While noticing a report on manipulation of records pertaining to auction proceedings, the court directed the ACB to inquire in some depth about the benamidars in the liquor trade. Referring to the granting of 61 per cent of shops in Srikakulam and 27 per cent of shops in Vizianagaram to white ration card holders, the bench observed that the involvement of political functionaries and their family members in the liquor trade must be looked into by the ACB. The bench granted liberty to the ACB to approach it for any specific directions it needs to probe into the case.
Expressing surprise at “unexplained urgency” in transferring and relieving Mr Srinivasa Reddy, and mentioning the letter addressed by the the ACB chief, Mr Boobathi Babu, to the chief secretary against the transfer, the Chief Justice told the government “to consider whether it is advisable to bring back Mr Srinivasa Reddy to the ACB.” The bench said the ACB chief had confidence in Mr Srinivasa Reddy and he should be brought back in the interests of the public.
Mr O.M. Debara, a resident of the city had filed the plea seeking functional autonomy for the ACB. Mr P.V. Krishnaiah, a practising advocate, sought the CBI probe into the liquor scam, and Ms Sobha Hymavathi, former MLA and TD leader challenged the transfer of the SIT chief.
Mr Gandra Mohan Rao, counsel for Mr Debara, said that after the court called for a status report, the SIT chief has been transferred and this demoralised the team. He urged the court to direct the ACB not to report to the government but to the court only. He said that a circular was issued by the state government in 1999 directing the ACB not to register a case against any MLA without clearance from an expert committee. He said till now the committee has not been constituted. He urged the court to suspend the circular.
Mr Krishnaiah contended that the government was violating Article 41 of the Constitution by promoting the consumption of liquor instead of prohibiting it. The bench adjourned the case of Ms Hymavathi to July asking her to address the maintainability of the case especially with respect to transfer of an officer. The bench directed the ACB to file another status report by June 11.