HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE J.SREENIVAS RAO CRIMINAL REVISION CASE No.2309 of 2010 Date: 12.02.2026 Between:

Kona Venkateswar Rao ...Petitioner/Accused AND The State of A.P. rep. by its Public Prosecutor and another.

...Respondents : O R D E R :

This Criminal Revision Case has been filed by the petitioner/accused invoking the provisions of Sections 397 and 401 of the Code of Criminal Procedure, 1973 (for short ‘Cr.P.C.’) aggrieved by the orders dated 08.10.2010 passed by the learned Principal Sessions Judge, Khammam, in Criminal Appeal No.117 of 2009 confirming the order dated 06.10.2009 in M.C. No.94 of 2009, passed by the District Collector, Khammam, whereby and where under the stocks belonging to the petitioner were confiscated in exercise of powers under Section 6-A of the Essential Commodities Act, 1955 (for short ‘the E.C. Act’).

2. Brief facts of the case:

That on receipt of reliable information that the petitioner was doing clandestine business in rice without delivering Mill levy to the FCI and thereby getting illegal profits, the complainant along with the Deputy Tahsildar (CS), Khammam (Rural), UDRI (ML), Khammam and mediators proceeded to M/s. Vijaya Rice Mill situated near Venkatagiri Railway gate, Khammam Town on 07.08.2009 at around 12.30 noon and found the petitioner was present. On observation of the said Rice Mill, the complainant found that there were 421 bags containing samba masuri rice each 25 Kgs, 616 plastic bags containing J.J. variety rice each 25 Kgs, 160 bags containing J.J. variety rice each 50 Kgs and printed on the bags as Annapurna Rice, Deer, Kurnool special, Mytheja, Tajmahal and Repol brand rice; 360 bags containing common variety rice each 50 Kgs with FCI markings, which was sent by the Aditya Traders, Aswaraopeta and 44 plastic bags containing broken rice. On enquiry with regard to possession of 180.00 Qtls. of rice bags with FCI markings, the petitioner has stated that respondent No.2 has unloaded 200 Qtls of rice in 400 bags in his mill on 15.07.2009, as the stock was rejected by the FCI, Khammam for excess percentage of broken rice was more than the permissible limits. On demand, the petitioner has submitted Tax paid stock register, FGL bearing No.22/KMM/2009, dt.30.06.2009 valid up to 30.09.2009 and 7 sets of Form-X certificates for inspection. The complainant noticed that all the above documents and registers were in the name of "M/s Sri Vinayaka Trading Company, Khammam" and also noticed the following irregularities on the part of the petitioner;

1. Purchased the paddy from the farmers at below MSP.

2. Purchased the paddy from the farmers at cheaper rates and milling the same on the name of M/s. Sri Vinayaka Traders, Khammam in his own rice mill i.e. M/s Sri Vijaya Rice Mill, Khammam and selling the resultant rice in open market without delivering mill levy to the FCI.

3. Failed to maintain the true and correct accounts and also failed to furnish fortnightly returns.

4. Possessing 180.00 Qtls. of rice bags with fCI markings pertaining to the respondent No.2.

3. The District Collector, Khammam, in M.C.No.94 of 2009 after hearing the parties, exercising the powers conferred under Section 6-A of the E.C. Act, passed the following order:

“1. Confiscation of 180.00 Qtls. of rice and 20 Qtls. of broken rice pertaining to the respondent No.2 in favour of the Government.

2. Confiscation of 30% of the rice and broken rice pertaining to the petitioner to the Government and remaining 70% of rice and broken rice shall be released to the petitioner.”

4. Aggrieved by the above said order, the petitioner filed Criminal Appeal No.117 of 2009 before the learned Principal Sessions Judge at Khammam and the learned Sessions Judge confirmed the orders of the learned District Collector. However, out of the stock directed to be confiscated by the District Collector, it is directed that 50% thereof may be confiscated and the remaining 50% shall be released in favour of t