Disqualification of a ration dealer after divorcing wife

Officially he has divorced his wife and is still with her in live in relationship. As far the legal requirement for running the Ration shop he has fulfilled the rules of not having any dependent blood relation or relative by marriage holding government job. As far he is live in relationship with his divorced wife is also not illegal as two person of the age of majority can live together with their free consent. The divorced wife has no objection of living with the divorced husband so no one else can take any action against that man. The divorced couple can even get remarried to one another in future, which they may do after the wife is no more holding government job and he continues the Ration Shop.

As far cheating the authorities’ part is concerned, he has not done any act of fraud by living with the divorced wife who too has no objection to this act. If he had not taken decree of divorce than his act could be said to be act of committing fraud with authority.

With the intelligent guidance of some lawyer this whole game was planned and executed.

I am afraid the Rule (?) or norm is misconceived! His wife was elected grampradhan subsequent to the granting of dealership.He need not have gone through the motions of divorce to protect his dealership! 

Or is it just a filmy story.