The Essential Commodities Act, 1955

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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. 
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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.] 
7[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. 
                                                      
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 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.   
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). 
7. Ins. by Act 54 of 2006, s. 3 (w.e.f. 12-2-2007).  
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(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.] 
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 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; 
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, 
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. 
                                                      
1. Ins. by Act 36 of 1967, s. 3 (w.e.f. 30-12-1967). 
2. Subs. by Act 92 of 1976, s. 3, for clause (f). 
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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 1*** 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; 
2[(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;] 
3[(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; 
4[(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. 
5[(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 
                                                      
1. The words “or cotton textiles” omitted by Act 54 of 2006, s. 4 (w.e.f. 12-2-2007). 
2.  Ins. by Act 17 of 1961, s. 2. 
3. Subs. by Act 66 of 1971, s. 2, for clause (j) (w.e.f. 23-12-1971). 
4. Subs. by Act 92 of 1976, s. 3, for sub-clause (iii). 
5.  Ins. by Act 13 of 1957, s. 2 (w.e.f. 4-6-1957). 
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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; 
(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; 
                                                      
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). 
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(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 b een 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 1[I].— 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 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 capi tal 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.] 
2[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.] 
3[(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; 
                                                      
1. The existing Explanation numbered as Explanation I by Act 35 of 2010, s. 2 (w.e.f. 1-10-2009). 
2. Explanation II ins. by s. 2, ibid. (w.e.f. 1-10-2009). 
3. Ins. by Act 37 of 2003, s. 2 (w.e.f.14-6-2009). 
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(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 
(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. 
 4. Imposition of duties on State Governmen ts, 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 o fficers 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 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 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 contained in an y enactment other than 
this Act or any instrument having effect by virtue of any enactment other than this Act. 
 2[6A. Confiscation of essential commodity .― 3[(1)] Where any  4[essential commodity is 
seized] in pursuance of an order made under section  3 in relation thereto, 5[a report of such seizure  
                                                      
1. Subs. by Act 66 of 1971, s. 3, for “the power to make orders under section 3” (w.e.f. 23-12-1971).  
2. Ins. by Act 25 of 1966, s. 3 (w.e.f. 3-9-1966).  
3. Section 6A renumbered as sub-section (1) thereof by Act 92 of 1976, s. 4 (w.e.f. 2-9-1976). 
4. Subs. by Act 36 of 1967, s. 4, for “foodgrains, edible oilseeds or edible oils are seized” (w.e.f. 30-12-1967).  
5. Subs. by Act 92 of 1976, s. 4, for “it may be produced without any unreasonable delay, before” (w.e.f. 2-9-1976).  
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shall, without unreasonable delay, be made to]  the Collector of the district or th e Presidency town in 
which such 1[essential commodity is seized]  and whether or not a prosecution is instituted for the 
contravention of such order, the Collector 2[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 3[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 preju dice 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 pro duced by him, 
be confiscated under this section: 
4[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.] 
4[(2) Where the Collector, on rece iving 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 may 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 
(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 thereof or the person from whom it is seized.] 
6B. Issue of show cause notice before confiscation of food grains, etc. ―5[(1)] No order 
confiscating 6[any 7[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 8[it is seized]― 
(a) is given a notice in writing informing  him of the grounds on which it is proposed to 
confiscate the  8[essential commodity]  package, covering, receptacle, animal, vehicle, vessel or 
other conveyance]; 
                                                      
1. Subs. by Act 36 of 1967, s. 4, for “food grains, edible oilseeds or edible oils are seized” (w.e.f. 30-12-1967). 
2. Subs. by Act 92 of 1976, s. 4, for “if satisfied” (w.e.f. 2-9-1976).  
3. Subs. by Act 30 of 1974, s. 4, for “may order confiscation of the essential commodity so seized” (w.e.f. 22-6-1974).  
4. Ins. by Act 92 of 1976, s. 4. 
5. Section 6B renumbered as sub-section (1) thereof by Act 30 of 1974, s. 5 (w.e.f. 22-6-1974).  
6. Subs. by Act 36 of 1967, s. 5, for “any foodgrain, edible oilseeds or edible oils” (w.e.f. 30-12-1967).  
7. Subs. by Act 30 of 1974, s. 5, for “essential commodity” (w.e.f. 22-6-1974).  
8. Subs. by Act 36 of 1967, s. 5, for “they are seized” (w.e.f. 30-12-1967). 
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(b) is given an opportunity of making a presentati on 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. 
1[(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.] 
2[(3) No order co nfiscating 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 notic e, the provisions of that 
clause have been substantially complied with.] 
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, appeal to any judicial  
authority appointed by the State Government concerned and the judicial authority shall, after giving 
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 acqu itted, and in either case it 
is not possible for any reason to 3[return the essential commodity seized ], 4[such persons shall, except 
except as provided by sub -section (3) of section 6A, be paid] the price therefore  5[as if the essential 
commodity,] had been sold to the Government 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 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. ] 
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 inflict ion of any punishment to 
which the person affected thereby is liable under this Act.] 
8[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 pendi ng 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  
                                                      
1. Ins. by Act 30 of 1974, s. 5 (w.e.f. 22-6-1974).)  
2. Ins. by Act 92 of 1976, s. 5 (w.e.f. 2-9-1976).  
3. 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).  
4. Subs. by Act 92 of 1976, s. 6, for “such person shall be paid”.  
5. 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).  
6. Subs. by s. 6, ibid., for “articles” (w.e.f. 30-12-1967).  
7. 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). 
8. Subs. by Act 42 of 1986, s. 2, for section 6E (w.e.f. 9-9-1986). 
 
10 
 
possession, delivery, disposal, release or distribution of such essential commodity, package, covering, 
receptacle, animal, vehicle, vessel or other conveyance.] 
 7. Penalties.―1[(1) If any person contravenes any order made under Section 3,― 
(a) he shall be punishable,― 
(i) in the case of an order made with reference to clause (h) or clause (i) of sub-section (2) 
of that section, with imprisonment for a term which may extend to one year and shall also be 
liable to fine, and 
(ii) in the case of any other or der, with imprisonment for a term which shall not be less 
than three months but which may extend to seven years and shall also be liable to fine: 
Provided that the court may, for any adequate and special reasons to be mentioned in the 
judgment, impose a sentence of imprisonment for a term of less than three months; 
(b) any property in respect of which the order has been contravened shall be forfeited to the 
Government; 
(c) any package, covering or receptacle in which the property is found and any animal, 
vehicle, vessel or other conveyance used in carrying the property shall, if the court so orders , be 
forfeited to the Government. 
(2) If any person to whom a direction is given under clause (b) of sub-section (4) of section 3 fails 
to comply with the directio n, he shall be punishable with imprisonment for a term which shall not be 
less than three months but which may extend to seven years and shall also be liable to fine: 
Provided that the court may, for any adequate and special reasons to be mentioned in the 
judgment, impose a sentence of imprisonment for a term of less than three months. 
(2A) If any person convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1) or 
under sub -section ( 2) is again convicted of an offence under the same pro vision, he shall be 
punishable with imprisonment for the second and for every subsequent offence for a term which shall 
not be less than six months but which may extend to seven years and shall also be liable to fine: 
Provided that the court may, for any a dequate and special reasons to be mentioned in the 
judgment, impose a sentence of imprisonment for a term of less than six months. 
(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 public or to any individual shall be an adequate and special reason for awarding a sentence of 
imprisonment for a term of less than three months or six months, as the case may be. 
2[(3) Where a person having been convicted of an offence under sub-section (1) is again convicted 
convicted of an offence under that sub -section for contravention of an order in respect of an essential 
commodity, the court by which such person is convicted sh all, in addition to any penalty which may 
be imposed on him under that sub -section, by order, direct that  that person shall 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.] 
3[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, 
                                                      
1. Subs. by Act 30 of 1974, s. 6, for sub-sections (1) and (2) (w.e.f. 22-6-1974). 
2. Ins. by Act 36 of 1967, s. 7 (w.e.f. 30-12-1967). 
3. Ins. by Act 34 of 1984, s. 2 (w.e.f. 1-7-1984). 
 
11 
 
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 of 1[fifteen 
per cent.] per annum from the date of such default to the date of recovery of such amount, as an arrear 
of land revenue 2[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 au thority shall grant any injunction or make any 
order prohibiting or restraining any Government from recovering any amount as an arrear of land 
revenue 2[or as a public demand] in pursuance of the provisions of sub-section (1). 
(4) If any order, in pursuanc e of which any amount has been recovered by Governmen t as an 
arrear of land revenue 2[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 of  1[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.] 
8. Attempts and abetment .―Any person who attempts to contravene, or abets a contravention 
of, any order made under section 3 shall be deemed to have contravened that order. 
9.  False statement.―If any person,― 
(i) when required by any order made under section 3 to make any statement or furnish any 
information, makes any statement or furnishes any information which is false in any material 
particular and which he knows or has reasonable cause to believe to be false, or does not believe 
to be true, or 
(ii) makes any such statement as aforesaid in any book, account, record, declaration, return or 
other document which he is required by any such order to maintain or furnish, 
he shall be punishable with imprisonment for a term which may extend to   3[five years,] or with fine, 
or with both. 
10. Offences by companies.―(1) If the person contravening an order made under section 3 is a 
company, every person who, at the time the contravention was committed, was in charge of, and was 
responsible to, the company for the conduct of the business of the  company as well as the company, 
shall be deemed  to be guilty of the contravention and shall be liable to be proceeded against and 
punished accordingly: 
Provided that nothing contained in this sub -section shall render any such person liable to any 
punishment if he proves that the contravention took place without his knowledge or that he exercised 
all due diligence to prevent such contravention. 
(2) Notwithstanding anything contained in sub -section (1), where an offence under this Act has 
been committed by a company and it is proved that the offence has been committed with the consent 
or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or 
                                                      
1. Subs. by Act 42 of 1986, s. 3, for “six per cent.” (w.e.f. 8-9-1986). 
2. Ins. by s. 3, ibid (w.e.f. 8-9-1986). 
3. Subs. by Act 36 of 1967, s. 8, for “three years” (w.e.f. 30-12-1967). 
12 
 
other officer of the company, such director, manager, secretary or other o fficer shall also be deemed 
to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. 
Explanation.―For the purposes of this section,― 
(a) “company” means any body corporate, and includes a firm or other association of 
individuals; and 
(b) “director” in relation to a firm means a partner in the firm. 
1[10A. Offences to be cognizable .―Notwithstanding any thing contained in  2[the Code of 
Criminal Procedure, 1973 (2 of 1974)] every offence punishable under this Act shall be 
“cognizable 3***]. 
4[10B. Power of court to publish name, place of business, etc., of companies convicted under 
the Act .―(1) Where any c ompany is convicted under this Act, it shall be competent for the court 
convicting the company to cause the name and place of business of the company, nature of the 
contravention, the fact that the company has been so convicted and such other particulars a s the court 
may consider to be appropriate in the circumstances of the case, to be published at the expense of the 
company in such newspapers or in such other manner as the court may direct. 
(2) No publication under sub -section (1) shall be made until the period for preferring an appeal 
against the orders of the court has expired without any appeal having been preferred, or such an 
appeal, having been preferred, has been disposed of. 
(3) The expenses of any publication under sub -section (1) shall be recoverable from the company 
as if it were a fine imposed by the court. 
Explanation.―For the purposes of this section, “company” has the meaning assigned to it in 
clause (a) of the Explanation of section 10.] 
10C. Presumption of culpable mental state.―(1) In any prosecution for any offence under this 
Act which requires a culpable mental s tate on the part of the accused, the court shall presume the 
existence of such mental state but it shall be a defence for the accused to prove the fact that he had no 
such mental state with respect to the act charged as an offence in that prosecution. 
Explanation.―In this section, “culpable mental state” includes intention, motive, knowledge of a 
fact and the belief in, or reason to believe, a fact. 
(2) For the purposes of this section, a fact is said to be proved only when the court believes it to 
exist beyond reasonable doubt and not merely when its existence is established by a preponderance of 
probability.] 
11.  Cognizance of offences.―No Court shall take cognizance of any offence punishable under 
this Act except on a report in writing of the facts constituting such offence made by a person who is a 
public servant as defined in section 21 of the Indian Penal Code (45 of I860)  5[or any person 
aggrieved or any recognised consumer association, whether such person is a member of that 
association or not]. 
6[Explanation.―For the purposes of this section and section 12AA, “recognised consumer 
association” means a voluntary consumer association registered under the Companies Act, 1956 (1 of 
1956) or any other law for the time being in force.] 
7[12. Special provision regardi ng fine .―Notwithstanding anything contained in section 29 of 
the Code of Criminal Procedure, 1973 (2 of 1974), it shall be lawful for any Metropolitan Magistrate, 
or any Judicial Magistrate of the first class specially empowered by the State Government in this 
                                                      
1. Ins. by Act 36 of 1967, s. 9 (w.e.f. 30-12-1967).  
2. Subs. by Act 30 of 1974, s. 7, for “the Code of Criminal Procedure, 1898 (5 of 1898)” (w.e.f. 22-6-1974). 
3. The words “and bailable” omitted by s. 7, ibid. (w.e.f. 22-6-1974).  
4. Ins. by s. 8, ibid. (w.e.f. 22-6-1974). 
5. Ins. by Act 73 of 1986, s. 2 (w.e.f. 1-5-1987). 
6. Added by s. 2, ibid. (w.e.f. 1-5-1987). 
7. Subs. by Act 30 of 1974, s. 9 (w.e.f. 22-6-1974). 
13 
 
behalf, to pass a sentence of fine exceeding five thousand rupees on any person convicted of 
contravening any order made under section 3.] 
1[12A. Power to try summarily.―(1) If the Central Government is of opinion that a situation has 
arisen where, in  the interests of production, supply  or distribution of  2[any essential commodity not 
being an essential commodity referred to in clause (a) of sub-section (2)] or trade or commerce therein 
and other relevant considerations, it is necessary that the contra vention of any order made under 
section 3 in relation to such essential commodity should be tried summarily, the Central Government 
may, by notification in the Official Gazette, specify such

Excerpt shown. Open the full act in Lexace.

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