All Kerala Retail Ration Dealers Association v. State Of Kerala
2025-08-13
N.NAGARESH
body2025
DigiLaw.ai
JUDGMENT : N.NAGARESH, J. The All Kerala Retail Ration Dealers Association is the 1 st petitioner and a member of the said Association is the 2 nd petitioner in W.P.(C) No.23732/2025. W.P.(C) No.23819/2025 is a Fair Price Shop (FPS) owner. The writ petitions have been filed seeking to direct the respondents to forthwith order door delivery of ration kerosene to the Fair Price Shops of the members of the 1 st petitioner-Association. The petitioners also seek to direct the respondents to consider entrusting the Public Sector Oil Companies with the task of door delivery of ration kerosene to the Fair Price Shops. 2. The parties and exhibits are referred to in this judgment as they are described/marked in W.P.(C) No.23732/2024. 3. The petitioners challenge Ext.P2 GO dated 17.06.2025. By Ext.P2 GO, the 1 st respondent-State of Kerala has ordered transportation charge of Rs.500/- per kilo litre of kerosene for the first 40 Kilometres and Rs.5/- per Kilo litre in excess of each Kilometre beyond the first 40 Kilometres for the wholesale dealers. The retail dealer commission was increased to Rs.6/- per Kilo litre with effect from 01.06.2025. 4. The petitioners state that till a few years ago, kerosene was distributed through retail ration shops at prescribed quantities as per availability based on the allotment made by the Central Government. The quota and allotment of kerosene was reduced from time to time. The distribution of kerosene was done through authorised Kerosene Wholesale Dealers (KWD). The retail ration dealers were to lift the authorised quota from the KWD and to sell it in their respective retail shops. 5. Kerala State earlier had 240 KWDs spread across 78 Taluks in the State. The number of KWDs was scale down and now they are only 30 KWDs across the State. The retail dealers are forced to travel more than 60 to 70 Kilometres for lifting the kerosene. In Ernakulam District, there is only one KWD at North Paravur. Retail dealers from far away places like Kothamangalam have to reach North Paravur to lift the kerosene quota. 6. Apart from distance factor, the Fair Price Shops (FPS) faced problems from Police and Motor Vehicles Departments. It is not permissible to transport ration kerosene from the wholesale depots to FPSs in pick up van or autorickshaws. If kerosene is transported in pick up vans or autorickshaws, heavy fine will be imposed by the Motor Vehicles Department.
6. Apart from distance factor, the Fair Price Shops (FPS) faced problems from Police and Motor Vehicles Departments. It is not permissible to transport ration kerosene from the wholesale depots to FPSs in pick up van or autorickshaws. If kerosene is transported in pick up vans or autorickshaws, heavy fine will be imposed by the Motor Vehicles Department. The 1 st petitioner brought these difficulties faced by the FPSs to the notice of the District Supply Officer. Discussions were held at various levels. 7. The Government constituted a three member committee with Rationing Controller as Convenor on 20.07.2023 to study the grievance of retail ration dealers. The Committee submitted a report dated 15.04.2024 recommending to increase the retail dealer commission to Rs.5/- and also to start door delivery of ration kerosene to the FPSs to reduce the financial burden of retail dealers. The Committee recommended that KWDs, who transport the permit kerosene in tanker lorries, can be directed to deliver kerosene at the door step of the respective FPSs. However, no action was taken to implement the recommendation. 8. The petitioners state that the FPS owners are still forced to go to far away KWDs and transport the same to FPSs through pick up vans and autorickshaws inviting penalty from the Motor Vehicles Department. The retail ration dealers are not in a position to carry forward the shops to distribute the ration kerosene with the meager dealer commission. The petitioners are unable to perform their statutory duty of distributing ration kerosene. The petitioners are before this Court seeking redressal of their grievance. 9. The Senior Government Pleader entered appearance and resisted the writ petitions on behalf of the respondents. Owing to the reduction in kerosene quota in the State, the distribution system was adversely affected for the past few years in Kerala and the dealers were reluctant to lift the allotted kerosene stock. In view of the aforesaid circumstances, the Government, after detailed examination of the matter, issued GO (Rt) No.193/2025/F&CS dated 17.06.2025 enhancing the transportation charge payable to the wholesale kerosene dealers and commission to retail dealers. Pursuant to the aforesaid order, the commission payable to retail kerosene dealers has been enhanced from Rs.3.70 to Rs.6/- per litre. The revised rate came into force with effect from 01.06.2025. 10.
Pursuant to the aforesaid order, the commission payable to retail kerosene dealers has been enhanced from Rs.3.70 to Rs.6/- per litre. The revised rate came into force with effect from 01.06.2025. 10. During the first quarter of the financial year 2025-2026, the Central Government sanctioned 5676 KL of kerosene towards PDS subsidy and non-subsidy requirements. Accordingly, the Department of Civil Supplies issued directions to the authorised kerosene dealers for lifting the allotted quantity. At present, the ration dealers are lifting and distributing kerosene in accordance with the directions issued by the department. Only a few dealers have abstained from lifting the allotted kerosene. In fact, there is no enabling provision in the KERALA KEROSENE CONTROL ORDER permitting doorstep delivery of kerosene to retail ration dealers. 11. Furthermore, as per the National Food Security Act ( NFSA ), the facility of doorstep delivery is confined exclusively to the transportation of food grains. It was the usual practice for ration dealers to personally collect kerosene directly from the wholesale distributors. Pursuant to the request made by the ration dealers and upon due consideration of their concern, the Government revised and enhanced the commission payable to them. Approximately 80% increase has been granted under the commission component to the retail dealers. The present claim by certain dealers that they are unable to lift the kerosene is contrary to the terms and conditions of the agreement entered into between the Government and the ration dealers. 12. The leakage allowance permitted to wholesale kerosene distributors is limited to only 0.2%. The contention in the petition that 2% allowance was granted is factually incorrect. Leakage allowance has been provided solely because the wholesale dealers store kerosene for extended periods and in large quantities. In contrast, retail dealers are required to lift and distribute kerosene to consumers immediately, and therefore, they are not expected to store kerosene for prolonged duration. Hence, the government is not in a position to consider the demand for granting leakage allowance to retail dealers. 13. As per Order 13 of the KERALA KEROSENE CONTROL ORDER , 1968, a retail dealer shall comply with all directions that may be issued from time to time generally to all retail dealers or to him in particular by the Commissioner, District Collector, Controller, Deputy Controller of Rationing, District Supply Officer or Taluk Supply Officer in regard to the purchase, sale, storage or distribution of kerosene.
The District Supply Officers have reported that certain retail dealers are unwilling to lift kerosene from the authorized wholesale dealers and to distribute the same to ration cardholders. As per the provisions of the KERALA KEROSENE CONTROL ORDER , 1968, and the Kerala Targeted Public Distribution System (Control) Order, 2021, the Commissioner, the Government and District Collectors, etc., are vested with the authority to initiate action against ration dealers who fail to comply with the directions of the Department. 14. In consideration of the representation submitted by both retail and wholesale dealers, the Government convened a meeting on 20.06.2025 with the representatives of the kerosene wholesale dealers and ration dealers for deliberation of the issues raised therein. In the aforesaid meeting the representatives of both the wholesales and retail dealers has given confirmation to lift and distribute kerosene, accepting the rates envisaged in GO (Rt) No.193/2025/F&CS dated 17.06.2025. 15. The recommendation of the three member committee is under the consideration of the Government. It shall be finalized after holding discussion with stakeholders. A meeting has already been scheduled on 08.07.2025 to examine the issue of lifting and distribution of kerosene in Taluks without KWDs. 16. I have heard the learned counsel for the petitioners and the learned Senior Government Pleader representing the respondents. 17. The respondents constituted a Three Member Committee with the Rationing Controller as Convenor to study the grievances of the retail ration dealers, on 20.07.2023. The Committee, after detailed discussions and studies, submitted a report dated 14.04.2024 to the Government recommending to `increase the retail dealer commission to 5/- and to start door delivery of ration kerosene to the respective FPS, in order to reduce the financial burden of the retail dealers. The Committee even suggested that the KWDs, who transport the permit kerosene in tanker lorries, can be directed to deliver kerosene at the door step of the respective FPSs. 18. The Government thereafter issued Ext.P2 GO dated 17.06.2025. By Ext.P2 GO, the retail dealer commission was increased to Rs.6/- per kilolitre with effect from 01.06.2025 onwards. Though the petitioners had requested for adequate leakage percentage and door delivery of kerosene, those demands were not met. The representation submitted by the petitioners remain unaddressed. 19. The prime grievance projected by the petitioners is with regard to the non-viability and illegality in taking delivery of the ration kerosene from the KWDs.
Though the petitioners had requested for adequate leakage percentage and door delivery of kerosene, those demands were not met. The representation submitted by the petitioners remain unaddressed. 19. The prime grievance projected by the petitioners is with regard to the non-viability and illegality in taking delivery of the ration kerosene from the KWDs. It is to be noted that there were about 240 KWDs in Kerala earlier and due to the changes brought about in the ration sector, the number of KWDs has been reduced to 30. There are only one or two KWDs in a District. A good part of the FPSs have to travel as far as 60 to 80 Kilometres to collect ration kerosene. The FPSs get about 300 litres of kerosene under ration quota. The commission amount at the rate of Rs.6/- per litre obtained from the quota will be about Rs.1,800/-. The FPS owners have to bear the expenses for transportation from this Rs.1,800/-. Evidently, such purchase expending huge transportation charges would indeed be unviable. 20. There is a further issue in transportation of kerosene through vehicles. The Motor Vehicles Act and the rules made thereunder regulate transportation of explosive materials through motor vehicles. Kerosene is explosive material. The kerosene therefore should be transported only through designated vehicles having the security fitments as mandated by the Motor Vehicles Act and the Rules. 21. Ration kerosene cannot be transported through ordinary pick up vans or autorickshaws by the FPS owners. The quantum of ration kerosene being as low as 300 litres, the larger tanker lorries will not be affordable for FPS owners. Smaller vehicles fitted with safety equipment /tanks are not available in all areas in the State. Calling for such smaller vehicles suitable to carry kerosene from distant places would further reduce the profit margin of the FPS owners. If they use ordinary vehicle, they are likely to be penalised by the Motor Vehicles Department officials. 22. The purpose of Fair Price Shops and ration distribution being intended to target the financially backward sections of the society, the Government has a duty to ensure that ration materials including kerosene are delivered to the FPS owners at rates which will make the FPSs viable to function. 23. The Taluk Supply Officers in Kollam District had a discussion with KWD licensees and ration dealers at the District Supply office chamber on 21.06.2025.
23. The Taluk Supply Officers in Kollam District had a discussion with KWD licensees and ration dealers at the District Supply office chamber on 21.06.2025. Taking into consideration the ground reality, the District Collector has permitted R. Santha, KWD II to effect door delivery of kerosene to the FPSs, under Rule 7 of the PETROLEUM ACT , 1934. The said instance would also point towards the necessity for door delivery of kerosene to the FPSs. 24. In the circumstances of the case, I am of the view that the Government shall take a conscious decision in the matter taking into account the genuine grievances raised by the petitioners and the necessity to sustain the FPS system in Kerala. 25. The Government Pleader, relying on the judgment of this Court in Maradu Market Traders Association v. State of Kerala [ 2018 (3) KLT 212 ] , urged that W.P.(C) No.23732/2025 filed at the instance of Ration Dealers Association is not maintainable as separate court fee has not been paid on behalf of each of its members. In this regard, I find that the other petitioners in these writ petitions have taken up the same issue paying the court fee individually. Taking into consideration the nature of the grievance and its impact on the citizens in the State, especially the economically weaker sections, I am not inclined to accept the argument of the Government Pleader. In the facts of the case, the writ petitions are disposed of directing the State of Kerala and the Controller of Rationing to take steps to forthwith order door delivery of ration kerosene to the Fair Price Shops in the manner the door delivery is being implemented in Kollam District or in any other manner the said respondents may deem fit. A decision in this regard applicable to the entire State shall be taken within a period of three months. Any coercive proceedings against the petitioners in the matter of non lifting of kerosene due to the transportation issue shall stand stayed till the Government takes a decision in this regard.