Excelsior Correspondent
JAMMU, Apr 23: High Court has quashed the Government order asking the already registered Cross LoC traders to deposit Rs 5 lakh as security.
The order was passed in a petition filed by Akshay Trader Poonch and others seeking quashment of Order Bearing No.121-IND of 2017 dated 31.05.2017 and impugned Circular Bearing No. TFC/CDB/P/Trade/595-600, dated 09.06.2017 to the extent it requires the existing registered traders to deposit Rs 5 lakh in the form of fixed deposit/guarantee.
After hearing Advocate Abhinav Sharma with Advocate SR Rather whereas Government Advocate Sudesh Magotra for the State, Justice Alok Aradhe ordered, “Clause A(d) of Government Order dated 31.05.2017, in so far as, it pertains to the traders who are already registered with the Custodian, which provides for furnishing of security deposit of Rs 5 lakh in the form of fixed deposit/bank guarantee as well as consequent circular dated 09.06.2017 issued by Custodian, TFC, Chakan-da-Bagh, Poonch to the extent of furnishing of bank guarantee from the already registered traders, qua the petitioners, is hereby quashed”.
“Needless to state that the petitioners shall comply with regard to all the remaining modalities/formalities prescribed in the Government order”, the High Court said.
“The object of furnishing security/ bank guarantee by the existing traders is stated to take a financial commitment from them given the volume of cross LoC trade. From perusal of the Government order it is evident that various safeguards have been incorporated in order to prevent any mal-practice”, High Court observed, “there appears to be no rational behind the object of demanding the security deposit of Rs 5 lakh from the existing registered traders with the Custodian as the existing traders are already carrying on cross-LoC business”.
Justice Aradhe further observed, “no logical explanation has been put forth on behalf of respondents for incorporating such a requirement in respect of traders who are registered with the Custodian and are carrying on the trade for the past several years”, adding “the existing traders have already been subjected to sufficient security measures to ensure that they do not indulge in any sort of malpractice. In the absence of any justification or cogent explanation in this regard, the requirement of furnishing the security deposit of Rs 5 lakh in the form of fixed deposit/ bank guarantee cannot but to be held to be arbitrary or irrational”.
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