|
|
'Consumer is king' says SC; rejects plea against retail FDI
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 02 May, 2013
"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".
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|