S Prasad vs. The State Of Andhra Pradesh

2024 and also passing Interim Disposal Order on the same day under section 6-A of E.C. Act, 1955 vide RC.CS1/6A/92/2024 dated proceedings 30.09.2024 directing the 4‘^ respondent to conduct public auction of the seized stock of 260 quintals of alleged PDS fortified broken rice in 520 white plastic bags worth of Rs.7,28,000.00 pending finalization of proceedings and also to release Ashok Leyland Lorry bearing No.TN 24 M 0929 to the 2"^* petitioner on furnishing of Bank Guarantee from nationalized bank for a period of three years for Rs.6,00,000.00 without considering the Joint Collector, Guntur 6-A proceedings vide Rc.No.77/2023-S7 dated 25.01.2024 is in violation of principles of natural justice, besides contrary to Articles 14, 19, 21 of constitution of India and consequently set aside the same by directing the 2"'^ respondent stay of all further proceedings pursuant to Section 6-A proceedings vide RC.CS1/6A/92/2024 dated 30.09.2024 and further directed the 2"'^ Respondent to release the 2"'^ respondent to release the Vehicle of Ashok Leyland Lorry bearing No.TN 24 M 0929 without insisting Bank Guarantee from nationalized bank and to pass such other order or orders ” The 1®‘ petitioner is the proprietor of M/s. Sri Lakshmi Srinivasa Traders, Pedavadlapudi Village, Mangalagiri Mandal, Guntur District. The 1®‘ petitioner has participated in the public auction held on 19.12.2023 and stood as highest bidder for the separate bid quantity of 421.85 and 171.95 Quintals of rice available at Ponnuru and Tenali Mandals. The 5‘^ respondent, Deputy Tahsildar (Civil Supplies), was directed to handover the auction purchased stock to the 1®‘ petitioner within 15 days and 2. WP No 27415/2024 thereafter the highest bidders were directed to dispose of the auction purchased stock within 30 days, with the following terms: Inform the details of auction purchased rice utilized, transportation to other places / sold to other traders of within the state / outside the state etc. so as to tract the logical end of the auction purchased rice. Vehicle No. and destination for movement of rice must be informed to the Department. Way Bill shall be carried with the vehicle. GST registration is compulsory and a Way-biil is required for transport of rice, if rice is to be moved to other States. Movement of the vehicle transporting Rice can be tracked throughout its journey through the online Way-bill monitoring system and can be booked if it is diverted. In case the auction purchaser requests for permission to transport the rice to final destination / utilization, he may be permitted accordingly prescribing time limit based on the quantity and distance, not exceeding 30 days. In case, if the purchaser is not in a position to utilize the stock within 30 days and want to utilize / sell later to other traders, in other places etc., he may be first permitted to lift and to transport the stock to his own godown / storage point and allowed time based on the quantity and distance not exceeding 30 days from the date of handing over of the rice stock from the storage places of the Department. The purchaser shall inform the details whenever he wants to sell and transport the auction purchased rice to other traders / in other places to avoid stoppage in transit and seizure by the enforcement officers.” ‘01) 02) 03) 04) 05) 06) 07) 08)

When the petitioner transporting the auction purchased lorry belonging to the 2"'^ intercepted the lorry and was stock to Tamilnadu petitioner, the on 21.09.2024 through the respondent Nos.3 to 6 have i got registered a case in Crime No.204 of 2024 of Bharatiya Nyaya Sanhita, Commodities Act, under Section 318(4) R/w. 3(5) 7 of the Essential the same before respondent issued 2023 and Section 1995 and produced nd the 2 respondent. On 30.09.2024 notice calling for explanation from the 2^^ a show-cause the petitioners.

Learned counsel for the has refused to petitioners submits that the 2^*^ respondent by the petitioners, but accept the explanation submitted released the lorry on furnishing necessary security further submits that the 1 • The learned counsel petitioner has purchased the ririce in the public auction and the 26.07.2024. The learned same was released through a valid receipt, dated counsel submits that the 1®‘ possession of 398 quintals of rice for which he i petitioner is in maintaining relevant stock register clearly shows that IS stock register. A perusal of the the 1®‘ petitioner was i in possession of the stock. but the respondents, without verifying the same, have seized the stock and registered the FIR the petitioners. Moreover, broken irce does not against come under the purview of Control Order, 2018. i) When a similar instance fell for Civil Supplies, Nellore, consideration before the Collector, was allowed wide a Petition proceedings in RC.B2.165/2024, dated 24.07.2024, directing to release the seized stock as well as vehicle. Learned Assistant Government Pleader for Civil Supplies, behalf of the respondents, fairly consented for disposal of 5. appearing on this Writ Petition. 1 It is evident from the record that the 1^* petitioner has purchased

80 Quintals of rice through public auction. He stood as successful bidder in the auction and paid an amount of Rs.14,25,120/- for lifting the 6. auctioned rice. When an explanation was called for to the show-cause dated 30.09.2024, the respondents cannot refuse to receive the notice, explanation as the same violates the principles of natural justice. It is also evident that on verification of the stock register, it was found that the petitioner is in possession of 398 quintals of rice which was purchased in public auction on authorities have seized the rice on 21.09.2024 and since then it is lying with the 4*'' respondent. Since the rice is perishable in nature, which needs utmost care and proper storage, this Court feels it appropriate to dispose of the writ petition, by directing the petitioners to make an application for release of the seized stock of rice before the Joint Collector (Civil Supplies) along with the material available with them, within ten (10) days from the date of receipt of a copy of this order. On receipt of such 7. 19.12.2023. The respondent

Accordingly, the Writ Petition is disposed of. No order as to costs. As a sequel, miscellaneous petitions pending, if any, shall stand closed. A. VENUGOPALA RAO ASSISTANT REGISTRAR //// SE OFFICER To,