Date:15/07/2004 URL: http://www.thehindu.com/2004/07/15/stories/2004071509980400.htm

Karnataka

Rice scam: State to file plea in Supreme Court

By Our Staff Reporter

BANGALORE, JULY 14. The State Government is likely to file a Special Leave Petition (SLP) in the Supreme Court challenging the High Court order directing it to release 8,000 tonnes of rice seized from godowns in the Mangalore Port to a private firm.

A Single Judge of the Karnataka High Court on Monday allowed a criminal revision petition filed by Sharp Menthol of Delhi and directed the State to release the seized rice subject to the company furnishing a bank guarantee of Rs. 6 crore, two sureties of Rs. 5 crore and a bond of Rs. 5 crore.

While the State had claimed that the rice belonged to it and had sought its possession, Sharp Menthol said it was engaged in the procurement and export of rice.

Sources in the State Government said the State would appeal against the High Court order on the ground that the rice belonged to the Food Corporation of India.

Two more petitions were filed in the High Court on the seizure of rice by officials of the Food and Civil Supplies Department. The court on Wednesday ordered issue of notices to the Government and posted the case to Friday.