ALM Food Products Limited v. Union of India and Anr

1. The petitioner has filed the present petition, inter alia, impugning the “Revised Operational Guidelines of the Scheme for Integrated Cold Chain and Value Addition Infrastructure (effective from 29.08.2016)” (hereafter „the Scheme‟).

2. The petitioner further prays that a direction be issued to the respondent to grant subsidy for an amount of ₹10 crores, as per the aforementioned scheme.

3. The petitioner‟s application for the grant of subsidy under the Scheme was rejected, inter alia,on the ground that the petitioner‟s proposal did not include the minimum of two components as required under the 2019:DHC:1537 aforementioned scheme, and the term loan was sanctioned to the petitioner prior to the invitation of Expression of Interest (EOI), which was issued on 31.08.2016. The petitioner claims that it had availed of a loan prior to the amendment of the said guidelines and, therefore, would be entitled under the provisions of the scheme, as existing prior to 29.08.2016. The respondents claim that EOI were invited for the first time on 31.08.2016 and, therefore, the provisions of the Scheme as existing on that date would be inapplicable. It is stated that no EOI was issued for grant of subsidy under the Scheme, as existing prior to 31.08.2016. Factual Background

4. The petitioner is a company and is, inter alia, engaged in the business of exporting frozen buffalo meat and allied meat products. The petitioner claims that it has planned to establish a state of art modern abattoir cum meat processing unit, and rendering plant at Village Behra, Tehsil DeraBassi, Dist. S.A.S. Nagar, Punjab.

5. In the year 2008, the respondent launched the scheme for Cold Chain and Value Addition and Preservation Infrastructure in the year 2008, to lend support for the establishment of such infrastructure. The guidelines for the implementation of the said scheme were notified on 18.03.2010. The said Guidelines were modified with effect from 20.11.2013.

6. The aforesaid guidelines were further revised and simplified in the year 2014 and the respondent published the “Revised Operational Guidelines of the Scheme for Cold Chain, Value Addition and Preservation Infrastructure during the balance period of 12th Five Year Plan (August, 2014 to March, 2017)”. The saidGuidelines of the scheme were applicable for Expression of Interest (EOI) issued by the respondent after 08.08.2014. Paragraph 3 of the Guidelines of the scheme indicated the components of the scheme and further provided that to avail any financial assistance,the applicant would be required to set up at least two of the specified components. Paragraph 3.[1] of the said Guidelinesis relevant and is set out below:- “3. Components of the Scheme 3.[1] The scope of components of Cold Chain, Value Addition and PreservationInfrastructure has been broadened to allow flexibility in project planning. TheScheme will now have the following components: a. Minimal Processing Centre at the farm level. This centre may havefacilities for weighing, sorting, grading, waxing, packing, pre-cooling, Controlled Atmosphere (CA)/ Modified Atmosphere (MA) coldstorage, normal storage. Ripening Chamber and Individual QuickFreezing (IQF) etc. b. Mobile pre-cooling vans and reefer trucks. c. Distribution hubs with multi product and multi CA /MA chamberscold storage /Variable Humidity Chambers, Packing facility, gradingand sorting facility, CIP Fog treatment, Ripening Chambers, IQF andBlast Freezing etc. d. Irradiation facility. To avail financial assistance under this scheme, any two of thecomponents, from (a), (b) and (c) above will have to be set-up by the units.Considering the functional nature of the facility, Irradiation facility will betreated as a stand alone project for the purpose of availing grant.”

7. Paragraph 7 of the said guidelines of the Scheme expressly provided that an application under the said Guidelines of the scheme would be invited through the EOI by the respondent.

8. The petitioner filed an application dated 11.05.2016 for the grant of subsidy of ₹10 crores, under the aforementioned Guidelines of the scheme. The said application was rejected by the respondent on 16.05.2016, on the ground that the respondent had not invited any EOI and, therefore, the petitioner‟s application could not be entertained.

9. The respondent issued the Revised Guidelines (the Guidelines impugned in this petition) on or about 29.08.2016. Thereafter, on 31.08.2016, the respondent invited proposals / expression of interest from potential promoters / entrepreneurs for setting up integrated cold chain projects in the country (100 in number).

10. The petitioner, once again, submitted its proposal for grant of subsidy, under the cover of its letter dated 13.10.2016.

11. On 27.03.2017, the respondent issued a public notice indicating that it had received 308 proposals, out of which it had approved 101 eligible proposals for setting up cold chain projects. The petitioner‟s name did not feature in the list of the approved proposals. Thereafter, on 31.03.2017, the petitioner published the list of ineligible applicants, wherein the petitioner‟s name was featured at

┌─────────────────────────────────────────────────────────────────────────────────────┐
│         Sl. No.      Particular                           Amount in Lacs            │
├─────────────────────────────────────────────────────────────────────────────────────┤
│           1          Security with Electricity Deptt. @ 40.00                       │
│                      Rs. 1000/- Per KVA on 4000 KVA                                 │
│           2          Office Furniture & Fixtures include 25.00                      │
│                      A.C.‟s      Office     Automation                              │
│                      Equipment       like    computers,                             │
│                      Photocopy Cachines, Cars, Fire                                 │
│                      Fighting Equipments, Pre-cooling                               │
│                      Vans etc.                                                      │
│ W.P. (C) 6831/2017                                                Page 10 of 11     │
│                                                                     2019:DHC:1537   │
│                                                 Total 65.00                         │
│                                                                      ”              │
│ 24.      Mr Wadhwa had argued that since the fixed assets also included pre-        │
└─────────────────────────────────────────────────────────────────────────────────────┘

25. The aforesaid contention is bereft of any merit. Admittedly, the Project Report did not mention establishing a “Distribution hub”. Merely indicating that the petitioner was required to procure certain miscellaneous fixed assets including “pre-cooling vans”, would hardly qualify as establishing a “Distribution hub” as a component of the Cold Chain Project. As indicated in clause (b) of paragraph 3.[1] of the revised guidelines of the said scheme, “distribution hub” would require the setting up of a multiproject, multi-temperature cold storage unit, other than the unit at a farm level.

26. In view of the above, the petition is dismissed. The pending application is disposed of.

VIBHU BAKHRU, J MARCH 13, 2019 RK