The petitioners were arrayed as accused nos. 1 to 3 in FIR No. 501 of 2026, registered at Pahadishareef Police Station, Hyderabad, for offences punishable under Section 318(4) r/w 3(5) of the Bharatiya Nyaya Sanhita, 2023 (cheating) and Section 7 of the Essential Commodities Act, 1955. The specific allegation was that on 08.08.2026 the petitioners were found in possession of 24 tons of PDS rice allegedly procured from beneficiaries at cheaper rates for resale.
The petitioners contended that no beneficiary had complained of deceptive procurement or criminal intent, and that even on the face of the prosecution case the essential ingredients of cheating or criminal breach of trust were absent. They relied on an earlier decision of this Court in Cr1.P.No. 5709 of 2019 where proceedings on identical facts were quashed.
The learned Additional Public Prosecutor submitted that the offences constituted cheating and violation of Section 7 EC Act.
The Court examined Section 7 EC Act, which penalises contravention of orders relating to production, supply, distribution and trade of essential commodities. It noted that the prosecution case was that the petitioners procured PDS rice from beneficiaries *after* supply from the dealer. A coordinate bench in Crl.P.No. 1221 of 2025 had considered identical facts and observed that there was no averment that the petitioner deceptively induced beneficiaries to part with the rice, nor that the beneficiaries entrusted the rice and the petitioner dishonestly misappropriated it. In the absence of such essential factors, continuance of proceedings was an abuse of process of law, and the Court exercised its inherent jurisdiction under Section 528 BNSS to quash the proceedings.
Finding the facts and circumstances of the present case similar, this Court applied the same analogy and held it a fit case to exercise jurisdiction under Section 528 BNSS. The Criminal Petition was allowed and the proceedings in FIR No. 501 of 2026 against the petitioners/accused nos. 1 to 3 were quashed.
