Telangana Govt Moves Against ‘Defaulting’ Rice Millers

Hyderabad: The state government, represented by the Department of Civil Supplies, Consumer Affairs, Civil Supplies Corporation and others, filed an appeal before the Telangana High Court seeking action against rice millers who have defaulted in delivering custom milling rice (CMR), and had diverted paddy supplied to them for CMR.

On the request of the government wings, the High Court on Monday issued interim orders directing several rice millers not to alienate their immovable assets till the next hearing.

Earlier, the government had seized movable and immovable properties of such errant rice millers, by invoking provisions of the Revenue Recovery Act.

However, in first week of September, a single judge while dealing with the petitions of the rice millers, has set aside the seizure proceedings on the ground that notices were not issued to the millers and because the authorities had not followed provisions of the Revenue Recovery Act.

Challenging the single judge orders, the civil supplies department and other concerned wings collectively filed an appeal.

During the arguments, advocate general A. Sudershan Reddy submitted that the rice millers were not entitled to any notice before taking action for recovery of the amount.

Senior counsels R.N. Hemendranath Reddy, A. Venkatesh and others, representing the rice millers, argued that the amount due from the millers cannot be recovered unless and until there is adjudication of the amount and destraint cannot be passed against the properties owned by the directors or shareholders in respect of the liability of the rice millers. But, the authorities also proceeded with the seizure of personal properties of the directors and shareholders of the rice millers. Further, they argued that proceedings under the Telangana Revenue Recovery Act, 1864, cannot be resorted to when there exists an arbitration clause between the parties.

After hearing the contentions, the High Court directed the advocate general to appraise the court whether any notice was issued to the rice millers before initiating the Revenue Recovery Act. On the request of the advocate general, the court adjourned the hearing to November 5, till then the rice millers shall not alienate the immovable assets.