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2026 Supreme(Online)(Tel) 16897

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
J. Sreenivas Rao, J
Md. Nihal Uddin – Appellant
Versus
The State of Telangana – Respondent
CRIMINAL PETITION No.17885 of 2025



Advocates:
For the Appellants/Petitioners: G. Raghu
For the Respondents: Jithender Rao Veeramalla

Criminal proceedings for the illegal procurement of PDS rice are an abuse of process if there is no evidence that the accused deceptively induced the beneficiaries to part with the commodities.

Headnote:The case involves the application of Section 318(4) of the Bharatiya Nyaya Sanhita, 2023 and Section 7 of the Essential Commodities Act, 1955. The accused was alleged to have procured PDS rice from beneficiaries at a cheaper rate for wrongful gain, and was found in possession of 14 quintals of rice. The court found that the prosecution failed to establish the essential elements of deception. The primary issue is whether criminal proceedings for cheating and violation of the Essential Commodities Act can be sustained in the absence of a complaint from beneficiaries alleging deceptive inducement. The court reasoned that without evidence that the accused deceptively induced beneficiaries to part with the supplied PDS rice, the continuance of proceedings is an abuse of the process of law. Accordingly, the Criminal Petition is allowed and the proceedings in F.I.R.No.746 of 2025, of Jagtial Town Police Station, Jagtial, against the petitioner/accused, are hereby quashed.

Table of Content
1. allegations of illegal procurement of pds rice under bns and ec act. (Para 1 , 2 , 3)
2. contention regarding the necessity of a complaint alleging deceptive inducement. (Para 4 , 5)
3. absence of deceptive inducement renders the criminal proceedings an abuse of process. (Para 6 , 7 , 8)
4. quashing of the fir based on the lack of essential criminal elements. (Para 9)

ORDER

This Criminal Petition has been filed seeking to quash the proceedings in F.I.R.No.746 of 2025, of Jagtial Town Police Station, Jagtial, wherein the petitioner was arrayed as accused, for the offences punishable under Section 318(4) of the Bharatiya Nyaya Sanhita, 2023 (for short ‘BNS’) and Section 7 of the Essential Commodities Act, 1955 (for short ‘EC’ Act).

2. Heard Mr. G. Raghu, learned counsel for the petitioner and Mr. Jithender Rao Veeramalla, learned Additional Public Prosecutor for respondents.

3. The specific allegation against the petitioner/accused is that he has procured PDS rice from the beneficiaries at cheaper rate to sell the same for wrongful gain and that on 09.12.2025, at about 10:30 hours, the petitioner was found in possession of 28 bags of PDS rice containing 14 quintals.

4. Learned counsel for the petitioner would submit that without there being any complaint from any beneficiary, alleging that the rice was procured deceptively or with a criminal intent and charging the petitioner for prosecution is untenable and improper. The allegations, even taken at his face value cannot be sustained against the petitioners. Further, this Court, in Crl.P.Nos.5709 of 2019 and 3349 of 2015, while considering the same situation, categorically observed that the offences alleged against the petitioners therein could not be continued and accordingly quashed the proceedings. The petitioner is also entitled to the same relief and hence prayed to quash the proceedings against the petitioner.

5. The learned Additional Public Prosecutor submits that as per prosecution, the offences said to have been committed by the petitioner is cheating and violation of Section 7 of the EC Act and requested to pass appropriate orders.

6. Section 7 of the EC Act contemplate that any person contravenes with the production, supply, distribution and trade of essential commodities is punishable. As per the prosecution, the petitioner has procured PDS rice from the beneficiaries after supply from the dealer.

7. A Coordinate Bench of this Court in Crl.P.No.7227 of 2025 has considered the identical facts and observed that:

“There is no averment indicating that the petitioner in any way deceptively induced the beneficiaries to part with the supplied PDS rice or the beneficiary entrusted the PDS rice purchased by them with the petitioner and they dishonestly misappropriated or converted to their own use or used it in violation of a lawful direction or contract. In the absence of essential factors, on the face of prosecution, this Court finds it to be a fit case to exercise the jurisdiction under Section 528 of BNSS, 2023. Thus, continuance of proceedings against the petitioner is abuse of process of law”.

8. The facts and circumstances of the present case also similar to those in the above case and hence, this Court finds it to be a fit case to exercise jurisdiction under Section 528 of BNSS by applying the same analogy and to quash the proceedings against the petitioner herein.

9. Accordingly, the Criminal Petition is allowed and the proceedings in F.I.R.No.746 of 2025, of Jagtial Town Police Station, Jagtial, against the petitioner/accused, are hereby quashed. Pending miscellaneous applications, if any, shall stand closed.

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