APHC010316632026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3327] TUESDAY, THE 21st DAY OF JULY 2026 PRESENT THE HONOURABLE SRI JUSTICE K SREENIVASA REDDY WRIT PETITION NO: 17067/2026 Between: 1. GANGIREDDYPALEM YELLAMANDA REDDY, S/O KOTI REDDY, AGED ABOUT 44 YEARS. CONTRACTOR, R/O D.NO 3-90, BOTLAPALEM VILLAGE, DARSI MANDAL, PRAKASAM DISTRICT, ANDHRA PRADESH - 523252 ...PETITIONER A N D 1. THE STATE OF ANDHARA PRADESH, REPRESENTED BY ITS PRINCIPLE SECRETARY, PANCHAYATHI RAJ AND RURAL DEVELOPMENT, SECRETARIAT BUILDINGS, VELAGAPYUDI, AMARAVATHI, GUNTUR DISTRICT, ANDHRA PRADESH-522238. 2. THE COMMISSIONER, PANCHAYATH RAJ AND RURAL DEVELOPMENT (PR AND RD), O/O COMMISSIONER OF THE PANCHAYATH RAJ AND RURAL DEVELOPMENT DEPARTMENT, NEAR NH-16 SERVICE ROAD, TADEPALLE, ANDHRA PRADESH-522501. 3. THE EXECUTIVE ENGINEER, PR DIVISION, PADERU, ALLURI SEETHARAMARAJU DISTRICT, ANDHRA PRADESH - 531024. ...RESPONDENT(S): 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 to issue Writ or Order or Direction one more particularly in the Nature of WRIT OF MANDAMUS declaring the inaction of the respondents the payment of bill amount of rupees Twelve Lakhs One Thousand Nine Hundred and Thirteen (Rs 12,01,913/-) of Quality Control and Social Audit Amount (QC and SA) for the Six (6) works executed and completed under the Mahatma Gandhi National Rural Employment releasing in @ Guarantee Scheme pertaining to Gravel and Water Bound Macadem (WBM) SRK, J W.P.No.17067 of 2026 2 Road of Araku Valley and Pedabayalu Mandal of Alluri Seetharamaraju District is illegal, arbitrary, unjust and violative of Article 14,19,21 of the Constitution of India and consequently direct the respondents 3 to release the bill amount of rupees Twelve Lakhs One Thousand Nine Hundred and Thirteen (Rs 12,01,913/-)and consequently direct the respondent authorities to awrad interst for the delay caused for the payment of the bill amount to the petitioner and to pass Counsel for the Petitioner: 1. SRINIVASULU P Counsel for the Respondent(S): 1. GP FOR PANCHAYAT RAJ RURAL DEV The Court made the following: SRK, J W.P.No.17067 of 2026 3 O R D E R Heard learned counsel for the Writ Petitioner, learned Assistant Government Pleader for the Panchayat Raj and Rural Development, representing respondent Nos.1 to 3. 2. This Writ Petition is filed seeking the following relief: “….to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus, declaring the inaction of the respondents in releasing the payment of bill amount of Rs.12,01,913/- of Quality Control and Social Audit Amount (QC & SA) for the Six (06) works executed and completed under the Mahatma Gandhi National Rural Employment Guarantee Scheme pertaining to Gravel and Water Bound Macadem (WBM) Road of Araku Valley and Pedabayalu Mandal of Alluri Seetharamaraju District, is illegal and arbitrary, and consequently, directed the respondents to release the bill amount of Rs.12,01,913/- with interest for the delay caused for payment of the bill amount to the petitioner and pass such other order or orders …” 3. The Writ Petitioner claims to be a Civil Contractor by doing Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) Works in Botlapalem village of Darsi Mandal. On the resolution passed by the Gram Panchayat, the District Collector issued proceedings for sanction of works under the scheme of MGNREG. The Writ Petitioner was entrusted with six (06) works in Araku Valley Mandal and Pedabayalu Mandal of Alluri Seetharamaraju District viz., (a) formation of road up to WBM Grade-II Surface Graveling works in road connectivity from Baski ZP road to SRK, J W.P.No.17067 of 2026 4 Gandha Baski Gram Panchayat of Araku Valley Mandal with an estimated cost of Rs.50.00 lakhs with Work ID No.03760514147080007; (b) formation of road up to WBM Grade II Surface including CD works in road connectivity location from Baski ZP road to Gandha Baski Gram Panchayat of Araku Valley Mandal Reach-II with an estimated cost of Rs.50.00 lakhs with work ID No.037060514147080008; (c) formation of road up to WBM Grade-II surface including CD works in road connectivity from PD R&B road to Kavvurupalli (Reach-I) with an estimated cost of Rs.50.00 lakhs under the work ID No.037060203078080003; (d) formation of road up to WBM Grade-II surface including CD works PD R&B road to Kavvurupalli (Reach-II) with an estimated cost of Rs.42.00 lakhs under the work ID No.037060203078080002; (e) formation of road up to WBM Grade-II surface including CD works in road connecting location from Boithili road to Devarajumerakalu with an estimated cost of Rs.36.20 lakhs with work ID No.037060216241080001; and (f) formation of road up to WBM Grade-II surface including CD works from R&B road @ 27/000 km to Kuntamamidi with an estimated cost of Rs.41.75 lakhs under the work ID No.037060216236080004. (b) The total amount, which the Writ Petitioner is entitled to receive is Rs.12,01,913/-. The Writ Petitioner executed the six (06) SRK, J W.P.No.17067 of 2026 5 works under the MGNREGS. The respondent No.3 inspected the works and recorded the same in the Measurements Book, and also approved the bill amounts and released 80% of the amount and withheld the balance amount on the pretext of Quality Control and Social Audit. (c) It is the grievance of the Writ Petitioner that though he executed the entire work within time, the respondent authorities kept pending the balance amount of Rs.12,01,913/-. Even the Writ Petitioner approached the respondent authorities on multiple occasions, and also gave representations on 27.04.2026, requesting for payment of aforesaid balance amount, they are not doing so. According to Writ Petitioner, having executed the work satisfactorily, within the prescribed time, non-payment of the balance bill amount was arbitrary and unjustified. It was further contended that the delay in payment is causing severe financial hardship, necessitating the filing of the present Writ Petition seeking appropriate directions for release of the outstanding amount. 4. Today when the matter is taken up for hearing, learned Assistant Government Pleader for the Panchayat Raj and Rural Development Department, representing respondents, on written instructions received from the Executive Engineer, PRI Division, SRK, J W.P.No.17067 of 2026 6 Paderu-3rd respondent, submits that the Writ Petitioner executed the subject works, and accordingly, an amount of Rs.12,01,913/- is payable to the Writ Petitioner, and he seeks time to process the release of the bill amount to the Writ Petitioner. The written instructions are placed on record. 5. The issue raised in the present Writ Petition is squarely covered by the Order of this Court in Rayapureddy Srinivasa Rao and others v. Government of Andhra Pradesh, rep. by its Principal Secretary to Government and others and others1 and batch in which the Writ Petitions are allowed with the following directions: (i) The Memo No.1263069/RD.II/A1/2020, dated 05.11.2020 and the Memo No.1388361/RD.II/A1/2020, dated 12.05.2021 issued by the Respondent NO.1 are set aside to the extent of deduction of 21.02% for DCC works and 6.333% for MCC works while making payment to the petitioner. (ii) The respondents are directed to clear the bills submitted by the petitioner and to release payment forthwith, in case no payment is made till date. (iii) In case, any part payment is made as on date, the remaining amount shall be paid to the petitioner forthwith. (iv) The respondents shall pay interest @ 12% per annum within a period of four (4) weeks from the date of receipt of a copy of this order. 1 2021 SCC Online AP 3084. SRK, J W.P.No.17067 of 2026 7 (v) The interest shall be compound from the date of expiry of one month from the date of submission of the bill by the petitioner to till the date of final payment. 6. Against the above said order, several Writ Appeals are filed and in one of the Writ Appeals (i.e.) Writ Appeal No.724 of 2021, a Division Bench of this Court has passed an interim Order, dated 18.11.2021 as extracted hereunder: “The direction of the learned Single Judge regarding payment of interest to the respondent No.1 as also setting aside the provision in Memo No.1263069/RD.II/A1/ 2020, dated 05.11.2020 and the Memo No.138861/RD.II/A1/ 2020, dated 12.05.2021 relating to deduction of 21.02% for DCC works and 6.333% for MCC works, while making payment, shall remained stayed. On a query of the Court, learned Advocate General submitted that the direction of the learned Single Judge as far as payment of the principal amount of the bills raised by the original writ petitioner, in terms of the order of the Division Bench in Krishna District Grama Panchayathi Sarpanchla Sangam (supra), shall be made within four weeks, if already not done. The matter be listed for hearing in due course. It is clarified that the appellants shall comply with the rest of the directions issued by the learned Single Judge in the judgment under appeal.” 7. Subsequently, a Division Bench of this Court headed by the Hon‟ble the Chief Justice while hearing the Writ Appeal Nos.740 SRK, J W.P.No.17067 of 2026 8 and 741 of 2021, having considered the Order passed in Writ Appeal No.724 of 2021, passed the following Order: “Considering the facts and circumstances of the case and having regard to the interim order passed by the Coordinate Bench, we direct that the said interim order shall apply for the present Writ Appeals also, however, with a condition that the appellants shall pay the principal amount of the bill raised by the original Writ Petitioners, within a period of four weeks, failing which the present interim order shall stand vacated without reference to the bench.” 8. The learned counsel for the Writ Petitioner requested the Court to clarify the applicability of the Memo No.1263069/RD.II/A1/ 2020, dated 05.11.2020 and the Memo No.138861/RD.II/A1/2020, dated 12.05.2021. 9. The learned Assistant Government Pleader for Panchayat Raj submitted that the said Memos are issued for the works executed under „Mahatma Gandhi National Rural Employment Guarantee Scheme‟. Therefore, it is made clear that the Memo No.1263069/RD.II/A1/2020, dated 05.11.2020 and the Memo No.1388361/RD.II/A1/2020, dated 12.05.2021 are applicable to the works executed under „Mahatma Gandhi National Rural Employment Guarantee Scheme‟ only. SRK, J W.P.No.17067 of 2026 9 10. A perusal of the written instructions goes to show that there is no dispute with regard to execution of works by the Writ Petitioner under the Mahatma Gandhi National Rural Employment Guarantee Scheme, and also the Writ Petitioner‟s entitlement to net amount of Rs.12,01,913/-. Therefore, since the amount payable to the Writ Petitioner, is admitted and undisputed, the Writ Petition is maintainable. In M/s. Utkal Highways Engineers and Contractors v. Chief General Manager & Ors.2, it was held as under: (Paragraph No.8) “Be that as it may, the High Court has not dealt with the merits of the Writ Petition. Moreover, it is not an inviolable rule that no money claim can be adjudicated upon in exercise of Writ jurisdiction. Non-payment of admitted dues, inter alia, may be considered an arbitrary action on the part of respondents and for claiming the same, a Writ Petition may lie. Further, throwing a Writ Petition on ground of availability of alternative remedy after 10 years, particularly, when parties have exchanged their affidavits, is not the correct course unless there are disputed questions of fact which by their very nature cannot be adjudicated upon without recording formal evidence.” 11. Having regard to the facts and circumstances of the case coupled with the submission made by the learned Assistant Government Pleader for the Panchayat Raj and Rural Development, 2 2025 SCC OnLine SC 1400. SRK, J W.P.No.17067 of 2026 10 the respondent authorities are directed to pay the net amount/ admitted amount of Rs.12,01,913/- (Rupees Twelve Lakhs One Thousand Nine Hundred and Thirteen only) to the Writ Petitioner within a period of Six (06) weeks from the date of receipt of a copy of this order. 12. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs of the Writ Petition. As a sequel thereto, the miscellaneous applications, if any, pending in this Writ Petition, shall stand closed. JUSTICE K. SREENIVASA REDDY 21st July, 2026. DNB Whether the Order is: Speaking ✓ Reasoned Reportable Non-reportable ✓