Mumbai Court Upholds Transport Quota In Support Of Social Equity
In a landmark affirmation of inclusive economic policies, the Bombay High Court has upheld reservations for Scheduled Castes (SC), Scheduled Tribes (ST), and Micro and Small Enterprises (MSEs) in public sector transport contracts. The ruling dismissed a petition challenging eligibility relaxations in a 2018 fuel transport tender floated by a public sector oil company. The court held that such affirmative action is both constitutionally mandated and economically necessary to uplift marginalised groups and promote equitable access to government procurement opportunities.
The court reviewed a case in which a private transport operator contested the preferential criteria given to SC, ST, and MSE applicants in terms of lorry ownership requirements and contract allotments. These relaxations allowed entrepreneurs from disadvantaged backgrounds to bid with fewer vehicles, while the general category faced more stringent requirements. The petition also questioned specific reservation quotas of 15% for SC and 7.5% for ST applicants. The bench reaffirmed that such measures align with Article 46 of the Constitution, which obligates the state to advance the economic welfare of historically marginalised communities. In its reasoning, the bench noted that public sector undertakings, especially those in essential services like oil and fuel distribution, have a duty to support equitable participation in economic activities. These contracts, the court said, are not merely commercial ventures but tools for building a just economic order.
The guidelines framed in 1994 and applied in the 2018 tender are consistent with India’s broader affirmative action framework. They were found to be a legitimate form of state intervention intended to balance opportunity and encourage entrepreneurship among underrepresented sections of society. While the petitioner argued that such provisions distort fair competition, the court maintained that social equity cannot be viewed as a hindrance to efficiency. Instead, it recognised these measures as necessary correctives in a country where historical disadvantages continue to impede equal access to economic resources. The judgement observed that extending preferential treatment in public contracts is vital for enabling participation by groups that would otherwise remain excluded due to systemic inequalities in capital ownership and mobility.
This ruling reinforces the importance of social equity as a pillar of public sector governance. As India attempts to modernise its economy and deepen democratic participation, inclusive procurement mechanisms can help ensure that growth reaches every stratum of society. Upholding constitutional commitments to equality and opportunity, this decision sends a clear message: economic progress must be inclusive and deliberately designed to empower those left on the margins.
