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Informist, Thursday, Jul 25, 2024

 

NEW DELHI – The Supreme Court has issued notices to the government, the Directorate General of Foreign Trade, National Cooperative Exports Ltd and customs department over a plea challenging a notification prohibiting the export of non-basmati white rice with immediate effect. The petitioner, Rika Global Impex Ltd, has also challenged the Directorate General of Foreign Trade's notification to allow export of only 75,000 tn of non-basmati white rice to the United Arab Emirates through the National Co-operative Exports Ltd.

 

The petitioner said that the notifications were "ultra vires" to Article 14 and Article 19(1)(g) of the Constitution of India. Rika Global said that the notifications fail the test of proportionality. The Directorate General of Foreign Trade does not have the power to issue these notifications, Rika Global said.

 

Further, the notifications were "ultra vires" to the Foreign Trade Policy, 2023 and liable to be set aside on account of "doctrine of legitimate expectation". The petitioner said that the notifications were opposed to the public interest and were discriminatory and arbitrary. "As the petitioner is left with no alternative, other than to approach this Honorable Supreme Court, therefore, this writ petition is filed under Article 32 of the Constitution of India," said Rika Global.

 

Rika Global had executed contracts with Greenfield International LLC for the sale of white rice 5% silky sortex. The petitioner procured the stock to be exported and shifted it to a godown in Gandhi Dham, Gujarat, where the stock continues to lie. 

 

In July 2023, the Directorate General of Foreign Trade issued a notification prohibiting the export of non-basmati white rice. In August, the Directorate relaxed the prohibition and permitted the export of specified quantities to countries such as Bhutan, Mauritius and Singapore. Thereafter, the petitioner made applications to the Directorate seeking limited permission to export the rice under the contracts awarded to them. However, there was no response from the Directorate.

 

In September, the Directorate had issued a notification permitting exports of non-basmati white rice only through National Co-operative Exports. Meanwhile, the petitioner followed up on its application seeking limited permission to export the rice under the contracts awarded to it. In October, the Directorate issued another notification relaxing the prohibition and permitting the export of rice to certain other countries as well. After getting no relief from Bombay and Delhi High Court, the petitioner moved the apex court.

 

The petitioner sought quashing of the notifications issued by the Directorate last year in July and September. Further, the petitioner sought directions from the top court to order the directorate to consider its applications for the export of white rice 5% silky sortex as part of the 75,000 tn threshold.  End

 

Reported by Surya Tripathi

Edited by Aditya Sakorkar

 

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