Check black marketing, detain traders involved in malpractices: MHA to states

Amid reports of loss of production due to reduction in labour supply among other things, the Centre has asked states to take "urgent steps" to ensure availability of essential goods by invoking provisions of the Essential Commodities Act, 1955 and consider detaining traders indulging in malpractices like black marketing.

Attracting attention to the possibility of "inventory building/ hoarding and black marketing, profiteering and speculative trading and the resulting price rise" of essential goods, Union Home Secretary Ajay Bhalla said states should take steps like fixing stock limits, capping prices, enhancing production and inspection of accounts of dealers, among others.

In his letter to state chief secretaries on Tuesday, Bhalla said the Ministry of Home Affairs has allowed production, transport and other related supply-chain activities related to essential goods like food stuff, medicines and medical equipment.

"State/ union territory governments are advised to take urgent steps to ensure availability of these essential goods by invoking the provisions of the Essential Commodities Act, 1955," he said.

The Essential Commodities Act 1955 provides for the "control" of the production, "supply and distribution" of, and "trade and commerce" in "certain" commodities, in the "interest of the general public". Offences under the Act are criminal offences and may result in imprisonment of seven years or fine or both.

Bhalla said, "state/ union territory government may also consider detention of offenders under the Prevention of Black-Marketing and Maintenance of Supplies of Essential Commodities Act, 1980".

Under the Act, an officer of the Centre or State not below the rank of a Joint Secretary specially empowered to act under law to prevent black-marketing or any other officer not below the rank of Secretary are authorised to order the detention of a person involved in malpractices. A District Magistrate or a Police Commissioner is also empowered to detain a person "with a view to preventing him from acting in any manner prejudicial to the maintenance of supplies of commodities essential to the community it is necessary so to do, make an order directing that such person be detained" but will have to report to the state government.

He also said the Ministry of Consumer Affairs, Food and Public Distribution is authorising states and union territories to notify orders under the Essential Commodities Act, 1955 by relaxing the requirement of prior concurrence of the central government up to June 30.