Ethanol company sues Andhra farmer over pollution claims, seeks ₹1 crore compensation

An ethanol company has initiated legal proceedings against a farmer from Gandepalli village, claiming damage and seeking a perpetual injunction, according to court documents filed on July 6, 2026. M. Muralidhar Reddy, the farmer, is being asked to apologize publicly, pay ₹1 crore as compensation for reputational harm, mental distress, and legal fees, and barred from making "misleading and malicious" statements in the future. The lawsuit is currently in the pre-trial stage.

The dispute arose after the company alleged that the farmer made false and damaging statements to the media about pollution caused by the ethanol plant. The factory, operational since 2008, has been the subject of multiple protests by villagers regarding soil, water, and air pollution. In April, a Telugu media channel aired a report titled "Sentini Mantalu," highlighting the alleged environmental damage caused by the plant. Muralidhar Reddy had previously appeared on this show to discuss the issues faced by his community.

Previous investigations by the Lokayukta and the A.P. Pollution Control Board found that the factory was discharging untreated effluents into the Gandepalli-Nandaluru irrigation canal, leading to high soil salinity. The company maintains that it complies with all legal requirements and holds valid licenses, but denies the farmer's claims of false allegations.

The company also stated that a proposed transaction involving land near the factory was abandoned, which allegedly angered the farmer and prompted his campaign of false accusations.