ORDER:

This writ petition under Article 226 of the Constitution of India is filed seeking the following relief:

“…to issue an appropriate Writ, Order or direction, more particularly one in the nature of Writ of Mandamus declaring the action of the 4th respondent in seizing the raw broken rice stock belonging to the petitioner stored in compartments A2, A3, B2, D, E1, E2 and Ravi, of S.R.Jyothi Warehousing Complex, situated at Dairy Farm Centre of Kakinada urban Mandal of a quantity of 8290.900 MTs of raw broken rice under the panchanama dated 02.07.2024, contrary to the provisions of the Essential Commodities Act, 1955 is ex facie illegal, arbitrary and without jurisdiction and further action of the 2nd respondent in withholding the 5780.200 MTs of raw broken rice belonging to the petitioner out of the seized stock pursuant to the order in V3/CS/KKD/126/2024 dated 16.7.2024, and insisting the petitioner to furnish bank guarantee for the value of entire 5780.200 MTs of raw broken rice for releasing the same vide proceedings in Ref.V3/CS/KKD/126/2024 dated 08.08.2024, as arbitrary, illegal, contrary to the material available on record, non- application of mind to the facts of the case, violative of principles of natural justice, contrary to the provisions of the Essential Commodities Act, 1955 and the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018, apart from being violaive of Articles 14 and 19 of the Constitution of India and contrary to law and consequently set aside the order of the 2nd respondent in V3/CS/KKD/126/2024 dated 16.07.2024 in so far as withholding the 5780.200 MTs of raw broken rice belonging to the petitioner is concerned, as well as the aforesaid proceedings of the 2nd respondent dated 08.08.2024 in directing the petitioner to furnish the bank guarantee for the entire quantity of 5780.200 MTs of raw brokens in favour of the petitioner without any conditions and pass such other order or orders as are deemed fit and proper in the circumstances of the case.”

2. Heard Sri A. Muneendhar Reddy, learned counsel for the petitioner and the learned Additional Advocate General appearing for the respondents.

3. The case of the petitioner, briefly stated, is as follows:

a) The petitioner, M/s. K. N Resources Private Limited, was incorporated under the provisions of the Companies Act, 1956, and is engaged in the business of procurement and export of food grains including broken raw rice. It became a successful bidder for supply of 10000 MTs of broken rice to M/s. National Cooperative Exports Limited (‘NCEL’) through the National Agricultural Cooperative Marketing Federation of India Limited (‘NAFED’). The petitioner procured broken rice from the local suppliers in Andhra Pradesh and stored about 8290.900 MTs of broken rice in compartments A2, A3, B2, D, E1, E2 and Ravi of S.R Jyothi Warehousing Complex, situated at Dairy Farm Centre, Kakinada Urban Mandal.

b) While so, on 02.07.2024, the 4th respondent along with other officials have conducted inspection of the godowns at the S.R Jyothi Warehousing Complex, Kakinada Urban Mandal, and that out of the three lots of broken rice stock belonging to the petitioner stored in compartment/godown ‘D’, fortified kernels were found in one lot. Thereafter, they seized the entire stock of 9,280.200 MTs of broken rice including some quantity of parboiled rice under a seizure panchanama, dated 02.07.2024, on the ground that the petitioner violated the provisions of the Andhra Pradesh State Targeted Public Distribution System (Control) Order, 2018 (‘Control Order, 2018’) and the provisions of the Essential Commodities Act, 1955.

c) According to the petitioner, the total stock of three lots of broken rice belonging to the petitioner stored in godown ‘D’ is 1878.400 MTs and out of which, fortified kernels were found only in one lot, which comes to about 800 MTs of broken rice, and the remaining quantity is free from fortified rice kernels.

d) Immediately thereafter,