TRQ allocation framework for gold imports to be reviewed, with broader criteria for first-time applicants under scrutiny.

DGFT was directed to review the TRQ allocation framework for gold imports under the India-UAE CEPA for FY 2025-26 in light of the petitioners' grievances. The Court noted concerns that the allocation criteria may have been too narrow if confined to applicants with substantial prior turnover, and that the process should also consider first-time applicants and entities without a large turnover history so the quota is used effectively. It further observed that, if accepted, additional conditions or criteria could be introduced to ensure a lawful and workable allocation. The fresh exercise was required to consider the petitioners' complaints before further action.

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Issues: Whether the Directorate General of Foreign Trade was required to review the TRQ allocation criteria and the resulting rejection or short allocation of applications for FY 2025-26 in light of the petitioners' grievances, including the need for a more broad-based allocation.

Analysis: The petitions arose from the TRQ regime for gold imports under the India-UAE CEPA for FY 2025-26. The allocation process was noted to have generated no allocation for the current financial year at the time of hearing, while the available quota remained unutilised for a substantial part of the year. The Court considered it appropriate that the authorities examine the petitioners' concerns, particularly the apprehension that the allocation policy should not be confined only to applicants with substantial turnover history and should also accommodate first-time applicants and those without a large prior turnover, so that the quota is utilised effectively and in a broader manner. The Court also observed that the respondents could, if they chose to accept the requests, introduce additional conditions or criteria to ensure lawful and workable allocation.

Conclusion: The matter was directed to be reviewed by the DGFT, and the petitioners' grievances were required to be considered in the fresh exercise.

Final Conclusion: The impugned allocation exercise was not finally upheld as framed, and the authorities were called upon to reassess the TRQ allocation framework and related grievances before proceeding further.

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