Srinagar- Upholding the enforcement of licensing requirements for brick dealers, the High Court of J&K and Ladakh has observed that the unregulated import of bricks from outside the Union Territory could result in serious economic distortions such as hoarding, black marketing, and artificial shortages.

Dismissing a petition filed by some dealers, a bench of Justice Wasim Sadiq Nargal observed that allowing unmonitored imports would undermine the local brick manufacturing industry and defeat the objectives of the regulatory framework meant to ensure transparency and fair trade.

Several dealers had petitioned the court, contending that the Jammu and Kashmir Brick Kiln (Regulation) Act, 2010 and the Jammu and Kashmir Brick Kiln(Regulation) Rules, 2017 apply only to brick kiln owners engaged in manufacturing within the J&K, and not to dealers dealing in finished bricks imported from other States.

“This court is of the view that the unregulated import of bricks from outside the Union Territory without proper licensing and monitoring would inevitably lead to hoarding, black marketing, and deliberate shortage, thereby disturbing the market equilibrium and causing loss to the local revenue and adverse repercussions on the State economy,” the court observed. Such unchecked inflow, the court said, would not only undermine the local brick manufacturing sector but would also defeat the regulatory objectives of the Act by promoting clandestine trade.

“The enforcement of licensing requirements upon dealers thus serves an important economic and administrative purpose in maintaining market stability, ensuring fiscal discipline, and safeguarding legitimate local enterprises,” the court noted.

The petitioners had called into question orders passed by the Deputy Commissioners of Kathua and Samba, directing seizure of vehicles transporting bricks from outside the Union Territory, confiscation of consignments, and initiation of prosecution under Section 21 of the Act, if any person or entity was found contravening the orders. They had alleged that the order passed by respective deputy commissioners was arbitrary, without jurisdiction, and violative of their fundamental right to trade and commerce under Article 19(1)(g) of the Constitution.

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