The Supreme Court has held that the Agriculture Produce Market Committee (APMC), Deesa is entitled to the full subsidy under the cold storage scheme, observing that authorities unjustifiably denied the benefit despite continuous follow-ups and compliance efforts.
The bench of Justice Sanjay Karol and Justice Augustine George Masih has observed that APMC had made no efforts post-inspection, noting that even the inspection report itself acknowledged that the unit was complete and could be considered for final subsidy as per guidelines.
The dispute arose over a subsidy scheme titled “Capital Investment Subsidy for Construction/Expansion/Modernization of Cold Storages”, implemented by the National Horticulture Board (NHB) through NABARD. While 50% of the subsidy was released in advance, the remaining amount was withheld following a joint inspection that noted low capacity utilization and sought re-evaluation.
The Supreme Court noted that although deficiencies were pointed out during the initial inspection, the unit was undisputedly completed and commissioned. Importantly, the Court emphasized that the APMC, along with its financing bank, made repeated efforts to secure re-inspection and release of the balance subsidy. A detailed table of communications (pages 7–8) shows multiple letters sent between 2009 and 2011 requesting reconsideration and final disbursement.
Rejecting the findings of the Division Bench, which had denied relief citing inaction by APMC, the Court held that such a conclusion was contrary to record. It observed that the authorities failed to act on repeated requests for inspection and subsidy release, and instead proceeded to withdraw even the already disbursed amount after a fire incident at the facility.
The Supreme Court restored the Single Judge’s order and directed that the entire subsidy be released. It further clarified that if the previously released amount had been recovered, the full subsidy must now be paid; otherwise, at least the remaining installment must be disbursed.
Case Details
Case Title: Agriculture Produce Market Committee, Deesa Versus National Horticulture Board & Ors
Citation: JURISHOUR-841-SC-2026
Case No.: SLP(Civil) No.13129 of 2025
Date: 17/04/2026
