2025:APHC:6297 APHC010060042025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3311]

(Special Original Jurisdiction)

MONDAY ,THE TENTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE MS JUSTICE B S BHANUMATHI WRIT PETITION NO: 3367/2025 Between:

M/s Mahalakshmi Traders, and Others ...PETITIONER(S)

AND State Of Andhra Pradesh and Others ...RESPONDENT(S)

Counsel for the Petitioner(S):

1. N RANGA REDDY Counsel for the Respondent(S):

1. GP FOR HOME

2. GP FOR CIVIL SUPPLIES The Court made the following:

ORDER:

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

“…to Issue a Writ of Mandamus or any other appropriate writ or writs, order or direction, declaring the interim disposal order for seized vehicle dated 27.01.2025 in Rc.No.K3/408/2024 on the file of the 2^nd respondent in so far as directing the 2^nd petitioner to produce an amount of Rs.5,00,000/- (Rupees Five Lakhs only) in the shape of bank guarantee for the purpose of releasing the seized lorry pending finalization of 6-A proceedings, as illegal and arbitrary and to consequently direct the 2^nd respondent to forthwith order for release of 300 quintals of rice belonging to the 1^st petitioner and the vehicle bearing Regn.No.AP 02 TE 5655 belonging to the 2^nd petitioner, by accepting third party security and…”

02. The case of the petitioners is briefly as follows:

The 1^st petitioner herein is a rice trader. The 2^nd petitioner is the registered owner of vehicle (lorry) bearing registration No.AP 02 TE 5655. The 1^st petitioner is the owner of the seized goods covered by Invoice No.536, dated 12.11.2024 in favour of the consignee i.e., Syed Modern Rice Mill, Bangarupet. On 13.11.2024, at about 4 AM, one Subbarayudu, video and photographer of Surya Daily News and others, who are media people illegally detained the vehicle and consignment of the petitioners covered by valid documents, at Maruti Toll Plaza, near Rapthadu. Subsequently, the respondents No.3 to 5 seized the lorry and 261.00 qtls of rice in it alleging that it was PDS rice vide panchanama dated 13.11.2024. The petitioners filed a petition before the 2^nd respondent herein on 19.11.2024 and 23.11.2024. The petitioners herein also filed W.P.No.29396 of 2024 before this Court to declare the action of respondent No.3 to 5 in seizing the stock and vehicle of the petitioners. This Court, by Order dated 30.12.2024, had disposed of the writ petition by directing the 2^nd respondent to dispose the applications filed by the petitioners dated 19.11.2024 and 25.11.2024 and release the subject matter of stock and vehicle within a period of one (1) week from the date of receipt of copy of the order. While so, the 2^nd respondent herein passed the interim disposal order for seized vehicle dated 27.01.2025 in Rc.No.K3/408/2024, with the conditions that the 1^st petitioner has to produce Rs.12,00,600/- and the 2^nd petitioner has to produce an amount of Rs.5,00,000/- in the form of bank guarantee for release of the stock and the vehicle respectively. Thus, the writ petition was filed seeking release of the seized stock and the vehicle on producing third party security.

03. The learned Assistant Government Pleader for Civil Supplies submitted he had no written instructions. He further submitted that in case, if the Court is inclined to release the stock and/or the vehicle, condition may be imposed for furnishing bank guarantee for the amount equivalent to the value of the stock and the vehicle, as the case may be. 04. The learned counsel for the petitioners submitted that condition to deposit the amount in the bank would be onerous and requested to direct the release of the stock as well as vehicle on the condition to furnish personal or third party immovable property as security, may be with further direction to give an undertaking not to alienate or create charge over the property offered for security.

05. Since the disposal of the proceedings under Section 6A of the E.C. Act would