IN THE HIGH COURT OF JUDICATURE OF ANDHRA PRADESH AT HYDERABAD FRIDAY, THE TWENTY FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TEN THE HON’BLE SRI JUSTICE N.V. RAMANA WRIT PETITION No.23674 of 2010 Between: Ch. Madhusudhan Reddy ……PETITIONER(S) and The Government of Andhra Pradesh, rep. by its Secretary Industries and Commerce Department, Secretariat, Hyderabad and another ……RESPONDENT(S) THE HON’BLE SRI JUSTICE N.V. RAMANA WRIT PETITION No.23674 of 2010 ORDER: Heard Smt N.Shoba, learned counsel for the petitioner, and the learned Government Pleader for Mines & Geology for the respondents. At their request the Writ Petition is being taken up for disposal at the stage of admission. The main grievance of the petitioner is that the 2nd respondent, without notice to him and in violation of the principles of natural justice, issued the impugned demand notice dated 14.08.2010, determining the amount of penalty as Rs.34,360/- towards normal seigniorage fee and Rs.34,360/- towards one time penalty, totaling to Rs.68,720/-, and directing him to pay the same within seven days. The facts, in brief, are that on 26.10.2009 the District Level Sand Committee had published notification for conducting public auction of sand quarries in Krishna District; that Pollampalli Sand Reach was notified with a minimum bid of Rs.1,20,00,000/-; that he participated in the auction for Pollampalli Sand Reach and was declared as highest bidder for Rs.1,22,00,000/-; that the District Collector being the confirming authority has confirmed the auction; that a lease deed was entered into on 23.11.2009 by the 2nd respondent for a period of two years which expires on 31.03.2011; that he has been operating the quarry without any complaints; and that on the basis of an inspection report that illegal quarrying at Indugupally Sand Reach was done by Pollampalli Sand Reach holder the present impugned demand notice was issued. The learned Government Pleader fairly conceded that no show cause notice was issued to the petitioner before issuing the impugned order and sought liberty to issue a show cause notice to the petitioner in this regard. Having regard to the facts and circumstances of the case, the Writ Petition is allowed and the impugned demand notice dated 14.08.2010 issued by the 2nd respondent is set aside. The respondents are at liberty to issue a show cause notice to the petitioner and, after giving opportunity to him to submit explanation, pass orders afresh in accordance with law. There shall be no order as to costs. __________________ N.V. RAMANA, J. 24th September 2010 CVRK