ORDER:

The proceedings vide Rc.B2.130/2021 dated 18.06.2021 issued by respondent No.2 directing the 1st petitioner to furnish Bank Guarantee for a sum of Rs.3,00,000/-, for release of the seized stock; the 2nd petitioner to furnish bank guarantee for a sum of Rs.3,00,000/- for release of seized Mini Lorry; and, the petitioners 3, 4 and 5, to furnish bank guarantee for a sum of Rs.2,00,000/- each for release of their seized TATA Infra truck vans, is questioned in the writ petition as being illegal and arbitrary.

Heard learned counsel for the petitioners and learned Assistant Government Pleader for Civil Supplies. With their consent, the Writ Petition is being disposed of at the admission stage.

The case of the petitioners is that the 1st petitioner is carrying on business in food grains under the name and style of M/s Sri Chintalamma Traders and petitioners 2 to 4 are the registered owners of the seized mini Lorry and autos bearing Nos.AP 39 TR 5660; AP 39 TS 6758; AP 26 YJ TR 8598 and AP 26 YJ TR 9308. On 28.05.2021 the Food Inspector along with vigilance authorities intercepted the vehicles of the petitioners at Saraswathi Nagar, and on suspicion that PDS rice is being transported in the vehicles, seized the stock and vehicles and registered a case in Crime No.197 of 2021 for the offences punishable under Section 420 IPC and Section 7 of the E.C Act. The 2nd respondent also initiated proceedings under Section 6-A of the E.C Act. Petitioners filed a petition before respondent No.2 for grant of interim custody of the seized stock and vehicles. The impugned order was passed directing them to furnish Bank Guarantee for release of the seized stock and vehicles. Aggrieved of the same, the Writ Petition is filed.

Learned counsel for the petitioners submits that the 1st petitioner has purchased the rice from a licensee viz., M/s Suguna Traders, Satyavedu Village, Chittoor District and the supplier prepared 220 bags of rice and the same is being transported in individual vehicles. Petitioners 2 to 5 are the owners of the vehicles. The rice bags loaded in the vehicles are not PDS rice. Petitioners 2 to 5 depend on the income derived from the vehicles for their livelihood. It is very difficult for the petitioners to obtain bank guarantee for a sum of Rs.3,00,000/-, Rs.3,00,000/- and Rs.2,00,000/- respectively. The petitioners are ready and willing to furnish third party surety/collateral security/personal bond and will abide by the conditions that would be imposed while releasing the stock and vehicles.

Having regard to the facts and circumstances of the case, submissions of the learned counsel and on perusal of the material record, this Court, in the interests of justice, felt it appropriate to dispose of the writ petition.

Accordingly, the respondents are directed to release the seized stock of 410 bags of rice to the 1st petitioner on furnishing immovable property security to the value of the stock seized by executing a personal bond in favour of the appropriate authority, strictly adhering to the provisions of Registration Act and Stamp Act. The release of the stock would be subject to further orders that would be passed in proceedings, under Section 6-A of the Act, initiated against the 1st petitioner.

Further, the respondents are directed to get the subject vehicles valued by the concerned Motor Vehicle Inspector in the presence of the petitioners 2 to 5 after serving notice on them and the petitioners are directed to furnish the immovable property security by executing personal bonds in favour of the appropriate authority strictly adhering to the provisions of the Registration Act and Stamp Act, as per the value fixed by the Motor Vehicle Inspector and, on production of such immovable property as security, the respondents are directed to release the subject vehicles to the petitioners 2 to 5 towards interim custody. The petitioners 2 to 5 shall give proof of ownership of the vehicles and an undertaking that they will not alienate, alte