Essential Commodities Act, 1955
Section 7: Penalties
[(1) If any person contravenes any order made under Section 3,—
(a) he shall be punishable,—
(i) in the case of an order made with reference to clause (h) or clause (i) of sub-section (2) of that section, with imprisonment for a term which may extend to one year and shall also be liable to fine, and
(ii) in the case of any other order, with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine:
Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months;
(b) any property in respect of which the order has been contravened shall be forfeited to the Government;
(c) any package, covering or receptacle in which the property is found and any animal, vehicle, vessel or other conveyance used in carrying the property shall, if the court so orders, be forfeited to the Government.
(2) If any person to whom a direction is given under clause (b) of sub-section (4) of section 3 fails to comply with the direction, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to seven years and shall also be liable to fine:
Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months.
(2A) If any person convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1) or under sub-section (2) is again convicted of an offence under the same provision, he shall be punishable with imprisonment for the second and for every subsequent offence for a term which shall not be less than six months but which may extend to seven years and shall also be liable to fine:
Provided that the court may, for any adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months.
(2B) For the purposes of sub-sections (1), (2) and (2A), the fact that an offence under sub-clause (ii) of clause (a) of sub-section (1) or under sub-section (2) has caused no substantial harm to the general public or to any individual shall be an adequate and special reason for awarding a sentence of imprisonment for a term of less than three months or six months, as the case may be.
[(3) Where a person having been convicted of an offence under sub-section (1) is again convicted convicted of an offence under that sub-section for contravention of an order in respect of an essential commodity, the court by which such person is convicted shall, in addition to any penalty which may be imposed on him under that sub-section, by order, direct that that person shall not carry on any business in that essential commodity for such period, not being less than six months, as may be specified by the Court in the Order.]
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 7
- Avtar Singh & Anr. v. State of Punjab
- Abhishek v. State of Maharashtra & Ors
- The State of Uttar Pradesh v. Aman Mittal & Anr.
- Santosh S/O Dwarkadas Fafat v. The State of Maharashtra
- Bhanushali Housing Cooperative Society Ltd. v. Mangilal & Ors.
- State of Bihar & Anr. v. Arvind Kumar & Anr.
- Sunil Kumar v. State of Haryana
- Commissioner of Sales Tax, U.P. v. M/S. Sanjiv Fabrics
- Mukesh Kumar Agrawal v. State of U.P. & Ors.
- M/S. Ipour Gkc & Rkc & Sons & Anr. v. State Rep. by Station House Officer Pondicherry & Ors.
- Aneeta Hada v. M/S. Godfather Travels & Tours Pvt. Ltd.
- M/S. Holani Auto Links Pvt. Ltd v. State of Madhya Pradesh
- State of Maharashtra and Ors. v. Lalit Somdatta Nagpal and Anr.
- Romesh Lal Jain v. Naginder Singh Rana and Ors.
- The Assistant Commissioner, Assessment-Ii, Bangalore and Ors. v. M/S. Velliappa Textiles Ltd. and Ors.
- State of Maharashtra v. Laljit Rajshi Shah and Ors.
- Anil Hada v. Indian Acrylic Limited
- Nlrmal Kanti Roy Etc. v. State of West Bengal Etc.
- K.I. Pavunny v. Assistant Collector (Head Quarter), Central Excise Collectorate, Cochin
- State of Madhya Pradesh v. Jaora Sugar Mills Ltd. and Ors. Etc.
- B!Jaya Kumar Agarwala Etc. v. State of Orissa
- State of U.P. v. O.P. Sharma
- Food Corporation of India v. V.K. Sukumaran Etc. Etc.
- The State of Bihar v. The Tata Iron and Steel Co. Ltd.
- State of Bihar Etc. Etc. v. P.P. Sharma, Ias and Anr.
- Balakrishna Pillai, Chief Inspector of Drugs Intelligence Squad, Trivandrum and Another v. Matha Medicals and Others
- Subhash Kumar v. State of Bihar and Ors.