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2025 Supreme(Online)(Tel) 50036

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
THE HONOURABLE SRI JUSTICE N.TUKARAMJI
M/s. Vajra Industries – Appellant
Versus
The State of Telangana – Respondent
CRLP 7155/2025



THE HONOURABLE SRI JUSTICE N.TUKARAMJI CRIMINAL PETITION No.7155 OF 2025

ORDER

This Criminal Petition is filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (‘the BNSS’) seeking reconsideration of the conditions imposed in the order dated 20.05.2025 passed in Crl.M.P. No. 301 of 2025 in Crl.A. No. 19 of 2025 on the file of the Principal District Judge, Nizamabad and in consequence to release of the seized stock of rice, amounting to

1,470.20 quintals in his favour.

2. I have heard the submissions of Mr. K. Venumadhav, learned counsel appearing for the petitioner, and Mr. Jithender Rao Veeramalla, learned Additional Public Prosecutor, appearing on behalf of the respondent-State.

3. Briefly stated, the relevant facts are that, upon receiving a complaint from the Station House Officer, Vailpur, regarding the alleged illegal storage of rice procured under the Public Distribution System (PDS), the Deputy Tahsildar (Civil Supplies), Vailpur (hereinafter ‘the complainant’), accompanied by independent panch witnesses, conducted an inspection of the rice mill of the petitioner.

During the inspection, the petitioner said to have explained that the rice found at the premises formed part of a total quantity of 3,076.83 quintals, which had previously been seized by authorities in the inspections conducted on 10.03.2024, 09.04.2024, and 13.04.2024 and were subsequently released upon furnishing Bank guarantee and legally obtained possession of the stock under valid release orders. The rice was thereafter transported back to the petitioner’s rice mill and a portion of that stock was lawfully sold, and the remaining quantity, specifically 1,470.20 quintals was retained at the mill premises.

Nevertheless, suspecting that the petitioner was engaging in the unlawful procurement, storage, and sale of PDS rice, the complainant proceeded to seize that stock. The seizure was carried out on the allegation that the petitioner had contravened Clause 17(e) of the Telangana State Public Distribution System (Control) Order, 2016, which prohibits unauthorized dealings in PDS commodities. The seized rice was subsequently placed under safe custody.

Aggrieved by the seizure, the petitioner approached the District Collector. Upon dismissal of the claim, the petitioner preferred an appeal and filed a petition for release of the seized rice. The appellate authority passed the impugned order directing release of the stock, subject to the condition that the petitioner furnishes a bank guarantee. Dissatisfied with the imposition of such a condition, the petitioner has filed the present Criminal Petition seeking appropriate relief.

4. Learned counsel for the petitioner submits that the Civil Supplies authorities, pursuant to mediator’s reports dated 10.03.2024, 11.03.2024, 12.03.2024, 09.04.2024, and 13.04.2024, seized a total quantity of 3,076.93 quintals of rice. Challenging the said seizure, the petitioner filed W.P. Nos. 9542 and 15249 of 2024 before this Court. During the hearing, the learned Government Pleader informed the Court that the seized stock had been put up for auction, and the bid was knocked down in favour of the highest bidder for a sum of Rs.52,30,781/-.

Upon due consideration and satisfaction, this Hon’ble Court directed that the seized stock be released to the petitioner upon furnishing a bank guarantee for the equivalent amount of Rs.52,30,781/-, as the auction purchaser failed to remit the bid amount. Accordingly, the petitioner submitted the requisite bank guarantee, and the stock was released in his favour through proceedings issued by the District Collector dated 09.08.2024 and

10.10.2024.

Following the release, the petitioner sold approximately

1,600 quintals of rice on various dates between 12.10.2024 and 24.10.2024. The remaining balance of 1,476.93 quintals was retained at the petitioner’s rice mill. In this context, officials of the Civil Supplies Department once again inspected the rice mill on 07.11.2024 and seized 1,470.20

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