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Telangana High Court
Pathi Muthyalu vs The State Of Telangana on 25 March, 2026
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
THE HONOURABLE SRI JUSTICE J.SREENIVAS RAO
CRIMINAL PETITION No.4282 of 2026
Date:25.03.2026
Between:
Pathi Muthyalu and two others
...Petitioners/accused Nos.1 to 3
AND
The State of Telangana, Rep. by its Public Prosecutor,
High Court of Telangana at Hyderabad and another.
...Respondents
ORDER
This Criminal Petition has been filed seeking to quash the
proceedings in C.C.No.925 of 2019 on the file of the II Additional
Judicial Magistrate of First Class, at Karimnagar, wherein the
petitioners were arrayed as accused Nos.1 to 3, for the offences
punishable under Section 420 of the Indian Penal Code, 1860, and
Section 7 of the Essential Commodities Act, 1955.
2. Heard Mr. G. Raghu, learned counsel appearing for the
petitioners and Mr. Jithender Rao Veeramalla, learned Additional
Public Prosecutor appearing for respondent No.1.
3. The specific allegation against the petitioners/accused Nos.1
to 3 is that they have procured PDS rice from the beneficiaries at
cheaper rate to sell the same for wrongful gain and that on
06.03.2019 at about 16.30 Hrs, the petitioners were found in
possession of 14 bags of PDS rice containing 6 quintals.
4. Learned counsel for the petitioners submits that without there
being any complaint from any beneficiary, alleging that the rice was
procured deceptively or with a criminal intent and charging the
petitioners for prosecution is untenable and improper. The
allegations, even taken at their face value cannot be sustained
against the petitioners. Further, this Court, in Crl.P.Nos.5709 of
2019 and 3349 of 2015, while considering the same situation,
categorically observed that the offences alleged against the
petitioners therein could not be continued and accordingly quashed
the proceedings. The petitioners are also entitled to the same relief
and hence prayed to quash the proceedings against the petitioners.
5. The learned Additional Public Prosecutor submits that as per
prosecution, the offence said to have been committed by the
petitioners is cheating and violation of Section 7 of the EC Act and
requested to pass appropriate orders.
6. Section 7 of the EC Act contemplate that any person
contravenes with the production, supply, distribution and trade of
essential commodities in this regard is punishable. As per the
prosecution, the petitioners have procured PDS rice from the
beneficiaries after supply from the dealer.
7. A Coordinate Bench of this Court in Crl.P.No.7227 of 2025
has considered the identical facts and observed that:
"There is no averment indicating that the petitioner in any way
deceptively induced the beneficiaries to part with the supplied PDS
rice or the beneficiary entrusted the PDS rice purchased by them with
the petitioner and they dishonestly misappropriated or converted to
their own use or used it in violation of a lawful direction or contract.
In the absence of essential factors, on the face of prosecution, this
Court finds it to be a fit case to exercise the jurisdiction under Section
528 of BNSS, 2023. Thus, continuance of proceedings against the
petitioner is abuse of process of law".
8. The facts and circumstances of the present case also similar
to those in the above case and hence, this Court finds it to be a fit
case to exercise jurisdiction under Section 528 of BNSS by
applying the same analogy and to quash the proceedings against the
petitioners herein.
9. Accordingly, the Criminal Petition is allowed and the
proceedings in C.C.No.925 of 2019 on the file of the II Additional
Judicial Magistrate of First Class, at Karimnagar, against the
petitioners/accused Nos.1 to 3, are hereby quashed.
Pending miscellaneous applications, if any, shall stand
closed.
____________________________
JUSTICE J. SREENIVAS RAO
Date: 25.03.2026
gnp
