APHC010472172026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) THURSDAY, THE 24th DAY OF SEPTEMBER 2026 PRESENT THE HONOURABLE SRI JUSTICE K SREENIVASA REDDY WRIT PETITION Nos.: 25714 &13066 OF 2026 WRIT PETITION NO: 25714 OF 2026 Between: 1. M/s Vijayasree Rice Industries Private Ltd.,, Contractors of Rice Mill Sri GowriputraAgro Products Pvt Ltd, Rep. by its Authorized Representative/Director, Mr. Lakshmi Ganeswara Kalki Avatara Reddy Manda, Having its registered office at Dr. No. 12-420/12, Tadiparru Road, Undrajavaram Mandal, West Godavari District, Andhra Pradesh-534 216. 2. Sri Lakshmi Ganeswara Kalki Avatara Reddy Manda,, Occ Authorized Representative/Director, M/s Vijayasree Rice Industries Private Ltd., Contractors of Rice Mill Sri GowriputraAgro Products Pvt Ltd Having its registered office at Dr. No. 12-420/12, Tadiparru Road, Undrajavaram Mandal, West Godavari District, Andhra Pradesh-534 216. ...Petitioners AND 1. THE STATE OF ANDHRA PRADESH, Rep. by its Principal Secretary, Food, Civil Supplies and Consumer Affairs Department, Secretariats Buildings, Amaravati - 522238. 2. The Andhra Pradesh State Civil Supplies, CorporationLimited(APSCSCL), Rep. by its Vice-Chairman and Managing Director Vijayawada, Andhra Pradesh - 520007. 3. The Collector Civil Supplies, East Godavari District, Andhra Pradesh - 533233. 4. The Joint Collector and E O E D APSCSCL, East Godavari District, Andhra Pradesh - 533001. 5. The Commissioner of Civil Supplies, Vijayawada, Andhra Pradesh - 520007. 6. The District Supply Officer, East Godavari District, Andhra Pradesh - 533101. 2 SRK, J W.P.Nos.25714 & 13066 of 2026 7. The District Civil Supplies Manager, APSCSCL, East Godavari District - 533101. 8. The Revenue Divisional Officer, Kovvur, Andhra Pradesh - 534350. 9. The Food Corporation of India, Rep. by its General Manager, Regional Office, Patamata, Vijayawada - 520010 ...Respondents 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 toissue any appropriate Writ, order, direction, more particularly one in the nature of Mandamus declaring the inaction of the Respondents in refusing to return/release the Bank Guarantees aggregating Rs. 10,26,00,000/- (details of the same in Ex.P.30) furnished by Petitioner No.1 and orallyrefusing to supply paddy to the Petitioners for Kharif Marketing Season (KMS) 2026-2027 as being illegal, arbitrary, contrary to principles of natural justice, violative of Articles 14, 19, and 21 of Indian Constitution and consequently, direct the Respondents to supply paddy to the Petitioners for Kharif Marketing Season (KMS) 2026-2027 by returning the Bank Guarantees aggregating Rs. 10,26,00,000/- (details of the same in Ex.P.30)furnished after duly accepting the bank guarantees for KMS for the quantities to be supplied IA NO: 1 OF 2026 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 direct the Respondents to release the Bank Guarantees, aggregating Rs. 10,26,00,000/- (details of the same in Ex.P.30)retained by the Respondents after considering the representation of the Petitioners dated 02.06.2026 IA NO: 2 OF 2026 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 direct the Respondents to supply paddy to the Petitioners to its regular quantity for Kharif Marketing Season (KMS) 2026-2027 Counsel for the Petitioners: VENKAT CHALLA Counsel for the Respondents: GP FOR CIVIL SUPPLIES WRIT PETITION NO: 13066 OF 2026 Between: 1. M/s Vijayasree Rice Industries Private Ltd.,, Contractors of Rice Mill Sri Gowriputra Agro Products Pvt Ltd, Rep. by its Authorized Representative/Director, Mr. Lakshmi Ganeswara Kalki Avatara Reddy Manda, Having its registered office at Dr. No. 12-420/12, Tadiparru Road, Undrajavaram Mandal, West Godavari District, Andhra Pradesh-534 216. 3 SRK, J W.P.Nos.25714 & 13066 of 2026 2. Sri Lakshmi Ganeswara Kalki Avatara Reddy Manda,, Occ. Authorized Representative/Director, M/s Vijayasree Rice Industries Private Ltd., Contractors of Rice Mill Sri Gowriputra Agro Products Pvt Ltd Having its registered office at Dr. No. 12-420/12, Tadiparru Road, Undrajavaram Mandal, West Godavari District, Andhra Pradesh-534 216. ...Petitioners AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary, Food, Civil Supplies and Consumer Affairs Department, Secretariats Buildings, Amaravati - 522238. 2. The Andhra Pradesh State Civil Supplies Corporation LimitedAPSCSCL, Rep. by its Vice-Chairman and Managing Director, Vijayawada, Andhra Pradesh - 520007. 3. The Collector Civil Supplies, East Godavari District, Andhra Pradesh - 533233. 4. The Joint Collector and E O E D, APSCSCL, East Godavari District, Andhra Pradesh - 533001. 5. The Commissioner of Civil Supplies, Vijayawada, Andhra Pradesh - 520007. 6. The District Supply Officer, East Godavari District, Andhra Pradesh - 533001. 7. The District Civil Supplies Manager, APSCSCL, East Godavari District - 533101. 8. The Revenue Divisional Officer, Kovvur, Andhra Pradesh - 534350. 9. The Food Corporation of India, Rep. by its General Manager, Regional Office, Patamata, Vijayawada - 520010. ...Respondents 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 any appropriate Writ, order, direction, more particularly one in the nature of Mandamus declaring the inaction of the Respondents, more particularly Respondent No. 4 herein in vide Procgs No. Mktg/KMS 2025-26/CMR/Quality Complaints/2026 dated 25.04.2026 and the consequential notice issued on 01.05.2026 as being illegal, arbitrary, contrary to the cardinal principles of natural justice and settled principles of law, and violative to Article 14, 19 and 21 of the Indian Constitution and consequently set aside the same and pass IA NO: 1 OF 2026 4 SRK, J W.P.Nos.25714 & 13066 of 2026 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 suspend the operation of Procgs No. Mktg/KMS 2025- 26/CMR/Quality Complaints/2026 dated 25.04.2026 and the consequential notice issued on 01.05.2026 and pass IA NO: 2 OF 2026 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 not to stop the supply of the regular quantity of the paddy to its capacity for Custom Milling purposes and pass IA NO: 3 OF 2026 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 not to refuse delivery of the leftover quantity or in the alternative permit the Petitioners to sell the same through “B” Register and consequently remit the amount to the credit of Respondent No.2 corporation for the quantities whose delivery was illegally refused by the Respondents and pass IA NO: 4 OF 2026 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 may be pleased to modify the order dated 08.05.2026 passed in W.P. No. 13066 of 2026 by reducing/waiving the condition of furnishing Bank Guarantee double the value of the paddy supplied on par with similarly placed millers and pass Counsel for the Petitioners: VENKAT CHALLA Counsel for the Respondents: KOTI REDDY IDAMAKANTI Counsel for the Respondents:GP FOR CIVIL SUPPLIES The Court made the following order: 5 SRK, J W.P.Nos.25714 & 13066 of 2026 COMMON O R D E R As both the Writ Petitions relate to same set of facts and are interlinked, they are being disposed of, by way of this common order. 2. W.P.No.13066 of 2026 is filed seeking to set aside the proceedings No.Mktg/KMS 2025-26/CMR/Quality Complaints/2026, dated 25.04.2026 of 4th respondent and the consequential notice issued on 01.05.2026. 3. W.P.No.25714 of 2026 is filed seeking to direct the respondents to supply paddy to the petitioners for Kharif Marketing Season (KMS) 2026- 2027 by returning the Bank Guarantees aggregating to Rs.10,26,00,000/- furnished after duly accepting the bank guarantees for KMS for the quantities to be supplied. 4. 1st petitioner herein is M/s. Vijayasree Rice Miller Industries Pvt. Ltd and 2nd petitioner is its authorized representative/ Director. Brief facts of the case are that 1st petitioner, who was engaged in the business of processing paddy and selling the resultant rice, has entered into Memorandum of Understanding with the A.P. State Civil Supplies Corporation Ltd., on 12.11.2025, and a consequential cluster agreement, dated 12.11.2025. 1st petitioner was permitted to undertake Custom Milling of Paddy (CMR) for the Khariff Marketing Season (KMS) 2025-26. Petitioners issued Bank Guarantees worth Rs.7,96,00,000/- in favour of 2nd respondent herein. 6 SRK, J W.P.Nos.25714 & 13066 of 2026 The petitioners had delivered 1073.10 MT of rice to Food Corporation of India, wherein, an extent of 116 MT of rice was rejected basing on the allegations that the consignment contained traces of Fortified Rice Kernels, Live infestation and failed Mixed Indicator Method (MIM) test and was found to have violated the provisions of the CMR Rules and Regulations. On account of the said violations, 1st petitioner was issued a show-cause notice, dated 20.12.2025, seeking a written explanation as to why stringent action should not be taken. Subsequently, 1st petitioner submitted a reply notice, dated 27.12.2025, denying all the allegations. Pursuant to the same, 4th respondent passed an order, dated 25.04.2026 banning the petitioners from undertaking CMR operations for the Rabi 2025-26 and Kharif 2026-27 seasons. 5. Aggrieved by the said proceedings, the petitioners herein have filed W.P.No.13066 of 2026 before this Court. 6. On 08.05.2026, this Court has passed an interim order directing the respondents to supply paddy to the petitioners’-mill, subject to the condition that the petitioners shall furnish a Bank Guarantee for double the value of the paddy supplied to the petitioners, which includes the Bank Guarantee already deposited by the petitioners with the authorities. 7. W.P.No.25714 of 2026 is filed being aggrieved by the action of the respondents in refusing to release the Bank Guarantee, aggregating to Rs.10,26,00,000/- and consequently to direct the respondents to supply the paddy to the petitioners for the Kharif 2026-27 season. 7 SRK, J W.P.Nos.25714 & 13066 of 2026 8. Heard Sri Venkat Challa, learned counsel for the petitioners and the learned Standing Counsel for APSCSCL for the respondents. 9. The learned counsel for the petitioners submits that pursuant to the interim direction given by this Court, 1st petitioner has furnished Bank Guarantee worth Rs.2,00,00,000/- over and above the Bank Guarantees already subsisting with the respondents. 10. The learned Standing Counsel for APSCSCL has produced written instructions stating that, Bank Guarantees for an amount of Rs.10,26,00,000/- pertaining to KMS 2025-26 and RMS 2025-26 are available with the office in respect of M/s. Vijayasree Rice Industries Pvt. Ltd., Undrajavaram. It is also stated that the respondent authorities have no objection to release the said Bank Guarantees in favour of the petitioners. 11. In view of the above, the respondent authorities are directed to release the said Bank Guarantees in favour of the petitioners, within a period of four (4) weeks from the date of receipt of a copy of this common order. 12. The respondent authorities are also directed to supply paddy to the petitioners’-mill for the Kharif 2026-27 season, subject to the same conditions as imposed in the order dated 08.05.2026 in W.P.No.13066 of 2026. 13. Accordingly, these Writ Petitions are disposed of. There shall be no order as to costs. 8 SRK, J W.P.Nos.25714 & 13066 of 2026 Pending miscellaneous petitions, if any, shall stand closed. As a sequel thereto, the miscellaneous applications, if any pending, shall stand closed. _____________________________ JUSTICE K. SREENIVASA REDDY Date: 24.09.2026. MJA/SKB 9 SRK, J W.P.Nos.25714 & 13066 of 2026 144 HON’BLE SRI JUSTICE K. SREENIVASA REDDY WRIT PETITION Nos.: 25714 &13066 OF 2026 Date: 24.09.2026 MJA/SKB