not necessary to prosecute police officers in cases of police brutality since such acts are not related in any manner to the discharge of their official duties.
The case was regarding brutality by police officers of the Ezhukone Police Station. They were accused of brutally assaulting a man in custody causing cigarette burns on his tongue, making him unable to speak when produced before the Magistrate, among other things.
The Judicial First Class Magistrate, Kottarakaram found them guilty and passed an order of conviction against them for offences punishable under Sections 323 and 324 read with Section 34 of the Indian Penal Code. The appellate court confirmed this conviction.
The revision petition was preferred on the primary contention that they were prosecuted without getting the sanction from the State Government as contemplated under Section 197 CrPC.
Both the trial court and the appellant court took the view that sanction, as contemplated under Section 197 CrPC, is unwarranted in the present case since the acts alleged to have been committed by the accused are not related in any manner to the discharge of their official duties.
The bench of Justice Mary Joseph held that the trial and the appellate courts were not in error and were perfectly justified in finding the accused guilty of the offences under Sections 323 and 324 read with Section 34 IPC, convicting them and imposing punishments. In conclusion, the revision petitions were dismissed.
Featured Image: Important Court Judgements

source: news-factly

created: October 20, 2021

license: Creative Commons - Attribution - https://creativecommons.org/licenses/by/4.0/

author: Sai Krishna Muthyanolla


text:
Review: SC Says There is a Compelling Need for Expeditious Disposal of Cases on Elected Representatives; Issues Guidelines to High Courts - FACTLY
Sai Krishna Muthyanolla
November 15, 2023
In this week’s review of court judgements, we look at Supreme Court’s judgements on sexual harassment cases and guidelines to the High Courts regarding the early disposal of cases against MPs and MLAs, Orissa High Court’s judgement on husband as proxy for sarpanch wife and its impact on purpose of women reservation, Rajasthan High Court’s judgement on Maternity leave to surrogate mothers, Kerala High Court’s judgement on defections in democracy and Himachal Pradesh High Court’s judgement on contractual appointments by the State.
Supreme Court: There is a compelling need for expeditious disposal of cases on elected representatives; issues guidelines to High Courts regarding the same.
The Supreme Court, in Ashwini Kumar Upadhyay vs. Union of India & Anr., issued guidelines to the High Courts across the country for deciding on cases against elected representatives. It remarked that these cases have a direct bearing on political democracy, and it is necessary to ensure that these cases are decided on priority and expeditiously.
A three-judge bench of the apex court comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra were hearing a writ petition under Article 32 of the Indian Constitution seeking expeditious disposal of criminal cases against elected representatives of Parliament and legislative assemblies. The apex court, in Public Interest Foundation vs. Union of India directed that the trial shall be concluded as speedily and expeditiously as may be possible and in no case later than one year from the date of the framing of charges.
In the earlier stages of this case, the apex court called upon the Union Government, State Governments and High Courts to respond to the idea of setting up special courts and the financial implications involved in its implementation, based on the submission by the Solicitor General. After looking at the complexity, the court suggested that instead of setting up special courts, a specified court in each district, both at the sessions and magistrate level, be identified and earmarked for prioritized hearings of the subject cases. It asked the Governments to respond to this suggestion.
The apex court directed the High Courts to examine and constitute as many sessions and magisterial courts as possible for speedy disposal of cases, in the below priority order.
Further, looking at the data, it is seen that there are as many as 5,175 subject cases pending as of November 2022. Of these, cases that are pending for more than 5 years are as many as 2,116 or more than 40% of such pendency. Looking at the data and information available, the apex court remarked that there are various factors that could influence the progress of the cases, and it becomes difficult to issue uniform guidelines for all states. Accordingly, the apex court left it to the High Courts to decide on the methods/measures that they think are relevant for expeditious disposal of cases. The court issued certain guidelines regarding the same.
Accordingly, the writ petition is disposed of.
Supreme Court: Inquires in sexual harassment cases must be done keeping in mind broader possibilities and entire background of the case.
The Supreme Court, in Union of India & Ors. vs. Dilip Paul, held that courts must be cognizant to not get swayed away by the hyper technicalities and procedural deficiencies, but rather focus on the impact of the violation of such procedures on the inquiry.
This case involves a complaint of sexual harassment filed by a female employee against the respondent. The female employee filed an initial complaint of sexual harassment against the respondent. The complainant submitted a second complaint with additional allegations against the respondent. Two initial inquiries, a fact-finding inquiry, and a Frontier Complaints Committee inquiry, failed to substantiate the allegations. The Ministry of Home Affairs constituted the Central Complaints Committee to investigate the matter. This committee found the respondent guilty of sexual harassment. The respondent claimed that the allegations were false and were made because he had rejected the transfer application of the complainant. The respondent approached the Central Administrative Tribunal (CAT) seeking the cancellation of the Central Complaints Committee’s inquiry. CAT refrained from expressing an opinion as the disciplinary proceedings were still pending. The case moved to the High Court, which ruled that the Central Complaints Committee had overstepped its jurisdiction by considering the second complaint. The High Court stated that the committee’s role was limited to the first complaint, and it should not have considered the allegations in the second complaint. The High Court found that the Central Complaints Committee had taken on a prosecutorial role during the inquiry and that its jurisdiction was limited to the first complaint. The High Court also criticized the committee’s findings, characterizing the case as “No Evidence.” This is challenged before the Supreme Court.
The Apex court looked at the arguments from both sides. It framed four questions as below.
On the first question, the apex court held that when it comes to disciplinary proceedings, the inquiry authority and disciplinary authority in the exercise of their powers of judicial review should not sit in appeal and reappreciate the evidence or substitute its own findings. Regarding how courts should approach such cases, the apex court cautioned the courts of getting swayed away by procedural deficiencies and held that courts are obliged to rely on any evidence of the complainant that inspires confidence. The apex court in various other judgements remarked that all material that is logically probative to a prudent mind ought to be permissible in disciplinary proceedings keeping in mind the principles of fair play, as there is a power imbalance in sexual harassment cases.
The court found the High Court’s reasoning that the Central Complaints Committee was constituted on the basis of the first complaint, and therefore its scope is limited as erroneous, as the constitution of the committee was based on a prior standing order and not just the complaint.
On the question of the Central Complaints Committee questioning the witnesses, the apex court wondered how the complaints committee after being equated with a judge in a judicial proceeding is denied such privilege. The primary objective is to unearth all the facts relevant to the case and provide ample opportunities for all stakeholders keeping in mind the principles of natural justice.
On the question of the case being an example of a case with ‘no-evidence’, the apex court remarked that the material on record reasonably substantiates the allegations of sexual harassment levelled by the complainant. It was not considered by the High Court as it was limited by the scope of judicial review. Non-availability of call records as material evidence was rightly noted by the Committee since there is a significant time lapse in the complainant registering a complaint. Hence, this is not a case of ‘no evidence’.
Based on the conclusions derived, the apex court held that the High Court committed an egregious error in passing the impugned judgment and order. Accordingly, the appeal is allowed.
Orissa HC: Husband as Proxy Sarpanch cannot be allowed to hijack the role, responsibility, & function of the Sarpanch; defeats the entire purpose of women reservation.
In Manoj Kumar Mangaraj vs. The Collector, Kalahandi & Ors., the Orissa High Court held that husbands working as proxies for their sarpanch wives defeats the entire purpose of women reservation. Such a system would put the grassroots democracy in peril.
The single bench judge comprising Justice Sanjeeb Kumar Panigrahi was hearing a writ petition filed by Gaan Saathi whose performance of duty was allegedly obstructed by the husband of the Sarpanch.  The petitioner claimed that the sarpanch’s husband requested him to falsely register the presence of 30 MGNREGA job card holders who had not undertaken any work. As the petitioner was unwilling to comply with this demand, he was subsequently barred from serving as a Gaan Saathi in the gram panchayat.
Feeling aggrieved, the petitioner initially sought resolution by approaching the Collector, Kalahandi, to address his concerns. However, the Collector did not promptly address the matter, leading the petitioner to take the matter to the High Court under its writ jurisdiction.
Upon hearing the arguments from both parties, the court remarked that the present case is a classic example of the phenomenon of ‘Sarpanch Pati’, where the male spouse of the Sarpanch wields actual political and decision-making power. Such a proxy system defeats the purpose of reservation for women in the Panchayati Raj Institution.
Accordingly, the court remarked that the Government through appropriate Department has to deal with such matters seriously, or else, the grassroots of democracy would be in peril. The Petitioner was permitted to discharge his duties as GAAN SAATHI.
Rajasthan HC: Differentiating natural biological mother and surrogate mother is an insult to motherhood; not granting maternity leave is discriminatory.
The Rajasthan High Court, in Chanda Keswani vs. State of Rajasthan., remarked that there should be no differentiation between a natural biological mother and a mother who has begotten a child through surrogacy when it comes to granting maternity leave. The court appears to assert that both types of mothers are entitled to equal maternity leave benefits.
A single judge bench of Justice Anoop Kumar Dhand was hearing a petition regarding maternity leave for surrogate mothers.  In the given case, the petitioner, after undergoing the process of surrogacy, gave birth to twins. Subsequently, she applied for maternity leave with the State authorities to care for her newborns. However, the State authorities denied her request through an order dated 23 June 2020. The refusal was based on the assertion that there is no provision in the Rajasthan Service Rules, 1951, for granting maternity leave to a mother who has children through the surrogacy process. The petitioner has approached the Court by filing a petition under Article 226 of the Constitution of India.
The counsel for the petitioner argued that the rules were framed in 1951, and during the relevant time, the parents did not utilize the procedure of surrogacy. However, over time and with advancements in medical science, parents now have an alternative method of having children through surrogacy, particularly if they are unable to have children through conventional means. However, the counsel for the state contended that since there is no existing rule for granting maternity leave in the context of surrogacy, the petitioner does not have a legal entitlement to seek relief from the court.
Having heard both sides, the court looked at the relevant legal position.
The court observed that before the substitution of Rule 103 in the Rules of 1951, there existed a provision for granting ‘maternity benefits’ under the Maternity Benefit Act, 1961 (referred to as ‘the Act of 1961’). This provision applied to women employed in specific establishments for a defined period before and after childbirth. Section 3(b) of the Act of 1961 specified that the term “child” includes “a still-born child.” However, it is noted that neither the terms “mother” nor “child” have been explicitly defined within the Rules of 1951 and the Act of 1961.
Further, the court, relying on multiple judgements, remarked that the right to life under Article 21 of the Constitution of India encompasses not only the right to motherhood but also the right of every child to full development. The contention is that if the government can extend maternity leave to an adoptive mother, it would be improper and unjust to deny the same benefit to a mother who gives birth to a child through the surrogacy procedure.
Interestingly, the court also relied on other legal statutes for its reasoning. With the recognition of surrogacy by the Legislature through the enactment of the Surrogacy Regulation Act of 2021, where a female can now become a mother through surrogacy, she should not be denied the benefit of maternity leave following the birth of the child through the surrogacy process. In other words, the recognition of surrogacy as a legitimate means of becoming a mother implies that women using surrogacy should be entitled to maternity leave, similar to mothers who give birth through conventional means. Denial of such benefits is an insult to motherhood.
Accordingly, the court ordered the respondents to sanction maternity leave of 180 days to the petitioners.
Kerala HC: Defections by elected representatives have been a bane of the Indian democracy, need to contemplate on including stringent financial penalties for acts of defection.
The Kerala High Court, in Deepak K. vs. The Kerala State Election Commission & connected case, remarked that despite the presence of anti-defection law, unscrupulous persons indulge in baleful acts of defection and the burden on the exchequer is immense due to the inevitable bye-elections. The Court further remarked that the time has come to contemplate including stringent financial penalties for acts of defection.
The Single Judge bench comprising Justice Bechu Kurian Thomas was considering the issue of disqualification due to the defection of a candidate by voluntarily giving up membership of a political party under whose banner the candidate stood for elections and won. The elected representative was a member of the Kerala Congress (M) P.J.Joseph [KCMPJJ] under UDF coalition, whereas after winning the election, the candidate gave up his membership in KCMPJJ and joined Kerala Congress (M) [KCM] which is a LDF coalition. It was alleged that he suffered disqualification under Section 3(1) of the Kerala Local Authorities (Prohibition of Defection) Act, 1999 . The Election Commission of the state stated that there was no cause of action for disqualification and dismissed the petitions. Aggrieved by this, petitioners approached the High Court.
The High Court observed that political defection betrays not only the party under whose banner the election was won but also the public who voted for the candidate.
Looking at the material evidence and the relevant sections of the act, the court concluded that the elected representative would attract disqualification. The court noted that any methods adopted by the defectors to escape the anti-defection law should be wrecked out and must be dealt with sternly. It further remarked that if, in a context, the purpose of the statute will be expressly defeated by a rigid adherence to the definition, a departure can be adopted.
Accordingly, the order of Kerala State Election Commission is set aside.
Himachal Pradesh HC: State cannot be permitted to act as an exploitative master by cleverly devising a method to deprive the employees from their lawful and just benefits emanating from the services rendered by them.
In Chaman Lal & others vs. State of H.P. & others, the Himachal Pradesh High Court remarked that the State being a model employer cannot be permitted to use exploitative employment practices, and the State is expected to be a guardian of citizen’s rights.
In the case before the bench of Justices Vivek Singh Thakur and Bipin Chander Negi, the petitioners were individuals appointed as Tehsil Welfare Officers on a contractual basis by the Department of Social Justice and Empowerment of the Government of Himachal Pradesh in May 2010. Despite adhering to the prescribed rules for recruitment, the state opted to provide only contractual appointments for an initial five-year period, resulting in the petitioners being deprived of regular employment benefits and seniority.
Consequently, the petitioners approached the court seeking various reliefs, which included the counting of their contractual service for purposes such as annual increments, seniority, and pensionary benefits. The case revolves around the contention that, despite following recruitment rules, the contractual nature of their appointments has led to the denial of certain employment benefits, and the petitioners are seeking redress through legal intervention.
The court, having heard both sides, remarked that the use of clever strategy to avoid rightful benefits to the employees is condemnable. Such tactics are exploitative in nature and against the rights of the citizens.
Further, the situation described indicates that it’s not a scenario where employees were urgently hired for a temporary increase in workload due to an unforeseen circumstance. Instead, the recruitment was for permanent sanctioned posts created to address the ongoing and continuous workload. Just to avoid liability, the State has adopted the exploitative policy of contractual employment, which is not fair.
Accordingly, the court held that the petitioners are entitled to all consequential benefits from the date of the initial appointment.

created: November 15, 2023


text:
SC seeks reports from Centre & States on Registration of Migrant workers, community kitchens & Dry ration
Sai Krishna Muthyanolla
April 27, 2022
In this week’s review of Court judgments, we look at Supreme Court’s direction to the Centre & States seeking status reports on the registration of migrant workers and the assistance provided to them, its rejection of appeal for blanket approval of not appearing for trial, Mumbai Metropolitan courts observation regarding peaceful agitation being right of citizen and Income tax tribunal’s observation regarding an appeal of ignorance as a reason for non-compliance.
SC: Seeks status reports from Centre & States on Registration of Migrant workers, community kitchens & Dry ration
Supreme Court sought compliance reports from Centre & State governments on the actions taken to comply with its earlier directions of June 2021, which required the centre & States to implement the “One nation, one ration card” scheme and to run community kitchens for the migrants.
In the earlier order passed by Justice Ashok Bhushan and Justice M.R. Shah, the court observed that it is the duty of all the States and governments to provide food security to impoverished persons. It has also directed the centre to create a database for unorganised workers and to develop a portal with NIC for migrant and unorganised workers. Activists Harsh Mander, Anjali Bhardwaj and Jagdeep Chhokar have moved the Supreme Court alleging non-compliance by the Union of India and a few states regarding the directions given by the Supreme Court in June 2021.
The activists filed a miscellaneous application and were also co-petitioners in suo motu case related to migrant workers during the pandemic, in which the supreme court gave the earlier judgement.
Accepting the application, the Supreme court directed the Solicitor General (SG) to file the status report and the action taken report. While the SG stated that it is the responsibility of the respective states, the court directed even the Centre to file the status report. The advocate representing Chhattisgarh provided an update on the progress made in the state.
The court directed the Union of India to file a status report regarding the directions in its June 2021 Judgement:
The court also sought a status report providing details of schemes formulated, number of beneficiaries, amount of dry ration distributed etc. Further, according to the application filed by the activists, the courts directed all the state governments to immediately run community kitchens at prominent places and provide cooked food for the migrant labourers. The court directed this report be submitted within four weeks.
SC: An accused cannot claim blanket exemption from personal appearances in cases under Section 138 NI Act.
In the case of Mahesh Kumar Kejriwal vs. Bhanuj Jindal, the two-judge Supreme court bench comprising of Justice Dinesh Maheshwari and Justice Aniruddha Bose, dismissed the petitioner’s claim of blanket exemption from personal experience, with an observation that an accused cannot claim a blanket exemption from appearance in a case pertaining to an offence under Section 138 of the Negotiable Instruments Act (NI Act.)
In this case, the petitioner filed an application relating to a cheque bounce case, asking for blanket relief of being exempted from personal appearance on all the dates when the case would come up for hearing.
Initially, the magistrate dismissed this application which was later partly allowed by the Session court directing the accused to furnish bail bonds/surety bonds. Seeking a blanket exemption, the accused moved to the High Court of Punjab & Haryana. The high court observed that there is no specific provision empowering the trial judge to provide a blanket exemption for the accused to make a personal appearance and dismissed the petition.
The accused based his application on the judgement in an earlier case, M/S Bhaskar Industries Ltd. Vs. M/S Bhiwani Denim Apparels Ltd. However, the Supreme Court observed that the specific judgment does not deal with the claim for blanket exemption. It observed that in the earlier case, the court observed discretion based on the specific details of the case and any such discretion needs to be observed only on rare occasions.
Mumbai Metropolitan Court: Peaceful agitation is a fundamental right of Citizens
Acquitting five women accused of Unlawful assembly, a Mumbai Metropolitan Court has observed that peaceful agitation is the Fundamental Right of every citizen in a democratic country. As per the case details, the accused women were allegedly protesting on Mumbai’s Eastern Freeway in 2015, as their area fell short of water for many days. They were detained by the police for obstructing the way and were booked under unlawful assembly and wrongful restraint.
Looking at the evidence provided, the court observed that the state has not been able to provide for any of the offences that the five accused ladies were booked under. The court noted that as per the witnesses, there were around 25 to 30 women who were agitating and breached the order of the police assembly. It also noted that the testimony of the two independent witnesses differed from the testimonies of the prosecution witnesses. It observed that the prosecution did not make efforts to examine the independent witnesses which raises doubt about the genuineness of the investigation.
Metropolitan Magistrate R. S. Pajankar, observed that all the women who were agitating went home after the agitation. He further observed that in a democratic country, making peaceful agitation is a fundamental right of citizens.
The court decided in favour of the 5 women arrested and acquitted them as there was no need to file an FIR against them.
ITAT- Hyderabad: Mere ignorance of the law is not a basis for removing a penalty
In the case Mohd Zaheeruddin vs. Income Tax Officer, Hyderabad, Income Tax Appellate Tribunal – Hyderabad bench has observed that ignorance of law with respect to the provisions of Section 44AB of the Income Tax Act cannot be a  reason for the penalty imposed on the Assessee.
The Section requires a compulsory audit of accounts, the failure of which attracts a penalty.
As per the case details, the assessee Mohd. Zaheeruddin was involved in the trading of shares and derivatives. During the relevant assessment year to which the case relates, the turnover achieved exceeded the limit for compulsory audit of accounts as per Section 44 AB of the IT Act.
Accordingly, the Assessment Officer imposed a penalty for failure of compliance. The Assessee filed an appeal stating that he was not aware of the provisions requiring a compulsory audit.
This appeal was made before the Commissioner of Income Tax (Appeals) (CIT(A)) and was duly rejected. CIT(A) noted that the contention of ignorance cannot be a reason for withdrawing the penalty. The assessee filed an appeal before the ITAT against the order given by CIT(A).
Mohd Zaheeruddin, the assessee claimed that he regularly drew a salary and only made some additional transactions during the specified year. Hence, he was not aware of furnishing an audit report and hence pleaded ignorance as a reasonable cause. However, ITAT stated that the case is covered under the provisions of Section 44AB and hence requires a compulsory audit of transactions.
ITAT noted that the Assessee had failed to comply with the provisions by not preparing the audit report and submitting them on time. It ruled that mere ignorance of the law cannot be said to be a reasonable cause for withdrawing or cancelling the penalty and proceeded to dismiss the appeal.
Featured Image: Important Court Judgements


text:
SC to implement ‘FASTER’ system for transmission of authenticated copies of the Judgments & orders to concerned Courts and Tribunals.
Sai Krishna Muthyanolla
July 21, 2021
In this roundup of court judgements, we look at Constitutional Courts’ remarks & directions on delay in releasing prisoners after the grant of bail & implementation of the ‘FASTER’ system, crowdfunding platforms for the treatment of children with rare diseases, digital divide among students in government schools, and the timeline for disposal of bail applications under POSCO Act.
Supreme Court: Takes suo moto cognizance of the delay in releasing prisoners after the grant of bail
The Supreme Court took suo moto cognizance of the delay in the release of prisoners based on a recent report in a leading daily newspaper that convicts lodged in Agra Central Jail had not been released even after 3 days of the order granting them bail.
The newspaper reported that the delay was caused because the prison authorities were awaiting the receipt of the court order by post. On 08 July 2021, the apex court had passed orders for the immediate release of 13 prisoners on interim bail after finding out that they have been languishing in jails for periods ranging from 14 to 22 years, despite establishing that they were juvenile at the time of offence.
The bench of CJI NV Ramana, Justices L Nageswara Rao and AS Bopanna observed that the Supreme Court was thinking of implementing a system to electronically transmit bail orders to prisons so that the release of prisoners on bail will not be delayed. The court sought to know from the state governments whether sufficient internet facilities are available in their prisons.
The CJI observed that the Supreme Court is contemplating to adopt the procedure termed as ‘FASTER: Fast and Secured Transmission of Electronic Records System’, for transmission of authenticated copies of the Judgments, final orders, interim orders to the concerned Courts and Tribunals. The bench also directed the Secretary-General of the Supreme Court to submit a proposal suggesting the modalities to implement the fastest system within two weeks.
Delhi HC: Directs Centre to immediately notify ‘Crowd Funding’ platform for the treatment of rare diseases
In the case Master Arnesh Shaw v. Union of India & Anr., the Delhi high court directed the Union Ministry of Health and Family Welfare to immediately launch a dedicated online crowdfunding platform for collecting funds for the treatment of children suffering from rare diseases.
The high court was hearing a batch of pleas related to the Draft ‘National Policy for Rare Disease, 2020’ and medical aid for patients suffering from rare diseases.
In the previous hearing, the high court had observed that children suffering from a rare disease cannot be deprived of the treatment merely because of the exorbitant price of a drug or treatment. The court had directed the Union of India to implement and notify the draft policy and also consider crowdfunding options in the meantime for the successful treatment of the petitioners.
In observing so, the judgement also took note of the fact that the Right to Health and Healthcare is a fundamental right under Article 21 of the Constitution. The court also emphasised that it is incumbent on society in general and authorities, in particular, to ensure that the life of such children is not compromised, even if there is a small window of improving their chances of survival or even providing a better quality of life.
The Centre has claimed that it cannot fully finance the treatment of all high-cost rare diseases, but the gap can be filled by seeking donations from prospective individuals or corporate donors, who are willing to support the cost of such diseases. For this purpose, it had proposed to explore crowdfunding as an option to address affordability concerns.
Considering the urgency in the matter, the digital platform for crowdfunding was directed to be made operational on or before 31 March 2021. Further, time was granted until 31 July 2021 to finalise and put in the public domain, the National Policy. However, despite the order dated 28 January 2021, the digital platform was not made operational to date.
In lieu of this, the bench of Justice Rekha Palli ordered that failure to notify a platform by the next date of hearing i.e., 04 August 2021, will lead to suo moto action for wilful non-compliance of its orders.
Karnataka HC: State survey finds that 25% Students Lack Access to Online Classes; High Court Directs State to Make Action Plan to bridge Digital Divide
The Karnataka High Court directed the state government to place on record an action plan by 29 July 2021, with regard to bridging the technological divide and making available technology to students who are unable to afford it.
On the direction of the court, the state government had conducted a student digital communication survey by collecting data from schools, government and aided schools. The aim of the survey was to understand how many students do not have access to technology for the purpose of being part of the education system during the period of closure of schools owing to the COVID-19 pandemic.
The survey report indicated that 75.5% of the students surveyed are having access to technology through the medium of which education is being imparted to them. However, 24.5% of students, which is the state average, do not have access to the technology to attend e-classes.
The student digital communication survey also highlighted that in certain districts of state such as Bidar, Chamrajnagar, Kalaburgi, Raichur, Kopal, Tumkuru, Madikeri, Yadgiri, Chitradurga, the percentage of students not having any device/technology is above 45%. In other districts, the percentage of students not having any device/technology was between 20 to 35%. It is only in districts such as Bangalore rural, Dakshina Kannada, and Udupi that the percentage of students not having a device for imparting education is very less, that is less than 15%.
The high court noted that the state has taken steps to collect the data in order to ascertain the digital divide in the state vis-à-vis the students not having access to technology for purpose of being imparted education. Taking these findings into consideration, the court observed that what is mandated is to consider the said data for taking action in order to enable students to be empowered with technological means so that they remain within the umbrella of the education system so far as government and aided schools are concerned.
The bench cited the example of a family with only one mobile phone. If the parent goes out to work with the mobile phone, the child will not be able to attend online classes. Further, in families where there is more than one child, a single mobile phone may not be sufficient as all siblings cannot make use of the same phone for learning purposes.
While there is a serious issue of students remaining out of schools and outside the umbrella of the education system, the issue is further exacerbated by the fact that during the pandemic, closure of schools has led to imparting of education only through the use of technology. Therefore, the state, on the basis of a survey conducted, is directed to mandatorily take steps to make technological devices available to students who have been deprived of said devices or unable to access the same.
Allahabad HC: Issues Directions & Timeline for Disposal of Bail Applications under POCSO Act, 2012
The Allahabad High Court recently held that only the local police or Special Juvenile Police Unit (SJPU) could serve notice on bail application for offences under the Protection of Children from Sexual Offences Act, 2012 (POCSO Act). The high court also prescribed a timeline to execute the different statutory functions by the respective authorities.
The High Court was hearing a bail plea under Sections 363, 366, 368 IPC, and Sections 16 and 17 POCSO Act and Section 3(2)(V) of SC/ST (POA)Act. The High Court granted bail, overturning the Additional District and Sessions Judge/Special Judge (POCSO Act).
The Court held that it is imperative to protect the rights of both the victim and the accused, and define the time frame for placing the bail application after its maturation before the court. A bench of Justice Ajay Bhanot enumerated a nine-point direction to ensure regular monitoring of the implementation of the directions of the court, including the creation of standard operating procedure (SOP), supervision of staff, preparation of a biannual report, etc.
Timeline and Procedure for Maturation of Bail Application:
Featured Image: Important Court judgements


text:
SC upholds NGT Ban on Firecrackers in Delhi-NCR Region with 'Poor' Air Quality
Sai Krishna Muthyanolla
July 28, 2021
In this roundup of court judgements, we look at Constitutional Courts’ remarks & directions about NGT’s ban on firecrackers in cities with poor air quality, non-implementation of OBC reservation in medical colleges for 2021-22, importance of public transport buses with disabled-friendly amenities, and proper functioning of Tree Authority in Goa.
Supreme Court: Upholds NGT Ban on Firecrackers in Delhi-NCR Region with ‘Poor’ Air Quality.
The supreme court upheld the National Green Tribunal’s (NGT) order imposing a complete ban on the sale and use of all firecrackers during the COVID-19 pandemic in the Delhi-NCR region and other cities in India wherein the Air Quality Index (AQI) was poor.
In December 2020, a Bench headed by NGT Chairperson Justice AK Goel imposed a total ban on the use of firecrackers. In cities/towns where air quality is ‘moderate’ or below, only green crackers could be used for a specified period for the celebration of any specified festivals. The apex court was hearing appeals challenging the NGT’s order.
Submissions made on behalf of an individual retailer contended that firecrackers did not figure in the top 15 reasons for pollution, and if the main issue was redressal of pollution, then all causal factors had to be considered such as stubble burning. He stated that the fireworks industry had received the short end of the stick and that the NGT order had rendered him without resources and making him lose his money.
The bench of Justices AM Khanwilkar and Sanjiv Khanna observed that nobody has a right to carry on business at the cost of the health of others. The bench dismissed the appeal and upheld the NGT’s total ban on the use and sale of firecrackers in the Delhi-NCR region.
The NGT order highlights COVID-19 deaths attributable to long-term air pollution exposure.  ICMR studies have proved that long-term exposure to air pollution has been linked to an increased risk of fatality from COVID-19. It is further stated that there have been studies from Europe and the US, where they have looked at polluted areas and have compared mortality during lockdown and correlation with pollution. Scientists estimated that about 15% of deaths worldwide from COVID-19 could be attributed to long-term exposure to air pollution. In Europe the proportion was about 19%, in North America it was 17%, and in East Asia about 27%. The NGT order also referred to news reports by Mint and Newsclick that have highlighted that same.
The NGT also issued the following directions:
Madras HC: Centre’s attempts at not implementing OBC reservation in medical colleges for 2021-22 constitutes prima facie contempt.
The Madras high court has directed the Central government to take immediate measures for implementing OBC reservation in MBBS seats under All India Quota, across under-graduate and post-graduate medical and dental colleges of the State.
The matter pertains to the high court’s order (dated 27 July 2020) to Central Government regarding framing laws to provide reservation to the ‘Other Backward Classes’, ‘Scheduled Castes’ and ‘Scheduled Tribes’ in the State surrendered seats in the all-India quota for medical seats in Tamil Nadu. The high court was then hearing a batch of pleas filed by several petitioners, including various political parties in Tamil Nadu as well as the Tamil Nadu Government.
The Court had thereby directed the Central Government to form a committee to provide the terms of implementation of such reservation for courses to be run from the next academic year onwards. It stated that such a committee must ensure participation from the Central Government, the State Government, the Medical Council of India, and the Dental Council of India. The Court also directed the Central Government to specify the percentage of such reservation for OBCs preferably within three months from the date of order.
The considered stand of the Union of India was that steps were being taken to implement the OBC reservation to ‘All India Quota’ seats in the State from the academic year 2021-22. However, the high court observed that the Union government seeks to change tack and keep the implementation of the OBC reservation as per the 1993 State Act in suspension till the ‘Saloni Kumari’ case is pending before the Supreme Court is decided.
The high court held that Centre’s apparent attempts at deferring such implementation of OBC reservation is in abject violation of its earlier order thereby constituting prima facie contempt of Court. Accordingly, the Court directed the Centre to indicate the mode and manner of implementation of the OBC reservation in respect of All India Quota seats for the academic year 2021-2022 within 7 days of the order.
Madras HC: Restrains State Govt from purchasing Public Transport Buses without Disabled Friendly Amenities
The Madras high court passed an order restraining the State government from purchasing any new buses for the purpose of public transport unless such buses are disabled-friendly as per the statutory requirements under the Rights of Persons with Disabilities Act, 2016 and the Rights of Persons with Disabilities Rules, 2017.
The petitioner highlighted the 2017 Rules along with a notification issued by the Government of India in 2016 which stipulates that the provision of the relevant Rule would be implemented in two phases: In the first phase, certain parameters as to technical specifications would apply to all buses on or after 1 January 2017, and in the second phase, the provisions of the revised specifications would apply on or after 1 January 2018.
Additionally, the high court observed that writ petitions pertaining to better facilities for persons with disabilities had been pending from the year 2007 or even 2005, and nothing fruitful or worthwhile has been done to address the genuine grievances or day-to-day problems faced by them.
On behalf of the State, it was submitted that there are certain practical difficulties, particularly in finding resources not only to acquire the more expensive buses but also to create the road infrastructure to be able to host such sophisticated buses.
While the high court accepted that the state needs time to indicate a roadmap, the court also maintained that it is necessary that the state be restrained from acquiring any further bus for the public transport system which does not conform to the specifications indicated in the notification of 2016. The matter is posted for further hearing on 19 August 2021.
Bombay HC: Issues Directions for the proper functioning of Tree Authority in Goa.
The Bombay high court at Goa issued several directions for the proper functioning of Tree Authorities in the North and South districts of Goa and discharge the duties, which include conducting a census of existing trees, planting and transplanting of trees, etc.
The Tree authorities were constituted under the Goa, Daman and Diu Preservation of Trees Act, 1984. The high court was hearing a petition filed by NGO Living Heritage Foundation, which pointed out that Tree Authorities for the two districts of North and South Goa are defunct from the date of the enactment of the Trees Act (1984), or, from November 2012, the date on which the two Tree Authorities came to be constituted.
The high court expressed distress on the non-functioning of Tree Authorities in both the districts of Goa and issued a slew of directions, some of them include:
Featured Image: Important court judgements


text:
SEEI (2021-22) Notes That Four South Indian States Are The Only Ones With A Proactive Approach in Scaling Up Energy Efficiency Programmes
Sai Krishna Muthyanolla
May 4, 2023
Data from the fourth edition of State Energy Efficiency Index (SEEI 2021-22) indicates an overall improvement across most of the States. However, there are varying trends across the 7 sectors identified for SEEI 2021-22. The report notes that Andhra Pradesh, Karnataka, Kerala and Telangana are the only states with a proactive approach  to scale up Energy Efficiency programmes.
Data from the fourth edition of the State Energy Efficiency Index i.e. SEEI 2021-22 indicates an overall improvement across most of the States. In the previous story, we reviewed the overall performance of the States/UTs in comparison with the earlier indices and with the other states in the same consumption grouping. While the overall index shows a positive trend in comparison to previous editions, there are varying trends across the 7 sectors identified for SEEI 2021-22. Here is a detailed review of each of the sectors.
Andhra Pradesh, Karnataka & Kerala score high in Industry Sector
The industry sector has the highest total final electricity consumption (TFEC) with 41% of the total consumption of India in 2020-21. In SEEI 2021-22, this sector contributes to 21% of the total points. The energy efficiency of the sector is measured in 5 indicators, of which 2 are common indicators (4 points) and 3 are programme-specific indicators (17 points). As indicated in the previous story, performance indicators were introduced in the current index. These programme-specific indicators, carrying a larger weightage are measured in the various programmes implemented by states for large industries, MSMEs and PSUs.
Andhra Pradesh scored the highest for Industry Sector with 18.5 points, followed by Karnataka, Kerala & Rajasthan at 15.5, 14.5 & 14 points respectively.
The fall in the score across many States is the more visible trend relating to this sector.
As already indicated, the parameters for SEEI 2021-22 are different compared to that of the previous index. Hence, the fall in the scores does not correlate to a dip in the performance for the criteria that were measured in SEEI 2020.
The performance of the states in Programme-Specific Indicators has a large bearing on the overall score. The better performance of a few of the states is reflected in the initiatives undertaken by them.
Karnataka secured the highest possible score in Transport Sector, with AP a close second
The transport sector has the third most TFECs with 9% of India’s total energy consumption. Crude oil is the major source of energy requirement in this sector. SEEI 2021-22 has 10 indicators with 8 as common and 2 programme-specific. However, the weightage of them in the total scale is eight each making the total value of the Transport sector on SEEI 2021-22 as 16.
Karnataka scored a perfect 16, while Andhra Pradesh score 15, with it losing out a point in common indicators. Meanwhile, Kerala, which scored 8/8 for common indicators was able to score only 2 in programme-specific indicators.  Most of the states showed an improvement in their scores for Transport compared to SEEI 2020. As was the case with other sectors, Tamil Nadu has the highest proportionate decline in its numbers. Its score in the current index is reduced by 32%.
During the period of review, 13 more states reported having a state electric mobility policy, taking the total number to 22. Such policies are key to promoting EV vehicles. Various states have implemented programmes that encourage usage of two-wheeler EVs. Andhra Pradesh has formulated a scheme with the support of NTPC, for the supply of EVs through EMIs to government employees. Various other states – Haryana, Assam, Chhattisgarh, Karnataka, Kerala, Telangana, etc. are among those that have such schemes in place to promote the adoption of EVs.
Kerala, Tamil Nadu & Telangana among the states that reported lesser Transmission and Distribution (T&D) losses
As indicated in the earlier story, Agriculture & DISCOM are treated as separate sectors in SEEI 2021-22.
DISCOMS
There are 5 indicators for DISCOMS with a focus on – Transmission and Distribution losses, Time of day (ToD) and Time of Use (TOU) tariffs, Energy Audits, Smart metering, etc.
T&D loss is an important measure that indicates the operational efficiency of DISCOMs.
Data indicates that Kerala, Tamil Nadu, Telangana, Punjab & Himachal Pradesh have less than 15% T&D losses. This is reflected in their better scores for the DISCOMS sector. Kerala has the highest score of 9.5, followed by Telangana & Maharashtra. The Bureau of Energy Efficiency’s report “Compendium on DSM measures by DISCOMS” highlight the various initiatives by DISCOMs across India to achieve Energy Efficiency through Demand Side Management (DSM).
Adoption of smart meters enables real-time access to information on energy usage by consumers, which proactively helps DISCOMs in load management and ensuring grid stability. 13 states have so far adopted smart meters.
Agriculture
The agriculture sector accounts for 18% of the total energy consumed in India. Improving the sustainability of the sector by reducing farmer energy costs and increasing stability is a key aspect of achieving EE in this sector. Policies around the development of climate-friendly cold chain infrastructure are among the indicators in SEEI 2021-22.
14 states have reported different programmes in agriculture that aim at achieving EE. Andhra Pradesh & Uttar Pradesh have implemented a program to replace old conventional pumps with EE ones. The result was a total energy savings of 210 MU and avoided emissions to the tune of 1.25 MtCO2.
Telangana’s Micro Irrigation project provides assistance to marginal farmers for effective and efficient use of energy and water. Telangana and Karnataka score the highest with 5.5 out of possible 6, with Haryana, Rajasthan, and Kerala scoring 5 each.
With exception of few States, there is an overall improvement in the score for Buildings sector
In SEEI 2021-22, the share of the building sector is 25% and thus the performance of the states in this sector has a large bearing on the overall SEEI 2021-22. The building sector stands next only to the Industry sector in the overall TFEC and it is projected that its share of the total TFEC would increase by 45% up to 2027 (2017 baseline). Rapid urbanization and economic development drive the growth in energy consumption and hence, it is critical that there is a focus on developing energy-efficiency (EE) strategies in the building sector.
10 indicators are used for evaluation. 7 Common Indicators with a weightage of 10 points and 3 Performance indicators contributing to 15 points on the index. SEEI 2021-22 report notes that the improvements in common indicators and the data provided for programme-specific indicators have contributed to an increase in the overall scores of 20 states.
The report notes that across all the states, there has only been marginal progress on policymaking pertaining to budling energy codes. The same is the concern with making a concerted effort to develop institutional capacity in this sector.
However, the states have scored better on the performance indicators.
The municipal sector and cross sector are the other sectors that are measured as part of SEEI 2021-22.  Apart from Buildings, another sector that is impacted by urbanization is the Municipal sector.  The focus for measuring EE in Municipal sector are the achievements around efforts made in street lighting and water/sewage systems.
Karnataka and Kerala are among the states that have implemented programmes to upgrade their streel lighting system. This has contributed towards a comparatively higher score on the index for this sector.
A.P, Karnataka, Kerala and Telangana among the only states with a proactive approach  to achieve  Energy Efficiency (EE)
As per SEEI 2021-22, it can be ascertained that there has been a considerable progress across the states compared to SEEI 2020. The introduction of program specific indicators in the current index has ensured adoption and implementation dimension being given emphasis in the current index.
Across the sectors, the states whose scores are less than the previous index are the ones which have scored less on the program specific indicators. Infact, many of the common indicators also emphasise on the implemented actions of the states.
In this context, the report states that only a few states have adopted a proactive approach. These are Andhra Pradesh, Karnataka, Kerala and Telangana. In case of most of the other states, it is the adoption and implementation of national policies that has contributed towards improved Energy efficiency.
Featured Image: SEEI 2021-22 report


text:
Review: Seven years of PMJDY in numbers
Sai Krishna Muthyanolla
September 9, 2021
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is one of the prestigious schemes of the current government. PMJDY is a type of Basic Savings Bank Deposit Account (BSBDA) with no minimum balance requirement. Here is a review of the 7 years of PMJDY.
The Pradhan Mantri Jan-Dhan Yojana (PMJDY) is a nationwide social security scheme launched by the Government of India in August 2014 to ensure financial inclusion of every individual who does not have a bank account in India. The objective of the scheme is to ensure access to various financial services like availability of basic savings and deposit bank account, access to need-based credit, remittances facility, insurance and pension to the weaker sections and low-income groups, in an affordable manner. In addition, the scheme also provides an accident insurance cover of up to Rs. 2 Lakhs and an overdraft facility up to Rs. 10,000 to eligible account holders. Further, the scheme also envisaged financial literacy program to promote savings, use of ATMs, using mobile phones for banking, among others.
PMJDY extends insurance and OD benefits
The main features of the PMJDY scheme are
More than 43 crore accounts have been opened under PMJDY
Recently, the PMJDY scheme completed seven years of implementation. In these seven years, the number of accounts opened under the scheme has crossed 43 crores. In the last year, over 2.6 crore Jan Dhan accounts have been opened. In the first year of implementation of the scheme, over 17.9 crore PMJDY accounts were opened. Between August 2017 & 2018, only about 2.45 crore accounts were opened. In the following year, between August 2018 & 2019, over 4.25 crore accounts were opened. This could be attributed to the modifications made to the scheme in 2018.
Initially, when the scheme was rolled out, the target was to cover every household. According to PMJDY’s progress report, almost 100% of household coverage has been recorded in all the states/UTs. However, since 2018, the government decided to extend the scheme to ‘Every Unbanked Adult’ and increased the free accidental insurance cover on RuPay cards from Rs.1 Lakh to Rs. 2 lakh for PMJDY accounts opened after 28 August 2018. Further, the Overdraft (OD) limit was also doubled from Rs. 5,000 to Rs. 10,000 and facility of OD up to Rs. 2,000 without conditions was brought in.
Two-thirds of BSBDAs are PMJDY accounts
PMJDY is developed upon the Basic Savings Bank Deposit Account (BSBDA) introduced by RBI in August 2012. Both BSBDA and PMJDY have the same broad goal- Financial Inclusion. However, unlike the PMJDY, BSBDA can be opened by anyone, irrespective of their income.
At the same time, there are also similarities in both these account types. Like PMJDY, BSBDA does not require maintenance of any minimum balance and is a full-KYC basic banking account. With the introduction of PMJDY, the number of BSBDAs has grown significantly. Data from a study undertaken using RBI Annual Reports and PMJDY’s Progress report shows that as of December 2020, there are over 64.9 crore BSBDAs including 41.58 crore PMJDY accounts. In other words, 64% of the BSBD accounts are PMJDY accounts. The annual addition of BSBD accounts is given in the following chart. It should be noted that between 2016-17 and 2019-20, about 3.5 crore non-PMJDY BSBD accounts were closed.
The average deposit per Jan Dhan account has increased almost 3 times
Of the 43 crores Jan Dhan accounts opened as of August 2021, more than 55% (over 23.87 crores) Jan Dhan accounts are held by women and nearly 67% (over 28.7 crores) account holders in rural and semi-urban areas. As of August 2021, the total deposit balances under PMJDY accounts stand at Rs. 1,46,230 crores. From the first year of PMJDY, the deposits have increased about 6.38 times. The average deposit per Jan Dhan account has gone up 2.7 times from Rs. 1,279 in August 2015 to Rs. 3,398 in August 2021.
As of 01 September 2021, the maximum number of beneficiaries are from Uttar Pradesh with over 7.36 crore account holders followed by Bihar with over 4.92 crore account holders. West Bengal has nearly 4.25 crore account holders while Madhya Pradesh has over 2.61 crore account holders. Maharashtra and Rajasthan also have more than 3 crore account holders each. Altogether, these six states together accounted for almost 61% of the Jan Dhan account holders in the country as of September 2021.
The average deposit in 25 states is higher than the national average
The average deposit per Jan Dhan account across states varies from Rs. 2,072 in Manipur to Rs. 6,838 in Goa. The average deposit is the highest, Rs. 19,174 per account, in Lakshadweep where there are only 6,060 Jan Dhan accounts. A total of 25 states/UTs have an average deposit greater than the national average. Goa and Himachal Pradesh are the only states with an average deposit of more than Rs. 6,000 per Jan Dhan account. Sikkim, Uttarakhand, Meghalaya, Haryana, and Arunachal Pradesh are the states with an average deposit of more than Rs. 5,000 per account. The average deposit in 9 states is below Rs. 3,000. These states are Manipur, Assam, Madhya Pradesh, Telangana, Tamil Nadu, Nagaland, Bihar, Andhra Pradesh, and Chhattisgarh.
The accounts under PMJDY can have zero balance. Since averages are calculated as the ratio of total deposit to the total number of accounts opened, the actual number of accounts without any balance is not known.
Multiple challenges in the effective implementation of PMJDY
While PMJDY is a huge step forward to ensure financial inclusion, many challenges have impeded the effective implementation of the scheme. Poor digital connectivity, lack of infrastructure, networking issues, are some of the basic setbacks that not only hinder the implementation of the scheme, but also make it difficult to provide the required banking services in every nook and corner of the country.
Though financial literacy is one of the scheme’s objectives, lack of awareness with respect to the procedures in opening and operating an account, and available benefits continue to exist which need to be addressed. Studies also show that duplication is evident- there were people who opened a PMJDY account though they operated another bank account.
Dormancy or inoperative accounts is another concern. According to the Reserve Bank of India’s Master Circular from July 2015, every year, the banks must conduct a review of accounts which are not being operated and approach the customer to ascertain the reason behind inactivity. If there has been no transaction in the savings account, for over two years, including PMJDY accounts, it is considered inoperative/dormant.
Proportion of inoperative accounts has reduced over the years
Over 24% of the PMJDY accounts were inoperative as of August 2017. In August 2018 and August 2019, over 19.1% and 18% of the accounts were inoperative respectively. In August 2020, the percentage of inoperative accounts dropped to 13.7% because of the deposit of Rs. 500 per month for three months (April to June 2020) to the accounts of women Jan Dhan account holders under PM Garib Kalyan Yojana. A total of 20.64 crore women account holders benefited under the scheme. A total of Rs. 30,944.99 crores were credited to beneficiaries’ accounts. As on 28 July 2021, 14% of the Jan Dhan accounts were inoperative.
State-wise data shows that Goa and Mizoram had the highest proportion of inoperative PMJDY accounts as on 25 March 2020 with 33% accounts being inoperative. On the other hand, the proportion was the lowest in Tripura with 6% accounts being inactive. However, as on 28 July 2021, the data shows that in almost all states, the proportion of inoperative accounts has dropped by 4 percentage points on an average. Telangana recorded a drop in inoperative accounts from 19% to 10% while Kerala and Maharashtra reported a drop by 8 percentage points. Exceptions do exist. Mizoram witnessed an increase in inoperative accounts by 14 percentage points while Delhi and Haryana witnessed an increase by 1 and 2 percentage points respectively.
There is no doubt that PMJDY has immensely helped in extending basic bank account to the unbanked. However, all these account holders also need to engage with the extended larger financial system to avail other benefits such as loans, insurance products etc. The focus of the initiatives could be in this direction.
Featured Image: Pradhan Mantri Jan-Dhan Yojana

created: September 9, 2021


text:
Review: Standing Committee advocates DBT of Fertilizer subsidy to the Farmer
Sai Krishna Muthyanolla
July 16, 2020
A parliamentary standing committee recently submitted its report on the ‘study of system of fertilizer subsidy’ in March 2020. Among other things, the committee noted that there was a delay in settlement of subsidy dues. It advocated for DBT of fertilizer subsidy to the farmer instead of the manufacturer.
In India, Fertilizers are made available to the farmers at a subsidized and affordable price to help with increase in yield. The Department of Fertilizers has subsidized fertilizers in the range of 30% to 70% of its cost. The subsidy is passed onto companies manufacturing fertilizers so that farmers get the fertilizers at subsidized MRP. The quantum of subsidy varies with type of fertilizer like Urea, DAP etc. The subsidy is given only to those fertilizers which meet the standards laid down by the government.
The appointment of dealers and retailers who supply fertilizers to farmers is done by companies and licensing of these dealers & retailers is done by the state governments. Their availability & supply within the state is monitored by the state governments. The state governments are required to prepare a monthly estimate of the amount of fertilizers required and submit it to the Department of Agriculture which in turns coordinates with Department of Fertilizers. The Department of Fertilizers prepares the monthly supply plan after consultations with manufacturers and importers to meet the demands projected by the agriculture department.
Subsidy scheme for fertilizers was first introduced in 1977
Subsidy scheme for fertilizers was first introduced by the Indian Government in 1977 through the Retention Price Scheme (RPS) for indigenous nitrogenous fertilizer units. Subsequently, it was extended to phosphatic and other complex fertilizers and Single Super Phosphate.
In 2012, the department launched the mobile Fertilizer Monitoring System, abbreviated as mFMS, as a step to achieve better visibility and transparency in the fertilizer chain from production to receipt and sale. mFMS covers all subsidized fertilizers in India which include Urea and 21 grades of Phosphatic and Potassic fertilizers (P&K). An integrated Fertilizer Monitoring System, iFMS, began operation in 2016, with enhanced features. A total of 173 fertilizer manufacturers, 24,965 wholesalers and over 2.21 lakh retailers were registered in iFMS as of March 2020. Subsidy is not paid on sale of sub-standard fertilizers. Thus, the department records the quality certificate of all fertilizers for which subsidy is paid.
Subsidy schemes vary with type of fertilizer
Subsidy is different for different types of fertilizers. Urea is sold at a fixed MRP as determined by the Central Government. The MRP of 45 kg bag of urea is fixed at ₹ 242 per bag and the MRP of 50 kg bag of urea is ₹ 268 per bag, both exclusive of charges towards neem-coating and taxes as applicable. The subsidy given to urea manufacturers and importers is the difference between delivered cost of urea at farm gate and the net market realization by the urea units. Hence amount of subsidy payable to different urea producing plants varies from unit to unit. Likewise, the subsidy varies from plant to plant due to different energy norms. The government bears the cost of imported urea which it recovers from Fertilizers Marketing Entities or handling agencies.
Nutrition Based Subsidy Policy was introduced in 2010
In the case of P&K fertilizers, those which contain Phosphorous and Potassium compounds, a Nutrition Based Subsidy (NBS) Policy was implemented since 2010, under which a fixed rate of subsidy, in Rs per Kg basis, on each nutrient- Nitrogen (N), Phosphate (P), Potash (K) and Sulphur (S), is provided by the government each year taking into consideration international prices, exchange rate, and other factors. Secondary and micronutrients are also eligible for subsidy. There is separate additional subsidy for micronutrients namely Boron and Zinc. 20 out of 21 grades of imported P&K fertilizers are covered under the NBS scheme. Companies that have registered themselves under the scheme are eligible for availing the subsidy. Any sale above the printed MRP is punishable under the Essential Commodities Act.
City compost is a new category of fertilizers introduced in 2016
A third category of fertilizers, known as City Compost is given a fixed subsidy of ₹ 1500 per tonne. This scheme was notified in 2016 to promote the use of city compost made from garbage in cities, that would provide carbon and other primary and secondary nutrients to the soil, in addition to keeping cities clean.
The expenditure on fertilizer subsidy is increasing
Since 2001-02, there has been a continuous increase in the fertilizer subsidy expenditure. The expenditure on P&K fertilizers, both indigenous and imported was the highest in 2008-09, when the subsidy expenditure also touched the peak since in these 18 years.
While expenditure on P&K fertilizers reduced since then, the use of urea & hence the corresponding subsidy has increased. The NBS was also introduced in 2009. The shift in pricing regime was to ensure that balanced use of fertilizers. Otherwise, the farmers ended up using more fertilizers than the desired quantity.
Delay in subsidy settlement is still a problem
The estimated subsidy expenditure for 2019-20 is ₹ 83476 crores. By the end of financial year 2017-18, subsidy claims worth ₹ 19,363 crores were pending and by the end of 2018-19, an amount of ₹ 30,244 was outstanding, higher than the previous year. As per the existing policy guidelines, DBT claims should be settled within 7 working days from the date of submission of the claims. However, there is no time limit mentioned for settlement of non-DBT claims.
The price of P&K fertilizers has increased substantially which has been explained in annual report of 2018-19. This is due to increase in the price of raw materials and finished fertilizers in international market along with depreciation of Indian rupee against US Dollar.
Current system settles subsidy with manufacturer and not farmer
The present system of delivering subsidies is through Direct Benefit Transfer to the manufacturer. The system is such that a farmer identifies themselves with Aadhar biometric at the time of purchasing the fertilizer at subsidized rate. The subsidy amount is then paid to the company by the government.
Usage of fertilizers in India is much higher than desired levels
As per the standing committee report on fertilizers subsidy submitted in the Lok Sabha in March 2020, the consumption of fertilizers is much higher compared to the desired ratio. Although the desired consumption in case of NPK fertilizers is 4:2:1, the usage is (6.7):(2.4):1. It has also been reported that the consumption in states like Punjab and Haryana where agriculture is dominant, the consumption ratio was as high as (31.4): 8:1 and (27.7):(6.1):1 respectively.
It was also observed that fertilizer usage varies with the crop. Fertilizer usage in in potato cultivation, sugarcane, cotton, wheat and paddy were among the highest levels-  347.2, 192.6, 176.7 and 165.2 Kg/hectare respectively. There is excessive use of nitrogenous fertilizer as well.
Parliamentary standing committee advocates DBT on fertilizer subsidy directly to the farmer
Furthermore, the standing committee observed that manufacturers did not produce efficiently and that the government had to bear the expense of this inefficiency. As a measure to reduce the overuse by farmers and to push manufacturers to take up more efficient production methods, the standing committee has recommended that the subsidy be directly given to farmers by depositing the amount directly into their accounts on producing the necessary purchase vouchers.
The committee has further advised the government to reduce the expenditure on fertilizer subsidy by making energy norms stringent and modernizing manufacturing plants. It was also recommended that subsidy amounts should be cleared within a limited period of time to put an end to the delay in settlement.
Featured Image: Fertilizer subsidy


text:
Review: Standing Committee asks FCI to work towards reduced wastage & stringent action against delinquent officials
Sai Krishna Muthyanolla
August 2, 2022
The parliamentary standing committee on Food, Consumer Affairs, and Public Distribution presented a report regarding the Procurement, Storage and Distribution of Food grains by the FCI in August 2021. The government has now presented its action taken report. Here is a review.
Food security is an important element of a nation’s stability and prosperity. The starting point for ensuring food security is the procurement stage, followed by storage, and distribution. In India, the primary task for ensuring the smooth flow of the above process is entrusted with the Food Corporation of India (FCI) established under the Food Corporations Act, 1964. The objectives of the FCI, as mentioned on their website are:
Lately, there have been multiple questions raised about the storage and other costs of the FCI because of the excessive food grain stocks. A whole lot of issues surrounding the procurement, and storage are explained in detail by Factly in the series on FCI here, here, here, and here.
In light of these, the parliamentary standing committee on Food, Consumer Affairs, and Public Distribution presented a report titled, ‘Procurement, Storage and Distribution of Food grains by Food Corporation of India’ to the concerned Ministry in August 2021. The report was examined by the Government, and it provided the actions taken against the specified recommendations. The latest report titled, ‘Action Taken by the Government on the Recommendations/ Observations contained in the Thirteenth Report of the Committee (Seventeenth Lok Sabha) on the subject ‘Procurement, Storage and Distribution of Food grains by Food Corporation of India’  was recently presented in the parliament. We look at important issues highlighted in this report focussed on specific aspects of the process flow.
On Decentralized Procurement System (DCP)
The State Governments directly purchase, store, and distribute food grains under the 1997–1998 Decentralized Procurement Scheme (DCP). In accordance with this plan, the States purchase, store, and distribute food items for the TPDS and other government of India welfare programmes. Under the DCP system, the State Government and its agencies purchase, store, and distribute rice, wheat, and coarse grains throughout the State (against GOI’s allocation for TPDS & OWS). The excess rice and wheat that the State and its agencies have purchased are given to FCI in the Central Pool.
Since the DCP mode entails significant obligations by the states such as planning for funding, storage space, gunny, manpower, etc, they hesitate to embrace the DCP system. The committee in its original report was aghast by the non-participation of states in the DCP system.
In its action taken report, the Government replied that all efforts towards the adoption and implementation of the DCP model are being done. Regular follow-ups and clarification sessions on the concerns raised by the states are also being done.
The committee felt that despite the active measures by the Government of India, the low adoption of DCP mode is a concern. The committee noted that the ministry did not provide the committee with the details of difficulties faced by the states or reasons for the non-adoption of this scheme. Hence, the committee reiterated its earlier recommendation of encouraging states to adopt the DCP model and taking proactive measures and suggesting remedial measures if any issues arise.
On Storage and Transit losses
Storage and transit losses pose a financial risk to the efficient functioning of the FCI. Despite various measures, these losses are still high, with transit losses amounting to Rs. 280.94 crores in 2020-21 (till October 2020). This is a slight decline compared to Rs. 286.39 crores in 2017-18.  The committee asked the department to continue its efforts to minimize the losses in the future. It also took note of the cases initiated against the officials against unjust transit and storage losses. Below is the data on action initiated, as provided by the ministry.
Out of these, 17 minor cases in Transit losses, and 81 minor cases in storage losses are pending, and in major cases, 1 in transit loss and 8 in storage losses are pending as of 30 September 2020. The committee recommended FCI to fix its own standards and guidelines to ensure extra vigilance by the employees. Also, a framework for resolving pending cases be reviewed and necessary steps for the disposal of cases must be initiated in a timely manner.
The Ministry replied that some quantities of transit losses are inevitable, and proactive measures taken to mitigate storage losses were apprised to the committee. The committee felt that the reply of the Government was silent on the disposed of cases. Accordingly, the committee reiterated its earlier recommendation of stringent actions against delinquent officials, and the storage and transit losses should be curbed by vigorous efforts.
On Corruption in FCI
Corruption anywhere has the potential to destroy the smooth flow of operations. From 2018-18, many cases have been registered against the FCI officials by the vigilance department. The cases stand at 817, 828, 691 and 406 respectively from 2017-18 to September 2020.  Accordingly, the committee recommended the ministry strengthen the vigilance mechanism and ensure stringent action against the erring officials. It recommended the periodic transfer of FCI officials so that the creation of vested interests is not made possible.
The Ministry replied that the trend of closing balance of cases is declining, showing the corporations’ commitment to speedy and timely disposal of cases. Additionally, it apprised the committee of various steps taken to minimize corruption in FCI.
The committee has once again emphasized the necessity of speedy disposal of vigilance cases and asked the Ministry to frame a transfer policy after a period for the FCI officials.
On Capacity Utilization of owned capacity:
Capacity utilization plays an important role in the storage process of food grains. Inefficient capacity utilization could lead to an increase in the costs of the storage, putting financial stress on FCI. The committee in its original report noted that despite repeated checks and audits, the capacity utilization of covered/hired and CAP/hired (as on 01 June 2020) is still very high i.e., 95% and 132% respectively. The corresponding owned capacity utilization is 75% and 20% respectively. The Committee hoped that hiring godowns would only be used in extreme cases and that efforts will be made to keep the rent paid to various agencies to a minimum in this context. Therefore, the Committee strongly advised that FCI fully use their own storage capacity (whether covered or cover and plinth (CAP)) before leasing any storage capacity in order to conserve valuable resources used to take the storage space on rent.
The Ministry responded that there shall always be a variation in capacity utilization owing to the different stock levels at different points in time. It also mentioned that CAP is only used as the last resort for stock storage. Adequate audits are well established to prevent unnecessary expenditure on storage.
The committee’s recommendation for maximum utilization of owned capacity before leasing any storage capacity has been accepted by the Government.
On damage to food grains
The committee in its original report expressed concern about the damage to the food grains. The committee noted the high damage to the food grains from 2017-18 to 2020-21. It noted the primary reasons for such damage to food grains were due to the pests’ attack, poor quality procurement, leakages in godowns, exposure to natural calamities, or due to the negligence of officials/officers. While the damage due to natural calamities is beyond human control, the damage caused by human negligence must be eradicated at any cost. In a country where malnutrition and hunger are rampant, such negligence is of grave concern.
The Ministry replied that because of the proactive steps taken by it, the losses due to human negligence are very minimal. During the years 2017–18, 2018–19, and 2019–20, a meager amount of 2663, 5213, and 1930 Tons of food grain, has become “non-issuable” which is just 0.006 percent, 0.010 percent, and 0.004 percent, respectively, all stocks handled in the relevant years.
From the above figures, it is quite clear that the share of losses due to natural calamities is increasing, significantly. The Ministry also apprised the committee about the steps taken by the corporation to prevent the food grains from becoming, ‘non-issuable’. The Government had accepted the recommendations of the committee on food grain damage minimization and is working towards its implementation. It provided the status of the scientific storage capacity enhancement in major procuring regions using non-cultivable land to build silos/warehouses.
On Diversion of food grains
Diversion of food grains meant for the needy is one of the biggest menaces in the efficient functioning of the public distribution systems. The committee noted that from the year 2017 to 2020, 1213, 941, 855 and 2469 complaints were received respectively in the department. Most of these complaints were related to the diversion of food grains, ineligible persons getting the benefits, leakages in the distribution network, and the quality and quantity of the food grains. Since the public distribution system is significantly funded, it is vital that such a system is not prone to leakages and diversions.
The Ministry in its reply said that the states/UTs are instructed to furnish utilization certificates (UCs) in respect of food grain allocation under NFSA 2013 every year. Regular follow-ups are being made to ensure the states/UTs file the UCs in a timely manner. On the complaints received, the Ministry responded as below.
As per the recommendation of the committee to ensure strict monitoring mechanisms and to take the issue of enforcement and monitoring seriously, the Government accepted those recommendations and is working towards the implementation of those recommendations.
Featured Image: Distribution of Food grains by FCI

created: August 2, 2022