Shaleen Jain Vs Union of India & Ors (Delhi High Court)
The petitioner, a small-scale trader engaged in the import and processing of sandalwood, challenged the prevailing import policy imposing a quantitative ceiling of 5,000 cubic meters on sandalwood imports, as prescribed under policy circulars dated 07.04.2006 and 31.12.2007. The petition assailed these restrictions as violative of the petitioner’s fundamental right to carry on trade under Article 19(1)(g) of the Constitution of India, contending that the ceiling had become obsolete and had outlived its original purpose.
It was further argued that the quantitative restriction had caused scarcity in the supply of sandalwood, adversely impacting the unorganised sector, particularly small-scale artisans engaged in handicrafts and perfumery. The petitioner highlighted that domestic production was insufficient to meet the growing demand for sandalwood. Additionally, the petitioner asserted that the ceiling was contrary to the second proviso to Section 9A(2) of the Foreign Trade (Development and Regulation) Act, 1992.
During the course of hearing, it was agreed that the petition would be treated as a representation before the Directorate General of Foreign Trade (DGFT). The Court directed that the DGFT consider the averments made, consult the Ministry of Environment, Forest and Climate Change and other stakeholders if necessary, and dispose of the representation by a reasoned speaking order within 12 weeks.
