Probe into wheat seizure stayed

BANGALORE, AUG. 21. The Karnataka High Court on Friday stayed the inquiry by the Bangalore city police into the seizure of wheat from a flourmill on Hosur Road in Bangalore some time ago.

The petitioner, Chamundi Roller Mill, said an official claiming to be from the Department of Food and Civil Supplies had raided its premises and seized wheat.

The official stated that the wheat, meant for distribution through the public distribution system, had been diverted from the godown of the Food Corporation of India (FCI).The Deputy Commissioner initiated proceedings against the mill under Section 6 (A) of the Essential Commodities Act. A case was registered in the Madivala police station. The proceedings by the Deputy Commissioner were quashed by the High Court. However, the Madivala police went ahead with the inquiry.


Justice B. Padmaraj ordered appointment of arbitrators to settle the dispute between Ultra Entertainment of Bangalore and the State Government on payment related to online lottery.

On May 22, 2002, Ultra Entertainment entered into an agreement with the Government to market online lottery. The company said that it had spent crores of rupees on infrastructure to market online lottery. Though the company had entered into a contract to pay Rs. 100 crores to the Government, it could pay only Rs. 88 crores. The Government, however, insisted on full payment and threatened to invoke the bank guarantees furnished to it by the company.

The company paid Rs. 12 crores to the Government and urged it to take steps to prevent the sale of Internet lottery tickets illegally. It also decided to refer the dispute to an arbitrator. The Government, however, did not take any decision.

The company approached the High Court and urged it to appoint arbitrators to settle the dispute.