The court upheld the actions of the Federation in procuring FFBs from Andhra Pradesh, finding no violation of the Act and no harm to local growers.

JUDGMENT

(Per the Hon'ble Sri Justice J. Sreenivas Rao)

This intra court appeal has been filed by the appellant aggrieved by the order passed by the learned Single Judge in dismissing Writ Petition No.1060 of 2024 dated 20.03.2024.

2. Heard Mr. Ch. Satya Sadhan, learned counsel for the appellant, Ms. B. Mohana Reddy, learned Government Pleader for Agriculture and Cooperation Department for respondent Nos.1, 2 and 7, Mr. R.N.Hemendranath Reddy, learned senior counsel representing Mr. Lohit Sannapaneni, learned counsel for respondent No.3, Mr. Muralidhar Reddy Katram, learned Government Pleader for Revenue for respondent Nos.4 and 5 and Mr.Naram Nageswara Rao, learned counsel for respondent No.9.

3. Brief facts of the case:

3.1. The appellant is Telangana Oil Fed Aswaraopeta Zone Oil Palm Growers Society and it comprises of 1500 members, who are oil palm growers and farmers in Aswaraopeta zone jurisdiction of respondent No.3 Federation. It is averred that Section 11 of the Telangana Oil Palm (Regulation of Production and Processing) Act, 1993 (hereinafter referred to as ‘the Act’) mandates that where a particular area is declared as factory zone, the oil palm growers in that area shall supply the Fresh Fruit Bunches (FFBs) from oil palm plantations grown in that area only to the factory to whom the factory zone is attached and to none else. Respondent No.3 Federation has declared Aswaraopeta factory zone and specified Aswaraopeta and Apparaopeta factories belonging to itself and members of the appellant Society are supplying FFBs as per the criteria specified. Respondent No.3 Federation has paid an amount of Rs.32 Crores to respondent No.9 towards supply of around 32,000 MT of FFBs of oil palm during the period from January 2020 to October 2021 and the same is contrary to the provisions of the Act. The appellant Society submitted a representation on 30.12.2021 to respondent No.1 to conduct enquiry and take appropriate action.

3.2. It is further averred that the appellant Society has submitted an application on 18.10.2023 under Right to Information Act, 2005, to furnish the copy of the audit report from respondent No.4 submitted by respondent No.5. In spite of the same, the respondent authorities have not furnished the same. At that stage, the appellant Society filed Writ Petition No.1060 of 2024.

3.3. Respondent No.3 filed counter-affidavit denying the averments made by the appellant Society inter alia contending that respondent No.3 Federation is a Cooperative Society registered under the provisions of the Telangana Cooperative Societies Act, 1964, namely, the Telangana State Cooperative Oilseeds Growers Federation Limited. As per the provisions of the Act, the State Government has declared an area as factory zone for the purpose of supply of oil palm FFBs grown in that zone to the factory to which that zone is attached. The Act further provides that the occupier/owner of the factory has to pay the oil palm growers for the oil palm FFBs supplied to the factory in terms of minimum price as fixed by the State Government. It is stated that after bifurcation of erstwhile combined State of Andhra Pradesh into State of Andhra Pradesh and State of Telangana, the private oil palm companies situated in Andhra Pradesh have devised a malicious strategy to lure oil palm growers/farmers situated in border districts of Khammam and Bhadradri Kothagudem purchased oil palm FFBs from them in order to ensure that their factories operate at a full capacity with maximum output. It is further stated that respondent No.3 Federation on several occasions has requested the Andhra Pradesh Private Oil Palm Companies to stop their malicious and nefarious scheme by procuring oil palm FFBs from Telangana Oil Palm Growers/Farmers. In spite of the same, the Andhra Pradesh Private Oil Palm Companies continued to procu