Ummid Assistant

Taj Group to train underprivileged rural youth in Maharashtra

Robotics competition for Andhra school students

Welcome Guest! You are here: Home National

SC dismisses challenge to FDI in multi-brand retail

Wednesday May 01, 2013 08:16:09 PM, IANS

New Delhi: "Consumer is the king", the Supreme Court said Wednesday upholding the government's policy of allowing foreign direct investment (FDI) in multi-brand retail, holding that it did not suffer from any constitutional infirmity.

While the court underlined the consumer's supremacy, it described the middleman as an "enemy", "sucker", "curse" and "Shylock" of the retail market.

The apex court bench of Justice R.M. Lodha, Justice Madan B. Lokur and Justice Kurien Joseph said: "On matters affecting policy, this court does not interfere unless the policy is unconstitutional, contrary to statutory provisions, arbitrary, irrational, or in abuse of power."

"Consumer is the king. Middleman is the enemy of the retail market. Middleman is a sucker of the economy and if he is being eliminated then it directly benefits the consumer and the producer," Justice Lodha said.

Dismissing a petition challenging FDI in multi-brand retail, the court said the impugned policy did not suffer from any vires and there was no merit in the challenge.

The policy was challenged by advocate M.L. Sharma who contended that FDI in multi-brand retail was introduced by issuing two press notes, without amending the provisions and rules regulating the sector.

Noting that permitting FDI in multi-brand retail was aimed at eliminating the middleman from the retail market and to benefit the consumer and the producer, Justice Lodha said: "Middlemen are a curse to the economy and they work like Shylock."

As Sharma insisted that FDI in multi-brand retail would eliminate the traditional retail marketing chain in the country, Justice Lodha gave the example of the onion producers in Maharashtra's Nashik.

Justice Lodha said while the onion growers of Nashik didn't get even Re.1 per kg for their produce, the same was sold for Rs.25 per kg to the consumer.

Referring to the government's reply to the petition, the court said the experience of China, Brazil, Indonesia, Thailand and other countries showed that both the organised and unorganised sector in retail market could co-exist and grow.

"Why don't you expect that happening in India?" asked the court.

The government in its affidavit said the prime focus in allowing the FDI in multi-brand retail was to "benefit the consumer by enlarging the choice of purchase".

The government pointed to a World Bank report which said the average price that farmer received for a typical horticulture product was only 12-15 percent of the price the consumer paid at a retail outlet.

The court also pointed to the Indian Council for Research and International Economic Relations report which said "unorganised and organised retail not only co-exist, but also grow substantially in size, as a result of the growth of organised retail".






Home | Top of the Page


Note: By posting your comments here you agree to the terms and conditions of

Comments powered by DISQUS


More Headlines

BJP leader Eknath Khadse's son shoots self, critical

Maharashtra Day: Not everyone is celebrating

1 killed as quake on Himachal-J&K border rocks north India

Row over Singapore varsity's denial of tenure to professor

India asks Pakistan to release or send Sarabjit to third country for treatment

Shivpal Yadav writes to Obama; irks activist, opposition

13 killed in Saudi Arabia floodsv

Malaysian Indians come out in support of ruling coalition

Awami Vikas Party pledges drug-free Maharashtra

Mumbai Metro trial run successful

US religious body concerned over Modi entry into US


Top Stories

Coal Block

Government battles crisis after court slap over coal mess

UPA II battled a crisis Tuesday after the Supreme Court censured the Manmohan Singh government for meddling in the CBI investigation into coal  

Harin Raval resigns as additional solicitor general

SC for liberating CBI from government interference


  Most Read

1 killed as quake on Himachal-J&K border rocks north India

One person was killed and tremors were felt in the Indian capital and large parts of north India, including Srinagar, Jammu, Shimla and Chandigarh, following a 5.8-magnitude quake  

India asks Pakistan to release or send Sarabjit to third country for treatment

Expressing concern over death row prisoner Sarabjit Singh's deteriorating condition, India has asked Pakistan to release him on "humanitarian and sympathetic grounds" or to send him to a third  

Sarabjit 'clinically dead'; family to return Wednesday


  News Pick

Congress leader Sajjan Kumar acquitted in 1984 anti-Sikh riots case

A Delhi court Tuesday acquitted Congress leader Sajjan Kumar in a case related to the 1984 anti-Sikh riots.District Judge J.R. Aryan convicted the other five accused in the case related  

Act against hate speech makers, SC tells government

Holding that hate speeches targeting a section of society were weakening the country's social fabric, the Supreme Court Monday urged the central and the state governments to demonstrate courage and proceed against political  

Mumbai gets its first Shariah Court

Mumbai's first Darul Qaza or Shariah Court was inaugurated by the All India Muslim Personal Law Board (AIMPLB) General Secretary Syed Mohammad Wali Rahmani on Monday in an impressive public meeting held 

Never visited Govandi in my life: 2006 Mumbai train blast accused

Deposing before the Special Maharashtra Control of Organized Crime Act (MCOCA) Court as witness, one of the accused in the July 2006 Mumbai train blast on Tuesday said that he never visited  


Picture of the Day

A view of the newly Commissioned Indian Coast Guard Ship H-191, in Mumbai Harbour on April 09, 2013.


Recommend the story to your friends



RSS  |  Contact us


| Quick links



Subscribe to

Ummid Assistant



Science & Technology



About us




Government Schemes










Contact us


The Funny Side

Education & Career Disclaimer | Terms of Use | Advertise with us | Link Exchange is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

2012 Awaz Multimedia & Publications. All rights reserved.