CHENNAI: The Madras High Court granted an interim stay on the Government Order allotting 200 lakh pouches of fortified palmolein oil under the Special Public Distribution System and directed the State government to respond to the petition filed by a private firm.

The managing director of KTV Health Food Private Limited filed a petition before the High Court challenging the Tamil Nadu Civil Supplies Corporation's decision to allot 80 lakh pouches of fortified palmolein oil to MGM Edible Oils Private Limited.

The corporation invited tenders for the purchase of 600 lakh one-litre (910 grams) pouches of fortified RBD palmolein oil after the State government extended the Special Public Distribution System from July 1, 2026, to June 30, 2027. Eight companies participated in the tender.

The petitioner stated that MGM Edible Oils offered the smallest quantity of 150 lakh pouches among the four companies that matched the lowest (L1) rate. However, the corporation allotted it 80 lakh pouches out of the first-spell quantity of 200 lakh pouches, the largest share among the companies.

Based on its offer, MGM Edible Oils was required to supply 50 lakh pouches per spell. The allotment of 80 lakh pouches exceeded the permissible variation of plus or minus 10% under the tender conditions, the petitioner contended. It also questioned whether the corporation assessed the company's capacity to supply the enhanced quantity.

The petitioner has sought to quash the allocation and direct the corporation to distribute the first-spell quantity of 200 lakh pouches among the petitioner and the other companies that matched the L1 rate in proportion to their offered quantities.

When the matter came up for hearing before her, Justice PT Asha granted an interim stay on the June 29 order and directed the government to respond to the petition.

The court then posted the matter to November 2.