INDIA BUSINESS WORLD - APRIL 2007
The Month that was ...

J & K, GUN MAKER SERVED SC NOTICE

THE Supreme Court on Monday issued notices to the Jammu and Kashmir government and a private gun manufacturer on a central plea that an increase in manufacture of arms and ammunition by private parties in the state would have repercussions on national and regional security.

A bench comprising Justice B N Agrawal and Justice P P Naolekar also stayed contempt proceedings against a union home ministry official for his failure to comply with an order of J&K high court.

The high court had asked the centre to consider the plea of private gun manufacturer Nyaya Kashmir Syndicate regarding enhancement of its manufacturing quota on the analogy of 17 other such firms.

Additional solicitor-general Gopal Subramanium said that the centre was taking steps to reduce quotas of gun manufactured by the private parties. Any substantial proliferation of guns in society should not be permitted in larger public interest, said Subramanium.

"The increase in manufacture of arms and ammunition by private parties had a direct impact on arms and ammunition available in private realm which, particularly in the context of the state of J&K, had a detrimental impact on local security," said the centre.

The Naya Kashmir Syndicate had challenged the rejection of its various requests for reinstatement of original quota and for grant of an increase of 20% in manufacturing quota under the modified arms and ammunition manufacturing policy. It had said that the centre had restored the original manufacturing quota of various similar arms manufacturers in J&K.

The centre in its modified 1991 policy had permitted ML gun manufacturers to manufacture BL guns within the existing capacity as per the recommendations of the state government. It also permitted a 20% increase in the existing quota in manufacture of arms and ammunition of permissible type subject to the recommendations of the state government.

The centre had told the high court that it was decided to increase Syndicate's quota from 600 guns per annum to 1,500 guns but the high court clarified that the Syndicate case should be treated on a par with others to the extent of enhancement of 4,000 guns per annum.

Alleging that such permission will have serious national and regional repercussions and gave a fillip to other manufacturers, the centre moved the apex court. "None of the said firms except for two have ever been granted the benefit of restoration of original quota and in fact most of them were granted the benefit of 20% enhancement on the basis of their revised/reduced quota," said centre in its petition.