Free transferability of REP licences upheld as a valid export-promotion policy against constitutional challenge.

Free transferability of REP licences under the 1988-91 Import and Export Policy was treated as part of an export-promotion scheme designed to replenish inputs for exported goods and improve availability of imported materials. The policy was justified as a practical mechanism to avoid supplementary licensing and facilitate export activity. Judicial review of such economic policy choices was limited to cases of patent arbitrariness, discrimination, illegality, or mala fides. On the facts, the policy did not amount to unconstitutional discrimination or violate the exporter's fundamental rights, and the challenge to Para 183 failed.

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Issues: Whether the free transferability of REP licences under Para 183 of the Import and Export Policy for Registered Exporters, 1988-91 was illegal, arbitrary, or violative of Articles 14, 19(1)(g) and 21 of the Constitution of India.

Analysis: The policy was examined as part of the overall export-promotion scheme under Chapter XV of the Import and Export Policy. REP licences were intended to replenish essential inputs for exported goods, and their free transferability was treated as a mechanism to ensure ready availability of imported inputs, avoid the need for supplementary licences, and facilitate export activity. The Court held that economic policy choices of this nature warrant judicial restraint and may be interfered with only if they are patently arbitrary, discriminatory, illegal, or mala fide. On the facts, the policy did not create an unconstitutional discrimination against the petitioner, since the same market opportunity was available and the policy formed an integral part of the Government's export-oriented economic scheme.

Conclusion: The challenge to Para 183 failed, and the free transferability of REP licences was upheld as valid and not violative of the petitioner's fundamental rights.

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