1996 (9) TMI 646 - SC - Indian Laws

Summary

Issues Involved:

1. Allotments of retail outlets for petroleum products by Capt. Satish Sharma.
2. Allegations of corruption and nepotism in the allotment process.
3. Examination of specific instances of allotments.
4. Minister's arbitrary and discriminatory actions.
5. Legal principles and constitutional norms violated.
6. Consequences and remedies for the arbitrary allotments.

Detailed Analysis:

1. Allotments of Retail Outlets for Petroleum Products by Capt. Satish Sharma:
The Supreme Court examined the allotments of petrol pumps made by Capt. Satish Sharma, Minister of State for Petroleum & Natural Gas, under the discretionary quota. The allotments were challenged in a public interest petition under Article 32 of the Constitution of India, highlighting corruption and misuse of power.

2. Allegations of Corruption and Nepotism in the Allotment Process:
The petition was supported by a news item in the "Indian Express" dated August 11, 1995, which reported that relatives of officials working for Capt. Satish Sharma, including his driver and additional private secretary, were allotted petrol pumps and gas agencies. The report indicated that these allotments were made either from the discretionary quota or through an ostensibly objective selection process by the Oil Selection Boards (OSBs).

3. Examination of Specific Instances of Allotments:
The Supreme Court scrutinized specific instances of allotments to individuals related to politicians, members of OSBs, and officials in the Ministry. The Court found that the applications were directly handled by the Minister without any official processing or adherence to guidelines. The applications were submitted directly to the Minister, who passed the allotment orders without any criteria or transparency.

4. Minister's Arbitrary and Discriminatory Actions:
The Court found that the allotments were made in a stereotyped manner, without any official receipt or entry on the applications. The Minister did not follow any criteria or guidelines, and the allotments were made arbitrarily and discriminatorily. The Court noted that the Minister acted in a biased manner, favoring individuals related to his personal staff, politicians, and members of OSBs.

5. Legal Principles and Constitutional Norms Violated:
The Supreme Court held that the Minister's actions violated the principles laid down in Ramana Dayaram Shetty v. International Airport Authority of India, which mandates that the government must act in a fair, just, and non-arbitrary manner in the distribution of public property. The arbitrary distribution of petrol pumps violated Article 14 of the Constitution of India, which ensures equality before the law.

6. Consequences and Remedies for the Arbitrary Allotments:
The Court quashed the allotments made to the 15 individuals and directed that the petrol pumps be taken over by the Government/Oil Corporation. The Court ordered that the petrol pumps be disposed of by public auction, with the original allottees allowed to participate. The Court also directed Capt. Satish Sharma to show cause why criminal prosecution should not be initiated against him for criminal breach of trust and why he should not be liable to pay damages for his mala fide actions.

Conclusion:
The Supreme Court's judgment emphasized the need for transparency, fairness, and adherence to constitutional norms in the distribution of public property. The Court's decision to quash the arbitrary allotments and order public auctions aimed to ensure a just and non-discriminatory process in the future. The judgment also highlighted the accountability of public servants for their actions and the importance of maintaining public trust in the administration of government largesse.