Undoubtedly, production of salt is akin to agriculture since it is entirely seasonal and carried out only during summer. Tamil Nadu, being the second largest producer of salt in the country after Gujarat, the salt producers in Thoothukudi, Vedaranyam and a few other places in the State are certainly facing many difficulties. Despite all this, one cannot arrive at a conclusion that salt production is not all a profit making business, the Madras High Court has said.
Justice S.M. Subramaniam made the observations while dismissing a huge batch of over 170 writ petitions filed by salt manufacturers, merchants and their associations challenging the Centre’s 2013 decision to revise the land assignment fee and annual ground rent levied on those who had taken government lands on lease. The writ petitions were filed between 2013 and 2021. They were taken up together for final disposal in view of the common issue involved.
The judge concurred with Additional Solicitor General R. Sankaranarayanan that the 20-year lease period of the petitioners before the court had expired in 2018 itself, and therefore, they must vacate the government lands and pave way for fresh lease through public auction. He held that the petitioners could not expect automatic renewal of their lease period by harping upon a recommendation made by Manu Bhai Shah Committee in 1958 to grant lease for 99 years.
“Leasing out Central Government lands for 99 years or automatic renewal of the lease would infringe upon the rights of other citizens aspiring to get an opportunity into the field of manufacturing of salt or related trade activities. Deprival of equal opportunity will directly infringe the fundamental right of every citizen,” he said, and ordered that all those lessees whose lease period had expired should vacate the government lands within three months.
“No doubt, salt being a commodity of everyday consumption, the Government must control its market price. Equally, the Central and State Governments are bound to ensure that the interest of the public at large is protected by implementing open auction process in order to ensure equal opportunity to the citizens,” he said, and held that the Government had rightly restricted the lease period to 20 years.
“Once the Centre leases out its salt land for manufacturing, it becomes a commercial venture. The salt manufacturers, no doubt, are doing business and therefore, periodical enhancement of charges and equal opportunity to all the eligible persons to get lease of such land are Constitutional mandates,” he observed.
