ESSENTIAL COMMODITY ACT 1955

Divya ChhabraGBPUA&T , Pantnagar

INTRODUCTION

Name: Essential Commodity Act,1955

Sections: 16

Latest: The Essential commodity Act,2006(inserted section 2A[2(a) omitted)

Schedule-essential commodity

OBJECTIVE

The Act aims to control:• Production• Supply and• Distribution

Of certain commodities In the interest of the general public so as to secure Equitable distribution Availability Fair prices

DEFINITIONS UNDER THE ACT

COLLECTOR-2(Ia) :collector includes,

An additional collector and Such other officer not below the rank of sub

divisional officer as may be authorized to-o Perform the function ando Exercise the power

Of the collector under the act

ESSENTIAL COMMODITIES

Section 2A defines the essential commodities as mentioned in the schedule

1. Drugs2. Fertilizers3. Foodstuffs4. Hank yarn made wholly from cotton5. Petroleum and petroleum products6. Raw jute and jute textiles

CONTINUED

7.A) Seeds of food crops and seeds of fruit and vegetables

B)Seeds of cattle fodder andC)Jute seeds

8. Coal

9.Parts and accessories of automobiles

CONTINUED

10. Iron and steel, manufactured products of iron and steel

11. Paper, Sugar

12.any other article within the scope of entry 33 in list 3 in the 7th schedule of the constitution, which may be notified by the central government to be an essential commodity

PURPOSE TO ENLIST ANY COMMODITY AS ESSENTIAL Maintaining or increasing their supplies.

Equitable distribution and availability at fair prices of the commodities concerned.

Securing any essential commodity for the defence of India or the efficient conduct of military operations.

 POWERS TO CONTROL PRODUCTION, SUPPLY, DISTRIBUTION OF ESSENTIAL COMMODITIES

By regulating the licenses regarding production, manufacture, storage, transport, distribution, disposal and acquisition of essential commodity.

Controlling the price at which EC may be bought or sold.

Agreed , controlled and market rate Prohibiting the withholding from sale, or

holding stock. Selling the whole commodity to one buyer

CONTINUED Fixing price of sugar to be paid to producer  Maintaining the records and accounts of the essential

commodities. for controlling the rise in prices or preventing the

hoarding, of any foodstuff in any locality, it may, by notification in the Official Gazette

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.

 IMPOSITION OF DUTIES ON STATE GOVERNMENT An order made under section 3 may confer

powers and impose duties upon the central government as well as state government.

Officers and authorities of Central government may contain directions to state government for :

1. exercise of the powers2. and discharge of duties

DELEGATIONS OF POWERS

Central Government and its Subordinate Authority

State Government

IMPLEMENTATION

The implementation lies with the State Governments and Union Territories Administrations.

State governments issue various control orders w.r.t trading of some essential commodities like pulses, food grains, kerosene, sugar etc.

Items listed under the act are reviewed from time to time as per the economic policies, production, demand, and supply.

EFFECT OF ORDERS INCONSISTENT WITH OTHER ENACTMENTS Confiscation of essential commodity Issue of show cause notice before confiscation

of essential commodity Appeal Award of confiscation not to interfere with other

punishment Bar of jurisdiction in certain cases

CONTROL

The governments also have the power to fix price limits. Selling the particular commodities above the limit will attract penalties.

Black marketing of essential commodities was a major problem in the past and this has now been controlled to a large extent.

PENALTY PROVISION

At present, section 7(1) a (1) specifies offences which include violations with respect to maintaining records, books, filing returns and so on. Such offences are punishable with a jail term of between three months and a year.

Section 7(1) a (2) applies for major offences and embraces a large part of violations where punishment can extend up to seven years in jail.

At the time of violation of act Property will be forfeited & the carriage(animal, vessel, etc.) will be seized by govt.

OTHER PROVISIONS IN CASE OF PROSECUTION UNDER ECA

Attempts and abetments

False statement

Presumption of orders

Burden of proof

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