High CourtsSingle Bench(2026) 08 TEL CK 5510

M/s. Sai Rajalaxmi Industries vs State Of Telangana & Ors.

Telangana High Court · Decided on 19 August 2026

HON’BLE JUDGES
Surepalli Nanda, J
RESULT
Disposed Of
CASE NUMBER
Writ Petition No. 26600 of 2026

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Judgment

29 paragraphs · 1,231 words

Heard Sri K.Durga Prasad, learned counsel appearing on behalf of the petitioner and the learned Assistant Government Pleader for Civil Supplies, appearing on behalf of the respondents.

2.

The petitioner approached the Court seeking prayer as under:

"...to issue an appropriate Writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Respondents.

a)

in trying to shift the paddy and rice to other mill from petitioners' rice mill, as illegal, null, void, arbitrary and consequently

(b)

to direct the respondents to permit the petitioner to mill and supply the rice to the FCI and Civil Supplies Corporation for 2025-26 seasons under the supervision of the 4th Respondent as granted to others,

(c)

to direct the respondents not to shift the paddy and rice from the petitioner mill to other mills,

(d)

and to pass such other appropriate orders as are deemed fit and proper in the interests of justice."

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:

It is the case of the petitioner that the Government of Telangana had been supplying paddy for Custom Milling Rice (CMR) since 2015. On 18.07.2026, the 3rd Respondent issued a notice directing the petitioner to deliver 55.567 MTs of balance CMR/State Pool rice pertaining to Rabi 2024-25 by 26.07.2026, which the petitioner subsequently cleared. On 24.07.2026, the 4th Respondent inspected the rice mill and recorded availability of 41,597.83 quintals of Kharif 2025-26 paddy and 29,358.85 quintals of Rabi 2025-26 paddy, while noting a shortage of 26,226.20 quintals relating to Rabi 2022-23 tender paddy. The petitioner undertook to clear the said liability by 08.08.2026 and paid ₹30,00,000/- towards the tender paddy account. On 07.08.2026, the 4th Respondent, along with Vigilance and Enforcement officials, inspected the mill and directed immediate clearance of the tender paddy liability. Though the sufficient quantity of 2025-26 stock was available and that it was ready to complete milling and supply within the prescribed period, but however, the authorities allegedly stopped milling operations and withheld OPMS permission and godown tagging, while threatening to shift the available stock to other mills. Aggrieved by the same, the petitioner had approached this court by filing the present Writ Petition.

PERUSED THE RECORD:

DISCUSSION AND CONCLUSION:

4.

Learned counsel appearing on behalf of the petitioner submits that under similar circumstances, this Court passed order in favour of petitioner thereunder in W.P. No.15098 of 2024 vide its order dated 19.06.2024 and W.P.No.1281 of 2025 vide its order, dated 10.01.2025 and therefore, the petitioner herein is entitled for similar relief as extended to the petitioner in W.P. No.15098 of 2024, dated 19.06.2024 and W.P.No.1281 of 2025, dated 10.01.2025

5.

The learned Assistant Government Pleader for Civil Supplies, appearing on behalf of the respondents does not dispute the said submission made by the learned counsel appearing on behalf of the petitioner.

6.

Taking into consideration the submission of the learned counsel appearing on behalf of the petitioner that under similar circumstances, this Court had passed orders in W.P. No.15098 of 2024, dated 19.06.2024 & W.P.No.1281 of 2025, dated 10.01.2025 in favour of the petitioner thereunder, and duly considering the said order's, the present writ petition is also disposed of in terms of the order of this Court, dated 19.06.2024 passed in W.P. No.15098 of 2024, and dated 10.01.2025 passed in W.P.No.1281 of 2025, directing the respondent Authorities to permit the petitioner to mill the seized paddy under the supervision of concerned Authority and supply the rice to the FCI and Civil Supplies Corporation for 2025-26 seasons as per the direction of the respondent No.2 within the stipulated period.. However, there shall be no order as to costs.

Miscellaneous petitions, if any, pending in this Writ Petition, shall stand closed.

This Writ Petition is filed challenging the action of the respondents in seizing the paddy from the petitioner's rice mill on account of the shortfall in the supply of Custom Milling Rice (CMR) for the earlier seasons.

2.

Vide order dated 10.01.2025, this Court had directed the respondent authorities to permit the petitioner to mill the seized paddy and supply the same to the Food Corporation of India and respondent No.2-Civil Supplies Corporation, as per the direction of respondent No.2 under the supervision of the concerned authority.

3.

Learned counsel for the petitioner and the learned Government Pleader for Civil Supplies submitted that nearly 37% of the seized paddy has been milled and the rice has been supplied to the Corporations.

4.

Learned counsel for the petitioner seeks permission to mill the remaining seized paddy under the supervision of the concerned authorities.

5.

In view of the above submissions, this Court deems it fit and proper to permit the petitioner to mill the remaining seized paddy and supply the same under the supervision of the concerned authorities till completion of the required quota and before the end of the current crop season.

6.

With the above observations, this Writ Petition is disposed of. There shall be no order as to costs.

Miscellaneous applications, if any, pending in this writ petition, shall stand closed.

This Writ Petition is filed challenging the action of the respondents in seizing the paddy and rice from the petitioner-rice mill on account of the shortfall in the supply of Custom Milling Rice (CMR) for the Khariff 2023-24 season.

2.

Vide order dated 19.06.2024, this Court had directed the respondent authorities to permit the petitioner to mill the seized paddy and supply the same to the Corporation, as per the directions of respondent No.2 under the supervision of the concerned authority.

3.

Learned Government Pleader for Civil Supplies, appearing for respondents No.1 to 4, forwarded a copy of the written instructions, according to which the petitioner has completely delivered the CMR pertaining to Khairf 2023-24 and Rabi quantity has been transferred to another rice mill. It is also stated that the Collector (Civil Supplies), Nizamabad, has disposed of the proceedings under Section 6-A of the Essential Commodities Act, 1955 by confiscating 100% value of the seized PDS rice in favour of the Government and has imposed a penalty of Rs.24,000/- on the vehicle for being directly involved in the illegal transportation of PDS rice. Therefore, it is submitted that no further orders are required in this Writ Petition and the cause in this Writ Petition has become infructuous.

4.

Learned counsel for the petitioner also submitted that pursuant to the said interim order of this Court, the petitioner has supplied 100% CMR and no further proceedings are pending against the petitioner. Learned counsel for the petitioner prayed for a direction to the respondents to issue a No-Objection Certificate for the relevant period as the petitioner has already supplied 100% CMR and sought liberty to challenge any further action taken by the respondent authorities, if necessary.

5.

In view of the above submissions, this Court deems it fit and proper to permit the petitioner to make a representation to the respondent authorities seeking issuance of NOC and the same shall be considered by the respondents in accordance with law.

6.

With the above observations and directions, this Writ Petition is closed with liberty as prayed for. There shall be no order as to costs.

7.

Miscellaneous applications, if any, pending in this writ petition, shall stand closed.