An Act further to amend the Essential Commodities Act, and to make provisions for validation of certain orders issued by the Central Government determining the price of levy sugar and actions taken under those orders and for matters connected therewith. Versus Union of India and Others 6 SCALE , in a judgment dated 31st March, , in relation to sugar seasons and , held that the actual price payable to cane growers was absolutely relevant for determining the price of levy sugar; And whereas there are thus conflicting decisions as to the factors to be taken into consideration in determining the price of levy sugar; And whereas it has become necessary to make suitable amendments to the Essential Commodities Act, 10 of to clarify and reiterate the underlying principles and the factors that needed to be taken into consideration in determining the price of levy sugar and to give effect accordingly; And whereas in order to remove doubts and ambiguities it has become necessary to make such provisions with retrospective effect to validate the determination of the price of levy sugar by the Central Government from time to time pursuant to the provisions of the Essential Commodities Act, 10 of Section -1 Short title and commencement.
Section -2 Amendment of section 3. In section 3 of the Essential Commodities Act, 10 of hereinafter referred to as the principal Act - a In sub-section 3C ,the existing Explanation shall be numbered as Explanation I, and after Explanation I as so numbered, the following Explanation shall be inserted and shall be deemed to have been inserted, with effect from the 1st day of October, , namely:- ' 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, 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 -3 Validation of action taken, etc. Help us improve! Protection of action taken under order. Registration of dealers. State Orders to apply. Textiles Development and Regulation Order, 1. Maximum price for sale of cloth, yarn or other textile products.
Vegetable Oil Products Regulation Order, 1. Cancellation of registration. Power to regulate production of vegetable oil products. Cancellation of Registration. Power to call for information and entry and carry out inspection in that regard. Short title, extent, commencement and application. Return relating to purchase of wheat by a Company or Firm or Individual. The Essential Commodities Act, The Government considered that this provision should be enlarged to cover all essential commodities.
It was felt that the offences should be made cognizable and bailable and further that the maximum punishment for certain offences under the Act should also be increased from imprisonment for three years to imprisonment for five years.
For the proper working of the Act, it was considered necessary to provide for the award of minimum punishment to habitual offenders and also to empower the Court to direct that any such person shall not carry on any business in the essential commodity with respect to which he has been convicted for such period, not being less than six months, as may be specified by the Court.
It was felt necessary to amend the Act so as to make contravention of an order made thereunder punishable whether the order was contravened knowingly, intentionally or otherwise. It was felt necessary to extend the operation of this provision for a further period of two years, that is to say up to 31st Dec. A definition of the expression "Collector" is being inserted in the Act to achieve the said object;. In order to meet the situation, it is proposed to provide that a levy order issued in relation to foodgrains, edible oilseeds and edible oils may fix, on a graded basis, the quantity to be sold by the producer, having regard to the estimated production of the crop in the concerned area and the aggregate area held by the producer under cultivation.
II, S. It is proposed to provide for-. The existing provision covers only foodgrains to be sold through fair price shops; and. Act 1 of w. Maharashtra Act 6 of , Section 2 w.
Amendment Act 18 of , shall stand omitted with effect from September 2, , the date of commencement of Essential Commodities Amendment Act, U. Act 16 of , Section 2 w. Maharashtra Act 1 of , Section 3 w. Orissa Act 8 of , Section 2 w. Amendment Act 18 of , Section 3 a shall be omitted and deemed to have been omitted with effect from the date of commencement of the Central AmendmentU. Act 16 of , Section 3 1. Act 9 of , Section 2. Act 18 of , Section 3 b. Amendment Act 18 of , shall be omitted and deemed to have been omitted with effect from the date of commencement of the Central Amendment.
Act 16 of , Section 3 3. Bihar Act 9 of , Section 5 w. The Essential Commodities Act, 10 of Last Updated 28th September, [act] An Act to provide, in the interests of the general public, for the control of the production, supply and distribution of, and trade and commerce in, certain commodities.
Goa is now a State, see Act 18 of , Section 3 w. These islands are now known as Lakshadweep, see Act 34 of , Section 3 w. It has been extended to the State of Sikkim by S. Ii, Section 3 ii , Ext. Under Article of the Constitution, Parliament had power during a period of five years from the commencement thereof to make laws with respect to trade and commerce in, and the production, supply and distribution of certain essential commodities.
The essential commodities to which that Act applied fell two broad categories, viz. As public interest required that Centre should continue to have even after the 26th January, , the same legislative powers as it had under Art. This amendment has now become law, having been ratified by the requisite number of States. The Constitution Third Amendment Act, however, had not become law when the Essential Supplies Temporary Powers Act, , expired, and therefore an Ordinance was promulgated to take effect on the 26th day of January, , which provided for the regulation of trade and commerce in and the production, supply and distribution of commodities which fell within the first category referred to in the preceding paragraph.
Under Entry 42 of the Union List, Parliament has power to regulate inter-State trade and commerce in all commodities and the Ordinance also provided for such regulation in Section 4 thereof but the application of that section was limited in the first instance to wheat, raw cotton and sugarcane.
Pending the passing of a Central law providing for control in respect of all essential commodities now falling within Entry 33 of the Concurrent List, certain State Governments have promulgated Ordinances or taken other legal action open to them for continuing controls in respect of such commodities as could not be included in the Central Ordinance.
The present Bill seeks to replace the Central Ordinance and at the same time includes within the definition of "essential commodities" those commodities which had to be left out by reason of lack of legislative power. To a very large extent, the Bill follows the provisions contained in the Essential Supplies Temporary Powers Act, , but the penalty clause has been simplified and a few other provisions have been omitted as unnecessary.
II, Section 3, p. Amendment Act 66 of That clause does not expressly authorise the seizure of the coverings or receptacles in which the property is found or the conveyances used in carrying the property, although the Court is empowered to order their forfeiture to Government after trial. It is, therefore, proposed to amend that clause to empower the seizure of such coverings and receptacles, and to authorise the seizure of conveyances or animals used for the transport of offending goods when the person seizing the goods has reason to believe that the conveyance or animal is liable to be forfeited.
Such price is to be fixed having regard to : i the controlled price of foodgrains, edible oilseeds or edible oils fixed under that section or by or under any other law; and ii the price of the foodgrains, edible oilseeds and edible oils prevailing or likely to prevail during the post-harvest period in the area to which the order applies. The question of assessing the prevailing price or the price likely to prevail during the post-harvest period will arise only when there is no controlled price.
It is, therefore, proposed to amend sub-section 3-B suitably to make this clear. However, as sub-section 3-A of section 3 of the Act enables the issue of a notification, a doubt has arisen whether such a power to issue a notification can also be delegated under section 5. It is proposed to amend that section to make it clear that the power to issue such a notification can also be delegated.
This section provides that the Central Government may, in the interests of production, supply or distribution of any essential commodity and other relevant considerations, by notification in the Official Gazette, specify any order made under section 3 of the Act to be a special order and when such a notification is issued, the contravention of that order may be tried summarily.
The Act also inserted a new section 8-A in the Criminal Law Amendment Act, , empowering the Special Judge, trying an offence, specified under sub-section 1 of section 6 of the Criminal Law Amendment Act, , alleged to have been committed by a public servant in relation to the contravention of any special order notified under section A of the Essential Commodities Act, to try such offence in a summary way.
The period of operation of the Essential Commodities Amendment Act, was originally limited upto the 31st December, , but was extended upto the 31st December , by subsequent Amending Acts. It is considered, after consultation with the State Governments and the Ministries of the Government of India, that section A of the Act and section 8-A of the Criminal Law Amendment Act, , should continue to operate even after the 31st December, Having regard to the fact that shortages of certain essential commodities are likely to persist for some time to come, it is considered desirable to place these two provisions permanently on the Statute Book instead of extending their period of operation from time to time.
The Bill seeks to amend section A to provide that any notification issued under that section will have operation only for a period of two years, with suitable saving provisions.
Amendment Act 34 of In order to achieve these objectives, the Government has been vested with plenary powers to issue orders, e. Similarly the Act provides that if any person contravenes any order made under section 3 of the Act, he shall be punishable with imprisonment and shall also be liable to fine.
There is, however, no provision in the Act enabling the Government to recover, in case of default, any amount which is required to be paid or deposited in pursuance of any such regulatory order. It is, therefore, necessary to amend the Act to include therein an express provision, enabling recovery of such amounts as arrears of land revenue, so as to remove the present lacuna.
Amendment Act 42 of In order to achieve these objectives, Government has been vested with plenary powers under the Act to issue orders for regulating production, storage, transport and distribution of such essential commodities for controlling the price, etc. For an effective implementation of the provisions of the Act, it is proposed to enlarge the scope of that section so as to bar the jurisdiction of Courts also in respect of the release of any package, covering or receptacle in which any seized essential commodity is found, or any animal, vehicle, vessel or other conveyance used in carrying such essential commodity seized pending confiscation thereof under section 6-A of the Act.
But, in some of the States, Government dues are being recovered as a public demand. It is, therefore, proposed to suitably amend the provisions of section 7-A of the Act to enable the recovery of Government dues as a public demand also. It is considered necessary to raise the rate of interest from six per cent per annum to fifteen per cent per annum keeping in view the existing rates of interest charged by the banks.
This has been causing avoidable delay in taking action under the Act by the officials of the Food and Civil Supplies Departments of the Government against persons violating the provisions of the Act. To remove this lacuna, it is proposed to suitably amend the said section to enable authorised officers of the Central and State Governments also to make a report to the Special Courts.
Amendment Act 37 of To achieve these objectives, the Government has been vested with powers under the Act, to issue orders for regulating production, storage, transport and distribution of such essential commodities and for controlling the prices, etc.
The Act at present does not confer any right on the aggrieved consumer or recognised consumer associations to file complaints in Courts. Accordingly, it is proposed to amend section 11 and clause e of sub-section 1 of section AA of the Essential Commodities Act, , to confer rights on the aggrieved consumers and recognised consumer associations to file complaints in Courts.
It is also proposed to define a 'recognised consumer association' under the Act so as to mean a voluntary consumer association registered under Companies Act, or under any law for the time being in force. The Central Government has been following a policy of partial control of sugar since The Central Government has adopted a "regulated release" mechanism for release of levy-free sugar free sale sugar by issuing orders under the Sugar Control Order, The said Order was last amended on 14th June, Clause 4 of the said Order empowered the Central Government to direct that no producer or importer 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 was produced or from the warehouses of importers except under and in accordance with a direction issued, in writing, by the Central Government.
Similarly, clause 5 of the said Order empowered the Central Government to issue, from time to time, general or special order to producers, importers, recognised dealers, etc. The recent challenge to the "regulated release" mechanism in the Courts has led to difficulties in its operation resulting in decline in sugar prices, which, in turn, has affected the capacity of the producers of sugar to pay cane price to the sugarcane growers.
In order to safeguard the interests of the sugarcane growers, producers of sugar and the general public, to restablize the market price of sugar and to overcome the difficulties arising from the said challenge, it has become necessary to incorporate provisions in the Essential Commodities Act, , enabling the Central Government to issue orders or directions to implement "regulated release" mechanism policy of the Government effectively.
Accordingly, it is proposed to suitably incorporate provisions analogous to clauses 4 and 5 of the Sugar Control Order, in the Essential Commodities Act, and to validate any action taken or anything done under the Sugar Control Order, Amendment Act 54 of Section 3 of the said Act empowers the Central Government to control production, supply and distribution of essential commodities.
It also empowers the Central Government under clause b of section 5 of the said Act to delegate the powers to make orders or issue notifications tinder section 3 to a State Government or an officer or authority subordinate to a State Government. Consequently, several control orders have been issued under the said Act. The need to relax various controls on agricultural products including controls on inter-State movement of such products was discussed in the Conference of Chief Ministers held on the 21st May, The said Standing Committee recommended that the restrictions on movement of all agricultural commodities should be removed and that the Essential Commodities Act, may continue as an umbrella legislation for the Central Government and the State Governments, and the States may use it when needed, but a progressive dismantling of controls and restrictions was also required.
In pursuance of the said recommendation, various controls tinder the said Act pertaining to licensing, stock limits and movement restrictions have already been dispensed with vide No. The list of essential commodities has been reviewed from time to time which reference to the production and supply of these commodities and in the light of economic liberalization.
On the basis of the recommendations of the aforesaid Standing Committee and in consultation with the concerned administrative Ministries, eleven commodities in the year, and three commodities in the year, have been deleted from the list of the essential commodities declared under sub-clause xi of clause a of section 2 of the said Act.
However, certain commodities which have been defined in sub-clauses i to x of clause a of section 2 of the said Act could not be deleted through notification even though the Government consider necessary to delete those commodities from the list of essential commodities in the light of the improved demand and supple position.
Therefore, the need has been felt for amending the said Act. Such notification shall remain in force for a period of six months unless it is extended by the Central Government in the public interest and for the purpose reasons are to be recorded by the Central Government. Amending Act 47 of There has been widespread public criticism of the manner in which some sections of the trade and middlemen were able to get round, and render ineffective, the legal and administrative measures devised for the maintenance of supplies essential to the community.
It was, therefore, felt that the existing procedure governing trial of offences relating to the supply and distribution of foodstuffs and other essential commodities and enforcement of the prices fixed for these commodities under the law should be amended immediately, in order to make the trial of these offences quick and effective. As most of the orders regarding the fixation of prices and maintenance of distribution and supply of essential commodities had been issued under Section 3 of the Essential Commodities Act, , and the Criminal Law Amendment Act, , to provide for summary trial of persons contravening order issued under Section 3 of Essential Commodities Act in relation to such of these essential commodities as may be notified from time to time and of public servants charged with offences of bribery, misconduct, etc.
Gazette of India, , Pt. II, Section 2, Ext. Amending Act 23 of In order to make the administration of the Essential Commodities Act more strict it is proposed to provide for the forfeiture of packages, vehicles, animals etc.
Such power is now available under Rule 9 b of the Defence of India Rules, It is also proposed to insert new provisions in the Essential Commodities Act, , for the confiscation, by Collectors of districts of the foodgrains, edible oilseeds and edible oils which have been seized for contravention of any order issued under that Act and for appeals from the orders of the Collectors of the State Governments. Specific provision is also proposed to be made for the return, if possible, of the articles seized or for payment of the value thereof if the person aggrieved by the order of confiscation succeeds in appeal or for payment of the value therefo if the person aggrieved by the order of confiscation succeeds in appeal or is acquitted by Court where prosecution is launched for the same contravention.
This follows the pattern of Rule 8 of the Defence of India Rules, , but has been strengthened with a view to ensure the observance of the principles of natural justice - S.
Amending Act 36 of The Government, after carefully examining the suggestion, considered it necessary to amend the Act by the Essential Commodities Amendment Ordinance, , in certain respects as indicated below : i The Act as amended by the Essential Commodities Amendment Act, 25 of , provided for the confiscation by district authorities of foodgrains, edible oils or edible oilseeds, whenever they were seized in pursuance of an order made under Section 3 of the Act. With a view to augment sugar production during the year , the Central Government decided on a policy of partial control and to procure sixty per cent.
Such procurement will be at a fixed price for distribution through regulated channels. The balance of production will be available for sale by factories anywhere in India in the free market, subject to monthly releases to be sanctioned by the Government. The Government therefore considered it necessary to amend the Act by the Essential Commodities Second Amendment Ordinance, , providing for the manner of fixation of the price of sugar whenever sugar is procured as mentioned above.
For that purpose, it is proposed to amend sub-section 1 of Section 3 of the Act suitably. Amending Act 30 of These man-eaters are too cunning and always escape through the lacunae in the law. Even in case when they are caught red-handed, they get immediate bail even from the police officer and try to tamper with evidence and foil the process of investigation.
So, the administration of justice is reduced to a farce. These undesirable and anti-social elements should be sternly dealt with. To achieve, the very object of the Act, to secure effective administration of justice to ensure a free and fair investigation, it is necessary that such persons should not be released on bail. Hence it is necessary to make every offence under this Act non-bailable. Amending Act 32 of Experience gained in the Working of the Act has indicated the need to make certain amendments in the Act.
The amendments mainly relate to the following matters, namely : i in order to intensify the drive against hoarders and profiteers, it is proposed to provide that the powers of the Collector may also be exercised by an Additional Collector and such other officers, not below the rank of a Sub-Divisional Officer, as may be authorised by the Collector. A definition of the expression "Collector" is being inserted in the Act to achieve the said object; ii Levy orders made under Section 3 2 f have been struck down by the High Court of Orissa on the ground that orders under that section could only require a person to sell any essential commodity "held in stock", and consequently, such orders cannot be based on the quantity of land possessed by the concerned person.
Amending Act 18 of This Act had been amended from time to time. In spite of extensive amendments made to the principal Act in , experience has shown that some of the existing provisions of that Act have not been adequate and effective for expeditious disposal of cases as well as for ensuring the availability of essential commodities at fair prices and for curbing, hoarding and blackmarketing of and profiteering in, such commodities.
There are large number of court cases pending under the principal Act all over the country and, the price rise has continued unabated in the years and The existing provision covers only foodgrains to be sold through fair price shops; and ii for preferring appeal against the order of confiscation passed by the Collector of a district to the State Government instead of to a judicial authority. The Bill seeks to achieve the above objects. II, Section 2, p. It is, therefore, proposed to suitably amend the provisions of section 7A of the Act to enable the recovery of Government dues as a public demand also.
Section 7A also provides for simple interest at six per cent, per annum payable by the defaulters from the date of such default of Government dues up to the date of the recovery thereof. It is considered necessary to raise the rate of interest from six per cent, per annum to fifteen per cent, per annum keeping in view the existing rates of interest charged by the banks.
Under clause e of sub-section 1 of section 12AA of the Act, a Special Court can take cognizance of an offence for violation of the provisions of the Act, only if a report to that effect is made by the police and not by any other officer of the Government. Act 73 of To achieve these objectives, the Government has been vested with powers under the Act, to issue orders for regulating production, storage, transport and distribution of such essential commodities and for controlling the prices etc.
The Act at present does not confer any right on the aggrieved consumer or recognised consumer associations to file complaints in courts.
To promote voluntary consumer movement and to ensure involvement of consumers as well as recognised consumer associations in the enforcement of this Act, it is considered desirable to confer specific rights on the consumer and recognised consumer associations for filing complaints to be taken cognizance of by courts.
Accordingly, it is proposed to amend section 11 and clause e of sub-section 1 of section 12AA of the Essential Commodities Act, , to confer rights on the aggrieved consumers and recognised consumer associations to file complaints in courts.
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. Act 16 of , Section 3 2. Confiscation of foodgrains, edible oilseeds, edible oils, etc. Bihar Act 9 of , Section 4 w. Confiscation of seized commodities. Maharashtra Act 1 of , Section 4 w. Amendment Act 18 of Section 6-A, as amended or substituted by the Central Amendment shall be and be deemed, with effect from the date of commencement of the Central Amendment, to have been substituted.
Act 16 of , Section 4. See also Section 8 of U. Act 18 of Uttar Pradesh. Act 18 of , Section 6. Maharashtra Act 1 of , Section 5 w. Amendment Act 18 of Section 6-C, as amended or substituted by the Central Amendment shall be and be deemed, with effect from the date of commencement of the Central Amendment, to have been substituted.
Form of Charge under section 7 1 a ii read with section 3 1. And I hereby direct that you be tried by this Court on the said charge. Form of Charge under section 7 1 a ii read with section 3 2 a. Form of Charge under section 7 1 a ii read with section 3 2 b. Form of Charge under section 7 1 a ii read with section 3 2 c. Form of Charge under section 7 1 a ii read with section 3 2 d. Form of Charge under section 7 1 a ii read with section 3 2 e. Form of Charge under section 7 1 a ii read with section 3 2 f a.
Form of Charge under section 7 1 a ii read with section 3 2 f b. Form of Charge under section 7 1 a ii read with section 3 2 g. Form of Charge under section 7 1 a ii read with section 3 2 h. Form of Charge under section 7 1 a ii read with section 3 2 i. Forfeiture of certain property used in the commission of the offence. Wherever any offence relating to foodstuffs which is punishable under section 7 has been committed, the Court shall direct that all the packages, coverings or receptacles in which any property liable to be forfeited under the said section is found and all the animals, vehicles, vessels or other conveyances used in carrying the said property shall be forfeited to the Government.
Punjab Act 34 of and Central Act 31 of , Section 88 w. Whenever any offence relating to foodstuffs which is punishable under section 7 has been committed, the Court shall direct that all the packages, coverings or receptacles in which any property liable to be forfeited under the said section is found and all the animals, vehicles, vessels or other conveyances used in carrying the said property shall be forfeited to the Government: Provided that if the Court is of opinion that it is not necessary to direct forfeiture in respect of all such packages, coverings or receptacles or such animals, vehicles, vessels or other conveyances or any of them, it may, for reasons to be recorded, refrain from doing so.
Rajasthan Act 32 of w. Form of Charge under section 9 i or ii. That you, on or about the State Amendment. Act 9 of , Section 7 w. Revolutionising Law Reporting! Install Now! Get it Now! Instant Activation! Mobile Username and password will be sent on this number :. Close Activate Trial Pack.
Headlines with Full Text of Cases! Searchable Back Volumes from ! Searchable Back Volumes! With Searchable Back Volumes from ! If the shopkeeper is charging more money than the Maximum Retail Price for any essential item, then the consumer may complain against him on the National Consumer Helpline number and online complaints www. You can also register at consumer affairs. Hopefully, after reading this article you will have come to know what is the Essential Commodities Act, and what are its objectives.
To read more such articles, click on the link below;. Essential Commodities Act, Meaning, Objectives, and Punishment The Essential Commodities Act, is a law which prohibits shopkeepers from storing and black marketing of essential commodities. Recently, the Central Government has notified order under the Essential Commodities Act to declare masks and hand sanitizers as Essential Commodities up to 30th June This notification will prohibit the black marketing and hoarding of these two essential commodities.
Essential Commodities Act, Get the latest General Knowledge and Current Affairs from all over India and world for all competitive exams. Comment 0. Post Comment. Disclaimer: Comments will be moderated by Jagranjosh editorial team. Comments that are abusive, personal, incendiary or irrelevant will not be published.
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