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ESSENTIAL COMMODITIES ACT

Ministry of Law and Justice

Act nº 10 of 1955


  • Amending Acts
  • Appendices
  • Act nº 10 of 1955

Preamble

The ESSENTIAL COMMODITITES ACT, 19551

[Act, No. 10 of 1955]

[1st April, 1955]

PREAMBLE

An Act to provide, in the interest of the general public, for the control of the production, supply and distribution of, and trade and commerce, in certain commodities.

BE it enacted by Parliament in the Sixth Year of the Republic of India as follows:-

1. Extended to Goa, Daman and Diu with modification by Regulation 12 of 1962, section 3 and Schedule, to Dadra and Nagar Haweli by Regulation 6 of 1963, section 2 and Schedule I and to Lakshadweep and Amindivi Islands by Regulation 8 of 1965, section 3 and Schedule, to the State of Sikkim (w.e.f. 7-1-1976) vide S.O. 28(E), dated 7th January, 1976.

This Act has been amended in Maharashtra by Maharashtra Act 71 of 1976, in Orissa by Orissa Act, 8 of 1976, in Uttar Pradesh by Uttar Pradesh Acts 9 of 1974, 18 of 1975, 39 of 1975 and 16 of 1978.


Section 1. Short title and extent

(1 ) This Act may be called the Essential Commodities Act, 1955 .

(2 ) It extends to the whole of India1[***].

1. The words "except the State of Jammu and Kashmir" omitted by Act 25 of 1968, section 2 and Schedule (w.e.f. 15-8-1968).


Section 2. Definitions

In this Act, unless the context otherwise requires,-

1 [***]

1 [2 (ia) "Collector" includes an Additional Collector and such other officer, not below the rank of Sub-Divisional Officer, as may be authorised by the Collector to perform the functions and exercise the powers of the Collector under this Act;]

9 [***]

(b) "food-crops" include crops of sugarcane;

(c) "notified order" means an order notified in the Official Gazette; [(cc) "order" includes a direction issued thereunder;]

4 (cc) "order" includes a direction issued thereunder;]

5 [(d) "State Government," in relation to a Union territory, means the administrator thereof;]

4 (e) "sugar" means-

(i) any form of sugar containing more than ninety per cent, of sucrose, including sugar candy;

(ii) khandsari sugar or bura sugar or crushed sugar or any sugar in crystalline or powdered form, or

(iii) sugar in process in vacuum pan sugar factory or raw sugar produced therein.]

6 [***]

STATE AMENDMENTS

7 Himachal Pradesh

In section 2, in clause (a), after sub-clause (vi), insert the following sub-clause, namely:--

"(via) packing cases made wholly or partly of wood, card-board or straw,

8 Maharashtra

In section 2,--

(a) after the words "the context otherwise requires/' and before clause (a), insert the following clause, namely:--

"(ai) 'Collector' in Greater Bombay means the Controller of Rationing and includes any Deputy or Assistant Controller of Rationing, and elsewhere means the Collector of the District and includes any Assistant or Deputy Collector or District Supply Officer within his respective jurisdiction;"

(b) after clause (b), insert the following clauses, namely:--

"(ba) 'holder', in relation to any agricultural land, means the person corporate, firm, association, joint family or body of individuals in joint possession of such land;

(bb) 'holding' means the aggregate of all lands in possession of a holder;"

1. Clause (ia) renumbered as clause (iia) and before clause (iia) so renumbered clause (ia) inserted by Act 18 of 1981 as amended by Act 34 of 1993 for a period of fifteen years which now stands ceased to have effect after the expire of fifteen years. See Appendix -- Section 3(a) of the Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).

2. Inserted by Act 92 of 1976 section 2 (w.e.f. 2-9-1976).

3. Inserted by Act 30 of 1974, section 2 (w.e.f. 22-6-1974).

4. Inserted by Act 36 of 1967, section 2 (w.e.f. 30-12-1974).

5. Substituted by the Adaptation of Laws (No. 3) Order, 1956, for the clause (d).

6. Clause (f) inserted by Act 18 of 1981 as amended by Act 34 of 1993 for a period of fifteen years, which now stands ceased to have effect after the expire of fitteen years. See Appendix-- Section 3(b) of the Essential Commodities (Special Provisions) Act, 1981.

7. Vide Himachal Pradesh Act 1 of 1992, section 2 (w.e.f. 29-2-1992).

8. Vide Maharashtra Act 1 of 1976, section 2 (w.r.e.f. 12-11-1975).

9. Omitted by The Essential Commodities(Amendment) Act,2006, w.e.f. 12.02.2007. Before omission the provision read as:-

"(a) "essential commodity" means any of the following classes of commodities:-

(i) cattle fodder, including oilcakes and other concentrates;

(ii) coal including coke and other derivatives;

(iii) component parts and accessories of automobiles;

(iv) cotton and woollen textiles;

3 [(iva) drugs;

Explanation.-In this sub-clause, "drugs" has the meaning assigned to it in clause (b) of section 3 of the Drugs and Cosmetics Act, 1940 (23 of 1940).]

(v) foodstuffs, including edible oilseeds and oils;

(vi) iron and steel, including manufactured products of iron and steel;

(vii) paper, including newsprint, paperboard and straw board;

(viii) petroleum and petroleum products;

(ix) raw cotton, whether ginned or unginned, and cotton seed;

(x) raw jute;

(xi) any other class of commodity which the Central Government may, by notified order, declare to be an essential commodity for the purposes of this Act, being a commodity with respect to which Parliament has power to make laws by virtue of entry 3 in List III in the Seventh Schedule to the Constitution;"


Section 2A. Essential commodities declaration etc.

1[2A. Essential commodities declaration etc.--

(1) For the purposes of this Act, "essential commodity" means a commodity specified in the Schedule.

(2) Subject to the provisions of sub-section (4), the Central Government may, if it is satisfied that it is necessary so to do in the public interest and for reasons to be specified in the notification published in the Official Gazette, amend the Schedule so as to--

(a) add a commodity to the said Schedule;

(b) remove any commodity from the said Schedule.

(3) Any notification issued under sub-section (2) may also direct that an entry shall be made against such commodity in the said Schedule declaring that such commodity shall be deemed to be an essential commodity for such period not exceeding six months to be specified in the notification:

Provided that the Central Government may, in the public interest and for reasons to be specified, by notification in the Official Gazette, extend such period beyond the said six months.

(4) The Central Government may exercise its powers under sub-section (2) in respect of the commodity to which Parliament has power to make laws by virtue of Entry 33 List III in the Seventh Schedule to the Constitution.

(5) Every notification issued under sub-section (2) shall be laid, as soon as may be after it is issued, before both Houses of Parliament.]

1. Inserted by the Essential Commodities (Amendment) Act, 2005, dated 29.12.2006.


Section 3. Powers to control production, supply, distribution, etc., of essential commodities

(1) If the Central Government is of opinion that it is necessary or expedient so to do for maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, 1[or for securing any essential commodity for the defence of India or the efficient conduct of military operations], it may, by order, provide for regulating or prohibiting the production, supply and distribution thereof and trade and commerce therein.

(2) Without prejudice to the generality of the powers conferred by sub-section (1), an order made thereunder may provide-

(a) for regulating by licences, permits or otherwise the production or manufacture of any essential commodity;

(b) for bringing under cultivation any waste or arable land, whether appurtenant to a building or not, for the growing thereon of food-crops generally or of specified food-crops, and for otherwise maintaining or increasing the cultivation of food-crops generally, or of specified food-crops.

(c) for controlling the price at which essential commodity may be bought or sold;

(d) for regulating by licences, permits or otherwise the storage, transport, distribution, disposal, acquisition use or consumption of, any essential commodity;

(e) for prohibiting the withholding from sale of any essential commodity ordinarily kept for sale;

2[(f) for requiring any person holding in stock, or engaged in the production, or in the business of buying or selling, of any essential commodity,-

(a) to sell the whole or a specified part of the quantity held in stock or produced or received by him or,

(b) in the case of any such commodity which is likely to be produced or received by him, to sell the whole or a specified part of such commodity when produced or received by him,

(c) to the Central Government or a State Government or to an officer or agent of such Government or to a Corporation owned or controlled by such Government or to such other person or class of persons and in such circumstances as may be specified in the order.

Explanation 1-An order made under this clause in relation to food-grains, edible oilseeds or edible oils, may, having regard to the estimated production, in the concerned area, of such food grains, edible oilseeds and edible oils, fix the quantity to be sold by the producers in such area and may also fix, or provide for the fixation of, such quantity on a graded basis, having regard to the aggregate of the area held by, or under the cultivation of, the producers.

Explanation 2-For the purposes of this clause, "production" with its grammatical variations and cognate expressions includes manufacture of edible oils and sugar;]

(g) for regulating or prohibiting any class of commercial or financial transactions relating to foodstuffs 15[***] which, in the opinion of the authority making the order, are, or, if unregulated, are likely to be, detrimental to the public interest;

(h) for collecting any information or statistics with a view to regulating or prohibiting any of the aforesaid matters;

(i) for requiring persons engaged in the production, supply or distribution of or trade and commerce in, any essential commodity to maintain and produce for inspection such books, accounts and records relating to their business and to furnish such information relating thereto, as may be specified in the order;

3[(ii) for the grant or issue of licences, permits or other documents, the charging of fees therefor, the deposit of such sum, if any, as may be specified in the order as security for the due performance of the conditions of any such licence, permit or other document, the forfeiture of the sum so deposited or any part thereof for contravention of any such conditions, and the adjudication of such forfeiture by such authority as may be specified in the order;]

4[(j) for any incidental and supplementary matters, including, in particular, the entry, search or examination of premises, aircraft, vessels, vehicles or other conveyances and animals, and the seizure by a person authorised to make such entry, search or examination.]

of any articles in respect of which such person has reason to believe that a contravention of the order has been, is being, or is about to be committed and any packages, coverings or receptacles in which such articles are found;

of any aircraft, vessel, vehicle or other conveyance or animal used in carrying such article, if such person has reason to believe that such aircraft, vessel, vehicle or other conveyance or animal is liable to be forfeited under the provisions of this Act:

5[(iii) of any books of accounts and documents which in the opinion of such person, may be useful for, or relevant to, any proceeding under this Act and the person from whose custody such books of accounts or documents are seized shall be entitled to make copies thereof or to take extracts therefrom in the presence of an officer having the custody of such books of accounts or documents.]

(3) Where any person sells any essential commodity in compliance with an order made with reference to clause (f) of sub-section (2), there shall be paid to him the price therefor as hereinafter provided:

(a) where the price can, consistently with the controlled price, if any, fixed under this section, be agreed upon, the agreed price;

(b) where no such agreement can be reached, the price calculated with reference to the controlled price, if any;

(c) where neither clause (a) nor clause (b) applies, the price calculated at the market rate prevailing in the locality at the date of sale.

6[(3A) (i) If the Central Government is of opinion that it is necessary so to do for controlling the rise in prices or preventing the hoarding, of any food-stuff in any locality, it may, by notification in the Official Gazette, direct that notwithstanding anything contained in sub-section (3), the price at which the food-stuff shall be sold in the locality in compliance with an order made with reference to clause (f) of subsection (2) shall be regulated in accordance with the provisions of this sub-section.

(ii) Any notification issued under this sub-section shall remain in force for such period not exceeding three months as may be specified in the notification.

(iii) Where, after the issue of a notification under this sub-section, any person sells foodstuff of the kind specified therein and in the locality so specified, in compliance with an order made with reference to clause (f) of sub-section (20), there shall be paid to the seller as the price therefor-

(a) where the price can, consistently with the controlled price of the foodstuff, if any, fixed under this section, be agreed upon, the agreed price:

(b) where no such agreement can be reached, the price calculated with reference to the controlled price, if any;

(c) where neither clause (a) nor clause (b) applies, the price calculated with reference to average market rate prevailing in the locality during the period of three months immediately preceding the date of the notification.

(iv) For the purposes of sub-clause (c) of clause (iii), the average market rate prevailing in the locality shall be determined by an officer authorised by the Central Government in this behalf, with reference to the prevailing market rates for which published figures are available in respect of that locality or of a neighbouring locality; and the average market rate so determined shall be final and shall not be called in question in any court.]

7[(3B) Where any person is required, by an order made with reference to clause (f) of sub-section (2), to sell to the Central Government or a State Government or to an officer or agent of such Government or to a Corporation owned or controlled by such Government, any grade or variety of food grains, edible oilseeds or edible oils in relation to which no notification has been issued under sub-section (3A), or such notification having been issued, has ceased to be in force, there shall be paid to the person concerned, notwithstanding anything to the contrary contained in subsection (3), an amount equal to the procurement price of such foodgrains, edible oilseeds or edible oils, as the case may be, specified by the State Government, with the previous approval of the Central Government having regard to -

(a) the controlled price, if any, fixed under this section or by or under any other law for the time being in force for such grade or variety of foodgrains, edible oilseeds or edible oils;

(b) the general crop prospects;

(c) the need for making such grade or variety of foodgrains, edible oilseeds or edible oils available at reasonable prices to the consumers, particularly the vulnerable sections of the consumers; and

(d) the recommendations, if any, of the Agricultural Prices Commission with regard to the price of the concerned grade or variety of foodgrains, edible oilseeds or edible oils.]

18[(3C) Where any producer is required by an order made with reference to clause (f) of sub-section (2) to sell any kind of sugar (whether to the Central Government or to a State Government or to an officer or agent of such Government or to any other person or class of persons) whether a notification was issued under sub-section (3A) or otherwise, then, notwithstanding anything contained in sub-section (3), there shall be paid to that producer only such amount as the Central Government may, by order, determine, having regard to

(a) the fair and remunerative price, if any, determined by the Central Government as the price of sugarcane to be taken into account under this section;

(b) the manufacturing cost of sugar;

(c) the duty or tax, if any, paid or payable thereon; and

(d) a reasonable return on the capital employed in the business of manufacturing of sugar:

Provided that the Central Government may determine different prices, from time to time, for different areas or factories or varieties of sugar:

Provided further that where any provisional determination of price of levy sugar has been done in respect of sugar produced up to the sugar season 2008-2009, the final determination of price may be undertaken in accordance with the provisions of this sub-section as it stood immediately before the 1st day of October, 2009.

Explanation. For the purposes of this sub-section,

(a) "fair and remunerative price" means the price of sugarcane determined by the Central Government under this section;

(b) manufacturing cost of sugar means the net cost incurred on conversion of sugarcane into sugar including net cost of transportation of sugarcane from the purchase centre to the factory gate, to the extent it is borne by the producer;

(c) producer means a person carrying on the business of manufacturing sugar;

(d) reasonable return on the capital employed means the return on net fixed assets plus working capital of a producer in relation to manufacturing of sugar including procurement of sugarcane at a fair and remunerative price determined under this section.]

8[(3D) The Central Government may direct that no producer, importer or exporter shall sell or otherwise dispose of or deliver any kind of sugar or remove any kind of sugar from the bonded godowns of the factory in which it is produced, whether such godowns are situated within the premises of the factory or outside or from the warehouses of the importers or exporters, as the case may be except under and in accordance with the direction issued by the Government:

Provided that this sub-section shall not affect the pledging of such sugar by any producer or importer in favour of any scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 or any corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), so, however, that no such hank shall sell the sugar pledged to it except under and in accordance with a direction issued by the Central Government.

(3E) The Central Government may, from time to time, by general or special order, direct any producer or importer or exporter or recognised dealer or any class of producers or recognised dealers, to take action regarding production, maintenance of stocks, storage, sale, grading, packing, marking, weighment, disposal, delivery and distribution of any kind of sugar in the manner specified in the direction.

Explanation.-For the purposes of sub-section (3D) and this sub-section,--

(a) "producer" means a person carrying on the business of manufacturing sugar;

(b) "recognised dealer'' means a person carrying on the business of purchasing, selling or distributing sugar;

(c) "sugar" includes plantation while sugar, raw sugar and refined sugar. whether indigenously produced or imported.'.]

(4) If the Central Government is of opinion that it is necessary so to do for mainting or increasing the production and supply of an essential commodity, it may, by order, authorize any person (hereinafter referred to as an authorized controller) to exercise, with respect to the whole or any part of any such undertaking engaged in the production and supply of the commodity as may be specified in the order such functions of control as may be provided therein and so long as such order is in force with respect to any undertaking or part thereof,-

(a) the authorized controller shall exercise his functions in accordance with any instructions given to him by the Central Government, so, however, that he shall not have any power to give any direction inconsistent with the provisions of any enactment or any instrument determining the functions of the persons in-charge of the management of the undertaking, except in so far as may be specifically provided by the order; and

(b) the undertaking or part shall be carried on in accordance with any directions given by the authorised controller under the provisions of the order, and any person having any functions of management in relation to the undertaking or part shall comply with any such directions.

(5) An order made under this section shall,-

(a) in the case of an order of a general nature or affecting a class of persons, be notified in the Official Gazette; and

(b) in the case of an order directed to a specified individual be served on such individual-

(i) by delivering or tendering it to that individual, or

(ii) if it cannot be so delivered or tendered, by affixing it on the outer door or some other conspicuous part of the premises in which that individual lives, and a written report there of shall be prepared and witnessed by two persons living in the neighbourhood.

(6) Every order made under this section by the Central Government or by any officer or authority of the Central Government shall be laid before both Houses of Parliament, as soon as may be, after it is made.

STATE AMENDMENTS

9 Bihar

In section 3,--

(i) in sub-section (2), for clause (f), substitute the following clause which shall be deemed always to have been substituted, namely:--

"(f) for requiring any person holding in stock, or engaged in the manufacture or production of, or in the business of buying or selling any essential commodity to sell the whole or a specified part of the quantity held in stock or produced or caused to be produced or likely to be manufactured or produced or caused to be produced by him or received or likely to be received by him in the course of the said business, to the Central Government or a State Government or to such other person or class of persons and in such circumstances as may be specified in the order.

Explanation.--An order relating to foodgrains made with reference to this clause,--

(i) may specify the prices, fixed by the Central/State Government in this behalf, after taking into account the recommendations, if any of the Agricultural Prices Commission and with the prior concurrence of the Central Government as the amount which shall be paid for the foodgrain required to be sold under the order,

(ii) may fix or provide for the fixation of the quantity to be sold by a producer with reference to the area under cultivation and the availability of irrigation for production of the particular foodgrain which the order relates, and also fix or provide for the fixation of such quantities on a graded basis having regard to the aggregate area held by or under the cultivation of different producers."

(ii) in sub-section (3), for clause (c), substitute the following clauses which shall be deemed always to have been substituted, namely:--

"(c) in the case of foodgrains, where neither clause (a) nor clause (b) applies, the price, if any specified in the said order;

(d) where neither clause (a), nor clause (b), nor clause (c) applies, the price calculated at the market rate prevailing in the locality at the date of sale."

(iii) in sub-section (3B), after clause (a), insert the following clause which shall be deemed always to have been inserted, namely:--

"(aa) in the case of foodgrains, where no controlled price is fixed by an order made with reference to clause (c) of sub-section (2), the amount specified in the said order made with reference to clause (f) of sub-section (2) for such grade or variety of foodgrains; or"

10 Maharashtra

In section 3,--

(a) in sub-section (2), for clause (f), substitute the following clause which shall be deemed always to have been substituted, namely:--

"(f) for requiring any person holding in stock, or likely to hold in stock, or engaged in the manufacture or production or processing of, or in the business of buying or selling, any essential commodity, to sell, the whole or a specified part of the quantity of the essential commodity held in stock or likely to be held in stock by him or manufactured or produced or processed or likely to be manufactured or produced or processed by him or received or likely to be received by him in his business of buying or selling to the Central Government or the State Government or to an officer or agent of any Government or to such other person or class of persons and in such circumstances as may be specified in the order.

Explanation.--An order made under this clause in respect of foodgrains may fix or provide for fixation of the quantity to be sold by a producer with reference to the nature and extent of his holding or the land revenue payable by him with certain weightages which may be prescribed for certain crops or lands enjoying irrigation or other facilities and also fix or provide for fixation of the quantity to be sold on a graded basis having regard to the size of the holdings of different producers."

(b) In sub-section (3), for clause (c), substitute the following clause which shall be deemed always to have been substituted, namely:--

"(c) where neither clause (a) nor clause (b) applies, in the case of foodgrains, the amount, if any, specified in or calculated in accordance with the order made under clause (f) of sub-section (2) read with sub-section (3B), and in the case of any other essential commodity, the price calculated at the market rate prevailing in the locality at the date of sale."

(c) for sub-section (3B), substitute the following sub-section which shall be deemed always to have been substituted, namely:--

"(3B) where, by an order made with reference to clause (f) of sub-section (2), any person is required to sell any grade or variety or foodgrains, edible oilseeds or edible oils to the Central Government or a State Government or an officer or agent of such Government or a corporation owned or controlled by such Government or to a person or class of persons specified in the order, and either no notification in respect of such foodgrains, edible oilseeds or edible oils has been issued under sub-section (3A) or any such notification having been issued, has ceased to remain in force by efflux of time then, notwithstanding anything contained in sub-section (3), there shall be paid to the person concerned an amount determined by the Central Government or the State Government, as the case may be,--

(a) having regard to the Controlled price, if any, fixed under this section or by or under any law for the time being in force for such grade or variety of foodgrains, edible oilseeds or edible oils, or

(b) having regard to the prices recommended by the Agricultural Prices Commission for the concerned essential commodity, where no controlled price in relation to such commodity, has been fixed by or under any law [for the time being in force.

11Orissa

In section 3,--

(a) in sub-section (2), for clause (f), substitute the following clause which shall be deemed always to have been substituted, namely:--

"(f) for requiring any person holding in stock or engaged in the manufacture or production of, or in the business of buying or selling, any essential commodity to sell the whole or a specified part of the quantity held in stock or manufactured or produced or caused to be produced or likely to be manufactured or produced or caused to be produced by him or received or likely to be received by him in the course of the said business, to the Central Government or a State Government or to an officer or agent of such Government or to such other person or class of persons and in such circumstances as may be specified in the order.

Explanation.--An order relating to foodgrains made with reference to this clause,--

(i) may specify the prices, fixed by the State Government in this behalf, after taking into account the recommendations, if any, of the Agricultural Prices Commission and with the prior concurrence of the Central Government, as the amount which shall be paid for the foodgrain required to be sold under the order,

(ii) may fix or provide for the fixation of the quantity to be sold by a producer with reference to the area under cultivation and the availability of irrigation for production of the particular foodgrain to which the order relates, and also fix or provide for the fixation of such quantities on a graded basis having regard to the aggregate area held by or under the cultivation of different producers."

(b) in sub-section (3), for clause (c), substitute the following clauses which shall be Food deemed always to have been substituted, namely:--

"(c) in the case of foodgrains, where neither clause (a) nor clause (b) applies, the price, if any, specified in the said order;

(d) where neither clause (a) nor (b), nor (c) applies, the price calculated at the market rate prevailing in the locality at the date of sale."

(c) in sub-section (3B), after clause (i), insert the following clause which shall be deemed always to have been inserted, namely:--

"(ia) in the case of foodgrains, where no controlled price is fixed by an order made with reference to clause (c) of sub-section (2), the amount specified in the said Order made with reference to clause (f) of sub-section (2) for such grade or variety of foodgrains; or"

Uttar Pradesh

In section 3,--

12[(i) in sub-section (2), in clause (f), for Explanation 1, substitute the following Explanation, namely:--

"Explanation 1.--An order made under this clause in relation to rice, having regard to the milling capacity of a rice mill, fix the quantity to be sold by the licensed miller and may also fix or provide for the fixation of such quantity on a graded basis."]

13[(ii) in sub-section (2), after clause (f), insert the following clause, namely:--

"(ff) for preventing the hoarding of any essential commodity;"]

14[(iii) in sub-section (3), for clause (c), substitute the following clauses which shall be deemed always to have been substituted, namely:--

"(c) in the case of foodgrains, where neither clause (a) nor clause (b) applies, the amount, if any, specified in the said order made with reference to clause (f) of sub-section (2);

(d) where neither clause (a), nor clause (b), nor clause (c) applies, the price calculated, at the market rate prevailing in the locality at the date of sale."]

1. Inserted by Act 36 of 1967, section 3 (w.e.f. 30-12-1967).

2. Clause (f) as Substituted by Act 28 of 1957, section 2 (w.e.f. 17-9-1957) and again Substituted by Act 92 of 1976, section 3 (w.e.f. 2-9-1976).

3. Inserted by Act 17 of 1961, section 2 (w.e.f. 10-5-1961).

4. Substituted by Act 66 of 1971, section 2 for clause (j) (w.e.f. 23-12-1971).

5. Substituted by Act 92 of 1976, section 3, for sub-clause (iii) (w.e.f. 2-9-1976).

6. Inserted by Act 13 of 1957, section 2 (w.e.f. 4-6-1957).

7. sub-section (3B) inserted by Act 25 of 1966, section 2 (w.e.f. 3-9-1966) and Substituted by Act 92 of 1976, section 3 (w.e.f. 2-9-1976).

8. Inserted by Act 37 of 2003 section 2 (w.r.e.f. 14.06.1999).

9. Vide Bihar Act 9 of 1978, section 3 (w.e.f. 6-9-1978).

10. Vide Maharashtra Act 1 of 1976, section 3 (w.r.e.f. 12-11-1975).

11. Vide Orissa Act 8 of 1976, section 2 (w.e.f. 29-3-1976).

12. Vide Uttar Pradesh Act 16 of 1978, section 3 (2).

13. Vide Uttar Pradesh Act 9 of 1974, section 2.

14. Vide Uttar Pradesh Act 18 of 1975, section 3 (b).

15. Omitted the following "or cotton textiles" by the Essential Commodities (Amendment) Act, 2006, w.e.f. 12.02.2007.

16. Renumbered by the Essential Commodities (Amendment and Validation) Act, 2009 [Act No. 36 of 2009] w.e.f. 01st October, 1974 previous text was:- "Explanation"

17. Inserted by the Essential Commodities (Amendment and Validation) Act, 2009 [Act No. 36 of 2009] w.e.f. 01st October, 1974.

18. Substituted by the Essential Commodities (Amendment and Validation) Act, 2009 [Act No. 36 of 2009] to be effective from 01st October, 2009 previous text was:-

"1[(3C) Where any producer is required by an order made with reference to clause (f) of sub section (2) to sell any kind of sugar (whether to the Central Government or a State Government or to an officer or agent of such Government or to any other person or class of persons) and either no notification in respect of such sugar has been issued under sub-section (3A) or any such notification, having been issued, has ceased to remain in force by efflux of time, then, notwithstanding anything contained in sub-section (3), there shall be paid to that producer an amount therefor which shall be calculated with reference to such price of sugar as the Central Government may, by order, determine, having regard to-

(a) the minimum price, if any, fixed for sugarcane by Central Government under this section ;

(b) the manufacturing cost of sugar;

(c) the duty or tax, if any, paid or payable thereon; and

(d) the securing of a reasonable return on the capital employed in the business of manufacturing sugar and different prices may be determined from time to time for different areas or for different factories or for different kinds of sugar.

16[Explanation I].-For the purposes of this sub-section, "producer" means a person carrying on the business of manufacturing sugar.]

17[Explanation II.For the removal of doubts, it is hereby declared that the expressions minimum price referred to in clause (a), manufacturing cost of sugar referred to in clause (b) and reasonable return on the capital employed referred to in clause (d) exclude the additional price of sugarcane paid or payable under clause 5A of the Sugarcane (Control) Order, 1966 and any price paid or payable under any order or enactment of any State Government and any price agreed to between the producer and the grower of sugarcane or a sugarcane growers co-operative society.]"


Section 4. Imposition of duties on State Government, etc.

An order made under section 3 may confer powers and impose duties upon the Central Government or the State Government or officers and authorities of Central Government or State Government, and may contain directions to any State Government or to officers and authorities thereof as to the exercise of any such powers or the discharge of any such duties.

Section 5. Delegation of powers

The Central Government may, by notified order, direct that1[the power to make orders or issue notifications under section 3 ] shall, in relation to such matters and subject to such conditions, if any, as may be specified in the direction, be exercisable also by-

(a) such officer or authority subordinate to the Central Government; or

(b) such State Government or such officer or such authority subordinate to a State Government; as may be specified in the direction.

1.Substituted by Act 66 of 1971, section 3, for "the power to make orders under section 3" (w.e.f. 23-12-1971).


Section 6. Effect of orders inconsistent with other enactments

Any order made under section 3 shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Act or any instrument having effect by virtue of any enactment other than this Act.

Section 6A. Confiscation of essential commodity

1[6A . Confiscation of essential commodity.-- 2 [(1)] Where any 3 [essential commodity is seized] in pursuance of an order made under section 3 in relation thereto, 4 [a report of such seizure shall, without unreasonable delay, be made to] the Collector of the district or the Presidency town in which such 3 [essential commodity is seized] and whether or not a prosecution is instituted for the contravention of such order, the Collector 5 [may, if he thinks it expedient so to do, direct the essential commodity so seized to be produced for inspection before him, and if he is satisfied] that there has been a contravention of the order 6 [may order confiscation of-

(a) the essential commodity so seized;

(b) any package, covering or receptacle in which such essential commodity is found; and

(c) any animal, vehicle, vessel or other conveyance used in carrying such essential commodity:]

Provided that without prejudice to any action which may be taken under any other provision of this Act, no foodgrains or edible oilseeds in pursuance of an order made under section 3 in relation thereto from a producer shall, if the seized foodgrains or edible oilseeds have been produced by him, be confiscated under this section:

7 [Provided further that in the case of any animal, vehicle, vessel or other conveyance used for the carriage of goods or passengers for hire, the owner of such animal, vehicle, vessel or other conveyance shall be given an option to pay, in lieu of its confiscation, a fine not exceeding the market price at the date of seizure of the essential commodity sought to be carried by such animal, vehicle, vessel or other conveyance.]

7 [(2) Where the Collector, on receiving a report of seizure or on inspection of any essential commodity under sub-section (l), is of the opinion that the essential commodity is subject to speedy and natural decay or it is otherwise expedient in the public interest so to do, he may-

(i) order the same to be sold at the controlled price, if any, fixed for essential commodity under this Act or under any other law for the time being in force; or

(ii) where no such price is fixed, order the same to be sold by public auction:

8 [***]

(3) where any essential commodity is sold, as aforesaid, the sale proceeds thereof, after deduction of the expenses of any such sale or auction or other incidental expenses relating thereto, shall-

(a) where no order or confiscation is ultimately passed by the Collector,

(b) where an order passed on appeal under sub-section (1) of section 6C so requires, or

(c) where in a prosecution instituted for the contravention of the order in respect of which an order of confiscation has been made under this section, the person concerned is acquitted,

be paid to the owner or the person from whom it is seized.]

STATE AMENDMENT

9 Bihar

For section 6A, substitute the following section, namely:--

"6A. Confiscation of foodgrains, edible oilseeds, edible oils, etc.--(1) Where any essential commodity is seized in pursuance of an order made under section 3 in relation thereto it shall be reported without any reasonable delay to the Collector of the district in which such essential commodity is seized and the Collector may, if he thinks it expedient so to do, inspect or cause to be inspected such essential commodity, whether or not the prosecution is instituted for the contravention of such order and the Collector, if satisfied that there has been a contravention of the order, may order confiscation of--

(a) the essential commodities so seized;

(b) any package, covering or receptacle in which such essential commodity is found; and

(c) any animal, vehicle, vessel or other conveyance used in carrying such essential commodity:

Provided that, without prejudice to any action which may be taken under any other provision of this Act, no foodgrains or edible oilseeds seized in pursuance of an order made under section 3 in relation thereto from producer shall, if the seized foodgrains or edible oil-seeds have been produced by him, be confiscated under this section.

(2) Where the Collector, on receiving a report of seizure or in inspection of any essential commodity under sub-section (1), is of the opinion that such essential commodity is subject to speedy and natural decay or that it is otherwise, expedient in the public interest so to do, he may order the same to be sold at the controlled price if any, fixed under any law for the time being in force.

(3) In the case of foodgrains, where there is no controlled price, the Collector, if he thinks fit, may order the foodgrains seized under sub-section (1) to be sold through fair price shops at the price fixed by the Central Government or the State Government, as the case may be for the sale of such foodgrains to the public through these shops or may order such foodgrains by public auction.

(4) The Collector shall whenever it is practicable so to do having regard to the nature of the essential commodity take and preserve sample of the same in the prescribed manner before its sale or distribution.

(5) Where any essential commodity is sold as aforesaid, the sale proceeds thereof, after deduction of all expenses of the sale or auction, as the case may be, shall--

(a) where no order of confiscation is ultimately passed by the Collector; or

(b) where an order passed on appeal under sub-clause (1) of section 6C so requires; or

(c) in the case of prosecution being instituted for the contravention of the order in respect of which an order of confiscation has been made under this section and where the person concerned is acquitted to paid to the owner thereof or the person from whom it is seized:

Provided that in the case of foodgrains sold through fair price shops in accordance with sub-sections (2) and (3) the owner shall be paid for the foodgrains so sold, the price fixed by the State Government, for retail sale of such foodgrains through such shops less all expenses of sale or auction under sub-sections (2) and (3).

(6) Notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973 (2 of 1974), when Collector or the appellate authority is seized with the matter under this section no court shall entertain any application in respect of essential commodities, any package covering, receptacle any animal, vehicle or other conveyance used in carrying such commodities as far as its release, distribution etc. is concerned and the jurisdiction of Collector or the appellate authority with regard to the disposal of the same shall be exclusive.

(7) The State Government may by notification in the Official Gazette, authorise any officer not below the rank of sub-divisional Magistrate, to discharge all or any of the functions of a Collector under this section.

(8) The Collector shall for the purposes of this Act have the same powers as are vested in a court under the Code of Civil Procedure, 1908 when making enquiries under this section in respect of following matters, namely:--

(a) receiving evidence on affidavits;

(b) summoning and enforcing the attendance of any person and examining him on oath; and

(c) compelling the production of documents.

(9) All enquiries and proceedings under this section before the Collector and the appellate authority shall be deemed to be judicial proceeding and while discharging functions under this section the Collector and the appellate authority shall be deemed to be a Court.

Explanation.--For the purposes of this section the Collector shall include 'Additional Collector' and any officer specially authorized under subsection (7)".

10 Maharashtra

For section 6A, substitute the following section, namely;--

"6A Confiscation of seized commodities,--(1) Where any essential commodity is seized in pursuance of an order made under section 3 in relation thereto, a report to that effect shall, without any unreasonable delay be sent to the Collector within whose jurisdiction the seizure is made, and the Collector may, if he thinks it expedient so to so, inspect or cause to be inspected such essential commodity, and whether or not a prosecution is instituted for the contravention of such order, the Collector, if satisfied that there has been contravention of the order, may order confiscation of-

(a) the essential commodity so seized;

(b) any package, covering or receptacle in which such essential commodity is found; and

(c) any animal, vehicle, vessel or other conveyance used in carrying such essential commodity:

Provided that without prejudice to any action that may be taken under any other provision of this Act, no foodgrains or edible oilseeds seized in pursuance of an order made under section 3 in relation thereto from a producer shall, if the seized foodgrains or edible oilseeds have been produced by him, be confiscated under this section:

Provided further that where any animal, vehicle, vessel or other conveyance is used for the carriage of goods or passengers for hire, the owner of such animal, vehicle, vessel or other conveyance shall be given an option to pay in lieu of its confiscation a fine not exceeding the market price at the date of seizure of the essential commodity sought to be carried.

(2) Where the Collector on receiving a report of seizure or on inspection of any essential commodity under sub-section (1) is of the opinion that such essential commodity is subject to speedy and natural decay or that it is otherwise expedient in the public interest so to so, he may order the same to be sold at the controlled price if any, fixed under any law for the time being in force; or where no such price is fixed by auction:

Provided that, in the case of foodgrains where there is no controlled price, the Collector may order the foodgrains seized to be sold through fair price shops at the price fixed by the Central Government or the State Government as the case may be for the sale of such foodgrains to the public through these shops:

Provided further that, whenever it is practicable so to so, having regard to the nature of the essential commodity, he shall take and preserve sample of the same before its sale or auction.

(3) Where any essential commodity is sold as aforesaid, the sale proceeds thereof after deduction of the expenses of the sale or auction, as the case may be, shall--

(a) where no order of confiscation is ultimately passed by the Collector; or

(b) where an order passed, on appeal under sub-clause (1) of section 6C so requires; or

(c) in the case of a prosecution being instituted for the contravention of the order in respect of which an order of confiscation has been made under be paid to the owner thereof or the person from whom it is seized:

Provided that, in the case of foodgrains sold through fair price shops in accordance with the first proviso to sub-section (2) the owner shall be paid for the foodgrains so sold the price fixed by the State Government, for retail sale of such foodgrains through such shops, less all expenses of sale or auction under sub-section (2)."

1. Inserted by Act 25 of 1966, section 3 (w.e.f. 3-9-1966).

2. Section 6A renumbered as sub-section (1) thereof by Act 92 of 1976, section 4 (w.e.f. 2-9-1976).

3. Substituted by Act 36 of 1967, section 4, "foodgrains, edible oilseeds or edible oils are seized" (w.e.f. 30-12-1967).

4. Substituted by Act 92 of 1976, section 4, for "it may be produced without any unreasonable delay, before" (w.e.f. 2-9-1976).

5. Substituted by Act 92 of 1976, section 4, for "if satisfied" (w.e.f. 2-9-1976).

6. Substituted by Act 30 of 1974, section 4, for "may order confiscation of the essential commodity so seized" (w.r.e.f. 22-6-1974).

7. Inserted by Act, 92 of 1976, section 4, (w.e.f. 2-9-1976).

8. Proviso substituted by Act 18 of 1981 as amended by Act 34 of 1993 for a period of fifteen years which now stands ceased to have effect after the expiry of fifteen years. See Appendix-- Section 4 of the Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).

9. Vide Bihar Act 9 of 1978, section 4 (w.e.f. 6-9-1978).

10. Vide Maharashtra Act 1 of 1976, section 4 (w.r.e.f. 12-11-1975).


Section 6B. Issue of show cause notice before confiscation of foodgrains, etc.

1 [6B. Issue of show cause notice before confiscation of foodgrains, etc.

2 [(1)] No order confiscating 3 [any 4 [essential commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance] shall be made under section 6A unless the owner of such 4 [essential commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance) or the person from whom 5 [it is seized]-

(a) is given a notice in writing informing him of the grounds on which it is proposed to confiscate the 3 [essential commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance];

(b) is given an opportunity of making a presentation in wiring within such reasonable time as may be specified in the notice against the ground of confiscation; and

(c) is given a reasonable opportunity of being heard in the matter.

6 [(2) Without prejudice to the provisions of sub-section (1), no order confiscating any animal, vehicle vessel or other conveyance shall be made under section 6A if the owner of the animal, vehicle vessel or other conveyance proves to the satisfaction of the Collector that it was used in carrying the essential commodity without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the animal, vehicle, vessel or other conveyance and that each of them had taken all reasonable and necessary precautions against such use.]

7 [(3) No order confiscating any essential commodity package, covering, receptacle, animal, vehicle, vessel or other conveyance shall be invalid merely by reason of any defect or irregularity in the notice, given under clause (a) of sub-section (1), if, in giving such notice, the provisions of that clause have been substantially complied with.]

STATE AMENDMENT

8 Uttar Pradesh

After section 6B, insert the following section, namely:

"6BB. Review.--(1) Where the Collector is satisfied that an order of confiscation or an order refusing confiscation made under section 6A suffers from a mistake apparent on the face of the record (including any mistake of law) he may within one month of such order issue notice to the owner of the essential commodity, package, covering, receptacle, animal, vehicle, vessel or other conveyance, or, as the case may be, the person from whom it was seized, to show cause why that order should not be reviewed, and after giving him a reasonable opportunity of being heard, pass such order on review as he thinks fit.

(2) The provisions of sections 6C and 6D shall apply in relation to an order passed originally under section 6A."

1. Inserted by Act 25 of 1966, section 3 (w.e.f. 3-9-1966).

2. Section 6B renumbered as sub-section (1) thereof by Act 30 of 1974, section 5 (w.e.f. 22-6-1974).

3. Substituted by Act 36 of 1967, section 5, for "any foodgrain, edible oilseeds or edible oils" (w.e.f. 30-12-1967).

4. Substituted by Act 30 of 1974, section 5, for the words "essential commodity" (w.e.f. 22-6-1974).

5. Substituted by Act 36 of 1967, section 5, for "they are seized".

6. Inserted by Act 30 0f 1974, section 5 (w.e.f. 22-6-1974).)

7. Inserted by Act 92 of 1976, section 5 (w.e.f. 2-9-1976).

8. Vide Uttar Pradesh Act 18 of 1975, section 6 (w.e.f. 31-3-1975).


Section 6C. Appeal

1 [6C.Appeal

(1) Any person aggrievedby an order of confiscation under section 6A may, within one month from the date of the communication to him of such order, appeal to any judicialauthority by the State Government concerned and the judicial authority shall,after giving an opportunity to the appellant to be heard, pass such order as itmay think fit, confirming, modifying or annulling the order appealed against.

(2) Where an order undersection 6A is modified orannulled by 2 [such judicial authority], or where in a prosecution instituted forthe contravention of the order in respect of which an order of confiscation hasbeen made under section 6A, theperson concerned is acquitted, and in either case it is not possible for anyreason to 3 [return the essential commodity seized], 4 [suchpersons shall, except as provided by sub-section (3) of section 6A, be paid] the price therefor 5 [as if theessential commodity,] had been sold to theGovernment with reasonable interest calculated from the day of the seizure of 6 [the essential commodity] 7 [and such price shall be determined-

(i) in the case of foodgrains, edible oilseeds or edible oils, inaccordance with the provisions of sub-section (3B) of section 3;

(ii) in the case of sugar, in accordance with the provisions ofsubsection (3C) of section 3; and

(iii) in the case of any other essential commodity, in accordance withthe provisions of sub-section (3)of section 3.]

STATEAMENDMENT

8 Bihar

Forsection 6C, substitute the following section, namely:--

"6C.Appeal--(1) Any person aggrieved by an order of confiscation under section 6Amay, without one month from the date of the communication to him of such order,appeal to any judicial authority appointed by the State Government concerned andthe judicial authority shall, after giving an opportunity to the appellant to beheard, pass such order as it may think fit, confirming, modifying or annullingthe order appealed against.

(2)Where an order under section 6A modified or annulled by such judicial authority,or where in a prosecution for the contravention of the order in respect of whichan order of confiscation has been made under section 6A, the person concerned isacquitted and in either case it is not possible for any reason to return theessential commodity seized, such person shall, save as provided by sub-section(3) of section 6A, be paid the price thereof as if the essential commodity hadbeen sold to the Government with reasonable interest calculated from the day ofthe seizure of the essential commodity and such price shall be determined--

(i)in the case of foodgrains, edible oilseeds or edible oils, in accordance withthe provisions of sub-section (3B) of section 3;

(ii)in the case of sugar in accordance with the provisions of sub-section (3C) ofsection 3; and

(iii)in the case of any other essential commodity, in accordance with the provisionsof sub-section (3) of section 3."

1.Inserted by Act 25 of 1966, section 3 (w.e.f. 3-9-1966).

2.The words "the State Government concerned and the State Government"subs, by Act 18 of 1981 as amended by Act 34 of 1993, for ''any judicialauthority appointed by the State Government and the judicial authority" fora period of fifteen years, now they stand ceased to have effect after the expiryof fifteen years. See Appendix -- Section 5(a) of the Essential Commodities(Special Provisions) Act, 1981 (18 of 1981).

3.The words "the State Government" substituted by Act 18 of 1981 asamended by Act 34 of 1993, for "such judicial authority" for a periodof fifteen years, now they stand ceased to have effect after the expiry offifteen years, See Appendix -- Section 5(b) of the Essential Commodities(Special Provisions) Act, 1981 (18 of 1981).

4.Substituted by Act 36 of 1967, section 6, for "return the foodgrains oredible oilseeds or edible oils seized" (w.e.f. 30-12-1967).

5.Substituted by Act 92 of 1976, section 6, for "such person shall bepaid".

6.Substituted by Act 36 of 1967, section 6, for "as if the foodgrains, edibleoilseeds or edible oils, as the case may be," (w.e.f. 30-12-1967).

7.Substituted by Act 36 of 1967, section 6, for "articles" (w.e.f.30-12-1967).

8.Substituted by Act 36 of 1967, section 6, for certain words (w.e.f. 30-12-1967).


Section 6D. Award of confiscation not to interfere with other punishments

1[6D . Award of confiscation not to interfere with other punishments

The award of any confiscation under this Act by the Collector shall not prevent the infliction of any punishment to which the person affected thereby is liable under this Act.]

1. Inserted by Act, 25 of 1966, section 3 (w.e.f. 3-9-1966).


Section 6E. Bar of jurisdiction in certain cases

1[6E . Bar of jurisdiction in certain cases

Whenever any essential commodity is seized in pursuance of an order made under section 3 in relation thereto, or any package, covering or receptacle in which such essential commodity is found, or any animal, vehicle, vessel or other conveyance used in carrying such essential commodity is seized pending confiscation under section 6 A, the Collector, or, as the case may be,2[the judicial authority appointed under section 6 C] shall have, and, notwithstanding anything to the contrary contained in any other law for the time being in force,3[any other court, tribunal or other authority] shall not have, jurisdiction to make orders with regard to the possession, delivery, disposal, release or distribution of such essential commodity, package, covering, receptacle, animal, vehicle, vessel or other conveyance ].

1. Inserted by Act 92 of 1976, section 7 (w.e.f. 2-9-1976) and substituted by Act 42 of 1986, section 2 (w.e.f. 9-9-1986).

2. The words "the State Government concerned under section 6C" substituted by Act 18 of 1981 as amended by Act 34 of 1993, for "the judicial authority appointed under section 6C" for a period of fifteen years, now they stand ceased to have effect after the expiry of fifteen years. See Appendix -- Section 6(a) of the Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).

3. The words "any court, tribunal or other authority" subs, by Act 18 of 1981 as amended by Act 34 of 1993, for "any other court, tribunal or authority" for a period of fifteen years, now they stand ceased to have effect after the expiry of fifteen years. See Appendix -- Section 6(b) of the Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).


Section 7. Penalties

1 [(1) If any personcontravenes any order made under section 3,--

(a) he shall be punishable,--

(i) in the case of an order made withreference to clause (h) or clause (i) of sub-section (2) of that section, withimprisonment for a term which may extend to one year and shall also be liableto fine, and

(ii) in the case of any other order,with imprisonment for a term which shall not be less than three months butwhich may extend to seven years and shall also be liable to fine:

2 [Provided that the court may, for any adequate and specialreasons to be mentioned in the judgment, impose a sentence of imprisonment fora term of less than three months;]

(b) any property in respect of whichthe order has been contravened shall be forfeited to the Government;

(c) any package, covering or receptaclein which the property is found and any animal, vehicle, vessel or otherconveyance used in carrying the commodity shall, if the court so orders, beforfeited to the Government.

(2) If any person to whom a directionis given under clause (b) of sub-section (4) of section 3 fails to comply withthe direction, he shall be punishable with imprisonment for a term which shallnot be less than three months but which may extend to seven years and shallalso be liable to fine:

3 [Provided that the court may, for any adequate and specialreasons to be mentioned in the judgment, impose a sentence of imprisonment fora term of less than three months.]

(2A) If any person convicted of anoffence under sub-clause (ii) of clause (a) of sub-section (1) or undersub-section (2) is again convicted of an offence under the same provision, heshall be punishable with imprisonment for the second and for every subsequentoffence for a term which shall not be less than six months but which may extendto seven years and shall also be liable to fine:

4 [Provided that the court may, for any adequate and specialreasons to be mentioned in the judgment impose a sentence of imprisonment for aterm of less than six months.]

5 [(2B) For the purposes of sub-sections (1), (2) and (2A),the fact that an offence under sub-clause (ii) of clause (a) of sub-section (1)or under sub-section (2) has caused no substantial harm to the general publicor to any individual, shall be an adequate and special reason for awarding asentence of imprisonment for a term of less than three months, or six months,as the case may be.]

6 [(3) Where a person having been convicted of an offenceunder sub-section (1) is again convicted of an offence under that sub-sectionfor contravention of an order in respect of an essential commodity, the courtby which such person is convicted shall, in addition to any penalty which maybe imposed on him under that sub-section, by order, direct that that personshall not carry on any business in that essential commodity for such period,not being less than six months, as may be specified by the court in the order.]

STATE AMENDMENTS

7 [Punjab:Haryana: Chandigarh:

After section 7, insert the followingsection, namely:--

"7A. Forfeiture of certainproperty used in the commission of the offence.--Whenever any offence relatingto foodstuffs which is punishable under section 7 had been committed, the Courtshall direct that all the packages, coverings or receptacles in which anyproperty liable to be forfeited under the said section is found and all theanimals, vehicles, vessels or other conveyances used in carrying the saidproperty shall be forfeited to the Government."]

8 Rajasthan

After section 7, insert the followingsection, namely:

"7A, Same as in Punjab with followingproviso:

Provided that if the court is ofopinion that it is not necessary to direct forfeiture in respect of all suchpackages, coverings or receptacles or such animals, vehicles, vessels, or otherconveyances or any of them, it may, for reasons to be recorded, refrain fromdoing so."

1. Substituted by Act 30 of 1974,section 6, forsub-sections (1) and (2) (w.e.f. 22-6-1974).

2. Proviso was omitted by Act 18 of1981 as amended by Act 34 of 1993 for a period of fifteen years which nowstands restored after the expiry of fifteen years. See Appendix -- Section 7(a)Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).

3. Proviso was omitted by Act 18 of1981 as amended by Act 34 of 1993 for a period of fifteen years which nowstands restored after the expiry of fifteen years. See Appendix -- Section 7(b)of the Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).

4. Proviso was omitted by Act 18 of1981 as amended by Act 34 of 1993 for a period of fifteen years which nowstands restored after the expiry of fifteen years. See Appendix -- Section 7(c)of the Essential Commodities (Special Provisions) Act 1981 (18 of 1981).

5. Sub-section (2B) omitted by Act 18of 1981 as amended by Act 34 of 1993 for a period of fifteen years which nowstands restored after the expiry of fifteen years. See Appendix --Section 7(d)of the Essential Commodities (Special Provisions) Act, 1981 (18 of 1981).

6. Inserted by Act 36 of 1967,section 7(w.e.f. 30-12-1967).

7.Vide Punjab Act 34 of 1959, section 2(w.e.f. 27-8-1959).

8.Vide Rajasthan Act 32 of 1960,section 2(w.e.f. 24-9-1960).


Section 7A. Power of Central Government to recover certain amounts as arrears of land revenue

1[7A. Power of Central Government to recover certain amounts as arrears of land revenue

(1) Where any person, liable to--

(a) pay any amount in pursuance of any order made under section 3, or

(b) deposit any amount to the credit of any Account or Fund constituted by or in pursuance of any order made under that section,

makes any default in paying or depositing the whole or any part of such amount, the amount in respect of which such default has been made shall whether such order was made before or after the commencement of the Essential Commodities (Amendment) Act, 1984 (34 of 1984), and whether the liability of such person to pay or deposit such amount arose before or after such commencement be recoverable by Government together with simple interest due thereon computed at the rate of2[fifteen per cent.] per annum from the date of such default to the date of recovery of such amount, as an arrear of land revenue3[or as a public demand].

(2) The amount recovered under' sub-section (1) shall be dealt with in accordance with the order under which the liability to pay or deposit such amount arose.

(3) Notwithstanding anything contained in any other law for the time being in force or any contract to the contrary, no court, tribunal or other authority shall grant any injunction or make any order prohibiting or restraining any Government from recovering any amount as an arrear of land revenue3[or as a public demand] in pursuance of the provisions of sub-section (1).

(4) If any order, in pursuance of which any amount has been recovered by Government as an arrear of land revenue 1[or as a public demand] under subsection (1) is declared by a competent court, after giving to the Government a reasonable opportunity of being heard, to be invalid, the Government shall refund the amount so recovered by it to the person from whom it was recovered, together with simple interest due thereon, computed at the rate of2[fifteen per cent.] per annum, from the date of recovery of such amount to the date on which such refund is made.

Explanation.--For the purposes of this section, "Government" means the Government by which the concerned order under section 3 was made or where such order was made by an officer or authority subordinate to any Government, that Government.]

1. Inserted by Act 34 of 1984, section 2 (w.e.f. 1-7-1984).

2. Substituted by Act 42 of 1986, section 3, for "six per cent." (w.e.f. 8-9-1986).

3. Inserted by Act 42 of 1986, section 2 (w.e.f. 8-9-1986).