APHC010460102025 IN THE HIGH COURT OF ANDHRA PRADESH TUESDAY, THE SIXTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE THE HONOURABLE SMT JUSTICE V.SUJATHA WRIT PETITION NO: 23942/2025 Between: 1. M/S KMR CONSTRUCTIONS,, REP BY ITS MANAGING PARTNER KASU MADHUSUDHAN REDDY S/O. LATE MALAKONDA REDDY, AGE. 55 YEARS, R/O. 27 ANDHRA PRADESH 1. THE STATE OF ANDHRA PRADESH, REP. BY SECRETARY, WATER RESOURCES (IRRIGATION AND CAD) DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT 2. THE CHIEF ENGINEER, GODAVARI DELTA SYSTEM, DOWLAISWARAM,EAST GODAVARI DISTRICT 3. THE SUPERINTENDING ENGINEER, IRR DOWLAISWARAM EAST GODAVARI DISTRICT 4. THE EXECUTIVE ENGINEER, GODAVARI CENTRAL DIVISION, AMALAPURAM, EAST GODAVARI DISTRICT 5. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE AND PLANNING DEPARTMENT A.P. SECRETARIAT, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) THE SIXTEENTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SMT JUSTICE V.SUJATHA WRIT PETITION NO: 23942/2025 M/S KMR CONSTRUCTIONS,, REP BY ITS MANAGING PARTNER KASU MADHUSUDHAN REDDY S/O. LATE MALAKONDA REDDY, AGE. 55 YEARS, R/O. 27-2-353, PULIMI STREET, NELLORE ANDHRA PRADESH ...PETITIONER AND THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, WATER RESOURCES (IRRIGATION AND CAD) DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT THE CHIEF ENGINEER, GODAVARI DELTA SYSTEM, DOWLAISWARAM,EAST GODAVARI DISTRICT THE SUPERINTENDING ENGINEER, IRRIGATION CIRCLE, DOWLAISWARAM EAST GODAVARI DISTRICT THE EXECUTIVE ENGINEER, GODAVARI CENTRAL DIVISION, AMALAPURAM, EAST GODAVARI DISTRICT THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE AND PLANNING DEPARTMENT A.P. TARIAT, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT ...RESPONDENT(S): IN THE HIGH COURT OF ANDHRA PRADESH [3333] THE SIXTEENTH DAY OF SEPTEMBER THE HONOURABLE SMT JUSTICE V.SUJATHA M/S KMR CONSTRUCTIONS,, REP BY ITS MANAGING PARTNER KASU MADHUSUDHAN REDDY S/O. LATE MALAKONDA REDDY, 353, PULIMI STREET, NELLORE-524002, ...PETITIONER ITS PRINCIPAL SECRETARY, WATER RESOURCES (IRRIGATION AND CAD) DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATI, THE CHIEF ENGINEER, GODAVARI DELTA SYSTEM, IGATION CIRCLE, THE EXECUTIVE ENGINEER, GODAVARI CENTRAL DIVISION, THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY, FINANCE AND PLANNING DEPARTMENT A.P. TARIAT, VELAGAPUDI, AMARAVATI, GUNTUR DISTRICT ...RESPONDENT(S): 2 VS,J W.P.No.23942 of 2025 Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased topleased to issue an appropriate Writ, Order or Direction, preferably one in the nature of a Writ of Mandamus declaring the inaction of Respondents in not cancelling the Agreement No. 89DC/2017-18 dated 23- 09-2017 of the Petitioner as per the U.O. Note. NO.(2569644)FMU0MISC/428/2024-F MU- TR-B dated 27-09-2024 of the 5th Respondent as illegal, arbitrary, unconstitutional, unfair, discriminatory and unsustainable and consequently direct the Respondents to cancel the Agreement No. 89DC/2017-18 dated 23- 09-2017 of the Petitioner and issue work closure orders and thereby process and release the final bills including Earnest Money Deposit at 2.5percent and Final Security Deposit at 7.5percent and pass s IA NO: 1 OF 2025 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 Pleased to direct the Respondents to cancel the Agreement No. 89DC/2017- 18 dated 23-09-2017 of the Petitioner and issue work closure orders and thereby process and release the final bills including Earnest Money Deposit at 2.5% and Final Security Deposit at 7.5% and pass Counsel for the Petitioner: 1. SODUM ANVESHA Counsel for the Respondent(S): 1. GP FOR IRRI AND CAD 2. GP FOR FINANCE PLANNING 3 VS,J W.P.No.23942 of 2025 The Court made the following Order: The present Writ Petition came to be filed under Article 226 of the Constitution of India seeking the following relief:- “… to issue an appropriate Writ, Order or Direction preferably one in the nature of a Writ of Mandamus declaring the inaction of Respondents in not cancelling the Agreement No.89DC/2017-18 dated 23.09.2017 of the Petitioner as per the U.O. Note NO.(2569644)FMU0MISC/428/2024-FMU-TR-B dated 27.09.2024 of the 5th Respondent as illegal, arbitrary, unconstitutional, unfair, discriminatory and unsustainable and consequently direct the Respondents to cancel the Agreement No.89DC/2017-18 dated 23.09.2017 of the Petitioner and issue work closure orders and thereby process and release the final bills including Earnest Money Deposit at 2.5% and Final Security Deposit at 7.5% and to pass such other order or orders ….” 2. The petitioner was awarded the work i.e., “Modernization of Godavari Central Delta System - Channel System for WUA Gopavaram, Challapalli, Kithanacheruvu and S. Yanam, including CM and CD works” by the 4th respondent pursuant to departmental e-procurement in which the petitioner emerged as a lowest bidder. Thereafter, the petitioner executed an agreement dated 23.09.2017. In compliance to the said contract, the petitioner furnished performance bank guarantee to a tune of Rs.10,12,200/- issued by the Canara Bank through the 5th respondent. The Early Money Deposit computed at 2½ percent and the final security deposit computed at 7.5% retained from the running bills. In pursuance of G.O.Rt.No.295, Water Resources (Reforms) Department dated 14.06.2019, which prescribes the procedure for closure or fore-closure with settlement of ongoing works that did not meet the prescribed 4 VS,J W.P.No.23942 of 2025 progress as on date notified therein. The petitioner has submitted representations dated 28.10.2021, 8.12.2021 & 11.01.2022, requesting for fore-closure under the above said G.O. for the following reasons: (i) as on the policy cut-off date, the physical progress was only about 18.78%, thereby attracting the closure policy; (ii) progress was impeded by hindrance not attributable to the petitioner, including delayed handing over of encumbrance-free reaches, intermittent stoppages owing to flood regulation and canal closure schedules in the Godavari system, non-availability of approved drawings or line-out for certain reaches, and prolonged payment constraints; and (iii) despite requests, the Department did not issue timely decisions on extensions of time or a revised work programme. 3. The grievance of the petitioner is that in spite of the same, the respondents have not initiated any action since 2021. Challenging which, the present writ petition is filed. 4. Heard the learned counsel for the petitioner and the learned Assistant Government Pleader for Irrigation representing the respondents. 5. Learned Assistant Government Pleader for Irrigation has furnished a copy of the instructions of the 4th respondent vide Letter No.EE/GC/AMP/AB/A5/W.P.No.23942/2025/781 M, dated 12.09.2025, wherein, the facts as stated by the petitioner are admitted. But, however, has stated that pursuant to the representations made by the petitioner, the 4th vide Letter No.EE/GC/AMP/DB/JTO.380 M, dated 31.01.2022, forwarded the 5 VS,J W.P.No.23942 of 2025 proposals for pre-closure of the work, to the high authorities. But, however, the works could not be pre-closed in the absence of mutual consent. 6. The said fact would clearly show that the respondents have not acted in accordance with G.O.Rt.No.295, dated 14.06.2019 and as well as the subsequent guidelines issued by the Government of Andhra Pradesh vide U.O.Note.No.(2569644) FMU0MISC/428/2024-FMU-TR-B, dated 27.09.2024, which reads as under: i. All works, except EAP/NABARD/CSS sanctioned prior to 01.04.2024, but not grounded shall stand cancelled immediately. ii. All works, except EAP/NABARD/CSS sanctioned prior to 01-04- 2024 value of work done and recorded is less than 25% of the agreement value shall be closed at safer stage. This exercise shall be completed and orders to this effect from the appropriate authority shall be obtained by 31.10.2024 and payments may be processed in this regard only after obtaining work closure orders. 7. As the respondents have failed to pre-close the petitioner’s contract in pursuance of the above said G.O. and as well as the subsequent guidelines issued by the Government of Andhra Pradesh on 27.09.2024, instead of keeping the writ petition pending, this Court deems it appropriate to dispose of the writ petition with a direction to the 4th respondent to initiate immediate action on the representations made by the petitioner in accordance with G.O.Rt.No.295, dated 14.06.2019 and as well as the guidelines issued by the Government on 27.09.2024, as expeditiously as possible, preferably, within a period of three (3) months from the date of receipt of a copy of this order. 6 VS,J W.P.No.23942 of 2025 8. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. As a sequel, Interlocutory Applications pending, if any, shall stand closed __________________ JUSTICE V.SUJATHA Dated: 16.09.2025 MDP