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It is a case where serious allegations of political corruption is alleged against the petitioners herein, accused No.1, son of the then Chief Minister late Dr.Y.S.Rajashekara Reddy, and highly placed Government officials by abusing their power either political or official in conferring undue official favour on the petitioners, MSM,J 2 Crlps_9034 and 9035 _2015 violating various provisions of the enactments and circumventing certain provisions of A.P.Act 09 of 1977. Though it is not a case, where any of the parties lost their property or suffered any loss, but the State being the custodian of the public property in view of the Doctrine of Public Trust, it is allegedly transferred the property and right of enjoyment in different ways and means. Therefore, the petitioners are beneficiaries in one way or the other, but the State is the looser. Therefore, in view of the serious allegations of deep rooted political corruption, it has to be examined in a different angle than ordinary case for the offences punishable under Section 120-B and 420 of I.P.C. Since the main allegation is that in view of conferring undue official favour on the petitioners, they invested certain amount on different dates in the companies floated by accused No.1, son of the then Chief Minister late Dr.Y.S.Rajashekara Reddy i.e. quid-pro-quo. Whether the concept of quid-pro-quo is applicable to criminal prosecutions or not will be dealt with at a later stage of this order. Hence, keeping in mind, the serious allegations of fraud and cheating, more particularly about the land administration and transfer of enjoyment of natural resources like mining, the Court has to examine the same in a different perspective unlike any other criminal offence. It appears from the allegations made against the petitioners, political corruption spreads like a cancer that eats away citizen's faith in democracy, which diminished the instinct for innovation and creativity; already-tight national budgets, crowding out important national investments, it wastes the talent of entire generations. It scares away investments and jobs, it dents economy of the State.

It is an admitted fact that the land of an extent of Ac.231.09 cents originally belongs to the government and it was assigned to the landless poor persons in different extents. Sri P.Prathap Reddy

- Accused No.3 being the Chairman & Managing Director of M/s Penna Cement Industries Limited intended to establish a Cement factory at Yadiki Mandal of Anantapur District and applied for alienation of Ac.231.09 cents to the District Collector, Anantapur on 22.04.2006. On the basis of application, the District Revenue Officer, Anantapur District forwarded the request to the Revenue Divisional Officer (R.D.O), Anantapur on 02.06.2006 for identifying the Government Lands having road access and to take further action on the representation. Again M/s Penna Cement Industries Limited submitted a representation on 25.08.2006 to the District Collector, Anantapur wherein, it was stated that M/s Penna Cement Industries Limited has purchased patta lands enclosing MSM,J 43 Crlps_9034 and 9035 _2015 Government lands and also sought allotment of an extent of Ac.144.13 cents in Kundanakota Village and Ac.96.83 cents in Gudipadu Village, Government Land for setting up of the said cement plant. Subsequently, on 18.09.2006, M/s Penna Cement Industries Limited requested for alienation of land to the extent of Ac.30.71 in Kamalapadu Village and Ac.1.25 cents in Kundanakota Village. The petitioner's/A-3 request, in the two letters or representations is specific that, a request was made for allotment of land in particular survey numbers and thereafter, process has been initiated for allotment of land. But, more curiously, during consideration of two applications, the beneficiaries under the assignment granted in their favour or in favour of predecessors in title, who came up with representation that their right in the assigned land in survey numbers is being relinquished by various farmers, whose lands were acquired by A-3 for setting up a cement plant. It is a known fact that, land assigned to the landless poor is not alienable, but heritable, in view of the terms and conditions of the assignment, vide B.S.O.No.15 and in view of the bar under Section 3 of A.P.Act 9 of 1977, the Revenue Authorities shall resume the assigned land in the event of contravention of Section 3(1) by following the procedure prescribed under Section 4 of The Andhra Pradesh Assigned Lands (Prohibition of Transfers) Act, 1977. When there is an absolute bar, the beneficiaries under the assignments cannot alienate, such alienation is void abnitio. Even if, Sri P. Prathap Reddy - accused No.3 purchased the assigned property from the landless poor, such purchase would not confer any valid title on him. Therefore, Sri P.Prathap Reddy-Accused No.3 and his employees by MSM,J 44 Crlps_9034 and 9035 _2015 circumventing the law, invented a different story of relinquishing rights by the beneficiaries over the assigned lands by submitting their stereo-typed applications for surrender of the lands assigned to them. Therefore, the petitioner/accused No.3, by hatching a plan in collusion with the pattedars and the beneficiaries in the assignment, made specific mention of various survey numbers in the request made to the Government. But, the Government instead of resuming the land by following B.S.O.No.33 of A.P. Revenue Board Standing Orders and even without accepting such relinquishment of the land, started proceedings for alienation of the property by following certain business rules of the Secretariat.

MSM,J 45 Crlps_9034 and 9035 _2015 The information filed along with these criminal petitions (document Nos.1 to 168) that the Sri P. Prathap Reddy - Accused No.3 paid huge amount to the beneficiaries, coupled with the statement of Sri Valle Mugendra Mahindhar (L.W-72) and also the allegations made in paragraphs 9 & 10 of the criminal petitions are sufficient to conclude that the Sri P. Prathap Reddy - Accused No.3 to overcome the difficulties in acquiring the land with absolute rights from the beneficiaries under the assignments. Sri P. Prathap Reddy - accused No.3 adopted the procedure which is unknown to law, by paying an amount of Rs.1,15,54,500/- to the Government by M/s Penna Cement Industries Limited and also alleged payment of an amount of Rs.52,02,325/- to various beneficiaries (occupants), whereas the Government value of the land was Rs.46,21,800/- Therefore, payment of Rs.52,02,325/- by Sri P. Prathap Reddy - Accused No.3, to the beneficiaries (occupants) under the assignment itself is suffice to conclude prima facie that, Sri P. Prathap Reddy - Accused No.3, to circumvent the law i.e. A.P.Act 9 of 1977, adopted this procedure to acquire huge extent of land of Ac.231.09 cents.

But, there is a little variation in the statements of other witnesses. L.W-17 stated that, the officials of M/s Penna Cement Industries Limited, namely Sri Sanjeeva Reddy and Shiva Rama Reddy have approached him and asked to sell the land, for which they offered Rs.20,000/- per acre. He gave his consent as the other MSM,J 49 Crlps_9034 and 9035 _2015 neighbouring farmers also giving away them land to the cement company and he went to the Registration Office at Yadiki for registration, where the company officials obtained his thumb impression on a paper. The other listed witnesses also stated on the same lines, but with little variation, which is on record. The statements of L.W-17 to L.W-34 are consistent that the officials of M/s Penna Cement Industries Limited made the assignees to surrender the land on payment of Rs.20,000/- per acre, by obtaining their signatures and thumb impressions at the Registration Office of Yadiki. Therefore, the material on record prima facie would go to show that the alienation was virtually by was of sale of land by the beneficiaries under the assignment who are landless poor. By circumventing the procedure, the Government fixed the land rate at Rs.50,000/- per acre and collected huge amount from accused No.3, i.e. Rs.1,15,54,500/-, whereas, the beneficiaries were paid minimum amounts of Rs.20,000/- per acre and ultimately the beneficiaries are the losers of land under the assignment.