(1.) The Collector and District Magistrate, Pr akasham District, by an order dated 17-8-1994 in Re.CC No. 45/94 directed the detention of Desu Brahma Rao @ Brahmaiah, proprietor of Sri Balaji Rice Mill, Kandukur, with a view to preventing him from further acting in any manner prejudicial to the maintenance of supply of rice, a commodity essential to the community. The order alleges that the detenu, by diverting and selling rice, has contravened clauses 3 (1) and (4) of the Andhra Pradesh Scheduled Commodities (Regulation of Distribution by Card System) Order, 1973 and clause 3 (1) of the Andhra Pradesh Scheduled Commodities Dealers (Licensing and Distribution) Order, 1982 r/w Sections 7 and 8 of the Essential Commodities Act, 1954. The order was passed under sub-section (2) (a) of the Section 3 r/w Section 3 (1) of the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980. The legality of the order of detention is challenged in this writ petition by the younger brother of the detenu.
(2.) The grounds of detention mentioned two specific incidents based upon which the detaining authority has formed the requisite opinion: (i) The inspector of Police, Civil Supplies Department, on information that the detenu was purchasing rice meant for public distribution system through one Modepalli Avulaiah and others, polishing the same at his rice mill and selling the polished rice at higher rates in the market, kept a watch near the premises of the mill on the intervening night of 5/6-6-1994. At about 2.00 A.M., on 6-6-1994, the Inspector of Police, the staff and the two mediators present, saw one tractor bearing No. A.A.E. 8500 entering the business premises of the detenu and unloading the stocks therein. The Inspector of Police and the staff entered into the premises of the mill, stopped the unloading of stocks and when questioned, the detenu failed to give any satisfactory explanation for unloading the rice bags in the premises of the mill and he also failed to produce documents pertaining to the rice bags being unloaded. At that time, along with the detenu were present, one Mandadi Radhakrishnaiah, fair-price shop dealer of Venkatadripalem and Modepalli Avulaiah, fair-price ship dealer of Kalavalla village. By the time the Inspector and the staff could stop the unloading, 32 bags of rice were already unloaded and ten bags of rice and one bag of sugar were found in the trailer of the tractor. Each bag contained the markings and acknowledgement numbers of the Food Corporation of India godowns. (ii) The Second incident also happened at about the same time. When the Inspector and the staff were engaged in the inspection of the mill, they noticed another tractor bearing No. AAN 2608 with its trailer bearing No. AAG 2537 containing rice bags reaching the mill and on a caution given by somebody about the presence of police, the driver of the tractor and a muta cooli accompanying the driver tried to escape but they were prevented from leaving that place. On enquiry, the driver of the tractor and the broker, Avulaiah, furnished the information that he (Avulaiah) purchased 28 qtls. of public distribution rice on behalf of the detenu from the fair price shop of Gade Ram Reddy of Jillellamudi at the rate of Rs. 450/- per quintal and the same were packed into 28 100 kg gunny bags and sent to the detenu's rice mill through the tractor.
(3.) The detenu as well as the two fair-price shop dealers - Radhakrishnaiah and Avulaiah - were arrested and the entire stock was seized. The detenu moved an application for bail which was granted by this court on 22-6-1994 in Crl. M.P. No. 1362 of 1994, pursuant to which he was released on 23-6-1994. The Vigilance Cell authorities, after completing the investigation, filed a report on 30-7-1994 before the Joint Collector under Section 68A of the Essential Commodities Act for passing appropriate orders with regard to the seized stocks. On 15-8-1994, the Civil Supplies authorities sent a requisition to the district Collector and Magistrate for consideration of the case for passing orders of preventive detention. The District Collector was satisfied with the material placed before him and passed the impugned order on 17-8-1994.