The center invoked the Essential Commodities Act of 1955 on Monday to divert natural gas to “priority” sectors, with fuel supplies through the Strait of Hormuz now halted due to the conflict and the country’s lack of liquefied natural gas supplies.
An order issued by the Ministry of Petroleum and Natural Gas mandated that sectors that have a direct impact on millions of people – piped natural gas (PNG) for households, compressed natural gas (CNG) for vehicles and liquefied petroleum gas (LPG) production – should be prioritized over other sectors that require natural gas.
Subsequently, Petrochemicals and Natural Gas Minister Hardeep Singh Puri on Thursday announced a 20% cap on the average monthly commercial supply of LPG by oil marketing companies (OMCs), adding that the cap is to favor domestic consumption of LPG and ensure that hoarding and black marketing do not take place.
Among the various measures in the Basic Commodities Act is a measure that prevents hoarding of a basic commodity that is usually sold and has penalties for hoarding or hoarding of basic commodities.
Penalties for hoarding under the Basic Commodities Act
Section 3 of the Essential Commodities Act, which deals with the powers to control the manufacture, supply, distribution etc. of essential commodities, says: “If the Central Government is of the opinion that it is necessary or expedient to do so for maintaining or increasing the supply of any essential commodity or for ensuring their fair distribution and availability at fair prices, or for ensuring any essential defense which India may provide for effective defense operations, commodities or military operations. to regulate or prohibit their manufacture, supply and distribution and trade and trade with them.”
Section 3(2)(e) specifically states that the government may by regulation prohibit “the withholding from sale of any essential commodity ordinarily held for sale”.
So what happens when someone violates a government order?
Section 6A of the Essential Commodities Act states that even before the hoarded article is brought before the court, the immediate action of the District Collector is to seize and confiscate the hoarded goods to bring them back into the market.
If there is any contravention of an order under section 3, section 6A enables the District Collector to order the confiscation of: (a) the essential commodities so seized; (b) any wrapping, packaging or container in which such basic commodity is contained; and (c) any animal, vehicle, vessel or other means of transport used to transport such essential goods.
In addition to confiscation, hoarders are also subject to criminal penalties under Section 7.
According to § 7 paragraph 1 letter a) point ii) persons found guilty of hoarding a basic commodity face severe punishment, including imprisonment, fines and prohibition of activity.
Those found guilty of hoarding face a minimum mandatory jail term of 3 months, which may extend to 7 years.
Furthermore, offenders may be fined, while repeat offenders may be banned from trading in this commodity for at least 6 months.
The law does not set a mathematical ceiling for fines, and the amount of fines is left to the discretion of judges and magistrates based on the scale of the hoarding, the illegal gains and the financial capabilities of the offender.
