The Karnataka High Court has reaffirmed that fair price shop licences are non-transferable, dismissing a petition seeking authorisation transfer
Bengaluru
The Karnataka High Court has once again made it clear that the licence or authorisation granted to operate a fair price shop under the Public Distribution System (PDS) cannot be transferred from one person to another under any circumstances.
Justice Suraj Govindaraj delivered the ruling while dismissing a petition filed by Lakshmamma, who had approached the court seeking to quash an endorsement issued by authorities rejecting her request for transfer of the fair price shop authorisation. She had sought directions to consider her representation and allow the licence to be transferred in her favour.
The court examined Rule 13 of the Karnataka Essential Commodities (Public Distribution System) Control Order, 1992, which governs the functioning of fair price shops across the state. Citing the explicit provisions of the rule, the judge noted that the law categorically prohibits both the transfer of authorisation by an existing licence holder and the operation of a shop by any transferee on behalf of the authorised dealer.
The bench stated: “A perusal of Rule 13 and the Proviso would indicate that no authorized dealer shall assign or transfer his authorization to any other person and no person shall carry on business as a transferee or otherwise on behalf of such authorized dealer.”
On this basis, the court held that Lakshmamma’s request had no legal backing. Since there is a clear statutory bar on such transfers, the petitioner had no vested right to seek one, and therefore, the court could not issue a mandamus directing authorities to consider her request.
With these observations, the High Court dismissed the petition, reinforcing its earlier stance that fair price shop authorisations are non-transferable and must remain solely with the person to whom they were originally granted.
