LAWS RELATING TO MAINTENANCE OF ESSENTIAL SUPPLIES

ESSENTIAL COMMODITIES ACT 1955

Nowadays, every person’s life depends upon some essential commodities, which
are used by them every day. These commodities are the basic requirements to
sustain a normal life. Thus, the availability and price of such commodities impose
a major effect on the life of the general public.

Therefore, to regulate the pricing, production, demand, and supply of these

products, The Essential Commodities Act, 1955 plays a major role.

Object and Scope of the Act

This Act extends to the whole of India.

The Act was enacted to ensure the availability of essential commodities to

consumers and protect them from the exploitation of unscrupulous traders.
Therefore, the Act provides rules related to the regulation and control of
production, pricing, and distribution of the essential commodities.

There are two main aims of this Act:

 To maintain or increase the supply of these essential commodities, and

 To secure equitable distribution and availability of these essential
commodities at fair prices.

Essential Commodity [Section 2A]

According to the Essential Commodities Act, Essential commodities mean any

commodity specified in the schedule. Thus, there are 7 following commodities
that are specified in the schedule:

 Drugs
 Fertilizers, whether organic, inorganic or mixed;
 Foodstuffs, including edible oils and its seeds;
  Hank yarn, made wholly with cotton;
 Petroleum and its products;
 Jute, whether in the form of raw or textiles;
 Seed, whether of fruits and vegetables.

Powers of Central Government Under the Essential Commodities (Section 3)

The Central Government under this Act have two important powers:

1. Power to Notify the essential commodity

Under this power, the Central Government from time to time adds and removes
any commodity from the schedule of this Act, in the interest of the general public.

2. Power to issue a control order

The Central Govt. can issue order for regulating or prohibiting the production,
supply and distribution of essential commodities in the following situations:

 when it is necessary for maintaining or increasing supplies of any essential

commodity
 to secure equitable distribution and availability of these commodities in the
market at fair price,
 to secure any essential commodity for the Defence of India.

Purposes for passing control order

1. The central govt. by issuing license and permit - regulates the production,
distribution, supply, storage, transport, acquisition of any essential
commodity.
2. To bring under cultivation of any wasteland or arable land for the purpose
of growing, maintaining and increasing cultivation of any general or
specific food crop.
3. To control the buying and selling price of any essential commodity
 4. To determine entry, search, examine, seizure of any essential commodities
5. To regulate or prohibit any class of commercial and financial transactions
relating to any foodstuff which is likely to be detrimental to public interest.

Power to appoint Authorised Controller [Section 3(4)]

The Central Government has the power to appoint any person as Authorised
Controller when it is considered necessary for maintaining or increasing the
production, supply and equal distribution of any essential commodity.

 The authorized controller shall exercise his functions in accordance with

the instructions given to him by the Central Government.
 Authorised Controller does not have power to give any directions which
are inconsistent with the provisions of the Act.

Issuance and Service of Control Orders Under [Section 3(5)]

The control orders which are issued by the govt. is notified in the following
manner:

 If the order is directed to the general public, it will be notified in the Official
Gazette, and
 If the order is directed to a specific person, it will be served to such
individual:
o by delivering it to that specific person, or
o if it cannot be so delivered, then it can be served by affixing it on the
outer door or any other conspicuous part of the premises in which
such person lives. A written report thereof shall also be prepared and
witnessed by two persons living in the neighbourhood.

Price control [Section 3(3)]

Where any person sells any essential commodity in compliance of the order made
under Section 3, the price of that essential commodity shall be determined as:
  Agreed price– When the parties have already agreed upon the controlled
price, the price is calculated according to that agreement.
 Controlled price– When no such agreement can be reached, the price is
calculated with reference to the controlled price.
 Market price– When neither the above prices apply, then the price is
calculated according to the average market rate prevailing in the locality.

Fixing the price of essential commodities during an emergency (Section 3A)

The Central Govt. in order to control the emergency situation, may issue a
notification regarding the selling price of any foodstuff in any locality.

The price of such food-stuff would be determined according to the following rule:

 If the parties have already agreed upon the controlled price, then the price
is calculated according to that agreement.
 If there is no such agreement related to the foodstuff can be reached then
the price is calculated with reference to the controlled price.
 When there is a situation where both the above conditions do not apply
then the price of such foodstuff is calculated according to the average
market rate prevailing in the locality.

The notification issued under this Section shall remain in force for 3 months only.

Price Monitoring Cell (PMC)

 This is a body of individuals appointed by the Central Government, to

monitor the price of essential commodities such as rice, wheat, dal, sugar,
tea, potatoes, onions, milk, etc.
 Apart from monitoring, it is also responsible for predicting the future price,
analysing the price situation and giving advance feedback of these
commodities which will help the policymakers in making future policies.
  In event of shortfall of any essential commodity, the price monitoring cell
also implements commodity-specific market intervention schemes to give
temporary relief to the consumers.

Seizure and Confiscation of Essential Commodities (Section 6A)

This Section talks about the power of the collector to confiscate or seize any
essential commodity.

The collector may pass orders to confiscate any package or cover under which
such commodity was packed or to confiscate any animal, vehicle, or any other
conveyance of such commodity.

However, it is provided that no order of confiscation will be passed against any

person if such food grains or foodstuffs are produced by himself.

It is further provided that when the order of seizing and confiscation is made for
the animal, vessels, vehicle or other conveyances which are owned or hired by
the owner then it is necessary to give the offender an option to pay in lieu of such
seizure or confiscation, however, the fine imposed does not exceed the market
price of the commodity sought to be carried by such conveyance.

1. Difference between Seizure and Confiscation

In seizure, the possession of seized articles gets vested upon on the hands of the
government however the ownership continues to stay with the owner. However,
in confiscation, both ownership and possession of confiscated article get vested
upon the hands of the government.

2. Sale of confiscated goods (Section 6A)

The collector, on receiving the report of seizure or on inspecting such essential

commodity finds that if it is necessary in the public interest to do so, he may:

 order to sell that commodity at the controlled price, if fixed.

  when no such price is fixed, then he may order to sell it on a public auction.

The sale proceeds of confiscated good shall be paid to the person from whom it
is seized, after deducting necessary expenses.

3. Issuance of Show Cause Notice before Confiscation (Section 6B)

No order for confiscation of any essential commodity is passed against any person
without giving him a written notice which informs him about the grounds on
which such order is proposed and to provide him an opportunity to make his
representation in writing within a reasonable time.

4. An appeal against Confiscation Order (Section 6C)

Any person aggrieved by any order of confiscation is entitled to appeal to the

judicial authority appointed by the State government within one month from the
date of the communication of such order to him. And the appellate Court, after
hearing the case, may confirm, modify, or annul such an order.

Burden of proof in certain cases (Section 14)

If a person is prosecuted for contravening any order under section 3 which

prohibits him for doing any act or being in possession of a thing without lawful
authority or without a permit, licence or other document, the burden of proving
that he has such authority, permit, license or other documents lies on him.

Prosecution of action taken under the Act (Section 15)

No prosecution or proceeding shall be instituted against the person who acted in

good faith or in pursuance of the order made under Section 3.

Cognizance of Offences (Section 11)

The courts shall take cognizance of offences punishable under this Act only on
the report made by a public servant, defined under Section 21 of IPC.

Cognizance of offences against the public servants (Section 15A)

When any public servant alleged to have committed any offence while
discharging of his duty, in that case, the Court of law can take cognizance, only
after taking sanction from the Central Government, or state government under
whose authority such a person is employed.

Penalty (Section 7)

Any person who contravenes any order u/s 3, he shall be punishable with

 In case of an order made under clause (h) and (i) of Section 3(2) -
Imprisonment for a term which may extend to 1 year with fine.
 In case of any other order - Imprisonment not less than 3 months which
may extend up to 7 years with fine

False statements (Section 9)

Any person making false statement shall be punishable with imprisonment for a
term which may extend to five years or with fine or with both.

THE PREVENTION OF BLACKMARKETING AND MAINTENANCE

OF SUPPLIES OF ESSENTIAL COMMODITIES ACT, 1980

The Prevention of Black-Marketing and Maintenance of Supplies of Essential

Commodities Act 1980 seeks to address black-marketing and hoarding.

Black Marketing is an exchange of goods and services which takes place outside
the reach of government agencies. For example, prohibited drugs, prostitution,
counterfeit currency, etc. Black marketers involved in these transactions are
motivated to earn profits and evade tax. Due to the illegal nature of these
transactions, they are generally done in cash.

Hoarding can be defined as the purchase of a commodity with the intention to

sell it in future at a higher price when it is understock or not available in the
market. This is an act of creating illegitimate monopoly over the market and
taking undue advantage of people who are helpless and have no other option but
to purchase the commodity from the hoarder.

The Act aims to prevent un-ethical trade practices which include black-marketing
and hoarding of essential commodities, and it also lays down provisions for
punishment against such persons who commit either of these.

Power to make orders detaining certain persons [Section 3]

The Act empowers:

 Central Government or
 State Government or
 any officer of Central Govt, not below the rank of a Joint Secretary or
 any officer of State Govt, not below the rank of a Secretary

if in case they has a reason to believe that any person is committing an act against
the provisions of this Act, shall make an order for detaining such person.

Such an act shall directly apply to such person committing, aiding or abetting an
offence under provisions of the Essential Commodities Act, 1955 or any other
law dealing with distribution, production or supply of essential commodities.

The Act also gives similar power of taking action to district magistrates and
commissioner of police.

An order made by district magistrates and commissioner of police, shall be

brought into the notice of state government, together with the grounds on which
order has been made along with relevant details. The order shall remain into force
for not more than 12 days after making it, within which State Govt. shall approve
the order.

When any order is made or approved by the State Govt., the State Government
shall, within seven days report the fact to the Central Government together with
the grounds on which the order has been made and such other particulars.
Power to regulate place and conditions of detention. [Section 5]

Every person in respect of whom a detention order has been made shall be liable:

 to be detained in such place and under such conditions, including

conditions as to maintenance, discipline and punishment for breaches of
discipline, as the appropriate Government may specify.
 to be removed from one place of detention to another place of detention,
whether within the same State or in another State, by order of the
appropriate Government.

No order shall be made by a State Government for the removal of a person from
one State to another State except with the consent of the Govt. of that other State.

Detention orders not to be invalid or inoperative on certain grounds. Sec - 6

No detention order shall be invalid or inoperative merely by reason—

 that the person to be detained is outside the limits of the territorial

jurisdiction of the Government or officer making the order, or
 that the place of detention of such person is outside the said limits.

Grounds of order of detention to be disclosed to person affected by the order

When a person is detained in pursuance of a detention order, the authority making

the order shall, as soon as possible but not later than 5 days and in exceptional
circumstances not later than 10 days from the date of detention, communicate to
him the grounds on which the order has been made and shall afford him the
opportunity of making a representation against the order to appropriate Govt.

Maximum period of detention. [Section 13]

The maximum period for which any person may be detained in pursuance of any
detention order which has been confirmed shall be 6 months from the date of
detention.
 LAWS ON MAINTENANCE OF STANDARDS OF WEIGHTS AND
MEASURES

THE LEGAL METROLOGY ACT, 2009

The science of measuring is known as metrology. Legal metrology refers to any

applied metrology that is governed by legislation or government order.

With respect to provide uniform standards of weights and measures, the Legal
Metrology Act, 2009 was enacted on 1st April 2011 in India.

Section 2(g): Legal metrology means that part of metrology which treats

 units of weighment and measurement,

 methods of weighment and measurement and
 weighing and measuring instruments,

in relation to the mandatory technical and legal requirements which have the
objective of ensuring public guarantee from the point of view of security and
accuracy of the weighments and measurements.

Objectives of the Act

The Act came into force with the following objectives:

 To regulate trade and commerce in weights and measures

 To set and enforce the standards of weight and measures.
 To regulate the manufacture, sale and use of goods by weights & measures
 To rationalize the Metric system (meter, kilogram etc.) to be used in India.

Applicability

The provisions of Legal metrology applies to:

 Persons who are using any weight or measure in any transaction or

Industrial Production or Protection
  Manufacturer, retailer, wholesaler, dealer, repairer, importer and packer of
any weight or measure related item.

Units of weights and measures to be based on metric system. (Section 4)

Every unit of weight or measure shall be in accordance with the metric system
based on the international system of units.

Base unit of weights and measures [Section 5]

Particular Base Unit

Length Metre
Mass Kilogram
Electric Current Ampere
Temperature Kelvin
Time Second
Amount of substance Mole
The base units of weights and measures specified above shall be the standard
units of weights and measures.

No person shall

 quote or announce any price or charge, or

 issue any price list, invoice, cash memo or
 prepare or publish any advertisement, poster or
 indicate the net quantity of a pre-packaged commodity.

otherwise, then in accordance with the standard unit of weight, measure.

Maintain Registers and Records

Every Manufacturer, Repairer or Dealer of weight or measure shall maintain

proper records and registers of Weight and Measure.

Registration for importer of weight or measure

No person shall import any weight or measure unless he is registered with the
Director in such manner and on payment of such fees, as may be prescribed.

Every person has to obtain registration at least 1 month prior to the proposed
import date. Non-standard weights and measures must not be imported.

Declarations on pre-packaged commodities

No person shall manufacture, pack, sell, import, distribute, deliver, offer, expose
or possess for sale any pre-packaged commodity unless such package is in
standard quantities or number and bears such declaration and particular thereon.

The following declarations are mandatory to put on the packages:

 The name and address of the manufacturer or packer or importer

 The common or generic name of the commodity
 Country of Origin
 The net quantity of the content
 Month and year of manufacture or packing or import
 Best before or expiry date.
 Retail sale price: MRP (including all taxes).
 Size/dimension of the commodity when relevant.

Approval of Model of Weight and Measure

Every Person, before manufacturing or importing any weight or measure shall

obtain prior approval of model of that weight or measure. Such approval of model
may not be required in respect of any cast iron, brass, bullion, or carat weight or
any beam scale etc.

Licensing of Manufacturer, Repairer and Dealer of Weights and Measures

Every Manufacturer, Repairer or Dealer of weights and measures is required to
obtain a license issued by Controller of Legal Metrology, without which no one
may produce, sell, or repair any weight or measure.

Verification and Stamping

 Every Person using any weight or measure in any transaction have to get
verification and stamping of weight and measure instruments.
 Authorized metrology officers carry out inspections and verification
processes to ensure that these instruments meet the prescribed standards
and provide accurate measurements.
 The Central Govt. may prescribe the kinds of weights & measures for
which the verification is to be done through the Govt approved Test Centre.
 The weight & measure which cannot be moved from its location can be
verified & stamped at its location itself.

Report / Returns

Every Licensed Dealer is required to submit monthly or quarterly reports/returns

of weight and measure to the legal metrology controller. However, timelines and
reporting requirements may vary from state to state

Major Stakeholders

 Manufacturer: A person who manufactures weight or measure, any

commodity in packaged form by himself.
 Dealer: A person who carries on the business of buying, selling, supplying
or distributing any weight or measure for a valuable consideration
 Packer: A person / Firm, which pre-packs any commodity in any bottle,
tin, wrapper or otherwise - in units suitable for sale.
 Importer: Any individual, firm or legal entity that brings goods, or causes
goods to be brought from a foreign country into a customs territory.
  Repairer: A person who repairs a weight or measure and includes a person
who adjusts, cleans, lubricates or paints any weight or measure.
Power of inspection, seizure, etc. [Section 15]

If Director, Controller or any legal metrology officer has any reason to believe
that any weight or measure in respect of which an offence punishable under this
Act appears are either kept or concealed in any premises or are in the course of
transportation then such Director, Controller or any legal metrology officer will

 enter at any reasonable time into any premises and search for and inspect
any weight or measure.
 seize any weight, measure or other goods.

Forfeiture

 Every non-standard or unverified weight or measure, and

 every package without declaration,

used in the course of any trade and commerce and seized under section 15, shall
be liable to be forfeited to the State Government.

Provided that such unverified weight or measure shall not be forfeited to the State
Government if the person from whom such weight or measure was seized gets
the same verified and stamped within such time as may be prescribed.

Act not to apply in certain cases.

The provisions of this Act related to verification and stamping of weights and
measures, shall not apply to any weight or measure,—

 used in any factory exclusively engaged in the manufacture of any arms,

ammunition for the use of the Armed Forces of the Union;
 used for scientific investigation or for research;
 manufactured exclusively for export.
 BUREAU OF INDIAN STANDARDS ACT, 2016

The Bureau of Indian Standards Act came into effect in 2017. The Act establishes
a Bureau for the purpose of standardization, marking and certification of goods,
articles and processes.

Objectives

 To harmonize the development of standardisation, labelling, and quality

certification of items.
 To push standardisation and quality control – in order to promote industrial
growth and development while meeting customer requirements.
 To create technical committees of experts to develop such standards.

Establishment of Bureau and Constitution of Governing Council

The Bureau shall be a body corporate, having perpetual succession and a common
seal, with a power to acquire, hold and dispose of property, both movable and
immovable, and to contract and shall by the said name sue and be sued.

Bureau of Indian Standards (BIS) is a statutory body established under the Bureau
of Indian Standards Act, 2016, for product and process standardization, marking,
and certification.

BIS has been identified as the ‘National Standards Body of India’ and is regulated
under the Ministry of Consumer Affairs, Government of India.

The Bureau shall create as many technical committees of experts as necessary to

create standards related to goods, processes, systems, or services.

 BIS Act establishes a Governing Council which oversees the Bureau’s

overall supervision, direction, and management.
 The Director General of the Bureau shall be the Chief Executive Authority
of the Bureau. He shall exercise such powers and duties of the Bureau as
may be specified by regulations.
Powers & Functions of Bureau

The powers and duties as may be assigned to the Bureau under this Act shall be
exercised and performed by the Governing Council.

 To establish branches, offices or agencies in India or outside India.

 To recognise, on reciprocal basis, the mark of any international body or
institution in relation to any goods, article, process, system or service at par
with the Standard Mark for such goods, article, process, system or service.
 To enter into and search places, premises or vehicles, and seize goods or
articles and documents to enforce the provisions of this Act.
 To provide services to manufacturers and consumers of goods, articles or
processes for compliances of standards.
 To provide training services in relation to quality management, standards,
conformity assessment, laboratory testing etc.
 To publish Indian Standards.
 To authorise agencies in India or outside India for carrying out any or all
activities of the Bureau.
 To obtain membership in regional, international and foreign bodies having
objects similar to that of the Bureau and participate in international
standards setting process.
 To undertake activities relating to legal metrology.

Features of BIS Act

 The Act allows the union govt. to make it compulsory for certain notified
goods, processes, articles, etc. to carry the standard mark in the public
interest, safety of the environment, national security or to prevent unfair
trade practices.
 The BIS Act allows simplified conformity assessment schemes including
self-declaration of conformity against a standard. This provides
 manufacturers with simplified options to meet the standards and obtain a
certificate of conformity.
 The central govt. has the power to appoint any agency or authority (apart
from BIS) to verify product & services and issue conformity certificates.
 There is a provision in the Act for the recall or repair for products that
bear the Standard Mark but do not conform to the required Indian standard.
 The Act has identified new areas for standardisation. These include:
o Medical devices
o Alternate fuels
o Smart cities
o E-mobility
o New and renewable energy
o Digital technologies (AI, Industry 4.0, Blockchain, etc.)
 The BIS (Hallmarking) Regulations, 2018 makes the hallmarking of
precious metals jewellery and artifacts such as gold and silver mandatory.
 The penalty for improper use of the Indian standard mark will be a fine of
up to Rs. 5 lakh.

Highlights of the Act

 Establish Standards: The Act empowers the BIS to establish and enforce
standards for goods and services to ensure quality and safety.
 Consumer Protection: It enhances consumer protection by promoting the
production of safe and reliable goods.
 Quality Assurance: BIS can certify products and services, maintaining
their quality and reliability.
 International Integration: The Act recognise international standards,
facilitating trade and global compatibility.
 Penalties: It introduces penalties for non-compliance with standards,
ensuring accountability.
Conformity Assessment scheme [Section 12]

The Bureau may notify a specific or different conformity assessment scheme for
any goods, article, process, system or service with respect to any Indian Standard
or any other standard.

The Bureau may establish a Standard Mark in relation to its conformity

assessment schemes, which shall be of such design and contain such particulars
as may be specified by regulations to represent a particular standard.

The Bureau may establish, maintain or recognise testing laboratories for the
purposes of conformity assessment and quality assurance.

Grant of licence or certificate of conformity. [Section 13]

A person may apply for grant of licence or certificate of conformity, if the goods,
article, process, system or service conforms to an Indian Standard.

Certification of Standard Mark of jewellers (Section 14)

The Central Government, after consulting the Bureau, may notify precious metal
articles or other goods or articles, to be marked with a Hallmark or Standard
Mark, as the case may be.

Prohibition to import, sell, exhibit, etc. (Section 15)

No person shall import, distribute, sell, store or exhibit for sale, any goods or
article except under certification from the Bureau.

Central Govt. to direct compulsory use of Standard Mark [Section 16)

If the Central Government is of the opinion that it is necessary or expedient so to

do in the public interest or for the protection of human, animal or plant health,
safety of the environment, or prevention of unfair trade practices, or national
security - it may, after consulting the Bureau — notify goods or article of any
scheduled industry, process, system or service — which shall conform to a
standard and direct the use of the Standard Mark under a licence on such goods,
article, process, system or service.

Obligations of licence holder, seller, etc. [Section 18]

The licence holder shall be responsible for conformance of the goods, articles,
processes, systems or services carrying the Standard Mark.

It shall be the responsibility of the distributor or the seller to ensure that goods,
articles, processes, systems or services carrying the Standard Mark are being
purchased from certified body or licence holder.

It shall be the responsibility of the seller before the goods is sold or offered to be
sold - to ensure that the goods, articles, processes, systems or services carrying
the Standard Mark bear the requisite labels and marking details, as specified by
the Bureau.

If the Bureau is satisfied that the goods, articles, processes, systems or services
in relation to which a Standard Mark has been used do not conform to the
requirements of the relevant standard, the Bureau may direct the certified body
or licence holder to stop the supply and sale of non-conforming goods or articles.

Certification Marks

Certification marks on products sometimes symbolize that the producer has tested
the product and confirmed that it satisfied with the specified quality level.

BIS covers the certification schemes listed below:

 Product Certification Scheme: Applicable for tangible products

 System Certification Scheme: Applicable for systems / process
 Foreign Manufacturers Certification Scheme: Applicable for foreign
manufacturers who are engaged in the sale of their products in India.
 Hallmarking: Applicable for articles made from precious metals like gold
and silver
  ECO Mark Scheme: Applicable for products related to the environment

Compensation for non-conforming goods.

Where a holder of licence or certificate of conformity or his representative has

sold any goods, article, process, system or service, which bears a Standard Mark
not conforming to the relevant standard, or with colourable imitation, the certified
body or licence holder or his representative shall be liable to compensate the
consumer for the injury caused by such non-conforming goods, article, process,
system or service.

Appointment of certification officers

The Bureau may appoint as many certification officers as may be necessary for
the purpose of inspecting that

 whether any goods, article, process, system or service in relation to which

the Standard Mark has been used conforms to the relevant standard or
 whether the Standard Mark has been properly used in relation to any goods,
article, process, system or service with or without licence,

and for performing such other functions as may be assigned to them.