Akshaya licensees cannot be allowed to enter into illicit financial transactions concerning Akshaya Centres: Kerala High Court

The Kerala High Court recently opined that it is important to act against licensees of Akshaya centres which enter into illicit financial transactions with respect to such centres [Ratheesh KR v The Director, Aakshaya Project]..Justice Devan Ramachandran explained that leaving such behavior unchecked would encourage unauthorized wealth creation and illegal gains which would be against public interest. “When the existing licensee acts illegally and enters into proscribed financial transactions with another qua the ‘Akshaya Centre’, the Authorities are under an inviolable duty to step in and take action, as is mandated in law. If this is not done, it would be a premium for others to deal with ‘Akshaya Centres’, as a manner of creating unauthorized wealth and illegal gains, which can never be permitted, since it would tantamount to being flagrantly contrary to public interest, for which alone, such Centres are designed and established,” the Court said. .The High Court was considering two petitions involving disputes over the cancellation of a license for an Akshaya Centre in Kerala..The Akshaya centre initiative in Kerala is aimed at bridging the e-literacy divide and offers a host of digital services including Aadhaar enrolment, utility bill payment services, data entry, commercial tax filing, motor vehicle license payments, ration card applications and more. .The case before the High Court involved a dispute over the transfer of an Akshaya centre and the ensuing cancellation of the license to run the centre. Two petitions were filed against the cancellation of the license.One such petition was filed by Ratheesh KR, who originally operated the Akshaya centre in question while the second petition was by one S Sunita who claimed that the centre was transferred to her. Ratheesh's counsel argued that the transfer of the centre to Sunitha was based on necessity since Ratheesh found it difficult to run the centre. However, Sunitha's counsel contended that Ratheesh took money from her for the transfer but later reneged on the agreement. A sum of ₹3.4 lakh along with ₹50,000 as security deposit was given to Ratheesh for the transfer, the Court was told. In addition, Sunitha was to pay a monthly rent of ₹3,000 to Ratheesh as part of the transfer arrangement, it was submitted..The Government Pleader asserted that the transactions between Ratheesh and Sunitha violated the rules governing Akshaya Centre licenses and, therefore, the Akshaya license in favour of Ratheesh was cancelled. The High Court found merit in the government counsel's submission and dismissed the petitions by Ratheesh and Sunitha. The Court clarified that Sunitha would be allowed to participate in any future tender process to run the Akshaya center..Ratheesh was represented by advocate Manas P Hameed.Sunitha was represented by advocates Manu Ramachandran, M Kiranlal, R Rajesh (Varkala), T S Sarath, Sameer M Nair and Sailakshmi Menon.The State authorities were represented by Government Pleader PS Appu..[Read Judgment]