Set back for Nandyal MP SPY Reddy in IMFL distillery case

Tuesday, December 15, 2015

  • Pay licence fee in tune with GO No.67
  • Directs to pay Rs.34 crore in addition to already paid Rs.17 crore
  • Government decision to extend LOI dead is not correct

Telugu Desam Party leader and Nandyal MP SPY Reddy got a set back from the Hyderabad High Court which ordered him to pay licence fee in accordance with the GO. No. 67 issued in 2011 and not the one issued in 2009 for establishing SPY Agro Industries Ltd., IMFL distiller. Acting Chief Justice D.B.Bhosale and Justice S.V.Bhatt dealing with a PIL filed by Kodali Nani gave the directions.

SPY Reddy has paid Rs.17 crore in accordance with the GO issued in 2009 and the court ordered to pay Rs.34 crore in lines with the GO No.67 issued in 2011. The court said that it will not keep quite if the party wanted to get favour by him own mistake of not establishing and producing the IMFL in stipulated time. When SPY Reddy applied for licence in 2013, the court ordered him to pay the amount in tune with the GO.No.67 that was already in existence.

The court set aside the arguments of SPY Reddy who stated that Kodali Nani has filed the case with a political motto. The High Court found fault with the government of extending the time of Letter of Intent that was issued in 2008 from time to time.

The State Government has issued Letter of Intent (LoI) in 2008 with a three years’ time, Reddy has applied in the year 2009 and there were only exchange of correspondence between the Reddy and the government and no material action has taken place. When the court poses a question when the party has applied in 2009, what is the reason for a fresh application in 2013 received no convincing reply.

If the application for licence was applied on October 5, 2013 which was readily taken into consideration the court observed that the LoI was not in existence between October 20, 2011 to April 17, 2013. The extension of date by the government is the prime reason for Reddy to apply for licence afresh, said the court. In the instant case, LoI was issued to SPY Reddy in accordance with GO NO.90 of 2008. By the time, he applied a fresh in 2013, there were so many changes took place in licence fee rules. In our opinion, the question when it was taken into consideration is important than the question of application and hence the date of issuance of LoI is not important and Reddy has not completed the formalities in the stipulated time. The Court ordered for payment of Rs.37 crore in accordance with the rules in existence.

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