In a significant ruling that could impact hundreds of Self Help Groups (SHGs) across Odisha, the Orissa High Court has quashed the advertisement issued by the Bhadrak Collector inviting new applications for Take Home Ration (THR) supply. Justice Sashikanta Mishra observed that the move “had no legal sanctity” since it violated the 2018 guidelines governing the selection and renewal of SHGs engaged in the state’s nutrition program.
The decision came on October 24, 2025, after a marathon hearing of seven clubbed petitions filed by multiple women’s SHGs, including M/s Biswonath Self Help Group and M/s Nitai Gaura Women’s SHG.
Background
The case revolved around Odisha’s Take Home Ration scheme, under which local women’s SHGs prepare and distribute Chhatua a nutritious mix for children, pregnant women, and lactating mothers. These SHGs had been supplying food in Bhadrak district for over a decade, with annual contract renewals based on performance reviews.
However, instead of conducting the mandatory review before the contract’s expiry on March 31, 2025, the Bhadrak Collector issued a fresh advertisement on March 20, 2025, inviting new SHGs to apply. The decision triggered discontent among existing groups, who alleged it was “unlawful” and went against the clear provisions of the 2018 Revised Guidelines for the Take Home Ration program.
The State defended the move, saying it wanted to ensure transparency and provide “a level playing field” for all eligible SHGs. The government cited complaints from beneficiaries about alleged quality issues, claiming the tender was necessary for fairness and accountability.
Court’s Observations
Justice Mishra, after carefully examining the 2018 guidelines, noted that Clause 12(ii) explicitly mandates a performance review by the Collector before deciding on renewal or termination of an SHG’s contract. The Court observed that no such review had been done, and the advertisement was therefore “beyond the scope of the guidelines.”
“The 2018 Guidelines form a self-contained code,” the bench remarked. “The Collector’s decision to issue an open advertisement, without undertaking the required performance review, amounts to acting de hors the prescribed procedure.”
The Court also stressed that administrative guidelines, though non-statutory, are binding when they directly affect vested rights. Citing Supreme Court precedents, Justice Mishra held that deviation from such guidelines without proper reason “undermines the purpose for which they were issued.”
Interestingly, while the judge agreed that no SHG has a permanent right to renewal, he also clarified that renewal decisions must follow due process. “The principle of fairness cannot override express provisions of the guideline,” the Court noted, effectively rejecting the Collector’s “level-playing field” argument.
Decision
The Orissa High Court quashed the advertisement dated March 20, 2025, calling it illegal and unsustainable. It directed the Collector of Bhadrak to strictly follow the 2018 Take Home Ration Guidelines before deciding on the renewal or cancellation of existing SHG contracts.
As a result, the first batch of petitions filed by existing SHGs challenging the tender was allowed, while the second batch, filed by new SHGs seeking implementation of the tender, was dismissed.
The Court made it clear that while SHGs cannot demand indefinite renewals, the authorities must not bypass the laid-down process. The order concluded without imposing costs on either party.
Case: M/s Nitai Gaura Women’s SHG & Others vs State of Odisha & Others
Court: High Court of Orissa, Cuttack
Bench: Justice Sashikanta Mishra
Connected Petitions: W.P.(C) Nos. 18134/2025, 8475/2025, 8484/2025, 8588/2025, 8597/2025, 8876/2025, and 18135/2025
Petitioners:
- M/s Biswonath Self Help Group
- M/s Nitai Gaura Women’s SHG
- M/s Maa Basulai Women’s SHG
- M/s Himmat Women’s SHG
- M/s Minara Women’s SHG
- M/s Binapani Women’s SHG
Respondents: State of Odisha & Others (including Collector, Bhadrak District)
Date of Judgment: 24 October 2025
