IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY SEVENTH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MS JUSTICE G.ROHINI WRIT PETITION NO : 8597 of 2004 Between: Mandal Parishad Lingala Rep. by its President M. Venkatasiva, Lingala, Kadapa District. ..... PETITIONER AND 1 The District Collector, Kadapa Kadapa District. 2 The Chief Executive Officer Zilla Parishad, Kadapa, Kadapa District. 3 The District Panchayat Officer, Kadapa, Kadapa District. .....RESPONDENT(S) Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue a Writ of Mandamus or any other appropriate Writ or direction declaring the action of the respondents in not crediting the seigniorage fee to the petitioner account collected by the State Government on the minerals quarried within the Jurisdiction of petitioner for the work of construction of Chitravathi Balancing reservoir from the bills of the contractors as illegal, arbitrary and in violation of G.O.Ms.No. 335 Panchayat Raj & Rural Development (PTs-III) Department dated 6-8- 1996 and consequently direct the respondents to credit the seigniorage fee to the petitioner account collected by the Government on the minerals quarried within the jurisdictioin of petitioner for the construction of Chitravathi Balancing Reservoir as per the GO Ms.No. 335 Panchayat Raj & Rural Development (Pts-III) Department dt. 6-8-1996 forthwith, and pass Counsel for the Petitioner:MR.P.GANGA RAMI REDDY Counsel for the Respondent No.: GP FOR PANCHAYAT RAJ & RURAL DEV. The Court made the following : THE HON’BLE MS JUSTICE G.ROHINI W.P.NO.8597 2004 ORAL ORDER The petitioner is the Mandal Praishad, Lingala Mandal, Kadapa District. This writ petition is filed seeking a declaration that the action of the respondents in not crediting the seigniorage fee collected by the State Government on the minerals quarried within the jurisdiction of the petitioner for the work of construction of Chitravathi Balancing Reservoir from the bills of the contractors as arbitrary and illegal. The petitioner seeks a consequential direction to the respondents to credit the seigniorage fee so collected to the petitioner’s account in accordance with the G.O.Ms.No.335, Panchayat Raj & Rural Development(Pts-III) Department dated.06-08-1996. I have heard the learned counsel for the petitioner as well as the respondents and perused the material on record. It is not in dispute that Chitravathi Balancing Reservoir constructed near Parnapalli village of Kadapa District is situated within the area of jurisdiction of the petitioner-Mandal Parishad. For the purpose of the said construction, the sand, metal and stone available within the jurisdiction of the petitioner-Mandal Parishad was lifted by the contractors and seigniorage charges payable on the said minerals were deducted at the time of payment of the bills to the respective contractors and the said amounts were credited to the consolidated fund of the State. Under G.O.Ms.No.335, dated.06.08.1996 it was ordered that the seigniorage fee so collected and credited to the consolidated fund of the State shall be apportioned among the Panchatyat Raj bodies i.e., Gram Panchayats, Mandal Parishads and Zilla Parishads in the ratio of 37.5: 37.5: and 25 respectively. The procedure for payment of such apportioned amount has also been prescribed as under: “The Director of Mines and Geology shall intimate the Commissioner, Panchayat Raj and the concerned P.R. bodies i.e. to the concerned District Panchayat Officers and Chief Executive Officers of Zilla Parishads about the particulars of collection of seigniorage fee on a quarterly basis i.e.,March, June September and December by the end of the succeeding month. Based on the particulars furnished by the Mines and Geology Department, the District Panchayat Officer concerned shall identify the Gram Panchayat from whose jurisdiction the material was quarried and Mine a/S. Fee was collected and then prepare a statement of claim showing the proportionate amount to be credited to each Gram Panchayat and Mandal Parishad. The District Panchayat Officer shall then make a demand statement to the Zilla Parishad for transfer of amounts. The Chief Executive Officer, Zilla Parishad concerned shall then verify the amounts due to each Gram Panchayat and Mandal Parishad and issues an order showing the amounts to the concerned District Panchayat Officers.” Under G.O.Ms.No.335, dated.06-08-1996 there was also a direction to the Commissioner of Panchayat Raj to take necessary action for making provision in the Budget under the heads of account specified there under based on the particulars furnished by the Director of Mines and Geology for passing of seigniorage fee collection to the Panchayat Raj bodies. The grievance of the petitioner in this writ petition is that the respondents failed to take any steps as provided under G.O.Ms.No.335, dated.06-08-1996 for transfer of the seigniorage fee to the petitioner- Mandal Parishad. Aggrieved by the said action of the respondents Parnapalli Gram Panchayat earlier filed W.P.No.1905 of 2003 seeking a direction to the respondents to credit the proportionate seigniorage fee collected on the minerals quarried for the construction of Chitravathi Balancing Reservoir as per G.O.Ms.No.335. Pursuant to the interim order granted by this Court a sum of Rs.7,68,709/- towards 37.5% to which the Gram Panchayat was entitled to was credited to the account of the said Gram Panchayat. However 37.5% of the collection of seigniorage charges to which the petitioner is entitled to as per G.O.Ms.No.335, dated.06-08-1996 has not been credited sofar. Hence the present writ petition. The Chief Executive Officer of the Zilla Parishad, Kadapa- 2nd respondent filed a counter-affidavit stating that as per the procedure prescribed under G.O.Ms.No.335, dated.06-08-1996 the 3rd respondent- District Panchayat Officer has to identify the local bodies from whose jurisdiction the material was quarried and seigniorage fee was collected and then prepare the statement of the claim showing the proportionate amount to be credited and submit a demand statement to the Chief Executive Officer, Zilla Parishad for transfer of the amounts. However, the 3rd respondent has not furnished the said details. The Pay & Accounts Officer, Teluguganga Project, Kadapa who had deducted the seigniorage fee on the minerals lifted and credited the same into the consolidated fund had only furnished the particulars of the remittance stating that a total sum of Rs.38,32,819/- was remitted to the State funds. However, the Pay & Accounts Officer did not furnish the details of the ratio in which the Gram Panchayats and Mandal Parishads are entitled to the said funds. Hence the 2nd respondent cannot transfer the amounts under the seigniorage fee to the petitioner until the details of the remittance particulars are received from the Pay & Accounts Officer, TGP, Kadapa. On a reading of G.O.Ms.No.335, dated 06-08-1996 it is clear that the Director of Mines and Geology shall intimate the Commissioner, Panchayat Raj as well as the concerned District Panchayat Officers and Chief Executive Officers of Zilla Parishads about the particulars of collection of seigniorage fee on a quarterly basis. Based on the said particulars the DPO shall identify the Gram Panchayat from whose jurisdiction the material was quarried and the seigniorage fee was collected and then prepare a statement of claim showing the proportionate amounts to be credited to each Gram Panchayat and Mandal Parishads. The District Panchayat Officer shall also make a demand statement to the Zilla Parishad for transfer of the amounts. The Chief Executive Officer, Zilla Parishad concerned shall then verify the amounts due to each Gram Panchayat and Mandal Parishad and issue an order showing the amounts to the concerned District Panchayat Officers. It is not in dispute that pursuant to the order passed by this Court in W.P.No.1905 of 2003 directing remittance of the seigniorage fee to the petitioner therein and the subsequent contempt proceedings initiated, the District Collector, Kadapa convened a meeting with the concerned Officials of Mines and Geology, CEO, Zilla Parishad, DPO and Pay & Accounts Officer, TGP on 17-02-2004. In the said meeting the Pay and Accounts Officer, TGP Circle stated that a sum of Rs.38,32,819/- was collected from the work bills of construction of Chitravathi Balancing Reservoir up to 30-01-2004 towards the seigniorage fee and the same was credited to the consolidated fund of the State. Thus there can be no dispute as to the factum of collection of the seigniorage fee. It is relevant to note that G.O.Ms.No.335, dated.06-08-1996 was subsequently amended in G.O.Ms.No.255, dated.02-08-2001 by virtue of which the seigniorage charges are required to be distributed among the Gram Panchayats, Mandal Parishads and Zilla Parishads @ 25 : 50 : 25. It is also clear from the counter-affidavit filed by the 2nd respondent that the Commissioner of Panchayat Raj vide his proceedings dated.13-09- 2003 released a sum of Rs.38,16,300/- towards 50% of Madal Parishads share on seigniorage fee for the first, second and third quarters of 2003- 04. Hence there shall not be any further delay in crediting the amounts to the petitioner’s account in terms of G.O.Ms.No.335, dated.06-08-1996 as amended by G.O.Ms.No.255, dated.02.08.2001. In the circumstances there shall be a direction to the District Collector to convene a meeting with all the concerned officials of Gram Panchayats/Mandal Parishads/Zilla Parishads as well as the Pay & Accounts Officer, TGP Circle and the CEO, Zilla Parishad, Kadapa and other concerned officers and pass appropriate orders with regard to the remittance of the petitioner’s share from the seigniorage fee collected and remitted to the consolidated fund of the State. Such exercise shall be completed and the amounts shall be transferred to the petitioner’s account as expeditiously as possible preferably within a period of eight(8) weeks from the date of receipt of a copy of this Order. The writ petition is accordingly disposed of. No costs. ____________ G.ROHINI,J 27TH November,2008 *TSNR