High Court · 2025

oF 2014 Petition under section 151 cPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to direct the Respondents not to effect any recovery of monies from the petitioner pursuant to the impugned vigirance Report No. 103 (4gsv&E/E 2r2o1o) dated 28.04.2014 0f Respondent No. 2 and the consequent letter bearing Lr'No D8/projects/RR/TFC/S'parv/ phase-r/08-09, dated ra.ro.zor+- [rso numbered as 210 I 29.10.2014) issued by Respondent No. S. lA NO: 1 oF 2024 Between: , irs#?E;y#is'ffi,.3"IiJffi ,q?i,i,Eil ffi:B',ff.iv i;11 * " ' 3:il,f,flH??Iflififfi"t Rurar Deveropment, Rep.-bv secretarv ro the " P.oy9!1, T"nt of rera nsa #,]r["'|ji$: ",. ' iy53i:X:!:3ffi?Hilffi Rurar water Supprv and sanitarion circre , lm.:m:l#HU,'#:?l fi L l,:'iilg,Tiff ;,?il8t?,?::ll;.; ;;" s upfitv ano-* tr ita tion Depa rtment, AND ..:PETITIONERS/ RESPONDENTS The lndian Hume Pipe Co. Ltd., A Company incorporated under the lndian Companies Act 1913, having its Regd. Office at Construction House-S, Walchand Hirachand Marg, Ballard Estale, Mumbai - 400 001 Project Office at 502-C, Sth Floor, Lingapur House, 3-6-237, Amrutha Estate, Himayathnagar, Hyderabad - 500029 Represented by its General Manager and power of Attorney Horder Mr. G pundlareekam *a"rEo,f,Bi,tH Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the lnterim order dated 20-'1 'l-2014 passed in l.A.NO. 1 OF 2014 (W.P.M.P.NO.44032 OF 2014) ln W.P.No. 35199 of 2014 and disniiss the Writ Petition. 'r 'r IA NOt 2 OF 2024 Between: 1- Secy., Panchayath Raj and Rural Development, Rep. by Secretary to the Government (PR) Panchayati Raj and Rural Development (VlG.ll) Department, Secretariat Buildings Saifabad, Hyderabad.

2. The.Chief Engineer (Admn.), Rural Water Supply and Sanitation Department, Government of Telangana Hyderabad.

3. Superintending Engineer, Rural Water Supply and Sanitation Circle Hyderabad. Government of Telangana Ranga Reddy District

4. The Executive Engineer, Rural Water Supply and Sanitation Division Hyderabad. AND ...PETITIONERS/ RESPONDENTS The lndian Hume Pipe Co. Ltd., A Company incorporated under the lndian Companies Act 1913, having its Regd. Office at Consti'uction House-S, Walchand Hirachand Marg, Ballard Estate, Mumbai - 400 001 Project Office at 502-C,Sth Floor, Lingapur House, 3-6-237, Amrutha Estate, Himayathnagar, Hyderabad - 500029 Represented by its General Manager and Power of Attorney Holder Mr. G Pundareekam , .!.( 1. 'I-..RESP_OND_ENT/ PETITIONER Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim order daled:20-11-2014 in lA.No.1 of 2Ot4 (WP.MP.No.44032 ol 2014) in W.P.No.35 l99 ot 2014. Counsel for the Petitioner: SRI SHIREEN SETHNA BARIA Counsel for the Respondent Nos.1 & 2: GP FOR GENERAL ADMINISTRATION Counsel for the Respondent Nos.3 TO 5: GP FOR PANCHAYAT RAJ & RURAL DEV The Court made the following: ORDER THE HON'BLE SMT. JUSTICE T. MADIIAVI DEVI WRIT PETITION No .35199 of 2OL4 ORDER: This Writ Petition is frled seeking a Writ of Mandamus declaring the vigilance report No.1O3 (498/VeE/E2/2OlOl dated 28.04.2014 of respondent No'2 and the consequential memo No.238lVig.llAl/2014-1, dated 22.07-2014 issued by respondent No. 1, for recovery of Rs. 1,48,08,439 l' from the petitioner as illegal and arbitrary and consequently to set aside the same In respect of the vigilance report, learned counsel for the 2 petitioner submitted that no opportunity was given to the petitioner while making an enquiry or before submission of such ?')v enquiry reportftherefore, the same is bad in law and in view of the same, the consequential memo dated 22 'O7 '2O 14 is also Iiable to be set aside Respondent No. 1 hled a counter affrdavit along with the 3 stay vacate petition and in Para No.10 of the said counter afrdavit, it is stated as under: \ 2 TMDJ wP 35199 2014 "1O. In replg to the Para-l2 & 13 of the affidauit, it is submitted that it is not denied that the petitioner is entitled for pice uariation as per clauSe 4.6, 4.7 & 4.8 of agreement and adopting fonnula as per SSR applicable for the state for the gear 2OO7-OB. In this connection, it is submitted that, the Department alloued pice adjustment calculating on the basrs of the formula giuen in the SS& without considering the inuoice and inuoices are considered for uerification of batch No's and for ueifging receipt of quantities and for adjustment of taxes. Where as,.the contention of the V&E is to tuorkout pice adjustment for ra u.t materials, lesser of three uiz., rates adopted in the estimate, price uaiation rate allowed and inuoice. The V&E, while coming to aboue conclusion relied on ENC, RI,ZS&S, Hgderabad Circular Memo No.AEE/RWS(P)- II/ Circular/ O6, Dt. 2 9-0 5-2 0 O7, G. O. Ms. No. 94 of TR&B Dept., Dt. 16-04-2008, G.O.Ms.No.292, Dt.28-07-2006 of PR&RB (Prog.II) Dept., G.O.Ms.No.269, Dt.15-09-2008 of IR&RB Dept., G.O.Rt.No.1771, Dt.26-11-2OOB of PR&RD Dept., C.O.Rt.No.47 of TR&RB, Dt.O4.02.2009 and G.O. Ms. No. 0 1, Fin. Dept., Dt. 2 5-02-20 1 2. . In this connection, it is submitted that the date of this agreement is 23-06,20O8, by tuhich time, the G.O.Ms.No.94, Dt. 16-04-20O8, utherein at para 5@), it i-s stated that the price odjustment is applied in all cases, II ) ) Eil 3 TMD,J wP 35199 2014 Luhere the uariation betueen the estimated rates and Board of Chief Engineers approued rate's (increase or decrease) is more than 5o/o for the month' Further, duing the currencg of the agreement' Gouemment haue issued G'O'Ms'No'292' 269' 1771 & 47. The Gout' in G'O'Ms'No'269 issued an amendment to para-S(*) of G'O'Ms'No'94' uthich speaks that the price adjustment shall be timited to the louest rate of inuoice (or) rate fixed by the price adjustment clause' tahich euer r-s less' Further, the Gout. bg G.O.Ms.No.47, G.O.Ms.No.269' withdranPn, Dt.O4.O2.2OO9, haue with thi.s the applicable G'O' during the curtency of the agreement is G O'Ms'No '94' As such' the interpretation ofV&EsaidtobebasingonClause-4'6'maAgoagainst' G.O.Ms.No.94. Further, the V&E in their reporT' not considered G O Ms'No'47' through uhich G'O'Ms'No'269 submitted that wcrs tuithdra un' Further' the sub-clause G.O.Ms.No. 1, Dt'25-02-2O12 No.lo(e), it is stated to applg pice adiustment either to inuoice rate (or) board of Chief Engineers approued rates, uthicheuer is less' This G'O' is an aduisory G'O' and it is not operational' as it requires issuing speafic guidelines bg the concerned Department' as per Para if ls uherein No.3." r- \ 4 TMO,] wP 35199 2014 ti'r \ -

4. Thus, it is seen that the vigilance report submitted by respondent No.2 is not in accordance with G.O.Ms.No.94 dated

16.04.2OO8 and also G.O.Ms.No.47 dated 04.02.2009 under which G.O.Ms.No.269 clated 15.09.2008 was withdrawn. The Vigilance and enquiry report was issued in accordance with G.O.Ms.No.269 dated 15.09.2008. In view of the above, this Court finds that the vigilance report itself has no basis and therefore, the respondents cannot act upon the same for making recovery of the mopey from the petitioner and others. Therefore, the vigilance report dated 28.04.2014 is set asicle for both the reasons 1.e., not grvmg an opportunity to the petitioner and also as it is against the relevant rules and guidelines at the relevant point of time.

5. Accordingly, this Writ Petition is allowed. No order as to costs. Miscellaneous applications, if any, pending in this writ petition, shall stald closed. t_ That Rule Nisi has been made absotute as above. Witness THE HON'BLE THE ACTTNG CHTEF JUSTTCE SUJOY pAUL, on rhis WEDNESDAY, THE FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENW FIVE //TRUE COPYII SD/.S. MALLIKARJUNA RAO TANT REGISTRAR sfi\ SECTION OFFICER To

1. The Secretary Development ( State of Telan gana to the Government (PR) P VlG.ll) Department, Secre d Rural aifabad, Hyderabad, 2.D irector General (VlG. and ENFT.) and E.O. pRL. Secy, to Govt., Secretariat gana, General Administration B uildings, Saifabad Hyderabad, State of Telan ( Vioilance and Enforcement) Deoartment. ldings S -''GtlA s in6 Cnlet Engineer (Admn ), Rural Water Supply and Sanitation Department' " coi"-tnm"ni 5f r"t'nqana Hyderabad - 4 Suoeiintending engitl":i]i'i*iwiGi s-"oplv and Sanitation Circle - il;5;;;i;;;. e6r",i.Eii'oiieransana Rdrisb Readv District 5. The Executlve rnsineZJf H!.r-; iii;G; s'fipiv and Sdnitation Division " g?k$ilisi%n'Sm'-ltp'^nS'$tAl+i3tii?".'3urtrorthestate r +t-l"AC lS t 3t #fl"If'fs, lo"'ll'.m*+ RU RAL D EV' H is h co u rt ro r th e " 9. Two CD CoPies UvOeraOaO, Goveinment of Telangana- -.. - , Siate ot f"fangana, at Hyderabad lOUTl PSK. GJPut" HIGH COURT DATED:05102t2025 ORDER ) ) WP.No.35199 of 2014 <= 1H ':'- L o 72 14 YA ztl25 a I ALLOWING THE WRIT PETITION WITHOUT COSTS \ fru I ) D z (; >/, <: :/rr/