APHC010492562025 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3457] WEDNESDAY,THE TWENTY FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 26131/2025 Between: Goli Sarath Babu @ Sarath Reddy, ...PETITIONER AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel for the Petitioner: 1. M K RAJ KUMAR Counsel for the Respondent(S): 1. GP MUNCIPAL ADMN AND URBAN DEV AP The Court made the following: -2- W.P. No.26131 of 2025 Date of order:24.09.2025 THE HON’BLE SRI JUSTICE HARINATH.N WRIT PETITION No.26131 OF 2025 ORDER 1. Heard the learned counsel for the petitioner, the learned Government Pleader for the Municipal Administration & Urban Development, the learned standing counsel for the Municipal Corporation and the learned Government Pleader for Finance & Planning. 2. The petitioner was entrusted with various works. In compliance with the contractual requirement, the petitioner has deposited the Earnest Money Deposit (EMD). It is further submitted that the bills payable to the petitioner has been released by the 2nd respondent and that the works were completed in the year 2020-2021. It is also submitted that the petitioner has completed works entrusted by the 2nd respondent. However, the Earnest Money Deposit (EMD) and Final Security Deposit (FSD) amounts, which were initially deposited, have not yet been released. It is further submitted that the mandatory cooling period of three years has already elapsed and that in spite of the repeated requests, the respondents continue to withhold the release of the EMD amounts beyond the permissible cooling period. Due to the non release of EMD and pending bills, the petitioner has been facing severe financial difficulties. -3- W.P. No.26131 of 2025 Date of order:24.09.2025 3. In reply, the learned standing counsel for the 2nd respondent submits that the EMD amounts remain with the Corporation and also submits that the 2nd respondent would release the EMD and FSD shortly. 4. Be that as it may, with regard to the release of EMD and FSD amounts, the fact remains that once the cooling period has expired, the respondents cannot indefinitely retain such amounts. It is the bounden duty of the respondent authorities to ensure timely release of the amounts rightfully due to the contractor. 5. Taking into consideration the facts and submissions, this Court is of the opinion that the withholding of EMD and FSD amounts beyond the cooling period is unjustified. Accordingly, the 2nd respondent is directed to verify the EMD and FSD amounts retained with it and release the same to the petitioner within a period of six weeks from the date of receipt of a copy of this order. 6. Accordingly, the writ petition is disposed of at the stage of admission. No costs. 7. Miscellaneous petitions, if any, pending in this writ petition shall stand closed. ____________________ JUSTICE HARINATH.N BV