I N THE HI GH COURT FOR THE STATE OF TELANGANA AT HYDERABAD HON’BLE MRS. JUSTI CE SUREPALLI NANDA WRI T PETI TI ON No.5901 OF 2026 DATE: 10.03.2026 Between :

Sri Laxmi Balaji Industries, represented by its Proprietor, K. Aruna, W/o. Laxman, Age : 48 years, Thakkallapalli Village, Jagtial Mandal and District.

… Petitioner A ND The State of Telangana, Rep. by its Principal Secretary, Consumer Affairs, Food and Civil Supplies, Secretariat Building, Hyderabad and 5 others … Respondents

ORDER

Heard Sri K. Venumadhav, learned counsel appearing on behalf of the petitioner, learned Assistant Government Pleader for Civil Supplies, appearing on behalf of respondent Nos.1, 4 to 6 and Sri K. Devender, learned Standing Counsel for Civil Supplies Corporation Ltd., appearing on behalf of respondent Nos.2 and 3.

2. The petitioner approached the Court seeking prayer as under:

“…to issue an order or direction more particularly one in the nature of writ of Mandamus or any other appropriate writ declaring the orders passed by the respondent No.2 in the name of notice in Lr. No. Default Millers/Notices, dated 27-12-2025 which is served on the petitioner on 12-01-2026, without issuing any notice to the petitioner, without calling for any explanation from the petitioner and without conducting any enquiry by giving due opportunity of hearing to the petitioner imposing penalty, is nothing but arbitrary, illegal, null and void and violative of the principles of natural justice and also violative of Articles 14, 19 and 21 of the Constitution of India.

Consequently, set aside the same, and to pass...”.

3. The case of the petitioner in brief as per the averments made in the affidavit filed by the petitioner in support of the present Writ Petition is as under:-

The petitioner is the proprietor of petitioner’s rice mill, which was established in the year 2017. The respondent authorities have been allotting the paddy to the petitioner’s rice mill and in turn the petitioner is milling and supplying the resultant rice to the respondent authorities without any complaint. During Rabi 2019-2020 season, the respondent authorities allotted paddy in excess of the milling capacity of the petitioner’s rice mill. The petitioner requested the authorities not to allot such a huge quantity however, the respondent authorities still allotted a large quantity of paddy to the petitioner’s rice mill. Subsequently, the respondent No.2 issued a notice dated 27.12.2025 to the petitioner without calling for any explanation from the petitioner. Aggrieved by the same, the petitioner approached the Court by filing the present writ petition.

4. PERUSED THE RECORD.

(A) The impugned notice/ order vide Lr.No.

Default Millers/ Notices, dated 27.12.2025 issued by the Respondent No.2 is extracted hereunder:

Lr.No. Default Millers/Notices Dated 27.12.2025 NOTICE Sub: TGSCSCL-DMO-Jagtial-Recovery of pending CMR dues pertaining to KMS 2014-15 to KMS 2023-24 – Permission for delivery of FRK Sannabiyamm or Cost equivalent – Notice issued – Reg.

Ref: 1. Govt. Memo. No.2809/CS.I-CCS/2025, Dated

24.11.2025.

2. G.O.Ms.No.17, CA, F&CS (CS.I-CCS) Department, Dated 04.10.2025.

3. Custom Milling Agreement entered by the rice millers.

* * *

Adverting to the subject and references cited, the Government has issued policy guidelines for the procurement of paddy under MSP operations and delivery of CMR also directed for recovery of pending CMR dues from the default rice millers as per the agreement conditions in vogue.

Vide reference 1^st cited, the Govt. has issued permission to the default rice millers pertaining to KMS 2014-15 to KMS 2023- 24 (excluding those involved in Rabi 2022-23 auction paddy) to recover pending Custom Milled rice (CMR) dues in the form of FRK Sannabiyyam or its cost equivalent to the value of the defaulted quantity at 125% (including 25% penalty and 12% penal interest), as per the agreements entered with Telangana State Civil Supplies Corporation Ltd., (TSCSCL).

The Details are hereunder: