HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HONOURABLE SRI JUSTICE J.SREENIVAS RAO CRIMINAL REVISION CASE No.2307 of 2010 Date: 12.02.2026 Between:

Nagilla Krishna Murthy ...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 16.08.2010 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:

2.1 That the Tahasildar, Valigonda, submitted a report under Section 6-A of the E.C. Act, 1955 against the proprietor of M/s Hanuman BMRM, Puligilla (V), Valigonda (M), wherein it was reported that on receipt of credible information regarding illegal storage and business of PDS rice by M/s Hanuman SMRM Puligilla, he along with Tahasildar, Bhongir, DT (CS), Bhongir and RI (Proc.), Bhongir, have conducted raiding over the mill on 18.12.2007 and noticed that a lorry bearing No. AP 9 U 144 with rice bags load and the rice bags are being unloaded from the lorry, at the time of inspection by the complainant, 172 bags each containing 50 Kgs. rice found in the lorry, the bags were machine stitched FCI labelled bags and the details printed on the bags are the rice drawn from the lot No.6 for the crop year 2007-08 of Kanyaka Parameswari PBRI, Kunur, Nalgonda District and the centre is SWC, Wangapally, and the remaining 78 bags were unloaded and rice was removed from the bags and the FCI labelled empty bags were kept at the side of the rice mill, and on noticing the inspection team, the unloading was stopped, and on questioned the owner Sri Nagilla Krishna Murthy S/o Vishwanatham, who reached the mill, to produce the records or documents etc., he failed to produce the records and satisfactory reply and begged pardon and agreed that PDS rice was diverted to the mill.

2.2 It was also reported that as the rice was drawn from SWC Wangapally, the inspecting team enquired about the departure of lorry from SWC, Wangapally, and found that the said vehicle left the SWC Godown Wangapally at 3-00 PM on 17.12.2007 and supposed to deliver the stocks at the IMG point, Mothkur, instead of proceeding to Mothkur, the vehicle was diverted to Puligilla village of Valigonda Mandal by the Vehicle owner Sri Nagilla Krishna Murthy, who is also the mill owner, with an intention to divert the PDS rice into black market, who also admitted the diversion of PDS rice. Since no records or permissions were produced by the mill owner, the complainant seized the physical stocks available in the mill premises under cover of panchanama and handed over the stocks to M/s Mathyagiri Laxminarsimha Swamy PBRM and the lorry bearing No. AP 9 U 144 to Station House Officer, Valigonda, for safe custody and also filed a criminal case against the petitioner and requested to take action U/s 6-A of the E.C. Act.

3. The District Collector, Nalgonda, in Case No.CS1/1852/2007 after hearing the parties, exercising the powers conferred under Section 6-A of the E.C. Act, passed the following order:

“1. 100% value of the seized PDS rice. (Rs.25,000/-).

2. 50% value of seized paddy and rice stocks available in the mill (stocks left in the mill, after releasing the paddy stocks pertains to farmers) (Rs.3,50,000/-).

3. 100% value of the Bank guarantee furnished by the vehicle owner for interim release of seized vehicle.

(Rs.65,000/-).

4. 50% value of the Bank guarantee furnished by the stage-I contractor at the time of entering agreement with the Civil Supplies Corporation. (Rs.6,25,000/-).

The