The Karnataka High Court recently upheld a government notification that introduces quality controls on imported polyethylene, a material used in plastic manufacturing. The court’s decision, delivered by Justice M Nagaprasanna, rejected a challenge brought forward by the All India HDPE/PP Woven Fabric Manufacturers’ Association. The Association had argued that the quality controls, which were set to take effect on January 5, would unduly benefit Reliance Industries due to its dominant position in the market for a specific plastic manufacturing ingredient.
They contended that restrictions should be applied to finished products rather than raw materials, citing the potential impact on their business and the livelihoods of approximately 25 lakh families supported by their members. In opposition, the deputy solicitor general defended the quality controls, emphasizing the importance of preventing the import of low-quality materials into India. The defense also pointed out that the market includes around 50 players, including Reliance, with at least 12 competitors in the segment where Reliance is alleged to have a monopoly. The Karnataka High Court, in its judgment, emphasized the principle of judicial restraint in matters of government policy, particularly when these policies are enacted in the public interest.
The court noted that it would not substitute its judgment for that of experts and authorities who are deemed to have the knowledge and competence to decide on such matters. Furthermore, the court underscored the importance of maintaining high quality standards from the initial stages of production to the final product, especially under the ‘Make in India’ initiative. The aim is to ensure that products made in India meet global standards, which is crucial for international competitiveness. The petition’s claims of cartelization and a nexus were found to be untenable by the court, leading to the dismissal of the petition. The judgment supports the government’s stance on enforcing quality control measures in the manufacturing sector, particularly in industries with significant export potential.
Get the latest supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.
#KarnatakaHighCourt #QualityControl #Polyethylene #PlasticManufacturing #RelianceIndustries #MakeInIndia #JudicialRestraint #GovernmentPolicy #ManufacturingStandards #ExportPotential #PublicInterest #HDPE #PPWovenFabric
