High Court · 2025

2 Smt. Fareeda Begum, w/o Shakeel Ahmed, Aged 58 years, Occ. Deputy Tahasildar, Enforcement, R/o H.No 1-4-1341814, Kamala Nehru Colony, Mahbubnagar Town and District-509001 ...RESPONDENTS Petition under Section 528 of BNSS, praying that in the circumstances stated in the Memorandum of Grounds of Criminal Petition, the High Court may be pleased to call for the records relatrng to FIR No.138 OF 2023 on the file of Pangal police station, Wanaparthy District and quash the same in so far as petitioner/Accused No.3 is concerned; l.A. NO: 2 OF 2025 Petition under Section 528 of BNSS, 2023 praying that in the circumstances stated in the Memorandum of Grounds of Criminal Petition,the High Court may be pleased to grant stay of all further proceedings including arrest of petitioner/accused No.3 in FIR No.138 OF 2023 on the file of Pangal police station, Wanaparthy District; This Petition coming on for hearing,upon perusing the Memorandum of Grounds of Criminal Petition and upon hearing the arguments of Sri K RATHANGA PANI REDDY, Advocate for the Petitioner and Sri Jithender Rao Veeramalla, Addl. Public Prosecutor on behalf of the Respondent,No. 1 and none appear for the Respondent No.2; The Court made the following: ORDER THE HONOURABLE SRI JUSTICE N.TUKARAMJI CRIMINAL PETITIO N No. 4737 OF 2025 ORDER This Criminal Petition is filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short 'BNSS, 2023') seeking quashment of the proceedings in Crime No.'l 38 of 2023 of Pangal Police Station, Wanaparthy District, against the petitioner.

2. The petitioner is arrayed as accused No.3 in Crime No.138 of 2023 registered for the offences punishable under Sections 406, 420, 409, 120-B of the lndian Penal Code, 1860 (for short 'l.P C.') and Section 7 of Essential Commodities Act,1955 (for short, 'EC Act').

3. Heard Mr. K.Rathanga Pani Reddy, learned counsel for the petitioner and Mr.Jithender Rao Veeramalla, learned Additional Public Prosecutor, representing the responclent No.1-State

4. The prosecution case in brief is that the accused Nos 1, 2 and the petitioneriaccused hlo.3 are family members and owners of Mis.Parameshwara lndustries, Pangal Village and Mandal, Wanaparthy District, and engaged in the business of milling of paddy. The Telangana State Civil Supplies Corporation Limited (for short, 'TGSCSCL') entered into agreement with the petitioner's firm for procuring and miliing of paddy and to deliver back the custom milling-- -, 2 N]RJ Crl.P.No. J7)7 o1 2025 It is alleged that the TGSCSCL Department had conducted inspection in the petitioner's rice mill on 28.12.2023 and found

418.76 MTs of paddy missing. Thus, a Police Report was lodged against the petitioner and the other accused for misappropriation of stocks and violation of the'agreement and for recovery of the amounts

5. Learned counsel for the petitioner would submit that as per the agreement, lhe de facto complainant, the petitioner and other accused would be in joint custody of the paddy Further pleaded that the Government did not properly store the paddy and for natural reasons some of the quantity was damaged. Howsoever, as per the agreement, the dispute has to be placed before the Arbitrator and without such an effort, the Government on its own concluding misappropriation and initiating prosecution without any conclusive findings on relevant aspects alleging criminality is untenable. That apart, the petitioner is ready to cooperate with the investigation and is intending to see the process through. He further pointed out that the coordinate Bench of this Court vrde Criminal Petition Nos.1574, 1575 of 2025, 895 and 12037 of 2024 held that Section 409 l.P.C. would not attract in the circumstances of the case and directed the investigating agency for issuance of notice under Section 41-A of the Code of Criminal Procedure and to follow the guidelines enunciated in Arnesh Kumar v. 1 J NrR,/ L)r1.1'.No. 47)7 of 2025 sfafe of Biharl . Thus preaded for granting simirar rerief to meet their hardship

6. Learned Additionar pubric prosecutor wourd submit that it is a clear case of misappropriation, the petitioner and similarly placed other rice millers have caused ross of crores of rupees to the state and by the direction of issuance of notice, it is becoming difficurt in proceeding with the investigation for want of cooperation from the petitioner. That apart, a Coordinate Bench of this Court in Crl.p.Nos.3933 of 2024,3305 of 2024 3306 of 2024, having considered the submissions dismissed the criminal petitions. The petitioner herein is also facing self same accusations, therefore, pending investigation proceedings, this petition has to be dismissed. Further submits that, if the court considers otherwise, directing the petitioner for depositing considerable amount against the complaint mentioned loss, would be proper.

7. I have perused the materials on record B. Admittedry, the petitioner and other accused are the owners of 'M/s.Parameshwara Rice Mill,. lt is clear by the averments of the complaint that TGSCSCL Department had entered.into agreement with the petitioner for carrying out miiling of paddy Further, in the compraint, r 1 (2014) 8 scc 273 I I I t- 4 ^-TIIJ Cl.P.No. 17)7 01 2025 the misappropriation has been alleged. Whereas the petitioneis plea of joint custody and the defences like natural decay, loss due to improper stocking of the materials are to be examined in the investigation. ln such position any direction to furnish security would be premature

9. Further, having regard to the nature of the offences and depth of allegations against the petitioner and except the alleged offence under Section 409 of I.P.C., rest of the accusations are punishable with an imprisonment upto seven years and considering the fact that the petitioner is running rice mill industry and the Government's contract is disclosing petitioner's well rooted place in the society and the aspects that the prosecution has not raised any impediment in securing the presenceofthepetitionerforinvestigationandthereadinessofthe petitionertocooperatewiththeinvestigation,withoutenteringinto merits and keeping all prerogatives of the lnvestigation open and to maintain parity, directing the lnvestigating Agency for issuance of notice under Section 41-A Cr.P.C., on the petitioner/accused No.3 in Crime No.l3Sot2023andtoadheretheguidelinesofArneshKumarv. State of Bihal before proceeding against the petitioner/accused No.3, is found appropriate. Accordingly, ordered' ln unison' the I r (2014) 8 scc 273 'z I I I I 5 NI&./ Crl.P.No. 17)7 of 2025 petitioner/accused No.3 is directed to submit explanation and materials, if any, and shall coopeiate with the investigation.

10. With this direction, this Criminal Petition is disposed of Pending miscellaneous applications, if any, shall stand closed /ffRUE COPY// SD/- T. JAYASREE PUTY REGISTRAR DF {r=", ION OFFICER To,

1. The I Addl. Judicial First Class Magistrate, Wanaparthy 2. The Station House Officer, Pangal P.S., Wanaparthy 3. One CC to SRl. K RATHANGA PANI REDDY Advocate [OPUC] 4. Two CCs to PUBLIC PROSECUTOR, High Court at Hyderabad (OUT) 5. Two CD Copies VSM/gh \^y HIGH COURT DATED:2210412025 \ { (i o t\E STA T(' <r^ 2 6 APn 2025 ) t D iiit,ATC'lr:o * ORDER CRLP.No.4737 ot 2025 DISPOSING OF THE CRIMINAL PETITION @ ilt,{V