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SGPDA cannot act beyond its legal competence in construction and wholesale fish market operation: Bombay High Court

The Bombay High Court at Goa held that the SGPDA (South Goa Planning and Development Authority) cannot be said to be acting beyond its legal competence or ultra vires in the construction and operation of a wholesale fish market at Margao.

The Division Bench of Justice MS Sonak and Justice Valmiki S A Menezes disposed of a Public Interest Litigation (PIL) raising the following issue:-

(a) The issue of formalin or formaldehyde in the fish market in the State of Goa;

(b) The competence of the South Goa Planning and Development Authority (SGPDA) to construct and operate a wholesale fish market at Margao, Goa;

(c) The issue of whether the SGPDA can operate a wholesale market without obtaining permissions from the Margao Municipal Council and the Authorities under the Food Safety and Standards Act, 2006.

The Court noted that the first issue is covered by the High Court order dated 09.01.2024 by which the High Court ordered that the Director of Food Safety, State of Goa, shall  issue a circular to all concerned, including the Food Safety Officers, to take appropriate measures and evolve a mechanism to enforce the standards prescribed by the notification dated 11.01.2023. The Director of Food Safety shall issue a circular in this regard within three weeks. The circular must clarify that it is completely impermissible to add or use formalin or formaldehyde to fish and that the limits of naturally occurring formalin or formaldehyde do not exceed the standards prescribed above.

As regard the second issue , the Court agreed with the respondents that the SGPDA was not acting ultra vires by constructing a wholesale fish market and operating the same at Margao – Goa. The provisions of the Daman and Diu Town and Country Planning Act , 1974 (TCP Act) have to be considered holistically, and upon such holistic consideration, we cannot say that the SGPDA, by constructing a wholesale fish market or by operating the same itself, was acting ultra vires its powers or involved in functions that were never assigned by the legislature to a Planning and Development Authority.” 

The High Court held that the SGPDA will have to obtain a licence/permission as contemplated by Section 252 of the Municipalities Act from the MMC, and the provisions of the Food Safety and Standards Act will apply to the operation of the wholesale fish market at Margao. Since a private market is proposed to be established and operated, all permissions contemplated by the law would be necessary unless those laws exempt such permissions.

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