LexThe Essential commodities act 1955
Gujarat · state statute
Open in Lexace · Ask the AI about this act1
THE ESSENTIAL COMMODITIES ACT, 1955
_________
ARRANGEMENT OF SECTIONS
_________
SECTIONS
1. Short title and extent.
2. Definitions.
2A. Essential commodities declaration, etc.
3. Powers to control production, supply, distribution, etc., of essential commodities.
4. Imposition of duties on State Governments, etc.
5. Delegation of powers.
6. Effect of orders inconsistent with other enactments.
6A. Confiscation of essential commodity.
6B. Issue of show cause notice before confiscation of food grains, etc.
6C. Appeal.
6D. Award of confiscation not to interfere with other punishments.
6E. Bar of jurisdiction in certain cases.
7. Penalties.
7A. Power of Central Government to recover certain amounts as arrears of land revenue.
8. Attempts and abetment.
9. False statement.
10. Offences by companies.
10A. Offences to be cognizable.
10B. Power of court to publish name, place of business, etc., of companies convicted under
the Act.
10C. Presumption of culpable mental state.
11. Cognizance of offences.
12. Special provision regarding fine.
12A. Power to try summarily.
12B. Grant of injunction, etc., by civil courts.
13. Presumption as to orders.
14. Burden of proof in certain cases.
15. Protection of action taken under Act.
15A. Prosecution of public servants.
16. Repeals and savings.
THE SCHEDULE.
2
THE ESSENTIAL COMMODITIES ACT, 19551
ACT NO. 10 OF 1955
[1st April, 1955.]
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. Short title and extent.―(1) This Act may be called the Essential Commodities Act, 1955.
(2) It extends to the whole of India 2***.
2. Definitions.―In this Act, unless the context otherwise requires,―
3[(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;]
4* * * * *
(b) “food-crops” include crops of sugarcane;
(c) “notified order” means an order notified in the Official Gazette;
5[(cc) “order” includes a direction issued thereunder;]
6[(d) “State Government,” in relation to a Union territory, means the administrator thereof;]
5[(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.]
STATE AMENDMENT
Maharashtra
Amendment of section 2 of Act 10 of 1955. --In section 2 of the Essential Commodities Act,
1955 (10 of 1955), in its application to the State of Maharashtra,--
(a) for clause (ia), the following clause shall be substituted, namely:--
"(ia) "Collector" in any Rationing Area means the Controller of Rationing designated for
that area and includes the Deputy or Assistant Controller or Rationing; and elsewhere, the
Collector of the District and includes Additional, Deputy or Assistant Collector, Sub -
Divisional Officer and District Supply Officer within his respective jurisdiction;";
(b) clause (ai) shall be deleted.
[Vide Maharashtra Act 6 of 2003, s. 2]
1. Extended to Goa, Daman and Diu with modification by Regulation 12 of 1962, section 3 and Schedule, to Dadra and
Nagar Hav eli by Regulation 6 of 1963, section 3 and Schedule I and to Lakshadweep and Amindivi Islands by
Regulation 8 of 1965, section 3 and Schedule, to the State of Sikkim vide S.O. 28(E), dated 7th January, 1976
(w.e.f. 7-1-1976).
This Act has been amended in Maharashtra by Maha rashtra 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.
2. The words “except the State of Jammu and Kashmir” omitted by Act 25 of 1968, s. 2 and the Schedule
(w.e.f. 15-8-1968).
3. Ins. by Act 92 of 1976, s. 2 (w.e.f. 2-9-1976).
4. Clause (c) omitted by Act 54 of 2006, s. 2 (w.e.f. 12-2-2007).
5. Ins. by Act 36 of 1967, s. 2 (w.e.f. 30-12-1967).
6. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for clause (d).
3
Uttar Pradesh
Amendment of s ection 2 of Act X of 1955. —In section 2 of the Essential Commodities Act,
1955, as amended in its application to Uttar Pradesh, hereinafter called the principal Act, before
clause (a), the following clause shall be inserted namely:--
“(aa) ‘Collector’ includes such officer not below the rank of an Assistant Collector of the first
class as may be authorized by the Collector to exercise the powers conferred on him by or under
the provisions of this Act;”
[Vide Uttar Pradesh Act 18 of 1975, s. 3]
Amendment of section 2 of Act 10 of 1955 .—In section 2 of the Essential Commodities act,
1955 (hereinafter referred to as the principal Act). Clause (aa) as inserted by the Essential
Commodities (Uttar Pradesh Amendment) Act, 1975, hereinafter referred to as the Uttar Pradesh
Amendment, shall stand omitted with effect from September 2, 1976, the date of the commencement
of the Essential Commodities (Amendment) Act, 1976, hereinafter referred to as the Central
(Amendment).
[Vide Uttar Pradesh Act XVI of 1978, s. 2]
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,
in consultation with the State Governments.
(3) Any n otification 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 ma y be after it is
issued, before both Houses of Parliament.]
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, 2[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.
3* * * * *
1. Ins. by Act 54 of 2006, s. 3 (w.e.f. 12-2-2007).
2. Ins. by Act 36 of 1967, s. 3 (w.e.f. 30-12-1967).
3. Sub-section (1A) omitted by Act 40 of 2021, s. 3 (w.e.f. 30-11-2021).
4
(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 ge nerally 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 any essential commodity may be bought or sold;
(d) for regula ting 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;
1[(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,
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 foodgrains,
edible oilseeds and edible oils, fix the quantity to be sold by the prod ucers 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 purpose 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 2*** 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 t he 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;
1. Subs. by Act 92 of 1976, s. 3, for clause (f).
2. The words “or cotton textiles” omitted by Act 54 of 2006, s. 4 (w.e.f. 12-2-2007).
5
1[(ii) for the grant or issue of licences, permits or other documents, the charging of fees
therefore, 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 lic ence, 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;]
2[(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,—
(i) of any articl es 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;
(ii) of any aircraft, vessel, vehicle or other conveyance or animal used in carrying such
articles, 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;
3[(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 extract s 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 therefore 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.
4[(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 sub-section (2) shall be regulated in accordance with the provisions of this sub-section.
(ii) Any notification issued under this sub -section shall remain in fo rce 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 com pliance with an order made with
reference to clause (f) of sub-section (2), 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;
1. Ins. by Act 17 of 1961, s. 2.
2. Subs. by Act 66 of 1971, s. 2, for clause (j) (w.e.f. 23-12-1971).
3. Subs. by Act 92 of 1976, s. 3, for sub-clause (iii).
4. Ins. by Act 13 of 1957, s. 2 (w.e.f. 4-6-1957).
6
(c) where neither clause ( a) nor clause ( b) applies, the price calculated with reference to
average market rate prev ailing 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 autho rised 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.]
1[(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 Governmen t, any grade or variety of
foodgrains, 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 sub -section ( 3), an
amount equal to the procurement price of such food grains, 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 gra de or variety of food grains, 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.]
2[(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 3[I].— For the purposes of this sub-section,—
1. Subs. by Act 92 of 1976, s. 3, for sub-section (3B).
2. Subs. by Act 36 of 2009, s. 2, for sub-section (3C) and the Explanations (w.e.f. 1-10-2009).
3. The existing Explanation numbered as Explanation I by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009).
7
(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 s ugarcane from the purchase cent re 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 cap ital 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.]
1[Explanation II.―For the removal of doubts, it is hereby declared that the expressions “fair and
remunerative 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), of this sub -section do not
include the price paid or payable under any order or any enactment of any State Government and any
price agreed to between the producer and the grower or a sugarcane growers' co-operative society.]
2[(3D) The Central Governmen t 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 go
downs of the factory in which it is produced, whether such godowns are situated within the pr emises
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 (2 of 1934) or any corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transf er 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, del ivery 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 de aler'' means a person carrying on the business of purchasing, selling or
distributing sugar;
(c) “sugar” includes plantation whi te suga r, raw sugar and refined sugar, whether
indigenously produced or imported.]
(4) If the Central Government is of opinion t hat it is necessary so to do for maint aining 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
1. Explanation II ins. by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009).
2. Ins. by Act 37 of 2003, s. 2 (w.e.f.14-6-2009).
8
(b) the undertaking or part shall be carried on in accordance with any directions given b y 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 AMENDMENT
Uttar Pradesh
Amendment of section 3 of Act X of 1955.—In section 3 of the principal Act, in sub-section (2),
after clause (f), the following clause shall be inserted, namely:--
“(ff) for preventing the hoarding of any essential commodity;”
[Vide Uttar Pradesh Act 9 of 1974, s. 2]
Amendment of section 3.—In section 3 of the principal Act,--
(a) in sub -section (2), for clause (f), the following clause shall be substituted and 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 likely to be manufactured or
produced by him or receive d or likely to be received by him in the course of said business of
buying or selling, 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 person and in such circumstances as may be
specified in the order;
Explanation.--An order relating to food grains 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 Agricult ural Prices Commission and with the prior
concurrence of the Central Government, as the amount which shall be paid for the food grain
required to be sold under the order,
(ii) may fix or provide for the fixation of the quantity to be sold by a producer wit h reference
to the area under cultivation and the availability of irrigation for production of the particular food
grain to which the order relates, and also fix or provide for the fixation of such quantities on a
graded basis having regard to the aggregat e 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:--
9
"(c) in the case of food grains, where neither c lause (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 food grains, where no controlled price is fixed by an order made with
reference to clause (c) of sub -section (2), the amount specifi ed in the said Order made with
reference to clause (f) of sub-section (2) for such grade or variety of food grains; or"
[Vide Uttar Pradesh Act 18 of 1975, s. 4]
Amendment of section 3 of Act X of 1955 .—In section 3 of the Essential Commodities Act,
1955, as amended in its application to Uttar Pradesh, in sub-section (2), in clause (f), as substituted by
the Essential Commodities (Uttar Pradesh Amendment) Act, 1975, in the Explanation thereof, for
sub-clause (II), the following sub -clause shall be substitut ed and be deemed always to have been
substituted Namely:--
“(II) may fix or provide for the fixation of the quantity to be sold by a producer with reference to
the area under cultivation for production of the particular (foodgrains to which the order relat es, 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."
[Vide Uttar Pradesh Act 39 of 1975, s. 2]
Amendment of section 3 of Act no. 10 o f 1955.—(1) In section 3 of the principal Act, in sub-
section (2), clause (f), as substituted by the Uttar Pradesh Amendment read with the Essential
Commodities (Uttar Pradesh Second Amendment) Act, 1975 shall be omitted and deemed to have
been omitted with effect from the date of the commencement of the Central Amendment.
(2) In the said sub -section, in clause (f), as substituted by the central Amendment, after
Explanation 1, the following Explanation shall be inserted, namely:--
“Explanation I-A.—An order made this clause in relation to rice may, 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.”
(3) In the said section 3, sub-section (3-B), as amended by the Uttar Pradesh Amendment, shall be
committed and deemed to have been omitted with effect from the date of commencement of the
central Amendment.
[Vide Uttar Pradesh Act XVI of 1978, s. 3]
4. Imposition of duties on S tate Government s, 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.
5. Delegation of powers .―The Central Government may, by notified order, direct that 1[the
power to make orders or issu e notifications u nder 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
1. Subs. by Act 66 of 1971, s. 3, for “the power to make orders under section 3” (w.e.f. 23-12-1971).
10
(b) such State Government or su ch officer or such authority sub ordinate to a State
Government,
as may be specified in the direction.
6. Effect of orders inconsistent with other enactments .―Any order made under section 3 shall
have effect notwithstanding anything inconsistent therewith c ontained in any enactment other than
this Act or any instrument having effect by virtue of any enactment other than this Act.
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 th e Presidency town in
which such 5[essential commodity is seized] and whether or not a prosecution is instituted for the
contravention of such order, the Collector 6[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 7[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 food grains or edible oilseeds in pursuance of an order made under section 3 in relation
thereto from a pro ducer shall, if the seized food grains or edible oilseeds have been produced by him,
be confiscated under this section:
8[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.]
9[(2) Where the Coll ector, on receiving a report of seizure or on inspection of any essential
commodity under sub-section (1), 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 such 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:
Provided that in case of foodgrains, the Collector may, for its equitable distribution and
availability at fair prices, order the same to be sold through fair price shops at the price fixed by the
Central Government or by the State Government, as the case m ay be, for the retail sale of such
foodgrains to the public.
(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
1. Ins. by Act 25 of 1966, s. 3 (w.e.f. 3-9-1966).
2. Section 6A renumbered as sub-section (1) thereof by Act 92 of 1976, s. 4 (w.e.f. 2-9-1976).
3. Subs. by Act 36 of 1967, s. 4, for “foodgrains, edible oilseeds or edible oils are seized” (w.e.f. 30-12-1967).
4. Subs. by Act 92 of 1976, s. 4, for “it may be produced without any unreasonable delay, before” (w.e.f. 2-9-1976).
5. Subs. by Act 36 of 1967, s. 4, for “food grains, edible oilseeds or edible oils are seized” (w.e.f. 30-12-1967).
6. Subs. by Act 92 of 1976, s. 4, for “if satisfied” (w.e.f. 2-9-1976).
7. Subs. by Act 30 of 1974, s. 4, for “may order confiscation of the essential commodity so seized” (w.e.f. 22-6-1974).
8. Ins. by Act 92 of 1976, s. 4.
11
(c) where in a prosecution instituted for the contravention of the order in respect of whi ch an
order of confiscation has been made under this section, the person concerned is acquitted,
be paid to the owner thereof or the person from whom it is seized.]
STATE AMENDMENT
Uttar Pradesh
Substitution of new section for section 6-A.—The following section shall be substituted, 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 anima l, 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 food grains or edible oilseeds seized in pursuance of an order made under section 3 in
relation thereto from a producer shall, if the seized food grains 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 th e
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 ex pedient 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 food grains where there is no controlled price, the Collector may
order the food grains 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 food grains to the
public through these shops:
Provided also 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 food grains sold through fair price shops in accordance with the
first proviso to sub -section (2) the owner shall be paid for the food grains so sold the price fixed
by the State Government, for retail sale of such food grains through such shops, less all expenses
of sale or auction under sub-section (2)."]
12
[Vide Uttar Pradesh Act 18 of 1975, s. 5]
Substitution of sections 6 -A and 6 -C.—In the principal Act, for sections 6 -A and 6 -C as
amended or substituted by the Uttar Pradesh Amendment, sections 6 -A a nd 6 -C respectively, 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.
[Vide Uttar Pradesh Act XVI of 1978, s. 4]
6B. Issue of show cause notice before confiscation of food grains, etc. ―1[(1)] No order
confiscating 2[any 3[essential commodity] package, covering, receptacle, animal, vehicle, vessel or
other conveyance] shall be made under section 6A unless the owner of such 2[essential
commodity] package, covering, receptacle, animal, vehicle, vessel or other conveyance) or the person
from whom 4[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.
5[(2) Without prejudice to the provisions of sub -section ( 1), no order co nfiscating 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.]
6[(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
Uttar Pradesh
Insertion of new section 6BB.—After section 6-B of the principal Act, the following section shall be
inserted, 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 apparen t 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 p erson 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 t o an order passed originally
under section 6A."
[Vide Uttar Pradesh Act 18 of 1975, s. 6]
6C. Appeal.―(1) Any person aggrieved by an order of confiscation under section 6A may,
within one month from the date of the communication to him of such order, appea l to any judicial
authority appointed by the State Government concerned and the judicial authority shall, after giving
1. Section 6B renumbered as sub-section (1) thereof by Act 30 of 1974, s. 5 (w.e.f. 22-6-1974).
2. Subs. by Act 36 of 1967, s. 5, for “any foodgrain, edible oilseeds or edible oils” (w.e.f. 30-12-1967).
3. Subs. by Act 30 of 1974, s. 5, for “essential commodity” (w.e.f. 22-6-1974).
4. Subs. by Act 36 of 1967, s. 5, for “they are seized” (w.e.f. 30-12-1967).
5. Ins. by Act 30 of 1974, s. 5 (w.e.f. 22-6-1974).)
6. Ins. by Act 92 of 1976, s. 5 (w.e.f. 2-9-1976).
13
an opportunity to the appellant to be heard, pass such order as it may think fit, confirming, modifying
or annulling the order appealed against.
(2) Where an order under section 6A is modified or annulled by such judicial authority, or where
in a prosecution instituted for the contravention of the order in respect of which an order of
confiscation has been made under section 6A, the person concerned is acquitted, and in either case it
is not possible for any reason to 1[return the essential commodity seized ], 2[such persons shall, except
as provided by sub -section ( 3) of section 6A, be paid] the price therefore 3[as if the essential
commodity,] had been sold to the Government with reasonable interest calculated from the day of the
seizure of 4[the essential commodity] 5[and such price shall be determined―
(i) in the case of food grains, edible oilseeds or edible oils, in accordance with the provisions
of sub-section (3B) of section 3;
(ii) in the case of sugar, in accordance with the provisions of subsection ( 3C) of section 3 ;
and
(iii) in the case of an y other essential commodity, in accordance with the provisions of sub -
section (3) of section 3. ]
STATE AMENDMENTS
Uttar Pradesh
Amendment of section 6 -C.—In sub-section (2) for the words "such person shall be paid", the
words "such person shall, except as provided by sub -section (3) of Section 6 -A, be paid" shall be
substituted.
[Vide Uttar Pradesh Act 18 of 1975, s. 7]
Substitution of sections 6 -A and 6 -C.—In the principal Act, for sections 6 -A and 6 -C as
amended or substituted by the Uttar Pradesh Amen dment, sections 6 -A and 6 -C respectively, 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.
[Vide Uttar Pradesh Act XVI of 1978, s. 4]
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.]
6[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 com modity is seized pending confiscation under section 6 A, the Collector,
or, as the case may be, the State Government concerned under section 6 C shall have, and,
notwithstanding anything to the contrary contained in any other law for the time being in force, any
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. Subs. by Act 36 of 1967, s. 6, for “return the foodgrains or edible oilseeds or edible oils seized” (w.e.f. 30-12-1967).
2. Subs. by Act 92 of 1976, s. 6, for “such person shall be paid”.
3. Subs. by Act 36 of 1967, s. 6, for “as if the foodgrains, edible oilseeds or edible oils, as the case may be,” (w.e.f. 30-12-1967).
4. Subs. by s. 6, ibid., for “articles” (w.e.f. 30-12-1967).
5. Subs. by s. 6, ibid., for “and such price shall be determined in accordance with the provisions of sub -section (3B) of
section 3 (w.e.f. 30-12-1967).
6. Subs. Excerpt shown. Open the full act in Lexace.