The Supreme court on 17th June, 2021 in a significant decision (UNION OF INDIA & ORS. V M/S. RAJ GROW IMPEX LLP & ORS. Civil Appeal No. 2219 of 2021) ordered the absolute confiscation of some varieties of peas and beans which were imported in contravention of government regulation restricting the import of these peas and beans in order to protect the domestic farmers. The only relaxation the apex court has allowed to the importers is of allowing re-export, on payment of the necessary redemption fine and subject to the importer discharging other statutory obligations.

The Central government revised the policy for import of urad/moong and pigeon peas/toor dal from “free” to “restricted” with a stipulation as to annual quota and requirement of a prior license from Director General of Foreign Trade. The notification issued by the DGFT was challenged in different High Courts and on the power of an interim order obtained from the High Courts the parties had successfully imported the restricted goods more than the threshold quota as prescribed by the notification. The Supreme Court in its earlier judgment dated 26.08.2020 in the case of Union of India and Ors. v. Agricas LLP and Ors.( 2020 SCC OnLine SC 675) upholding such notifications dated 29.03.2019, issued by the Central Government as also the consequential trade notice dated 16.04.2019, issued by the DGFT and also held that any import made under the cover of the interim order cannot be regarded as bona fide.

The respondents whose imported goods covered by the said notifications approached the High Court of Bombay and obtained, an order for release of the imported goods lying in the port. The Union of India hence filed this appeal. The main contention of the appellant was that the restrictions have been imposed not due to increased quantities of imports but to prevent panic disposal by farmers as the prices of Gram would come down with the import of this items. The court was fully satisfied that this notification was to safeguard the agriculture market economy of India; and in line with the observations and findings of this Court in the case of Agricas. Struck down the impugned order of the Bombay High Court.

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