Telangana High Court
Pagididi Dha Raju Sammakka Sarakka Sand ... vs The State Of Telangana, on 23 July, 2025
Author: K. Lakshman
Bench: K. Lakshman
HON'BLE SRI JUSTICE K. LAKSHMAN
W.P. No.13802 OF 2025
ORDER:
Heard Mr. D.Goverdhana Chary, learned counsel for petitioner, learned Govt. Pleader for Cooperation appearing for 2nd respondent, Sri Mummaneni Srinivasa Rao, learned Standing Counsel for Telangana State Mineral Development Corporation (TSMDC) appearing for 5th respondent and Sri Ramesh Babu Vishwanathula, learned counsel appearing for 7th respondent.
2. This writ petition is filed to set aside the proceedings No.462/sand/Wadagudem-IV/2023 and proceedings No.437/sand/ Wadagudem-V/2023 both dated 04.04.2025 of 3rd respondent issued in respect of sand bearing areas in Godavari river area at Wadagudem village, Mangapet Mandal, Mulugu district and consequent agreements both dated 11.04.2025 of 5th respondent, as illegal.
3. Petitioner's Society is a society registered under the Telangana Cooperative Societies Act, 1964 (for short, 'the TCS Act') and has been in existence and doing sand quarrying from Godavari River at Wadagudem of Mangapet Mandal, Mulugu district, duly obtaining license. There are five identified sand bearing areas in 2 Godavari river at Wadagudem Village and out of five, for technical reasons, sand bearing areas I and III could not be allotted, whereas sand bearing area No. II was allotted to the petitioner's society in the year 2022. Agreement dated 12.04.2022 was also entered with District Cooperative Officer/Respondent No.5 and out of the earnings, dividend was paid to its 111 members who depended upon the quarrying.
4. Pursuant to the proceedings of 3rd respondent, dated 04.04.2025, the District Collector/4th respondent, allotted sand bearing areas IV and V to Respondent No.7. Respondent No.5 entered into agreements both dated 11.04.2025 with 7th respondent with regard to extraction of sand in respect of Wadagudem-IV and V sand bearing areas, in utter violation of the provisions of the TCS Act, as 7th respondent society was formed U/s.5 of the Telangana Mutually Aided Cooperative Societies Act, 1995 (for short, 'TMACS Act'). There cannot be two societies in the same village.
5. 7th respondent society having been formed under TMACS Act, 1995, cannot seek any kind of aid from State Government, Central Government or local Government.
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6. 3rd respondent/The Commissioner for Cooperation, earlier issued a Circular dated 12.07.2022 directing 4th respondent to ensure that one village shall have only one society and vide memo dated 22.05.2023, withdrew the said circular. The said memo dated 22.05.2023 was challenged in W.P.No.13756 of 2023 wherein this Court vide order dated 06.06.2023 granted status quo and later vide order dated 13.06.2023 granted interim suspension of the said memo. Therefore, Respondent No.4 registered the society of Respondent No.7 in the same village under two different Acts, having knowledge of said interim suspension, is not permissible.
7. 7th respondent seeking allotment of sand bearing areas for its members who are just 24 which TMACS Act, does not permit and further Section 14 of TMACS Act, requires to mobilise funds in the shape of share capital, deposits, debentures, loans and other contributions from its members only. Proviso of said Section 14(2) (A) clearly mandates the society formed under TMACS Act, shall not accept share capital from the government but may accept other funds or guarantees from the government on such terms and conditions as are mutually agreed thereupon. Therefore in the absence of 4 Memorandum of Understanding, it cannot seek any funds from the Government.
8. Petitioner society was formed in the year 2012 and has 111 members which is evident from the audits conducted to the society in the years 2022-2023 and for the year 2023-2024, whereas 7th respondent society formed under TMACS Act, is just having 24 members, is trying to deprive the livelihood of 111 members of the petitioner's society. Therefore, existence of Respondent No.7 and its entitlement for excavation of sand is bad in law and aforesaid proceedings dated 04.04.2025 of 3rd respondent and agreements dated 11.04.2025 entered by 5th respondent with 7th respondent are liable to be set aside.
9. 4th respondent filed counter contending that the Petitioner herein suppressed the fact that 3rd respondent issued a memo dated 22.05.2023 withdrawing the earlier circular dated 12.07.2022 issued by him restricting one society to one village, after considering several representations submitted by the Tribal Organizations stating that the livelihood from the sand societies was hampering them by imposing restrictions of one society in one village and after elaborate discussion.
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10. 3rd respondent came to an opinion that most of the Tribal Committees of Mulugu District are depending on the income generated from the sand bearing areas i.e. Wazeedu, Venkatapuram and Mangapeta and the restriction of one society to one village will cause impact on their livelihood who are not part of that society and therefore vide circular dated 12.07.2022 unanimously decided to withdraw the restrictions imposed.
11. Basing on the memo dated 22.05.2023 of 3rd respondent, 7th Respondent Society got registered under Section 5 of TMACS on 07.06.2023. On the opinion of the Gram Sabha conducted under the Panchayath Extension Scheduled Area Act, for Wadagudem Reaches IV and V by the Mandal Parishad Development Officer, Mangapeta (MPDO), the Society was accepted for extraction of sand from Wadagudem, after complying all the formalities, proceedings were issued for allotment of said Reaches Nos. IV and V on 04.04.2025. The Petitioner was not eligible for Gram Sabha as it failed to conduct audit for the financial years 2022-23 2023-24.
12. Petitioner Society did not receive any Aid. Share Capital, Debentures and Loans from the Government. Two Writ Petitions vide W.P. Nos. 15446 of 2023, 19166 of 023 were filed wherein interim 6 orders were passed for registering multiple societies in one village in accordance with law. As such Palem and Tekulagudem villages of Mulugu District are having multiple societies in one village. With the said submissions, 4th respondent sought to dismiss the writ petition filed by the petitioner.
13. 5th respondent filed counter contending that Government vide G.O.Ms.No.38 Ind. & Com. Department, dated 12.12.2014 has introduced New Sand Mining Policy, 2014 in Telangana State and vide G.O.Ms.No.03, Ind. & Com. Department, dated 08.01.2015 formulated Telangana State Sand Mining Rules, 2015 ( for short, 'the Rules, 2015') and as per the said Rules, orders were issued accordingly.
14. Joint Inspection of the society was conducted by Revenue, Ground Water, Irrigation, Agriculture, and ADMG Mulugu and reports dated 29.04.2023 were submitted to the Member Convenor, DLSC, Mulugu. The Member Convenor, DLSC/3rd respondent, Mulugu has placed the same in District Level Committee meetings and after detail discussion, issued proceeding No. No.33/Sand/2019, dated 25.10.2024 to M/s TSMDC for excavation and transportation of sand from Society for a quantity of 99,800 cubic meters. 7
15. 5th respondent has obtained all the statutory clearances i.e. Environmental Clearances, Consent for Establishment (CFE) & Consent for Operation (CFO) from the Pollution Control Board and submitted to 3rd respondent for final allotment proceeding. 3rd respondent has issued final allotment proceeding No.437/Sand/Wadagudem-V/2023, and No.462/Sand/ Wadagudem- IV/2023, both dated 04.04.2025 and as per the opinion of Grama Sabha in respect of Wadagudem-V sand reach conducted by MPDO, Mangapeta Mandal, the petitioner was accepted for extraction of sand in the Wadagudem-IV and Wadagudem-V sand reaches.
16. 5th respondent has entered into agreements with 7th respondent on 11.04.2025 which shall be in force from 11.04.2025 tο 27.03.2026. The Project Officer, TSMDC Mulugu has prepared agreements in Form-S1 and sent to Asst Director and Mines and Geology, Mulugu on 1.05.2022 for onward entering agreements between TSMDC and ADMG Mulugu.
17. The Asst. Director of Mines and Geology vide letter No. No.437/Sand/Wadagudem-V/2023, dated 01.05.2025 and entered into S1 agreement with the Project Officer, TSMDC, Mulugu District and started excavation of sand in Wadagudem sand reach of Mulugu 8 District. In compliance with the order dated 02.05.2025 in the present writ petition, 5th respondent has ceased sand excavation activities at the Wadagudem-IV and V reaches from 13.05.2025.
18. 7th respondent filed counter contending that the petitioner has no locus standi to file the present writ petition. Prior to issuance of Labour Contract in Wadagudem village, the MPDO of Mangapet addressed a letter dated 25.03.2025 to 4th respondent requesting details and to identify eligible Tribal Sand Quarry Societies for conducting the Gram Sabha in Wadagudem village. Respondent No.5 submitted a comprehensive report stating that the petitioner society is not eligible to place them in Gram Sabha, and only respondent No.7 society is eligible for sand excavation.
19. The petitioner society has suppressed the fact that it is not eligible for taking the Sand Quarry Labour Contract. 7th respondent society is formed under section 5 of TMACS Act, 1995 which is the latest Act. Proviso to Section 5 of the Act says that if a society is earlier registered under TCS Act, 1964 and if the same society is again registered under TMACS act 1995, the earlier registration stands cancelled. And further, every society registered under TMACS Act, 1995 shall be renewed for every five years subject to the society's 9 accounts updated and audited as per provisions of Act. The societies must conduct the elections and the society shall not violates any provisions of the Act, Rules and By-laws.
20. Petitioner society should have taken steps to challenge the ineligibility proceedings to participate in Gram Sabha passed by 4th respondent, instead of challenging the proceedings made in favour of 7th respondent, so that the petitioner may have opportunity to participate in future Grama Sabhas. With the said submissions, 7th respondent sought to dismiss the present writ petition. FINDING OF THE COURT:-
21. In the light of the aforesaid discussion, it is apt to note that vide G.O.Ms.No.3, dated 08.01.2015, the Government has announced New Sand Policy, 2014 for regularization of sand mining and formulated Telangana State Sand Mining Rules, 2015 (for short, 'TSSMR, 2015').
22. Rule 2 of the said Rules deals with Regulation of extraction/disposal of Stream/River Sand and Rule 2 (iii) says that allocation partially/fully of specified sand bearing areas located in Scheduled Areas shall be as per the Panchayats Extension to Scheduled Areas (PESA) Rules, 2011 ( for short, 'PESA Rules') or 10 any suitable subsequent rules/amendments to be issued by Government from time to time with Technical and Administrative support from Integrated Tribal Development Authorities (ITDA)/ Telangana State Mineral Development Corporation Limited (TSMDC Ltd.) under the direct supervision and control of the Agency Magistrate/District Collector concerned. Operational guidelines shall be issued by the District Collector from time to time. Rule 4 (iv) (b) of Rules says that Telangana State Mineral Development Corporation (TSMDC) shall obtain certain statutory clearances. Rule 4 (iv) (c) of Rules says that on submission of statutory clearances, the Chairman, District Level Sand Committee (DLSC) shall allot the specified sand bearing area to TSMDC for extraction of sand. Rule 4 (iv) (d) of Rules says that TSMDC shall execute a lease deed in Form-S1 with Assistant Director of Mines and Geology concerned within (15) days from the date of allotment order. As per Rule 4 (v) of the Rules, after execution of lease deed, TSMDC shall extract sand by engaging a raising contractor from the specified sand bearing area to an approved stock yard. The raising contractor will be selected under strict competitive bidding process.
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23. Vide G.O.Ms.No.66, dated 24.03.2011, Government has framed PESA Rules, 2011. Rule 7 of the PESA Rules deals with minor minerals in the Scheduled Areas and grant of prospecting license or mining lease for minor minerals. As per Rule 7(i) of the said Rules, only individual local members of ST or societies comprising of exclusively local ST members shall be entitled for grant of prospecting license or mining lease for minor minerals and grant of concession for exploitation of minor minerals by auction. As per Rule 7(ii) of the said Rules, the Mining Department shall refer all applications received for grant of prospecting license or mining lease for minor minerals in the Scheduled Areas to the concerned Gram Panchayat for their consideration. Rule 7(iii) of the Rules deals with the Gram Panchayat shall forward its approval or reject individual or tribal societies or Tribal Mining Corporation by passing an appropriate resolution within four weeks. As per Rule 7(iv) of the said Rules the decision of the Gram Panchayat shall be binding and final.
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24. In the present case, vide proceedings dated 04.04.2025, 3 respondent i.e. District Collector/Chairman of DLSC, Mulugu, has allotted Wadagudem - IV and V sand bearing areas to 5th respondent for excavation. In the said proceedings, it is also specifically 12 mentioned about the proceedings both dated 04.04.2025 of 6th respondent. 6th respondent has informed that PESA Gram Sabha in respect of Wadagudem -IV and V sand reaches was conducted by Mandal Parishad Development Officer (MPDO), Mulugu Mandal, as per the opinion of PESA Gram Sabha, 7th respondent was accepted for extraction of sand in Wadagudem - IV and V sand reaches. Thus, 3rd respondent has allotted the said sand bearing areas of Wadagudem - IV and V sand reaches in Godavari River at Wadagudem Village, Mangapeta Mandal, Mulugu District, over an extent of 4.99 hectares for extraction and transportation of sand in terms of Rule 4(1)(iv) (c) of TSSMR, 2015 on certain conditions. Thereafter, 5th respondent has entered into agreements both dated 11.04.2025 with 7th respondent on the specific terms and conditions mentioned therein. The said agreements are valid for a period from 11.04.2025 to 27.03.2026.
25. Challenging the said proceedings both dated 04.04.2025 of 3rd respondent and agreements both dated 11.04.2025 entered by and between respondent Nos.5 and 7, the petitioner filed the present writ petition.
26. The petitioner is a registered society registered under TCS Act, 1964. According to the petitioner, it has 111 members. 7th 13 respondent is registered under TMACS Act, 1995 on 07.06.2023. It has 24 members. The area of operation of both the petitioner and 7th respondent is Wadagudem Village.
27. It is relevant to note that vide Circular dated 12.07.2022, 3rd respondent stated that it has come to his notice that registration of more than one society in one village is being done by the District Cooperation Officer, Mulugu due to which certain issues are occurring while assigning the sand bearing area to the society and also noticed that one person is registering in dual/multiple societies. Therefore, 3rd respondent has directed the District Cooperation Officer (DCO), Mulugu, to conduct Gram Sabha in the village before registration of any society in order to avoid any misgivings and ensure that one village shall have only one society. Thereafter vide memo dated 22.05.2023, 3rd respondent withdrew the said circular dated 12.07.2022.
28. Komuram Bheem S.T. Isuka Quarry Labour Contract Cooperative Society, Ltd., Mulugu, with Regn.No. 125 TM Ramanapet Mandal Mangapet Dist, has filed W.P.No.13756 of 2023 challenging the said memo, dated 22.05.2023 of 3rd respondent. Vide order dated 06.06.2023, this Court directed the parties to maintain status-quo till 14 the next date of hearing. On 13.06.2023, this Court suspended the said memo dated 22.05.2023.
29. It is relevant to note that neither the petitioner nor 7th respondent are parties to the said writ petition. 7th respondent registered on 07.06.2023 under TMACS Act, 1995.
30. It is apt to note that there is no provision under the TCS Act, 1964 prohibiting registration of two societies in a village. A member cannot be in two societies as per the bye-laws of the said societies, if the bye-laws says so. Therefore, there is no prohibition for 7th respondent to get itself registered under TMACS Act, 1995. Without considering the said aspects, 3rd respondent has issued circular dated 12.07.2022 and on realizing the same, he withdrew the said circular by way of issuing a memo dated 22.05.2023. However, W.P.No.13756 of 2023 is pending and the said aspect will be considered in the said writ petition.
31. Learned Govt.Pleader for Cooperation, on instructions, would submit that the District Cooperative Officer, Mulugu District, is taking steps to file counter and vacate application in the said writ petition.
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32. As discussed supra, there is no irregularity in registration of 7th respondent under the provisions of the TMACS Act, 1995.
33. Wadagudem village is a scheduled area. Therefore, as per Rule 7 of the PESA Rules, only individual local members of ST are entitled for grant of prospecting license or mining lease for minor minerals and grant of concession for exploitation of minor minerals by auction.
34. As per Rule 7(2) of the PESA Rules, 2011, the Mining Department referred all the applications received in respect of Wadagudem Sand Reaches, Gram Panchayat Wadagudem and it has conducted PESA Gram Sabha. In the PESA Gram Sabha, it has resolved that the petitioner society is not conducting audit and it is not eligible, whereas, 7th respondent is eligible. Therefore, 4th respondent i.e. DCO, Mulugu, vide his proceedings dated 27.03.2025 informed the said fact to the MPDO, Mulugu. On receipt of the same, and also on receipt of the proceedings, dated 09.04.2025 with regard to details of Managing Committee of 7th respondent, 3rd respondent vide proceedings both dated 04.04.2025, allotted the sand bearing area of Wadagudem - IV and V sand reaches in Godavari River at Wadagudem, to 5th respondent which in turn, entered into agreements 16 with raising contractor (society) for extraction of sand from specified sand bearing area in favour of 7th respondent on specific terms and conditions mentioned therein. Thus, while entering into the said contract and issuing proceedings dated 04.04.2025, respondents have followed the procedure under PESA Rules 2011 and Sand Mining Policy, 2014.
35. The petitioner field the present writ petition contending that 7th respondent which was registered under TMACS Act, 1995 is not eligible for the largesee of the State.
36. As discussed supra, 3rd respondent has allotted the aforesaid sand reaches in favour of 5th respondent and 5th respondent, in turn, entered into agreements in favour of 7th respondent and the same is in terms of the Sand Mining Policy, 2014 and as per Sand Mining Rules, 2015. The said proceedings both dated 04.04.2025 and agreements both dated 11.04.2024 were issued and entered as per PESA Rules, 2011 and TSMMR, 2015. It is only an award of work but it is not financial aid. It is only execution of work by 7th respondent in terms of agreements both dated 11.04.2025. Therefore, the petitioner cannot contend that 7th respondent is receiving aid from the government. The said contention of the writ petitioner is untenable. 17
37. It is also further contended by the petitioner that 7th respondent society registered under TMACS Act, is prohibited from receiving grant/aid from the government either on free of costs or at concession rates.
38. As discussed supra, 7th respondent did not receive any grant/aid including financial aid from the government. 5th respondent has awarded contract to 7th respondent on the specific terms and conditions mentioned in agreements both dated 11.04.2025 in terms of PESA Rules, 2011 and TSMMR, 2015. There is no irregularity. It is not a grant in terms of Section 2(d) read with Section 14 (2) of TMACS Act.
39. It is further contended by the petitioner that a society registered under TMACS Act, 1995 cannot take away the same village i.e. Wadagudem from the area of operation of the existing society registered under TCS Act without resorting to 15(A) read with Section 16 of 1969.
40. In the light of the aforesaid submission, it is relevant to note that Section 15(A) of the TCS Act, 1964 deals with the identification of viability of societies and consequences thereof. Section 16 of the Act deals with the amendment of bye-laws of a society. Therefore, the 18 petitioner cannot place reliance of Section 15-A and Section 16 of the TCS Act, 1964 to contend that 7th respondent took away the same village i.e. Wadegudem from the area of operation of existing society. The said contention of the petitioner is also untenable.
41. It is further contended by the petitioner that a society cannot be declared as ineligible to participate in Gram Sabha from non- submission of audit report in time as required under Section 50(3) of the Act, 1964.
42. It is also relevant to note that the Mining Department has referred all the applications for grant of prospecting license or mining lease for minor minerals in the scheduled area from Wadagudem village, to Wadagudem Grampanchayat for their consideration. The Grampanchayat has conducted Gram Sabha and resolved that 7th respondent is eligible and the petitioner is not eligible on the ground of non-submission of audit report. However, it is for the competent authority to initiate proceedings under Section 34(1) of TCS Act i.e. supersession of the committee for non-submission of the audit reports and non-conducting of activities by the petitioner society as per the procedure laid down under bye-laws.
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43. There is no challenge to the said resolution of Gram Sabha by the petitioner herein. There is also no challenge to the proceedings dated 17.03.2025 of the DCO, Mulugu submitted to the MPDO, Mulugu.
44. In the light of the aforesaid discussion, the petitioner herein failed to make out any case to set aside the proceedings both dates 04.04.2025 of 3rd respondent and both the agreements dated 11.04.2025 entered by and between the respondents 5 and 7. Therefore, this writ petition is liable to be dismissed.
45. In the result, the writ petition is dismissed. The interim order granted shall stand vacated.
Consequently, miscellaneous Petitions, if any, pending, shall also stand closed.
________________________ JUSTICE K. LAKSHMAN Date:23-07-2025 Vvr