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PETITIONER:

COMMON CAUSEA REGISTERED SOCIETY

Vs.

RESPONDENT:

UNION OF INDIA & OTHERS

DATE OF JUDGMENT: 25/09/1996

BENCH:

KULDIP SINGH, FAIZAN UDDIN

ACT:

HEADNOTE:

JUDGMENT:

J U D G M E N T

KULDIP SINGH J.

The allotments of retail outlets for petroleum products

(the petrol pumps), by Capt. Satish Sharma, Minister of

State for Petroleum & Natural Gas, exercising the powers of

the Central Government, have been challenged in this public

interest petition under Article 32 of the Constitution of

India. The petition as originally filed was directed against

corruption in various fields of public life. Mr. H.D.

Shourie - Director "Common Cause" - appearing in person,

invited this Court's attention to a news item dated August

11, 1995, on the front page of "Indian Express" under the

caption "In Satish Sharma's Reign, Petrol and Patronage Flow

Together". The solicitor general who was present in Court,

took notice of the news item and stated that the would have

the matter examined in the Ministry concerned and file an

affidavit giving Ministry's response to the news item. The

news item, inter alia, stated as under:-

"Not only the relatives of most of

the officials working for Captain

Satish Sharma but even his own

driver and the driver of his

additional Private Secretary have

been allotted a petrol pump and a

gas agency respectively.

The wives of two clerks and a

stenographer in the Ministry have

similarly been allotted petrol

pumps. Some of these allotments

have been made from the

discretionary quota with the

Petroleum Minister while others

have been made through an

ostensibly objective selection

process undertaken by the Oil

Selection Boards (OSBs).

..........A Mr Poda Rajshekar, a

relative of Mr. G. Gurusharan,

Private Secretary to Captain Sharma

has been allotted a petrol pump at

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Banjara Hills, Hyderabad out of the

Minister's discretionary quota

taking pity on the "financial

circumstances that the family finds

itself in."

Ms Madhuri Safaya, a relation of

the Additional Private Secretary to

the Minister, Mr. V.N. Safaya has

been allotted a petrol pump "on

compassionate grounds" from the

discretionary quota.

Another relation of Mr. Safaya,

Mrs. Monica Malla, has also been a

beneficiary of a petrol pump,

courtesy Captain Sharma.

Mrs Daya Rani, wife of Mr Hari Ram

Verma, personal assistant to the

Additional PS to the Minister, Mr

V.N. Safaya, was allotted a petrol

pump out of the discretionary quota

........Mrs Vijaya Nair, wife of

Mr, D.V. Pillai, another additional

Private Secretary to Captain Sharma

has been allotted a petrol pump on

the grounds that the "applicant is

a young unemployed [woman] with the

responsibility of looking after a

large family" - hardly a unique

classification in this country of

900 million. .......The Chairman of

the OSB for Uttar Pradesh is

Justice S.H. Abidi (retd.) who

lives at 50, Dariyabad, Allahabad.

It so happens that Syed Shaukat

Hasan Abidi, his son, living at

50/1, Daryabad, Allahabad put in a

request and was allotted a petrol

pump on "compassionate grounds" at

Fatehpur (80 Km Mile Stone) in

Uttar Pradesh.

A former MLA, Mr Shiv Balak Passi,

from Rae Bareli is a member of the

OSB for Madhya Pradesh and his job

is to allot petrol pumps to others.

He too had put in a request for the

discretionary allotment of the

petrol pump. Lo and behold, on

"compassionate grounds" he was

immediately allotted a petrol pump

on the Rae Bareli-Lucknow Road in

UP.

Mr. Krishna Swaroop, a Congress

party worker and resident of 18/7,

Punjabi Bagh Extension, New Delhi-

26 is a member of the OSB for Delhi

and chandigarh. His son, Mr Pradeep

Kumar, was favoured with a petrol

pump by the Minister on the grounds

that "the applicant is a young man

from Scheduled Caste Community with

no source of regular income. The

case deserves sympathetic

consideration. Therefore, a retail

Outlet for MS-HSD in the Union

Territory of Delhi is allotted to

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Shri Pradeep Kumar, r/o 18/7,

Punjabi Bagh Extension, New Delhi-

110026."

Mr. Ghulam Ahmed Mir is also a

member of the OSB for Delhi and

Chandigarh. An application was made

by him for the allotment of a

petrol pump. And the Minister

passed the order on "compassionate

grounds" from his discretionary

quota.

Similarly the following OSB

members, either themselves or their

next of kin, have been allotted

petrol pumps : Mr K.L. Sharma

(Member OSB, West Bengal), Mr R.S.

Nautiyal (Member OSB, Punjab), and

Mr Harbanslal Gupta (member OSB,

Haryana). Two relation of Mrs Satya

Bahen (Member OSB, Haryana) were

allotted a gas agency in Etah and a

petrol pump at Itmadpur near

Tundla, respectively.

The son of a former Home Minister

who is currently a Cabinet

Minister; the son of a present

Minister of State from the North-

East; the brother-in-law of a

former Janata Dal office-bearer and

now a Congressman from Eastern UP;

the son of a Dalit leader who was

with the late H.N. Bahuguna at one

time and is now in the Congress;

the son of former Congress

Councillor of the Municipal

Corporation of Delhi; the wife of

an ex-Congress MP from the UP

hills; the wife of a prominent

Dalit leader in the Opposition and

several political hacks from Amethi

are among the hundreds who have

been gifted petrol pumps or gas

agencies during the tenure of

Captain Satish Sharma as the

Petroleum Minister."

Mr. Vijay L. Kelkar, Secretary in the Ministry of

Petroleum and Natural Gas, government of India, filed

affidavit dated October 9, 1995. The relevant part of the

affidavit is as under:-

"It may be relevant to point out

here that under the approved

Guidelines, the Hon'ble Minister

personally decides each case and

the order is a speaking order. An

unsuccessful applicant in the same

category is entitled to have a copy

of the order if a request is made

for it.

The specific instances referred to

in the Indian Express newspaper

dated 11th August, 1995, appear to

relate to allotments made prior to

the order of this Hon'ble Court

dated 31st March, 1995. However,

those allotments also were made on

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merits of each case as appearing

from the applications which

contained the circumstances under

which the request was made. For the

cases mentioned in the newspaper

report, it is denied that the

allotments were made on account of

alleged relationship and/or any

improper motive. The relationship

of a applicant with any official of

the Ministry has not been a

relevant factor in considering

discretionary allotment on

compassionate grounds. Should this

Hon'ble Court direct, the relevant

files shall be produced for perusal

for this Hon'ble Court."

This Court examined the affidavit of Mr. Kelkar on

October 13, 1995 and passed the following order:-

"Mr. Vijay L. Kelkar, Secretary in

the Ministry of Petroleum and

Natural Gas, Government of India

has filed an affidavit pursuant to

this Court's order dated August 11,

1995. Without commenting on the

affidavit, we direct the Ministry

of Petroleum and Natural Gas to

file a further and better affidavit

within two weeks with reference to

the specific instances."

Pursuant to the above quoted order Mr. Kelkar filed

affidavit dated October 28, 1995. The relevant part of the

affidavit is as under:-

"That the Deponent, in compliance

with the said order dated 13th

October, 1995, has ascertained the

position regarding the allegations

that allottees under the

discretionary quota are related to

various political leaders,

officials and members of Oil

Selection Boards (OSBs) or the

members themselves. Such allottees

can be grouped under three

different categories and allegation

regarding each one of them is

answered and/or dealt with as

follows:

A ALLOTTEES SAID TO BE RELATED TO

POLITICIANS

(i) With reference to the

allegation that the son of a former

Home Minister, who is currently a

Cabinet Minister, has been allotted

a Petrol Pump,..... It is correct

that the allottee, Shri Sarbjot

Singh is the son of the said Shri

Buta Singh.

(ii) with reference to the

allegation that the son of a

present Minister of State from

North-East, has been allotted a

petrol pump. .....It is correct

that the said allottee is the son

of a Minister, namely, Shri K.

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Hollahan, in the State Government

of Nagaland.

B. ALLOTTEES SAID TO BE RELATED TO

THE MEMBERS OF OSBs OR THE MEMBERS

THEMSELVES.

(i) With reference to the

allegation that Shri Syed Shaukat

Hasan Abidi is the son of Justice

S.H. Abidi (retd.), who is the

Chairman of the OSB for Uttar

Pradesh,....... Discretionary

allotment was made in favour of the

applicant in January, 1995. It is

correct that the said allottee is

the son of the said Chairman of OSB

for U.P.

(ii) With reference to the

allegation that Shri Shiv Balak

Passi is a member of the OSB for

Madhya Pradesh and he is himself an

allottee from discretionary quota,

.......... A discretionary

allotment was sanctioned in his

favour in December. 1994. It is

correct that Shri Passi is a Member

of the OSB for Madhya Pradesh.

(iii) With reference to the

allegation that the allottee, Shri

Pradeep Kumar, is the son of Shri

Krishna Swaroop who is a Member of

OSB for Delhi and Chandigarh,

...... It is correct that the

allottee is the son of the said

Shri Krishna Swaroop.

(iv) With reference to the

allegation that the allottee, Shri

Ghulam Ahmad Mir is a Member of OSB

for Delhi and Chandigarh,..... It

is correct that Shri Mir is Member

of the OSB, Delhi.

(v) With reference to the

allegation that Shri R.S. Nautiyal,

who is a Member of OSB, Punjab, has

been allotted a Petrol Pump either

in his own name or in the name of

his next of kin, it is stated that

Smt. Nena Nautiyal, made an

application in August, 1994, .....

It is correct that Smt. Nena

Nautiyal is the wife of Shri R.S.

Nautiyal, a Member of OSB, Punjab.

(vi) With reference to the

allegation that a Petrol Pump was

allotted to Shri Justice Harbanslal

Gupta, a Member of OSB, Haryana, in

his own name or in the name of his

next of kin, it is stated that one

Shri Arun K. Gupta made an

application in September, 1993,

....... It is correct that Shri

Arun Kumar Gupta is the son of Shri

Justice Harbanslal Gupta (Retd.)

who is the Chairman of the OSB,

Haryana.

(viii) With reference to the

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allegation that two relations of

Smt. Satya Bahin, a Member of the

OSB for Haryana, were allotted a

Gas Agency and a Petrol Pump, it is

stated that one Shri Dharmesh Kumar

made an application In September,

1994,..... Along with his

application there was a

recommendation for discretionary

allotment from Smt. Satya Bahin, Ex

Member of Parliament..... It is

stated that the relationship of

Shri Dharmesh Kumar with Smt. Satya

Bahin is not known.

C. ALLOTTEES WHO ARE SAID TO BE

RELATED TO VARIOUS OFFICIALS IN THE

MINISTRY.

(i) The allegation is that

relatives of the Drivers of the

Minister and of the Additional

Private Secretary to the Minister

have been allotted Petrol Pump and

Gas Agency. It has been found that

one Smt. Leela Devi, wife of late

Shri Kishan Swaroop made an

application that her husband was

brutally murdered on 25.1.1994, she

had no means of income to support

her family and that she belonged to

a Scheduled Caste. A retail outlet

was allotted to Smt. Leela Devi on

compassionate grounds from the

discretionary quota in may, 1995.

It has now been ascertained that

Smt. Leela Devi happens to be a

relative of a Driver of the

Minister.

(ii) With reference to the

allegation that Shri Poda

Rajasekhar is a relative of Shri G.

Gurucharan, Private Secretary to

the Minister of State, it is stated

that an application was made by

Shri Rajasekhar in July, 1993,....

A Retail Outlet Dealership for MS-

HSD at Secunderabad was sanctioned

to Shri Rajasekhar on compassionate

grounds. It has been ascertained

that the said allottee is a

relative of the said Shri

Gurucharan.

(iii) With reference to the

allegation that Ms. Madhuri Safaya

is a relative of Shri B.N. Safaya,

Additional Private Secretary to the

Minister, to whom a Retail Outlet

has been allotted,..... It has been

ascertained that she is related to

the said Shri B.N. Safaya.

(iv) With reference to the

allegation that Ms. Monica Malla is

also related to Shri B.N. Safaya,

...... A Retail Outlet was allotted

to her in November, 1994 out of

discretionary quota. It has been

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ascertained that the said Ms. Malla

is related to the wife of Shri B.N.

Safaya.

(v) With reference to the

allegation that the allottee, Mrs.

Daya Rani, is the wife of Shri H.R.

Verma, Personal Assistant to the

Additional Private Secretary to the

Minister, Shri B.N. Safaya,..... It

is correct that the allottee is the

wife of Shri H.R. Verma.

(vi) With reference to the

allegation that Mrs. Vijaya Nair,

who has been sanctioned a Retail

Outlet, is the wife of Shri D.V.

Pillai, Additional Private

Secretary to the Minister of

State,.... It has been ascertained

that Mrs. Vijaya Nair is not the

wife of Shri D.V. Pillai, but she

is related to him".

This Court issued notice to all the 15 persons

mentioned in the affidavit of Mr. Kelkar. Thirteen, out of

them filed affidavits justifying the allotments of petrol

pumps made to them by Capt, Satish Sharma.

This Court by the order dated December 6, 1995 directed

that "the minister may, if he so desires, file an affidavit

in this regard". Capt. Satish Sharma has, however, not

chosen to file any affidavit.

The relevant records have been produced before us.

Mr. Sarbjot Singh in his application mentioned that he

was a commerce graduate belonging to the scheduled caste

community. He completed graduation in the year 1991. He was

interested in sports (shooting) and won awards at the

national level. Because of his pre-occupation with the

sports, he had average academic record and as a consequence

could not get admission to any professional courses. He

further stated that in spite of his best efforts he could

not get any suitable employment for supporting himself and

as such a petrol pump in Delhi be allotted to him. The file

does not indicate how the application was entertained. There

is no receipt/entry on the application. No official/officer

has examined the application before the Minister's order.

There is nothing to shown that any guide-lines were kept in

view. The application, obviously, was given by hand to the

Minister, who readily passed the allotment order. There is a

separate sheet containing the order of the Minister which is

as under:-

"Office of the Minister of State

(P&NG)

Placed below is an application of

Shri Sarbjot Singh for allotment of

a Retail Outlet dealership for MS-

HSD. The applicant has stated that

he is a graduate without any

suitable employment

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

31/1

Minister

I have examined the application

carefully. The applicant is an

unemployed graduate and a sportsman

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who participated in national level

competitions. The applicant has not

been able to get any gainful

employment and is unable to support

himself. The case deserves

sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD in the National Capital

Territory of Delhi is allotted to

Shri Sarbjot Singh r/o 16, Ashok

Road New Delhi.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Thereafter, the matter was processed in the office and

in one of the notes by an officer of the ministry it was

mentioned that the allottee "is son of Shri Buta Singh,

Minister of Civil Supplies". No one took notice of this fact

and the allotment order was issued.

In all the cases discussed hereinafter the pattern of

allotment and the method and procedure followed was the same

as in Sarbjot Singh's case.

Benjamin K. Hollohon stated in his application that he

was an educated unemployed youth and also active party

worker in the area. He belonged to scheduled tribe from

Nagaland State. He requested in the application for

allotment of petrol pump in Purana Bazar area of Dimapur

town, Nagaland. The application was sent to Captain Satish

Sharma by Mr. K. Hollohon, Minister, Industry and Commerce,

Nagaland (Father of the applicant) along with a d.o. letter

which reads as under:-

"Me dear Capt. satish Sharma,

Kindly recall our discussions of

date regarding allotment of one

retail outlet petrol pump (petrol &

Diesel) in the Purana Bazar area of

Dimapur town in Nagaland in favour

of my son Benjamin K. Hollohon.

As you may be aware, that

Benjamin's application and my

earlier note in this regard are

available in your Ministry.

However, I am again enclosing copy

of Benjamin's application for your

perusal.

It was indeed pleasure to note that

you have very kindly agreed to

allot one petrol pump in favor of

my son Shri Benjamin after careful

and due consideration as a very

very special case. I shall

personally grateful if you could

kindly use your good offices in

issuing suitable instructions to

the officials concerned in your

Ministry so that the possible

bureaucratic delays are averted and

the permit is issued without much

loss of time. Therefore, I request

your personal intervention in the

matter. I hope, you can very well

appreciate my predicament in the

matter and am sure, you will do the

needful."

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The allotment order by the Minister is reproduced here-

under:-

"Office of the Minster of State

(P&NG)

Placed below is an application of

Shri Benjamin K. Hollohon for

allotment of a retail outlet for

MS-HSD. The applicant has stated

that he is an unemployed youth

belonging to Scheduled Tribe

community. The applicant has also

stated he no regular source of

income.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

10/10/94

Minister

I have examined the application

carefully. The applicant is an

educated unemployed Scheduled Tribe

youth without regular source of

livelihood. The case deserves

sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD at Purana Bazar, Dimapur,

Nagaland is allotted to Shri

Benjamin K. Hollohon r/o

Durgapathar, 2 1/2 Mile, Dimapur,

Nagaland, Pine Code-797 112.

Necessary orders may be issued

accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Syed Hasan Shaukat Abidi stated in his application as

under:-

"Respectfully I beg t state that I

was born at Allahabad, Uttar

Pradesh on 20th December, 1965. I

have passed B.Sc. and completed my

Master's in Business Administration

(specialisation in Marketing). In

spite of my best efforts, I have

not been able to get a suitable

employment. I have no other source

of income and am entirely dependent

on my aged parents for survival. My

inability to find employment and

settle down is causing anxiety to

my parents. Hence, I would most

humbly request you Sir, to grant me

a petrol pump at Fatehpur (80 Km.

Mole Stone) in Uttar Pradesh."

The Minister passed the following order:-

"Office of the Minister of State

(P&NG)

Placed below is an application of

Shri Syed Hasan Shaukat Abidi for

allotment of a Retail Outlet for

MS-HSD. The applicant has stated

that he has completed his Post

Graduation in Business

Administration and has not been

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able to find any suitable

employment. The applicant has also

stated that he has no other source

of income and is dependent on his

parents for sustenance.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

16/12

Minister

I have examined the application

carefully. the applicant is a

professional qualified man without

any regular employment. The

applicant has no other source of

income and is entirely dependent on

his parents for support and

sustenance. The case deserves

sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD at Fatehpur (80 Km. Mile Stone)

In Uttar Pradesh is allotted to

Shri Syed Hasan Shaukat Abidi r/o

50/1, Dariyabad, Allahabad, Uttar

Pradesh.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

It is obvious from Mr. Kelkar's affidavit that Syed

Hassan Shaukat Abidi is the son of Justice S.H. Abidi (retd)

who was at that time Chairman of the Oil Selection Board for

Uttar Pradesh.

Shiv Balak Passi applied for allotment of petrol pump

in the following words:-

"I wish to state the following

about myself. I am a social worker

who has devoted his entire life for

the upliftment of downtrodden,

underprivileged. I have been in the

forefront in all activities

involving eradication of social

evils. But Sir, I am growing old

and am not in a position to support

myself. Therefore, Sir, with due

respect I request you to grant me a

petrol pump at Lucknow-Rae

Bareilley Road, Uttar Pradesh."

The Minister passed the following order:-

"Office of the Minister of State

(P&NG)

Placed below is an application of

Shri Shiv Balak Passi for allotment

of a Retail Outlet for MS-HSD. The

applicant has stated that he is a

social worker without any regular

source of income.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

21/12

Minister

I have examined the application

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carefully. The applicant is an

educated unemployed who has no

regular source of income due to his

serious preoccupation for the

upliftment of downtrodden. The case

deserves sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSDA at Rae Bareilley Lucknow Road,

UP, is allotted to Shri Shiv Balak

Passi, Ex-MLA, District Rae

Bareilley, Uttar Pradesh.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Mr. Kelkar's affidavit shows that Shiv Balak Passi

himself is a member of the Oil Selection Board for Madhya

Pradesh.

Pradeep Kumar, in his application stated that he was an

unemployed young man from Scheduled Caste category with

enterprise, initiative and determination and was very keen

to make petrol pump dealership as his business. He indicated

that he was appearing in B.A (final). He further stated that

his father has been an active congress worker since 1952 and

has held many important positions in the organisation as

well as on the executive side. The following order was made

by the Minister:-

Office of the Minister of State

(P&NG)

Placed below is an application of

Shri Pradeep Kumar for allotment of

Retail Outlet for MS-HSD. The

applicant has stated that he

belongs to a Scheduled Caste

Community and also an unemployed

Under Graduate.

For kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

20/6/94

Minister

I have examined the application

carefully. The applicant is a young

man from Scheduled Caste Community

with no source of regular income.

The case deserves sympathetic

consideration. Therefore, a Retail

Outlet for MS-HSD in the Union

Territory of Delhi is allotted to

Shri Pradeep Kumar, r/o 18/7,

Punjabi Bagh Extension, New Delhi -

110 026.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

While processing the order, noting on the file is as

under:-

"Reference notes on pre-page. MOS

has sanctioned a retail outlet

dealership at Delhi on

compassionate grounds to Shri

Pradeep Kumar who is belonging to

SC category. He has stated in his

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application vide p-1/c that he is

appearing in BA final year. He is

son of Shri Krishna Swaroop member

of OSB, Delhi. The allowances and

perks of the Member of OSB exceed

Rs. 5000/- per month.

2. However, in view of the

sanction by MOS, file is put up

with a fair sanction letter for

signature, if approved.

Sd/-

27/6

Allotment of a dealership to the

son of a sitting Member of the OSB

will invite adverse criticism. It

will also create an avoidable

impression that govt. is

influencing the OSB in this manner.

sd/-

27.6.94"

Mr. Kelkar's affidavit shows that Shri Pradeep Kumar is

the son of Shri Krishan Swaroop, who was at that time member

of Oil Selection Board for Delhi and Chandigarh. Pradeep

Kumar in his application did not mention this fact. The file

indicates that despite the noting to the effect that the

allotment would invite adverse criticism, the allotment

orders were issued.

Mr. Ghulam Ahamd Mir in his application, addressed to

the Minister, stated that due to the escalation of extremist

violence in Kashmir Valley in the recent years, it has

become difficult to lead a normal life in the Valley and as

such earning a livelihood has become very difficult. He

further stated that the family was forced to sell some of he

ancestral property. He added that despite being a Graduate

he could not get regular employment. He also stated in the

application that he was an active social worker and had been

promoting the nationalist cause in the Valley due to which

he and his family have been facing constant threats from the

militants and extremists in the Valley. The Minister passed

the following order on the applications:

"Office of the Minster

of State for (P&NG)

Placed below is an application of

Shri Ghulam Ahamd Min for allotment

of a Retail Outlet for MS-HSD. The

applicant has stated that he is a

graduate from Jummu and Kashmir,

who has been forced to migrate from

Kashmir as result of militant

threats to his life. The applicant

has also state that he has no

regular source of income for

maintaining his family.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

23/9

Minister

I have examined the application

carefully. The applicant is an

unemployed graduate from Jummu &

kashmir trying to settle in Delhi.

The applicant is an active social

worker espousing the nationalist

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cause for which reason he and his

family have become a target of

militants in the Valley. The

applicant has not been able to

obtain any suitable employment in

Delhi and is finding it difficult

to support his immediate family in

Delhi and his parents in Jammu. The

case deserves sympathetic

consideration. Therefore an `A'

site Retail Outlet for MS-HSD in

the Union Territory of Delhi is

allotted to Shri Ghulam Ahmad Mir

s/o Haji Gh. Hassan Mir r/o 71-D,

Pocket `K', Sheikh Sarai II, New

Delhi.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

While processing the Minister's order the office put up

the following note on the file:

"Ref. note above. Sh. G.A, Mir, has

furnished his bio-data vide pp 3-

4/C. In his bio-data he has stated

that he working as Member of Oil

Selection Board and is getting

Rs.250/- per sitting of the Board

as Honorarium.

2. In view of he above, file is put

up for orders whether we may issue

sanction to Oil Company for award

of RO dealership, to Sh. G.A. Mir

as per sanction letter placed

below, if approved."

Despite the above quoted note, the allotment order was

issued. Mr, Kelkar in his affidavit has stated that Shri Mir

is a member of the Oil Selection Board for Delhi and

Chandigarh.

Mrs. Nena Nautiyal addressed a three lined application

to the Minister. It is stated in the application that she is

an educated lady and belong to Scheduled Tribe community.

Being an unemployed, she wished to install a retail outlet

in the Union Territory, Delhi. The following order was

passed by the Minister:

"Office of the Minister

of State (P&NG)

Placed below is an application of

Smt. Nena Nautiyal for allotment of

a retail Outlet for MS-HSD. The

applicant has stated that is an

educated unemployed lady from

Scheduled Tribe community.

Submitted for kind orders.

Sd/-

(G Gurucharan)

PS to MOS (P&NG)

19/8

Minister

I have examined the application

carefully. The applicant is an

educated lady and belongs to

Scheduled Tribe community. The

applicant is unemployed and has no

regular source of income. The case

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 14 of 26

deserves sympathetic consideration.

therefore, a Retail Outlet for MS-

HSD in the Union Territory of Delhi

is allotted to Smt. Nena Nautiyal

r/o B-399, Gali No.19, Bhajanpura,

Delhi.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minster of State"

While processing the Minister's order the office put up

the following note:

"Ref. above. Smt. Nena Nautiyal has

furnished her bio-data vide pp 8-

7/C wherein she has stated that her

occupation is agriculture and her

and her husband's income is

25,000/- & 18,000/- per annum

respectively. In this connection it

is stated that it happens from her

bio-data that she is the wife of

Sh. Ravi Sharan Nautiyal who is a

Member of OSB - Punjab.

2. In view of the above, file is

put up for orders whether we may

issue sanction to Oil Company for

setting up a RO dealership in favor

of Smt. Nena Nautiyal".

The allotment letter dated 7th October, 1994 was issued

to Nena Nautiyal. It is admitted in the affidavit of Mr

Kelkar that Nena Nautiyal is the wife of R.S. Nautiyal,

Member, Oil Selection Board, Punjab.

Arun Kumar Gupta in his application stated that he

passed BSc. in Production Engineering in the year 1970 and

worked as Project Engineer in the Haryana State cooperative

Supply and Marketing Federation Ltd. at Chandigarh from 1976

to 1989 when he was forced to tender resignation on

political considerations when the Haryana Government was

headed by Shri Devi ll. It is further stated that since then

he was unemployed and as such the application for grant of

petrol pump. The application was directly dealt with by the

Minister and his Private Secretary in the following manner:

"Office of the Minister

of State (P&NG)

Placed below is an application of

Shri Arun K. Gupta for allotment of

Retail Outlet. The applicant has

stated that he is a professional

who has not been able to find a

regular employment and is finding

it difficult to make ends meet.

Submitted for king orders.

Sd/

(G. Gurucharan)

PS to MOT (P&NG)

22/X/93

Minister

I have examined the application

carefully. The applicant is a

graduate in Production Engineering

and is without any regular

employment. The case deserves

sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD is allotted to Shri Arun K.

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 15 of 26

Gupta, s/o Shri Harbans Lal r/o

H.No. 68, Sector 8-A, Chandigarh at

Sector-20 C, Chandigarh.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State

26/10

While processing the above order, Mr. S.K. Singh, under

Secretary in the Ministry wrote on the file as under:

"A retail outlet dealership has

been allotted to Shri arun Kumar

Gupta s/o Sh. Harbans Lal, at

Chandigarh under discretionary

powers of Govt. vide MOS' s order

at p-1/n and Government sanction at

p-2/c.

2. Since the allottee has not

mentioned anything about his father

and since a similar named person is

working as Chairman of one of the

Oil Selection Boards, IOC was asked

to check the detail from the

allottee. A report now received

from IOC is placed at pp 5-3/c for

perusal. It may be seen therefrom

that the father of the allottee

Shri Harbans Lal is a Retd. Judge

of the Punjab and Haryana High

Court and practising Senior

Advocate in the Supreme Court at

New Delhi, and also functioning as

the Chairman of the Oil Selection

Board for Haryana.

3. It is humbly submitted that such

allotments will invite adverse

public criticism.

Sd/-

(S.K. SINGH)

US (M.II)/6.12.93"

Letter of intent was issued to Mr. Arun Kumar Gupta on

December 9, 1993. Mr. Kelkar in his affidavit has stated

that Arun kumar Gupta is the son of Justice Harbans Lal

Gupta (retd.), who at that time was Chairman of the Oil

Selection Board, Haryana.

Satya Bahin, Ex.Member of Parliament and member of the

Oil Selection Board for Haryana recommended the application

of Dharmesh Kumar for allotment of petrol pump. It was

stated in the recommendation that Dharmesh Kumar's father

died few years back, they are poor and his mother is

suffering from cancer. The Minister allotted the petrol pump

by the following order:

"Office of the Minister

of State (P&NG)

"Placed below is an application of

Shri Dharmesh Kumar for allotment

of a Retail Outlet for MS-HSD. The

applicant has stated that he is an

educated youth from Scheduled Tribe

whose father had passed away while

in Government service. The

Applicant has also stated his

mother who had been trying to

support her family is also

afflicted by Cancer which has put

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 16 of 26

the family in difficult

circumstances.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS. to MOS (P&NG)

9.11.

Minister

I have examined the application

carefully. The applicant is an

unemployed youth whose father's

sudden demise had prevented from

completing his education. The

applicant's mother who had been the

sole bread-winner for the family is

also afflicted with Cancer which

has put the family in straitened

circumstances. The applicant has

also not been able obtain suitable

employment. The case deserves

sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD at Ferozabad-Shikohabad Road,

near Makhanpur, Uttar Pradesh is

allotted to Shri Dharmesh Kumar s/o

Late Shri Johari Lal (Amin) r/o

H.No.20, Katra Mohammad Mah, Gandhi

Marg, Shikohabad, Firozabad, Uttar

Pradesh.

Orders may be issued accordingly.

Sd/- 9/11

Capt. Satish Sharma)

Minister of State"

In his affidavit filed before this Court Dharmesh Kumar

stated that he is "neither a family member nor dependent on

Satya Bahin. The deponent is not closely related to Satya

Bahin."

Leela Devi in her application stated that her husband

expired on 25th January, 1994. Two clerks of lawyers killed

her husband in the premises of Patiala House. It is further

stated that she is a housewife with no means of income to

feed herself and her family since the death of her husband.

The Minister allotted the petrol pump by the following

order:

"Office of the Minister of

State (P&NG)

Placed below is an application of

Smt. Leela Devi for allotment of a

retail Outlet for MS-HSD. The

applicant has stated that her

husband was murdered and ever since

his death her family is left

without any regular source of

livelihood.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS(P&NG)

19/5/95

Minister

I have examined the application

carefully. The applicant is a widow

whose husband was murdered. The

applicant has no regular income to

support herself and her family. The

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 17 of 26

case deserves sympathetic

consideration. Therefore, a Retail

Outlet for MS-HSD at NOIDA, UP is

allotted to Smt. Leela Devi w/o

Late Shri Krishan Swaroop r/o H.No.

B-412/A, Sector No. 19, NOIDA, UP.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

The material on the file shows that the late husband of

Leela Devi was a dismissed employee of Post and Telegraph

Department. He had six sons and a house on Kalibari Marg.

Late husband of Leela Devi was living away from the family

for 7-8 years prior to his death. Mr. Kelkar in his

affidavit has stated that Leela Devi is the relative of the

driver of the Minister. The affidavit filed by Leela Devi

and the documents attached with the affidavit read with

Kelkar's affidavit clearly show that Leela Devi is the

mother of Nand Kishor who was working as driver of Capt.

Satish Sharma. Mr. Kelkar in his affidavit has stated that

"Smt. Leela Devi happens to be a relative of the driver of

the Minister". Least we can say is that Mr. Kelkar should

have known that Leela Devi was Minister's drivers's mother.

Poda Rajasekhar has, in his application, stated that he

completed his B.Com in 1980 and in spite of his best efforts

he could not settle in regular employment. His father was

serving as an Inspector of Customs and Central Excise. He

expired in January 1981. His mother, who was a teacher,

retired on 19.4.1993. He finds it difficult to cope with the

present circumstances. The Minister allotted the petrol pump

by the following order:

"OFFICE OF THE MINISTER

OF STATE (P&NG)

Placed below is the application of

Shri Poda Rajasekhar r/o 8-3-897/6

Nagarjuna Nagar, Hyderabad (A.P.).

The applicant has stated that he is

an educated unemployed person who

has the responsibility of looking

after his mother as well as a

cousin, who is mentally retarded.

He has stated that besides his best

efforts, he has not been able to

settle in any regular employment.

He has prayed that a retail outlet

dealership for MS-HSD may be

allotted to him at Banjara Hills,

Secunderabad (A.P.).

For kin orders.

Sd/-

(G. GURUCHARAN)

PS TO MOS (P&NG)

23.7.93

Minister

I have examined the application

carefully. The applicant's case is

genuine in view of the adverse

financial circumstances that the

family finds itself in. It is a fit

case for sympathetic consideration.

Accordingly a retail outlet

dealership for MS-HSD is allotted

to Shri Poda Rajasekhar at Banjara

Hills, Secunderabad (A.P.).

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 18 of 26

Orders may be issued immediately.

Sd/-

(CAPT. SATISH SHARMA)

MOS (P&NG)"

Mr kelkar in his affidavit has stated that "Poda

Rajasekhar is a relative of Shri Gurucharan, Private

Secretary to the Minister".

Madhuri safaya has stated in her application that she

is a native of Kashmir. She is a young lady and has been

rendered homeless due to the increasing militancy in the

Valley. Due to sudden migration to Delhi she has not been

able to complete her education. On these grounds she

requested the Minister to allot her a petrol pump. The

Minister readily obliged her by the following order:

"Office of the Minister

of State (P&NG)

Placed below is an application of

Ms. Madhuri Safaya for allotment of

Retail Outlet for MS-HSD. The

applicant has stated that she

belongs to Kashmir and her family

has migrated to Kashmir. The

applicant has also stated that she

has not been able to get a suitable

job and is without a regular source

of livelihood.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

12.10

Minister

I have examined the application

carefully. The applicant is a young

lady whose family has migrated from

Kashmir and are dependent on their

relatives for sustenance. The

applicant has not been able to

obtain a suitable job for herself

and is without any regular source

of income. The case deserves

sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD in the national Capital

Territory of Delhi is allotted to

Ms. Madhuri Safaya r/o B-6/1,

Vasant Vihar, New Delhi.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Mr kelkar has confirmed in his affidavit that Madhuri

Safaya is related to B.N. Safaya, Add1. Private Secretary to

the Minister.

Monika Malla in her application stated that her family

was forced to leave Kashmir due to the militant activities.

Her family had to dispose of the property at a loss and all

the savings had already been spent. She has to support her

parents who are not keeping good health. On these grounds

she requested the Minister for the allotment of petrol pump.

The Minister passed the following order:

"Office of the Minister

of State (P&NG)

Placed below is an application of

Ms. Monica Malla for allotment of a

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Retail Outlet for MS-HSD. The

applicant has stated that she is

young lady form Kashmir whose

family has been forced to migrate

to Delhi due to growing militancy.

The applicant has also stated that

she has exhausted their family's

savings and are finding it

difficult to sustain themselves in

Delhi.

Submitted for kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

12.10

Minister

I have examined the application

carefully. The applicant is a young

lady whose family had migrated to

Delhi owing to militant activities

of the extremists. The applicant's

family has no source of livelihood

and she has not been able to obtain

any suitable employment. The case

deserves sympathetic consideration.

Therefore, a Retail Outlet for MS-

HSD in the National Capital

Territory of Delhi is allotted to

Ms. Monica Malla c/o Smt. Labroo

r/o D-1/54, Vasant Vihar, New

Delhi.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Mr. Kelkar has stated in his affidavit that Monika

Malla is related to the wife of B.N.Safaya, Add1. Private

Secretary to the Minister.

Daya Rani stated in her application that she is a

housewife of a low paid employee having four school going

children. It was difficult to live with the meagre salary of

her husband. She wanted to share the responsibility of her

husband and as such requested the Minister to allot her a

petrol pump. The minister obliged her by passing the

following order:

"Office of the Minister

of State (P&NG)

Placed below is an application of

Smt. Daya Rani w/o Shri H.R. Verma

for allotment of a Retail Outlet

for MS-HSD. The Applicant has

stated that she has a family of

four school going children and is

finding it difficult to make ends

meet with the income being earned

by her husband.

Submitted for king orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

10.10.94

Minister

I have examined the application

carefully. The applicant is a

housewife whose family is facing

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 20 of 26

difficult financial circumstances.

The case deserves sympathetic

consideration. Therefore, a Retail

Outlet in the Union Territory of

Delhi is allotted to Smt. Daya Rani

w/o Shri H.R. Ramakrishna Ashram

Marg, Gole Market, New Delhi.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Shri S.K. Singh, Under Secretary, while processing the

Minister's order noted on the file as under:

"Smt. Daya Rani, the allottee is

the wife of Shri Hari Ram Verma who

is working in this Ministry as an

Assistant and presently posted to

Minister's Office. His annual

income from pay and allowances

during 1993-94 is reported Rs.

52,925/-. However, the allottee has

shown the annual income as

Rs.36,000/- which is factually not

correct. It seems that she has

shown only the take-home pay after

deductions. It is for consideration

whether the sanction letter placed

below as per Orders of MOS recorded

at p-1/n may be issued

Sd/-

(S.K. SINGH)

US (M.II)/25.10.94"

Allotment order was issued to Daya Rani on 31st

October, 1994. Mr. Kelkar has stated in his affidavit that

Daya Rani is the wife of H.R. Verma, Personal Assistant to

the Add1. Private Secretary (B.N. Safaya) to the Minister.

Vijaya Nair has stated in her application that she is a

young housewife with a large family to support. She has

studied up to B.A. level. The meagre income of her husband

could not sustain their liabilities. She requested the

Minister to allot her a petrol pump which was done by the

following order:

"Office of the Minister

of State (P&NG)

Placed below is the application of

Smt. Vijaya Nair. The applicant is

a young educated unemployed person

with the responsibility of looking

after a family which has a meagre

income. The applicant has stated

that despite best efforts she has

been unable to obtain suitable job.

She has, therefore requested that

as a special case she may be

allotted a Retail Outlet MS-HSD in

the Union Territory of Delhi.

For kind orders.

Sd/-

(G. Gurucharan)

PS to MOS (P&NG)

23.7.93

Minister

I have examined the application

carefully. The applicant is an

educated unemployed housewife whose

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 21 of 26

family circumstance is one of

considerable financial difficulty.

The applicant has also prayed that

she has the necessary drive and

initiative to run a Retail Outlet.

This is a fit case to be considered

sympathetically. Accordingly, a

Retail Outlet for MS-HSD is

allotted to Smt. Vijaya Nair, 2213,

Lodi Road Complex, New Delhi-110

003, in the Union Territory of

Delhi as a special case.

Orders may be issued accordingly.

Sd/-

(Capt. Satish Sharma)

Minister of State"

Mr. Kelkar has stated in his affidavit that Vijaya Nair

is related to D.V. Pillai, Add1. Private Secretary to

Minister.

All the 15 allotments - discussed above - have been

made by the Minister in a stereotyped manner. The

applications have not been officially received by the

Petroleum Ministry. There is no receipt - entry on any of

the applications. The applicants seem to have approached the

Minister directly. None of the applications have been dealt

with in any of the branches of the Ministry. There is

nothing on the record to indicate that the Minister kept any

criteria in view while making the allotments. How the

applicants came to know about the availability of the petrol

pumps is not known. No advertisement was made to invite the

applications. There is nothing on the record to show that

any other method of inviting applications was adopted. There

is no indication in the allotment-orders or anywhere in the

record to show that the Minister kept any guidelines in view

while making these allotments. The allotments have been made

in a cloistered manner. The petrol pumps - public property -

have been doled out in a wholly arbitrary manner. This Court

in Ramana Dayaram Shetty vs. International Airport Authority

of India and others (1979) 3 SCC 489, held ad under:

"It must, therefore, be taken to be

the law that where the Government

is dealing with the public, whether

by way of gibing jobs or entering

into contracts or issuing quotas or

licences or granting other forms of

largesse, the Government cannot act

arbitrarily at its sweet will and,

like a private individual, deal

with any person it pleases, but its

action must be in conformity with

standard or norms which is not

arbitrary, irrational or

irrelevant. The power or discretion

of the Government in the matter of

grant of largesse including award

of jobs, contracts, quotas,

licences, etc. must be confined and

structured by national, relevant

and non-discriminatory standard or

norm and if the Government departs

from such standard or norm in any

particular case or cases, the

action of the Government would be

liable to be struck down."

The allotments have been made by the Minister either on

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 22 of 26

the ground of poverty or unemployment. Assuming that the

allottees belong to either of these two categories then how

the Minister has selected them court of millions of poor and

unemployed in this country. As mentioned above no criteria

was fixed, no guidelines were kept in view, none knew how

many petrol pumps were available for allotment,

applications were not invited and the allotments of petrol

pumps were made in an arbitrary and discriminatory manner.

We may examine these allotments from another angle

which has very serious repercussions. Six of the allottees

are related to various officials working with the Minister.

Leela Devi is the mother of Minister's driver. Poda

Rajasekhar is a relation of G. Gurucharan, Private Secretary

to the Minister. Madhuri Safaya and Monika Malla are related

to B.N. Safaya, Add1. Private Secretary to the Minister.

Daya Rani is the wife of H.R. Verma. Personal Assistant to

B.N. Safaya and Vijaya Nair is the wife of D.V. Pallai,

Add1. Private Secretary. Two of the allottees are related to

the politicians. Sarbjot Singh is the son of Buta Singh who

was Home Minister and at the relevant time was Cabinet

Minister heading the Civil Supplies portfolio. Benjamin K.

Hollohan is the son of Shri K. Hollahan, Minister in the

State of Nagaland. Remaining seven allottees are either

members of the Oil Selection Boards or their relations.

Shaukat Hasan Abidi is the son of Justice S.H. Abidi(Retd.),

who was the Chairman of the Oil Selection Board, Uttar

Pradesh. Similarly, Arun Kumar Gupta is the son of Justice

Harbans Lal Gupta (Retd.) who was the Chairman of Oil

Selection Board, Haryana. Pradeep Kumar is the son of

Krishna Swaroop, who was Member of Oil Selection Board for

delhi and Chandigarh. Nena Nautiyal is the wife of R.S.

Nautiyal, who was member of Oil Selection Board, Punjab.

Dharmesh Kumar was the recommended of Satya Bahin, Ex.Member

of Parliament and Member of the Oil Selection board for

Haryana. Shiv Balak Passi and Ghulam Ahamd Mir were

themselves members of the Oil Selection Boards. It is

obvious that Capt. Satish Sharma was personally interested

in making allotments of petrol pumps in favour of all these

15 persons. He made allotments in favour of relations of his

personal staff under the influence of the staff on wholly

extraneous considerations. The allotments to the sons of

Ministers were only to oblige the Ministers. The allotments

to the members of the Oil Selection Boards and

their/chairmen's relations have been done to influence them

and to have favours from them. All these allotments are

wholly arbitrary, nepotistic and are motivated by extraneous

considerations.

The Government today - in a welfare State - provides

large number of benefits to the citizens. It distributes

wealth in the form of allotment of plots, houses, petrol

pumps, gas agencies, mineral leases, contracts, quotas and

licences etc. Government distributes largesses in various

forms. A Minister who is the executive head of the

department concerned distributed these benefits and

largesses. He is elected by the people and is elevated to a

position where he holds a trust on behalf of the people. He

has to deal with the peoples' property in a fair and just

manner. He cannot commit breach of the trust reposed in him

by the people. We have no hesitation in holding that Capt.

Satish Sharma in his capacity as a Minister for Petroleum

and Natural gas Deliberately acted in a wholly arbitrary and

unjust manner. We have no doubt in our mind that Capt.

Satish Sharma knew that the allottees were relations of his

personal staff, sons of Ministers, sons/relations of

Chairmen and members of the Oil Selection Boards and the

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members of the Oil Selection Boards themselves. The

allotments made by him were wholly mala fide and as such

cannot be sustained.

We are further of the view that Capt. Satish Sharma

acted in a wholly biased manner inasmuch as he unfairly

regarded with favour the cases of 15 allottees before him.

The relevant circumstances available from record and

discussed by us leave no manner of doubt in our mind that

Capt. Satish Sharma deliberately acted in a biased manner to

favour these allottees and as such the allotment orders are

wholly vitiated and are liable to be set aside.

The orders of the Minister reproduced above read: "the

applicant has no regular income to support herself and her

family", "the applicant is an educated lady and belongs to

scheduled tribe community, "the applicant is unemployed and

has no regular source of income", "the applicant is an

uneducated, unemployed scheduled tribe youth without regular

source of livelihood", "the applicant is an uneducated,

unemployed scheduled tribe youth without regular source of

livelihood", "the applicant is a housewife whose family is

facing difficult financial circumstances" etc. etc. There

would be literally millions of people in the country having

these circumstances or worse. There is no justification

whatsoever to pick up these person except that they happen

to have won the favour of the Minister on mala fide

considerations. None of these cases fall within the

categories placed before this Court in writ petition (civil

No. 886/93 titled Centre for public interest ligation vs.

Union of India & Anrs. decided on March 31, 1995 but even if

we assume for argument sake that these cases fall in some of

those or similar guidelines the exercise of discretion was

wholly arbitrary. Such a discretionary power which is

capable of being exercised arbitrarily is not permitted by

Article 14 of the Constitution of India. While Article 14

permits a reasonable classification having a rational nexus

to the objective sought to be achieved, it does not permit

the power to pick and choose arbitrarily out of several

persons falling in the same category. A transport and

objective criteria/procedure has to be evolved so that the

choice among the members belonging to the same class or

category is based on reason, fair play and non

arbitrariness. It is essential to lay down as a matter of

policy as to how preferences would be assigned between two

person falling in the same category. If there are two

eminent sportsmen in distress and only one patrol pump is

available, there should be clear, transparent and objective

criteria/procedure to indicate who out of the two is to be

preferred. Lack of transparency in the system promotes

neptosism and arbitrariness. It is absolutely essential that

the entire systems should be transparent right from the

stage of calling for the upto the stage of passing the

orders of allotment. The names of the allottees, the orders

and the reasons for allotment should be available for public

knowledge and scrutiny. Mr. Shanti Bhushan has suggested

that the petrol pumps, agencies etc. may be allotted by

public auction - category-wise amongst the eligible and

objectively selected applicants. We do not wish to impose

any procedure on the Government. It is a matter of policy

for the Government to lay down. We, however, direct that any

procedure laid down by the Government must be transparent,

just, fair and non-arbitrary,

This Court in The Centre for Public Interest Litigation

case (supra) has endorsed the guidelines submitted by the

Attorney General for allotment of petrol pumps, gas agencies

etc. The Court in that case did not have before it the

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 24 of 26

actual manner of exercise of discretion by the Minister in

the allotment of pups/agencies. The allotment orders which

are now before the Court clearly indicate that leaving the

authorities to enjoy absolute discretion even within the

guidelines would inevitably lead to gross violation of the

constitutional norms when the persons for allotment are

picked up arbitrarily and discriminatory.

This Court as back as in 1979 in Ramana Shetty's case

(supra) held "it must, therefore, be taken to be the

law...." that even in the matter of grant of largesses

including award of jobs, contracts, quotas and licences, the

Government must act in fair and just manner and any

arbitrary distribution of wealth would violative the law of

the land. Mr. Satish Sharma has acted in utter violation of

the law laid-down by this Court and has also infarcted

Article 14 of the Constitution of India. As already stated a

minister in the Central Government is in a position of a

trustee in respect of the public property under his charge

and discretion. The petrol pumps/gas agencies are a kind of

wealth which the Government must distribute in a bona fide

manner and in conformity with law. Capt. Satish Sharma has

betrayed the trust reposed in him by the people under the

constitution. It is high time that the public servants

should be held personally responsible for their mala fide

acts in the discharge of their functions as public servants.

This Court in Lucknow Development Authority versus M.K.

Gupta (1994) 1 Supreme Court Cases 243, approved

"Misfeasance in public offices" as a part of the Law of

Tort. Public servants may be liable in damages for

malicious, deliberate or injurious wrong-doing. According to

Wade "There is, thus, tort which has been called misfeasance

in public office and which includes malicious abuse of

power, deliberate maladministration, and perhaps also other

unlawful acts causing injury". With the change in socio-

economic outlook, the public servants are being entrusted

with more and more discretionary power even in the field of

distribution of Government wealth in various forms. We take

it to be perfectly clear, that if a public servant abuses

his office either by an act of omission or commission, and

the consequence of that is injury to an individual or loss

of public property, an action may be maintained against such

public servant. No public servant can say "you may set-aside

an order on the ground of mala fide but you cannot hold me

personally liable". No public servant can arrogate to

himself the power to act in a manner which is arbitrary.

For the reasons indicated above, we conclude that the

orders passed by Capt. Satish Sharma, the then Minister of

State for Petroleum and Natural Gas, Government of India,

allotting petrol pumps to Sarbjot Singh, Benjamin K.

Hollohon, Syed Hasan Shaukat Abidi, Shiv Balak Passi,

Pradeep Kumar, Ghulam Ahmad Mir, Nena Nautiyal, Arun Kumar

Gupta, Dharmesh Kumar, Leela Devi, Poda Rajasekhar, Madhuri

Safaya, Monika Malla, Daya Rani and Vijaya Nair are

arbitrary, discriminatory, mala fide, wholly illegal and as

such are liable to be quashed.

We, therefore, hold and direct as under:

1. The orders - reproduced in earlier part of this

judgment - allotting petrol pumps to the above mentioned

fifteen persons are hereby quashed.

2. The allocation, allotment of the petrol pumps/retail

outlet dealerships by the Government of India, Indian Oil

Corporation Ltd. or any other corporation in names of the

above said fifteen persons shall stand cancelled with

immediate effect.

3. Most of these 15 persons have not as yet commissioned

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the petrol pumps. Those who have commissioned the petrol

pumps and are running the same shall stop operating the

petrol pumps and running the said business with effect from

October 31, 1996. The Government of India/Oil Corporation

(concerned) shall take over the petrol pump premises from

these persons within ten days thereafter. The Oil

Corporation shall have the market-value of the site and the

construction thereon, determined in a fair and just manner

before October 31, 1996.

4. Each of the commissioned petrol pumps, taken over by

the Government/Oil Corporation (concerned) and the built-up

area along with the site (whether lease-hold or owned by the

original allottee) shall be disposed of by way of public

auction. The original allottees may also participate in the

auction. The petrol pump shall be allotted to the highest

bidder. The said allottee shall run the petrol pump on the

original terms and conditions. He shall have all the rights

in respect of the site and the construction thereon as the

original allottee had on the date of auction. Out of the

auction money the value of the site and the construction as

determined by the Oil Corporation shall be paid to the

original allottee and the remaining money shall go to the

Government coffer. On receipt of the said amount the

original allottee shall cease to have any right or interest

in the site and the construction thereon. If the successful

bidder is the original allottee, he shall pay the difference

between the auction money and the value of the site and

construction as determined by the Oil Corporation.

5. Capt. Satish Sharma shall show-cause within two weeks

why a direction be not issued to the appropriate police

authority to register a case and initiate prosecution

against him for criminal breach of trust or any other

offence under law. He shall further show-cause within the

said period why he should not, in addition, be made liable

to pay damages for his mala fide action in allotting petrol

pumps to the above mentioned fifteen persons.

We place on record our appreciation for Mr. H.D.

Shourie, who, very ably, assisted us in this matter. He

shall be entitled to costs which was quantify as rupees

fifty thousand. The cost shall be paid by Capt. Satish

Sharma personally.

Before parting with this judgment, we may mention about

Civil Writ Petitions Numbers 400./95 and 4430/95 which are

pending before the Delhi High Court. In the said petitions,

allotment of petrol pumps/gas agencies to various other

persons during the period 1992-93, 1993-94, 1994-95 and

1995-96 have been challenged. Transfer petition No.127/96

has been filed in this Court seeking transfer of those writ

petitions from Delhi High Court to this Court. We have

issued notice in the transfer petition and have stayed

further proceedings before the High Court in the writ

petitions. Various affidavits have been filed on behalf of

the Ministry of Petroleum & Natural Gas. Mr. Devi Dayal,

Joint Secretary of the Ministry, in his affidavit dated

March 26, 1995, has stated that in 1995-96 petroleum

products agencies were allotted to 99 persons under the

discretionary powers of the Government. It is further stated

that orders on file have been made allotting petrol

pumps/agencies to 61 more persons. An affidavit filed by Mr.

Srinivasan, Advocate supporting the transfer petition gives

a long list of persons who are related to the then Prime

Minister/Ministers and other VIPs and who have been allotted

petrol pumps and gas agencies. Mr. Devi Dayal, Joint

Secretary in the Ministry of Petroleum has filed another

affidavit dated April 18, 1996 in reply to the affidavit of

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Mr. Srinivasan. Para 6 of the affidavit is as under:-

"As regards the list of allottees

mentioned in paras 3 to 6 and the

alleged relationship with the Prime

Minister, other Ministers, V.I.Ps.,

M.Ps/M.L.As, etc., it is to submit

that enquiries have been made

through the Oil Companies from the

allottees, who have replied through

affidavits. The comments of the

Ministry, on the basis of above

enquiry and records, are contained

in Annexure - I to this affidavit."

Annexure 1 with the affidavit shows that gas agencies

were allotted to six relations of the then Prime Minister,

an agency to a son of the OSD in Prime Minister's office,

LPG dealership to daughter-in-law of the OSD tot eh then

Minister of Petroleum, a petrol pump to the real brother of

Chadraswamy (Nemi Chand Jain), LPG distributorship to

brother of Shri Bhagwan Shri Satya Sai Baba, LPG dealership

to Manju Devi, wife of private secretary to additional

private secretary of Capt. Satish Sharma, a petrol pump to

wife of V.K. Aggarwal, additional private secretary,

Ministry of Law, RO dealership to Rakesh Saluja, son of R.L.

Saluja, who was employed in the Ministry of Petroleum till

June, 1993, RO dealership to Prathiba Singh related to Shri

Kalapnath Rai, RO dealership in January, 1995 to Kanti Lal

Bhuriya, who at that time was Minister for Tribal Welfare in

he Madhya Pradesh Government, a gas agency to the son-in-law

of Mr. G. Ganga Reddy, Member of Parliament and various

others.

Since the two writ petitions, mentioned above, are

pending before the High Court wherein the allotments made to

all the persons mentioned above and others, have been

challenged, it is not necessary for us to transfer the writ

petitions to this Court. We vacate the stay order granted by

this Court and dispose of the transfer petition. We direct

the Registry of this Court to send all the affidavits filed

by the parties in the transfer petition along with annexures

to the High Court. We have no doubt that the High Court

shall examine the issues involved in he writ petitions and

shall also go into the validity of the allotment of petrol

pumps/gas agencies to various persons, after hearing them,

in accordance with law. We request the High Court to

expedite the hearing of the petitions.