HC quashes Punjab’s decision of cancelling allotment contracts to a dozen paddy millers
The Punjab and Haryana high court has quashed Punjab government’s decision of cancelling allotment of contracts of paddy to a dozen odd mills and shifting out of paddy stored in their premises.
The Punjab and Haryana high court has quashed Punjab government’s decision of cancelling allotment of contracts of paddy to a dozen odd mills and shifting out of paddy stored in their premises.

The decision was challenged by the millers on November 22. The mills were from different districts but majority of them from Ludhiana. They had argued in high court that they were to supply custom milled rice to the central pool of Food Corporation of India for which work was allotted for the year 2022-2023.
However, following FIRs against some persons in food-grain transport scam, their contracts were initially ordered to be cancelled in October, which were set aside by the competent authority. But now fresh order has been passed cancelling allotment to them and removal of stored paddy at their premises.
Their counsel, senior advocate Chetan Mittal had argued that primary ground for cancelling contracts was due to FIRs registered in August 2022, in foodgrain transport scam. The FIRs had no relation with custom milling policy. The issue with respect to the lodging of the FIR was dealt with by the appellate authority in October, which ruled in favour of the millers and opined that as on date, there was no legal dispute pending between the parties pertaining to any clause of the CMP of the previous years. Hence, contracts should not be cancelled.
On the other hand, government counsel had argued that there was apprehension that the vigilance department would take action against the millers.
The bench of justice Jaishree Thakur set aside the orders in the cases of all mills and ordered that all the millers be allowed to continue with their work. The entire kharif policy was to ensure that work of milling paddy is given to eligible persons, who have not been declared defaulters in previous years for not complying with the provisions as stipulated in any of the policies for the previous years and are facing court cases. The petitioners have been given NOC for the period 2022-223 by the competent authority. “…since the petitioner-mill (s) has not been declared as a defaulter, mere registration of FIR against any partner(s) of the petitioners-mills cannot be a ground to reject allocation of paddy,” the bench added.
It also added that the allegations in the FIR are related to tenders of loading-unloading/labour/labour cartage and embezzlement of food grain. “… (the FIR) cannot be held to be proceedings arising out of any Custom Milling Policy. Those are independent proceedings, devoid of any relevance with Custom Milling Policy of current/previous years,” the bench said.

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