Published On : Tue, Jul 25th, 2017

Nagpur bench of Bombay High Court orders sugar distribution to beneficiaries as per government policies

Nagpur: The decision on PIL to provide sugar on nominal prices to BPL card holders filed by RTI activist Sandeep Agrawal has finally arrived after eleven long years. The applicant, Agrawal, had filed a PIL in Nagpur bench of Bombay High Court on 8th December 2006. The court had ordered a probe into the matter but, the decision had been pending.

However, now the decision has arrived and the BPL card holders will now, yet again, be receiving the sugar at nominal prices which was denied recently.


“Learned counsel submit that cognizance has been taken in public interest and this Court has found it necessary to ensure that BPL card holders receive regular and assured supply of controlled sugar”, read the verdict.

Pursuant to an ordinance passed by the government, the sugar manufacturers had to contribute 10 percent of their output to the Centre for running ration shops at cheaper rate, also termed as Levy Sugar. Levy sugar is the amount of sugar set aside from the total production for Public Distribution System (PDS). For ensuring the proper coordination in supply and demand of the sugar in the centre run shops and manufacturers, Sugar nominees were appointed.

However, a huge swindle was functioning in the case. The sugar nominees, along with manufacturing companies, were exploiting their position to create misconduct in the distribution system. The figures in demand and dates of supply and deliveries were often being tweaked. As a result, the manufacturers were able to save from the bulk ought to be supplied to centre run shops and sell them on local prices accomplishing enormous profit.

As a consequence of this hoax, the same was decontrolled by the government. In the meanwhile, new policy has been formulated and as per that policy now a nominee namely NCDEXE Markets Limited has been authorized to hold E-auction and procure required sugar. The sugar is then distributed to eligible consumers under ‘Antyoday’ Scheme.

However, after this decision, the BPL card holders will also receive a regular and assured supply of controlled sugar.

The decision was given by Justice P.B. Dharamadhikari and R.B. Dev. The court has also ordered Sandeep Agrawal, to keep a regular check on the matter.