In a significant relief to two café owners, the Telangana High Court has quashed a criminal case registered against them for allegedly running a hookah lounge without valid permission. The Court made it clear that police cannot interfere with a lawful business unless there is a clear violation of law.
Justice Tirumala Devi Eada delivered the order while allowing a criminal petition filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023.
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Background of the Case
The petition was filed by the owners of Abundance Café, who were named as accused in Crime No.1438 of 2025 registered at Narsingi Police Station, Ranga Reddy district.
The police had booked them under:
- Section 223 of the Bharatiya Nyaya Sanhita, 2023 (disobedience of an order issued by a public servant), and
- Section 20(2) of the Cigarettes and Other Tobacco Products Act, 2003 (sale of tobacco products without proper warning labels).
According to the complaint, the café was allegedly operating a hookah centre without valid permissions. During inspection, police seized certain materials used for hookah consumption.
However, the petitioners argued that they had obtained all required licences. They produced a valid trade licence issued by the Greater Hyderabad Municipal Corporation (GHMC) on May 21, 2025, and a Food Safety and Standards Authority of India (FSSAI) licence valid from April 11, 2025 to April 10, 2026.
They had also applied for a No Objection Certificate (NOC) from the Commissioner of Police, Cyberabad Commissionerate, on June 9, 2025. The office acknowledged receipt on June 11, 2025. When no response came, they sent a reminder on July 5, 2025.
Despite this, police visited the premises on July 26, 2025 and registered the FIR.
What the Court Examined
Justice Tirumala Devi Eada carefully examined whether the ingredients of the alleged offences were made out.
On Section 223 of the Bharatiya Nyaya Sanhita, the Court noted that for this offence to apply, there must be a specific order issued by a public servant and a clear violation of that order.
“The record does not show any such promulgated order that was violated,” the Court observed.
Regarding Section 20(2) of the Cigarettes and Other Tobacco Products Act, the Court pointed out that the provision applies when tobacco products are sold without prescribed health warnings on their packaging.
“It is not the case of the police that the petitioners were selling tobacco products without statutory warnings,” the bench noted.
The Court further observed that hookah is essentially a tobacco product and its sale is not automatically illegal.
Reliance on Earlier Judgments
The Court relied on earlier decisions of the Telangana High Court, including Chidurala Shyamsunder vs State of Telangana and Waheed Uddin Ahmed Ansar vs Principal Secretary, Home Department, which clarified that running a hookah centre is not per se illegal if statutory conditions are fulfilled.
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In those cases, the High Court had laid down guidelines requiring:
- Municipal licences where charcoal is used
- Permission under the City Police Act
- No service of tobacco to persons below 18 years
- Display of health warnings
- Police supervision in case of violations
The Court reiterated that police have the power to supervise and inspect such establishments. However, without establishing a violation of law, registering an FIR is not justified.
“The police could have examined the representation and verified compliance instead of proceeding straightaway to register a criminal case,” the Court remarked.
Court’s Observation on Police Action
Justice Tirumala Devi Eada expressed concern over the manner in which the case was registered.
The Court said that instead of responding to the NOC application or checking compliance with rules, the police chose to seize materials and initiate criminal proceedings.
Such action, the Court held, amounts to misuse of legal process when no clear offence is disclosed.
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The Decision
Holding that the continuation of criminal proceedings would amount to abuse of process of law, the High Court allowed the criminal petition.
The FIR in Crime No.1438 of 2025 registered at Narsingi Police Station against the petitioners was quashed.
All pending miscellaneous petitions were also closed.
Case Title: Criminal Petition No.10411 of 2025
Case No.: Crl.P. No.10411 of 2025
Decision Date: 15 September 2025
