Accusations of Unauthorized Storage and Diversion of PDS Wheat Lead to Dismissal of Quashing Petitions
In a significant judgment, the Madhya Pradesh High Court has dismissed a series of petitions seeking to quash charges related to the unauthorized storage and diversion of food grains intended for the Public Distribution System (PDS). The ruling, handed down by Justice Rajesh Kumar Gupta, was delivered on January 16, 2026, in Gwalior.
The petitions, consolidated under Misc. Criminal Case No. 9185 of 2015 and others, challenged charges framed under Sections 406 and 407 of the Indian Penal Code (IPC) and Sections 3/7 of the Essential Commodities Act, 1955. These charges stem from a surprise inspection conducted on March 4, 2006, at Swastik Agro Mill, Vidisha, where officials discovered large quantities of wheat, intended for BPL cardholders, stored unlawfully.
The inspection revealed that the wheat, which was issued for distribution through the M.P. State Civil Supply Corporation, had been diverted and stored in private godowns rather than being delivered to designated fair price shops. This alleged diversion was believed to be part of a scheme for black-marketing the essential commodity.
The petitioners, including owners and operators of the storage facilities and transporters involved, argued for the quashing of charges on various grounds, including lack of involvement and procedural lapses in the charge-sheet. However, the court maintained that prima facie evidence of violations existed, which warranted a trial.
Justice Gupta emphasized the regulatory nature of the Essential Commodities Act, underscoring its role in preventing hoarding and black-marketing. The court ruled that technical objections could not defeat the prosecution at the initial stage when substantial evidence suggested unauthorized handling of essential commodities.
The judgment also clarified that procedural lapses or omissions in the FIR or charge-sheet do not invalidate prosecution if the nature of the violation is clear. The court highlighted that the Essential Commodities Act should be interpreted strictly to serve public interest and prevent misuse.
The ruling allows for the continuation of legal proceedings against the accused, with the trial court retaining the authority to modify charges based on evidence. This decision underscores the judiciary's commitment to upholding the integrity of the PDS and ensuring accountability for violations that impact public welfare.
Bottom Line:
Essential Commodities Act and Criminal Breach of Trust - Unauthorized storage and diversion of food grains meant for Public Distribution System (PDS) constitute prima facie offences under Sections 3/7 of the Essential Commodities Act and Sections 406/407 IPC.
Statutory provision(s): Section 482 CrPC, Sections 406 and 407 IPC, Section 3/7 of the Essential Commodities Act, 1955.
Naresh Sawnla v. State of Madhya Pradesh, (Madhya Pradesh)(Gwalior) : Law Finder Doc Id # 2840236
