Karnataka High Court Reiterates Fair Price Shop Licences Cannot Be Transferred

The Karnataka High Court has ruled that authorization to operate a fair price shop under the public distribution system cannot be transferred to another person, reiterating the bar under Rule 13 of the Karnataka Essential Commodities (PDS) Control Order, 1992.

A single judge Bench of Justice Suraj Govindaraj said this while dismissing a petition filed by Lakshmamma seeking quashing of an endorsement rejecting her request for transfer of the authorization.

The court held that such permits are granted based on personal eligibility and are non-transferable, except in the limited circumstance of the dealer’s death as provided in the proviso to Rule 13.

Finding no legal right to seek such transfer, the petition was dismissed.

[Lakshmamma & The State of Karnataka & Anr.]