VI Exports India Private Limited Vs Union of India (Delhi High Court)
The case of VI Exports India Private Limited versus Union of India, heard by the Delhi High Court, revolves around the sudden spike in global rice prices in 2022, prompting the Indian government to prohibit the export of non-basmati white rice through Notification No. 20/2023 issued on 20th July 2023. This decision aimed to safeguard India’s food security amidst rising prices. However, the government allowed certain exemptions for exporters who had already initiated export processes or met specific conditions.
After the initial ban, the government received requests for clarification due to shipments being stuck at ports. Consequently, amendments were made to the initial notification, relaxing export conditions through Notification No. 29/2023 issued on 29th August 2023. Despite this, exporters needed to fulfill specific conditions outlined in the notifications to qualify for exemptions.
The appellant, VI Exports India Private Limited, sought permission to export 11,000 metric tons (MT) of rice stored near Kandla Port, Gujarat. They argued that despite their efforts, they couldn’t comply with all conditions due to circumstances beyond their control, such as lack of storage space and vessel berthing issues.
The respondent, Union of India, opposed the request, emphasizing the importance of strict compliance with the export policy to maintain food security. They argued that the appellant failed to satisfy all exemption conditions, particularly related to vessel berthing and consignment handover to customs authorities.
