(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, 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 licenses, 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 generally or of specified food-crops, and for otherwise
maintaining or increasing the cultivation of food-crops generally, or
of specified foods-crops;
(c)
for controlling the price at which any essential commodity may be
bought or sold;
(d)
for regulating by licenses, 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;
(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 other.
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 food grains, edible
oilseeds and edible oils, fix the quantity to be sold by the
producers in such area 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; 13 ]
(g)
for regulating or prohibiting any class of commercial or financial
transactions relating to foodstuffs or cotton textiles 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 statistic with a view to regulating
or prohibiting any of the aforesaid matters;
(i)
for requiring persons engaged in the 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;
[ 14
(ii) for the grant or issue of licenses, permits or other documents,
the charging of fees therefor, 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 license, permit or other documents, 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 14 ];
(j)
[ 15 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 articles 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, vessels, vehicle or other conveyance or animal is
liable to be forfeited under the provisions of this Act;
(iii)
[ 16 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 extracts there from in the presence of an officer having the
custody of such books of accounts or documents. 16 ] 15 ]
(3)
Where any person sells any essential commodity in compliance with an
order made with reference to Cl. (f) of sub-section (2), there shall
be paid to him the price therefor 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 Cl. (a) nor Cl. (b) applies, the price calculated at
the market rate prevailing in the locality at the date of sale.
[
17 (3-A) (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 foodstuff 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
foodstuff shall be sold in the locality in compliance with an order
made with reference to Cl. (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 force
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 foodstuffs of the kind specified therein and in the
locality so specified, in compliance with an order made with
reference to Cl.(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 Cl.(a) nor Cl.(b) applies, the price calculated with
reference to the average market rate prevailing 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 Cl.(iii), the average market
rate prevailing in the locality shall be determined by an officer
authorised 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 17 ].
[
18 (3-B) Where any person is required,
by an order made with reference to Cl.(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 Government, any grade or variety of food grains, edible oilseeds
or edible oils in relation to which no notification has been issued
under sub-section (3-A), 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 food grains, edible oilseeds or edible oils;
(b) the general crop
prospects;
(c) the need for making
such
grade 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 food grains,
edible oilseeds
or edible oils. 18 ]
[ 19 (3-C) Where any
producer is required by an order made with reference to Cl.(f) of
sub-section (2) to sell any kind of sugar (whether to the Central
Government or a State Government or to an officer or agent of such
Government or any other person or class
of persons) and either no notification in respect of such sugar has
been issued under sub-section (3-A) or any such notification, having
been issued, has ceased to remain in force by efflux of time, then,
notwithstanding anything contained in sub-section (3), there shall be
paid to that producer an amount therefore which shall be calculated
with reference to such price of sugar as the Central Government may,
by order, determine, having regard to, -
(a) the minimum price,
if any, fixed for sugarcane by the Central Government under this
section;
(b) the manufacturing
cost of sugar;
(c) the duty or tax, if
any, paid or payable thereon; and
(d) the securing of a
reasonable return on the capital employed in the business of
manufacturing sugar, and different prices may be determined, from
time to time, for different areas or for different factories or for
different kinds of sugar.
Explanation : For the
purposes of this
sub-section, "producer" means a person carrying on the
business of manufacturing sugar. 19 ]
(4) If the Central
Government is of opinion that it is necessary so to do for
maintaining or increasing the production and supply of an essential
commodity, it may, by order, authorise any person (hereinafter
referred to as an authorised 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 authorised
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 by
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 thereof 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.
