Discuss the powers of the Central Government to control production, supply and distribution of essential commodities under the Essential Commodities Act, 1955.
CS Executive · Economic and Commercial Laws · PYQS · June 2015
Discuss the powers of the Central Government to control production, supply and distribution of essential commodities under the Essential Commodities Act, 1955.
Answer & Explanation:
The Central Government having been vested with power under Section 3(1) of the Essential Commodities Act, 1955 to issue order in the following circumstances providing for regulating or prohibiting the production, supply and distribution of essential commodities and trade and commerce therein: when it is necessary or expedient for maintaining or increasing supplies of any essential commodity; for securing the equitable distribution and availability of essential commodities at fair price; or for securing any essential commodity for the defence of India or the efficient conduct of military operations. Section 3(3) of the Act vests powers in Central Government to deal with the pricing of the essential commodities particularly when the commodities are being sold to Central/ State Government in compliance of order under clause (f) of Sub-section (2) of Section 3. In such a case, the price shall be paid as provided hereunder: the agreed price, where the price can be agreed upon consistently with the controlled price fixed under this section; controlled price: where no such agreement can be reached, the price calculated with reference to controlled price; the price calculated at the market rate prevailing in the locality on the date of sale, where neither clause (a) nor clause (b) applies. Section 3(3A)(i) of the Essential Commodities Act, 1955 is in the nature of an emergency provision and can be resorted to meet a situation arising at a particular locality. It empowers the Central Government to direct the price at which the foodstuffs in any locality will be sold to general public. This direction will be issued only when the Central Government is of the opinion that takings such step is necessary for controlling price rise or preventing the hoarding of any foodstuff in any locality. The Central Government has been vested with necessary powers under Sub-section (4) of Section 3 to authorise any person (known as authorised controller) when it is considered necessary for maintaining or increasing the production and supply of essential commodities.
Topics: Essential Commodities Act, 1955
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