Chennai, Dec 22 (PTI) The Madras High Court on Wednesday upheld a 2013 notification of the Union Ministry of Industry and Commerce, Department of Industrial Policy and Promotion (Salt section), which increased the minimum assignment fee for saline lands in Tamil Nadu.

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Justice S M Subramanian upheld the notification while dismissing a batch of over 100 writ petitions from the Salt Manufacturers and Merchants Association in Tuticorin and others.

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According to the petitioners, the Ministry, on the recommendation of the Central Advisory Board (CAB), had revised the rates for ground rent and assignment fee, to try and establish parity with the prevailing State government rates and vide a letter issued in January 2004 fixed the ground rent.

Petitioners' main contention was that there was a discrimination in respect of ground rent charges and assignment fee between the State governments and the Central government. There was no level playing field and the impugned circular was issued based on the wrong analysis and assessment of facts and circumstances.

The CAB had not been consulted before issuing the impugned order, which was in violation of the Rules in force. The business rules and procedures were not followed for arriving at such a decision, which resulted in passing of the impugned order, they added.

Additional Advocate General R Sankara Narayanan submitted that the lease period had expired in respect of all the petitioners and therefore, they had no locus standi to question the circular or seek an automatic renewal of lease, without conducting the tender process.

It was a policy decision taken by the central government in regulating the salt manufacturing units and such a policy decision was taken after wide consultation and by following the processes, considering the suggestions and objections of the stakeholders and thus, there was no infirmity in respect of the processes adopted from time to time and increase in charges based on the prevailing circumstances.

Dismissing the batch of petitions, the judge observed that the leasing of central government lands for 99 years or automatic renewal of lease would infringe the rights of all other citizen, who all are longing and aspiring to get an opportunity into the field of manufacturing of salt or related trade activities. Deprival of equal opportunity is directly infringing the fundamental right of every citizen.

Economic status and equal opportunity are the touchstone and moreover creating monopoly at the behest of the central government lease by few individuals at no circumstances be appreciated. No doubt, salt being a commodity of every day consumption, the government must control market price. Equally the Central and State governments are bound to ensure that the interest of the public at large is protected by implementing an open auction process to ensure equal opportunity to the citizens of India.

"This being the factum, this court has no hesitation in forming a definite opinion that the petitioners could not establish any right for the purpose of grant of relief, as such sought for in all these batches of writ petitions. Since the period of lease had admittedly expired as per the terms and conditions of the lease, the petitioners and lessees shall leave the demised premises, within three months," the judge said and directed the authorities to initiate all further actions for tendering the subject salt lands by following the procedures as contemplated and as expeditiously as possible.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)