Telangana Rice Millers CMR Dues Case Reaches High Court Over Criminal Charges
Telangana rice millers CMR dues dispute reaches High Court as millers challenge criminal cases worth 3960 crore arguing no loss to government and violation of contract terms.
- Telangana rice millers CMR dues case in High Court
- CMR dues dispute questions criminal charges legality
- Rice millers seek quashing of criminal cases
A major legal dispute involving rice millers in Telangana has reached the High Court, with hundreds of mill owners challenging criminal cases filed against them over Custom Milling Rice dues.
Around 360 rice millers have approached the court, arguing that the cases filed against them are unjustified and should be dismissed. The issue relates to the 2022 23 procurement season, when paddy was supplied to mills under the Custom Milling Rice system.
Under this arrangement, millers are required to process paddy into rice and return it to the government within a specified timeframe. However, the millers claim that the government later instructed them to stop milling operations and instead chose to auction the paddy.
According to the millers, this decision meant that the state did not suffer any financial loss. Despite this, authorities filed criminal cases accusing them of diverting paddy and failing to return rice or clear dues amounting to Rs 3960 crore.
The millers have strongly opposed these allegations, stating that the government’s actions violated the original contract terms. They argue that the dispute is purely financial in nature and should be resolved through civil proceedings rather than criminal prosecution.
Citing previous Supreme Court rulings, the petitioners maintained that criminal law should not be used as a tool to recover money or exert pressure in contractual disputes.
The matter was heard by Justice J Srinivasa Rao, who has reserved judgment after listening to arguments from both sides. The upcoming verdict is expected to determine whether the criminal cases will continue or be quashed.
The case has drawn attention across the agricultural and milling sectors, as its outcome could set a precedent for how similar disputes between governments and private operators are handled in the future.
