Banavath Sai Bharat & Anr. vs The State Of Telangana & Anr.

This Criminal Petition has been filed by the petitioners/accused Nos.2 and 3, seeking to quash the proceedings in Crime No.240 of 2026 of Miryalaguda I-Town Police Station, Nalgonda District, registered for the offences punishable under Section 318 (4) of Bharatiya Nyaya Sanhita, 2023 (for short ‘the BNS’) and Section 7 of Essential Commodities Act, 1955 (for short ‘EC Act’).

Heard Mr.Shilpa, learned counsel representing Mr.G.Raghu, learned counsel for the petitioners, and Mr.Jithender Rao Veeramalla, learned Additional Public Prosecutor, appearing for respondents.

With the consent of both the learned counsel, the criminal petition is disposed of at the stage of admission.

Learned counsel for the petitioners submitted that the petitioners have not committed any offence and have been falsely implicated in the present case. Even according to the allegations levelled in the complaint, the ingredients of the offences punishable under Section 318(4) of the BNS and Section 7 of the EC Act are not attracted. She further submits that the petitioners have purchased the rice from the cardholders. The said allegation does not come within the ambit of Section 7 of the EC Act, and there is no dishonest intention on the part of the petitioners. Hence, the ingredient of the offence under Section 318(4) of the BNS is not attracted. She further submitted that this Court, in similar circumstances, quashed the proceedings in Crl.P.No. 12926 of 2025 by order dated 07.10.2025. Hence, the continuation of the proceedings against the petitioners is a clear abuse of the process of law.

Per contra, learned Additional Public Prosecutor submitted that the petitioners have purchased the PDS rice from accused No.1, who is none other than the Fair Price Shop dealer. Accused No.1, without distributing the PDS rice to the cardholders, sold the PDS rice to the petitioners at higher rates with a dishonest intention. Hence, the ingredients of the offences under Section 318(4) of the BNS and Section 7 of the EC Act are attracted. Hence, the petitioners are not entitled to seek quashing of the proceedings at this stage. He further submits that the Investigating Officer intends to follow the procedure contemplated under Section 41-A of the Cr.P.C./Section 35(3) of the BNSS and the guidelines issued by the Hon'ble Apex Court in Arnesh Kumar v. State of Bihar^{11.(2014) 8 SCC 273}, on the ground that the alleged offences levelled against the petitioners are punishable with imprisonment of less than seven years.

Having considered the rival submissions made by the respective parties and after perusal of the material available on record, it reveals that there are specific allegations levelled in the complaint that accused No.1, being a Fair Price Shop dealer, without supplying the essential commodities entrusted by the Government to him, sold the same to the petitioners with a dishonest intention, and the petitioners purchased the same from the Fair Price Shop dealer/accused No.1. Whether there was any dishonest intention on the part of the petitioners and any conspiracy with accused No.1 has to be revealed during the course of the investigation, especially when the investigation is in progress.

The record further reveals that the offences alleged against the petitioners are punishable with imprisonment for a term of less than seven years. Even according to the learned Additional Public Prosecutor, the Investigating Officer intends to follow the procedure contemplated under Section 35(3) of the BNSS and also the guidelines formulated by the Hon'ble Apex Court in Arnesh Kumar (supra).

In view of the same, the petitioners/accused Nos.2 and 3 are directed to appear before the Investigating Officer on or before 14.08.2026, and on such appearance, the Investigating Officer is directed to issue notice under Section 35(3) of BNSS and follow the guidelines issued by the Apex Court in Arnesh Kumar (supra). It is needless to mention that the petitioners/accused Nos.2 and 3 are entitled to put forth their grievance upon receipt of the notice under Section 35(3) of the BNSS and are also entitled to submit the documents, if any, which are in their possession.

Accordingly, the Criminal Petition is disposed of.

Miscellaneous applications, pending if any, shall stand closed.