Telangana High Court
Alampally Krishna vs The State Of Telangana And Another on 21 January, 2025
THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI
WRIT PETITION Nos. 331 of 2021 and 10501 of 2024
COMMON ORDER:
W.P.No.331 of 2021 is filed seeking a Writ of Mandamus
declaring the order in Ref.No.CS6/89/2019, dated 12.11.2020 passed by
respondent No.2 whereby and whereunder confiscation of 100% of
seized stock of PDS rice worth of Rs.92,800/- in favour of the
Government as illegal, arbitrary and without jurisdiction and
consequently to call for the records in relation to the impugned order
dated 12.11.2020 and to pass such other order or orders.
2. Brief facts leading to the filing of the present Writ Petition are that
the petitioner is the Proprietor of M/s.Sri Srinivasa Rice Mill, situated at
Bollampally Village, Veldanda Mandal, Nagarkurnool District. The
petitioner claims to be doing business by taking a rice mill on lease basis
and purchasing the paddy from the farmers in and around Veldanda
Village and Mandal and after milling the paddy into rice, selling the rice
as well as agricultural produce. It is stated that there is no requirement of
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any license either to purchase, sell, store or transport the rice within the
State or outside the State. It is submitted that the Central Government
vide SO No.2559(E) dated 30.09.2014 was not inclined to extend the
restrictions on rice and paddy and on the basis of the same, the
Government of Telangana has issued G.O.Ms.No.20 dated 21.11.2014.
Thus, according to the petitioner, there is no restriction on dealing with
rice or paddy within the State of Telangana.
3. It is submitted that the Deputy Tahsildar (Civil Supplies)(Enft),
Veldanda Mandal, inspected the business premises of the petitioner and
alleged that the petitioner is indulging in clandestine business by
purchasing PDS rice and is diverting it into the black market for illegal
benefits. They found around 168 bags of uneven weight, altogether 58
quintals of rice, 51.50 quintals of paddy (B.P.T), 12.60 quintals of broken
rice (PDS), 20.75 quintals of PVR (BPT) and the value of the total
seizure is Rs.2,33,450/- and the same was handed over to the
neighboring rice mill owner. Thereafter, the proceedings under Section
6A of the Essential Commodities Act, 1955 (for short, 'the Act') were
initiated by issuing a notice under Section 6B of the Act, and during the
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proceedings under Section 6A of the Act, the complainant has stated that
the petitioner was purchasing the PDS rice from the cardholders and
thereafter converting it into broken rice and selling them to the poultry
farms at higher rates. The petitioner, however, denied the same and
submitted that he was unaware of purchase of PDS rice from the
cardholders by his employee (Gumastha) and requested to excuse him for
his first mistake. The District Collector, however, was not convinced
with the explanation of the petitioner and observing that the rice available
in the mill is PDS rice, has ordered for confiscation of 100% of the seized
stock of PDS rice worth Rs.92,800/-. Challenging the said order, the
petitioner has filed W.P.No.331 of 2021.
4. Learned counsel appearing for the petitioner has raised various
grounds stating that as per the notification issued by the Government of
India and G.O.Ms.No.20 dated 21.11.2014 issued by the Government of
Telangana, rice is not an essential commodity and therefore the
provisions of the Telangana State Public Distribution Control Order,
2016 (for short, 'the Control Order, 2016'), are not applicable to the facts
of the present case. Learned counsel for the petitioner submitted that
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none of the cardholders from whom the petitioner has allegedly
purchased the PDS rice have been examined and therefore, there was no
basis to come to the conclusion that it was PDS rice. Learned counsel
further submitted that there is no mention of the contravention of any of
the provisions of the Act, and therefore, the invocation of the provisions
of Section 6A of the Act is not proper and justifiable. Learned counsel
has taken this Court through various documents to support his
contentions and also referred to the judgment of the learned Single Judge
of this Court holding that the rice is not an essential commodity and
therefore the provisions of the Control Order, 2016 cannot be invoked in
such cases.
5. Learned Government Pleader for Civil Supplies, appearing for the
respondents, on the other hand, relied upon the averment made in the
counter affidavit and submitted that though rice is not an essential
commodity, it is a scheduled commodity and as the rice involved is for
the public distribution system, the provisions of the Act can be invoked.
Learned Government Pleader submitted that these issues have already
fallen for consideration before various benches of this Court, the latest
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decision being in the case of W.P.Nos.20143 of 2019 and batch dated
22.08.2024, wherein, considering the similar issues, this Court has held
that the petitioner can raise all the grounds in the proceedings under
Section 6A of the Act. The Court has observed that whether the rice is
PDS rice or not is a disputed question of fact and cannot be determined in
a writ petition. The Division Bench of this Court in W.A.No.767 of 2024
has observed that against the order under Section 6A of the Act, the
petitioner can file an appeal and not writ petition.
6. In view of the above facts and circumstances, this Court finds that
it is covered by the decision of the Coordinate Bench of this Court in
W.P.No.4673 of 2023 dated 18.11.2023 and all the points have already
been considered and held against the petitioner. In fact, the Division
Bench of this Court has held that illegal possession, transportation and
storage of PDS rice would fall within the provisions of the Control Order,
2016 and therefore, initiation of action under Section 6A of the Act in
respect of the PDS rice is justified. In this case, the petitioner himself
has admitted that it is PDS rice which has been purchased from the
cardholders and subsequently converted to broken rice to be sold at a
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higher rate. Therefore, this Court is not inclined to interfere at this stage.
Accordingly, W.P.No.331 of 2021 is dismissed. However, liberty is
granted to the petitioner to prefer an appeal against the proceedings under
Section 6A of the Act.
7. W.P.No.10501 of 2024 is filed seeking a declaration that the action
of the SI of Police of Maheshwaram Police Station, in seizing the vehicle
bearing No.AP 39 TX 6399, together with 30 tons of rice on 13.04.2024
on the ground that the petitioner was transporting PDS rice from Urubari
Gabba, Maheshwaram to Vijayawada as illegal, arbitrary and without
jurisdiction and to set aside the same and consequently direct the
respondents to release the vehicle and stock.
8. This Court finds that vide interim order dated 02.05.2024 in
I.A.No.1 of 2024 in W.P.No.10501 of 2024, the vehicle as well as the
stock were directed to be released on fulfillment of certain conditions.
9. Learned counsel for the petitioner has taken the very same ground
that the rice is not an essential commodity and therefore, the seizure of
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rice by the respondents under the Essential Commodities Act is not
maintainable.
10. For the reasons mentioned above and particularly since in this case
the proceedings under Section 6A of the Act are still pending and
whether the rice seized is PDS rice or not is yet to be verified and
decided by the authorities, this Court is not inclined to interfere at this
stage. Accordingly, W.P.No.10501 of 2024 is dismissed with liberty to
the petitioner to take all these grounds in the proceedings under Section
6A of the Act before the Collector, as observed by the Division Bench of
this Court in W.P.No.767 of 2024 dated 28.06.2024.
11. In view of the same, both the Writ Petitions are dismissed with
liberty as granted above. There shall be no order as to costs.
Pending miscellaneous petitions, if any, shall also stand dismissed.
___________________________
JUSTICE T. MADHAVI DEVI
Date: _____.01.2025
PRN
