DIRECTOR GENERAL (INVESTIGATION AND REGISTRATION) vs CONSUMER COOP. STORE

THE present complaint arises out of a letter dated 15th March, 2002 from Mr. Ramji Manjhi, Member, Lok Sabha. Hon''ble Member has complained that Office Memorandum dated 14.7.1981 issued by the Department of Personnel and Administrative Reforms requiring the Government Departments to purchase the goods as per their requirements from Kendriya Bhandar, Super Bazar or NCCF is monopolistic in nature. THE Preliminary Investigation Report (PIR) as conducted by the DG has been placed on record. THE operative portion as contained in paragraphs 6, 7 and 8 be referred as follows : "6. THE Ministry of Personnel & Public Grievances, Department of Personnel and Training has also submitted its reply vide letter dated 3.7.2002. In its reply it has stated that the matter has been examined and the Department of Legal Affairs has opined that the matter does not appear to be falling within ambit of MRTP Act, 1969. THE Department of Personnel & Training reportedly referred the matter to Ministry of Law, Justice, Department of Legal Affairs with regard to impugned Office Memorandum of 1981. THE Department of Legal Affairs is of the opinion that cooperative stores were set up by Government of India as part of staff welfare measure for supply of consumer goods at fair and reasonable prices to residents of Delhi, so Government policy to purchase office stationery, etc. to be used in Government Departments/Offices from these cooperative stores does not create monopoly since it is small market out of large consumer market. A copy of reply dated 3.7.2002 is enclosed and marked as Annexure-VI.

It is thus noticed that the respondent cooperative stores are subject to the statutory supervision of Government of India and are controlled by the Registrar of Cooperative Societies. THE respondents are registered as Multi-State Cooperative Societies and they function under administrative control of Ministry of Consumer Affairs, Food and Public Distribution. THE allegation of the complainant was earlier examined by the Ministry of Personnel and Public Grievances in consultation with Ministry of Law. THE Ministry of Law has given its opinion vide letter dated 10.4.2002 that no monopoly is created by impugned policy and policy restrictions can be imposed by the Government in exercise of its executive power of the State under Article 162 of the Constitution of India. THE cooperative stores were set up by Government of India as part of staff welfare measures for supply of consumer goods at fair and reasonable prices to the residents of Delhi. THErefore, the policy of the Government to purchase stationery, etc. to be used in Government Departments/Offices from their cooperative stores does not create monopoly since it is a small market out of the large consumer market. 8. In view of the aforesaid legal opinion and the information furnished by Ministry of Personnel and Public Grievances including the fact that the provisions of the MRTP Act are not applicable to Cooperative Store set up under Multi-State Cooperative Societies Act, 1984. Hon''ble Commission may consider taking such further action as deemed appropriate in the facts and circumstances of the case."

In view of the above investigation and findings recorded therein, we do not find any ground to continue the present proceedings. THE same stand disposed of. Proceedings disposed of.