COVID-19 (Prevention of Hoarding), 2021

Exact source transcription retained, including print layout and extraction artifacts. Text SHA-256: 5dd64dc4b7fc0f56c26ef51f04f6c6fd8d5bd762829b1ea0a8b0c863e0e292e5.

Page 1 of 7 
 
 
 
 
 
THE COVID-19 (PREVENTION OF HOARDING) ACT, 2021 
 
 
  
CONTENTS 
_____________ 
 
 
1. Short title, extent, application and commencement. 
2. Definitions. 
3. Offence of hoarding 
4. Power to search for and seizure of scheduled article. 
5. Power to auction seized Scheduled articles. 
6. Cognizance of offence and arrest without warrant 
7. Offences by corporations etc. 
8. Power to try offences summarily 
9. Appeal 
10. Reward for informers 
11. Information and declarations 
12. Offences in respect of false reporting and failure to disclose information 
13. Protection of action taken under the Act 
14. Action in aid of an officer 
15. Power to make rules 
16. Act to override other laws 
17. Power to amend Schedule 
 
Updated till 11.04.2023 
 
Page 2 of 7 
 
 
THE COVID-19 (PREVENTION OF HOARDING) ACT, 2021 
ACT NO. XLVI OF 2021 
[3rd December, 2021] 
Act 
to provide for the prevention of hoarding in respect of scheduled articles , in the wake of an emergent 
situation resulting from the outbreak of the Corona virus pandemic (COVID-19) 
 
WHEREAS it is expedient to provide for the prevention of hoarding in respect of scheduled articles 
in an emergent situation resulting from the outbreak  of the Corona virus pandemic (COVID -19) and for 
matters connected therewith and ancillary thereto; 
 
WHEREAS Pakistan is a State Party to the International Health Regulations, 2005, issued by the 
World Health Organization, according to which  Pakistan is under a direct obligation to prevent, protect 
against, control and provide a public health response to international disease 
 
WHEREAS the World Health Organization has declared the Corona virus  (COVID-19) to be a  
pandemic requiring multifaceted responses; 
 
AND WHEREAS events of hoarding contribute to adversities, in geometric  progression, to the  
people at large, especially in circumstances of partial or complete lock-down; 
 
1. Short title, extent and commencement.—(1) This Act shall be called COVID-19  
(Prevention of Hoarding) Act, 2021. 
(2) It extends to the Islamabad Capital Territory. 
(3) It shall come into force at once. 
 
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,— 
 
a. “dealer” means any person, trader, partnership, firm, whether  registered or 
unregistered, an association or body of persons or individuals, or a company, 
or their agents carrying on the  business of purchasing, selling or stocking of 
any scheduled  article and includes a manufacturer, producer, packager, 
importer, exporter, wholesaler or retailer of such article; 
b. “Government” means the Federal Government; 
c. “hoard” or “hoarding”― 
 
i. means stocking or storing anything in excess of the maximum quantity 
of scheduled articles allowed to be  held in stock or storage, in the 
manner as may be prescribed; or 
ii. where no maximum quantity of a scheduled article is prescribed under 
 
Page 3 of 7 
 
sub-clause (i), “hoard” or “hoarding”  shall mean stocking or 
accumulation of scheduled articles without offering such articles for 
sale, despite there being a demand by consumers. 
 
d. “maximum quantity” means the quantity of an item that is  currently available 
for sale; 
 
e. “officer” means the deputy commissioner of the Islamabad  Capital Territory 
and such other officer as may be authorized by him in this behalf; 
 
f. “prescribed” means prescribed by rules made under this Act; and 
 
g. “scheduled article” means any of the articles specified in the Schedule to this 
Act. 
 
3. Offence of hoarding. —(1) Any dealer who is found to hoard any  scheduled article shall be 
guilty of an offence punishable with simple imprisonment up to three years and fine equivalent to fifty 
percent of the value of the scheduled articles involved in the case. 
 
(2) The value of scheduled articles for purposes of sub -section (1) shall  be determined in the 
manner as may be prescribed. 
 
4. Power to search for and seizure of scheduled article. —(1) When an officer has reasonable 
grounds to suspect, either upon information from anyone or on his own, that there has been a 
contravention of any of the provisions of this Act, he may, after recording in writing the grounds of his  
suspicion, enter and search, without any warrant, any place where a dealer keeps, or is for the time being 
keeping, any scheduled article, accounts, registers or any other related items or things. 
 
(2) Upon entry in and search of a premise under sub -section (1), if scheduled articles are found 
at such premise in contravention of this Act, the  officer shall immediately seize the same and prepare a 
detailed report of the scheduled articles and other relevant material found during the search. 
 
The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898) shall not be applicable 
on search and seizure under this Act 
 
5. Offence of hoarding. —(1) Any dealer who is found to hoard any  scheduled article shall be 
guilty of an offence punishable with simple imprisonment up to three years and fine equiv alent to fifty 
percent of the value of the scheduled articles involved in the case. 
 
(2) The value of scheduled articles for purposes of sub -section (1) shall  be determined in the 
manner as may be prescribed. 
 
6. Power to search for and seizure of scheduled article.—(1) When an officer has reasonable 
grounds to suspect, either upon information from anyone or on his own, that there has been a 
contravention of any of the provisions of this Act, he may, after recording in writing the grounds of his  
suspicion, enter and search, without any warrant, any place where a dealer keeps, or is for the time being 
keeping, any scheduled article, accounts, registers or any other related items or things. 
 
Page 4 of 7 
 
 
(2) Upon entry in and search of a premise under sub-section (1), if scheduled articles are found at 
such premise in contravention of this Act, the  officer shall immediately seize the same and prepare a 
detailed report of the scheduled articles and other relevant material found during the search. 
 
(3) The provisions of the Code of Criminal Procedure, 1898 (Act V of 1898) shall not be applicable 
on search and seizure under this Act. 
 
7. Power to auction seized Scheduled articles.—(1) Notwithstanding anything contained in any 
other law for the time being in force and in addition to the prosecution under this Act, the officer may sell 
the scheduled articles seized under section 4 by auction, in the manner as may be prescribed. 
 
(2)  The proceeds collected under sub-section (1) shall be deposited in a profit bearing bank account 
in the National Bank of Pakistan, and if— 
 
(a) the accused person whose scheduled articles are auctioned is acquitted of an offence 
under section 3, the deposited amount alongwith the profit shall be released to the said 
accused; or 
 
(b) the accused person whose scheduled articles are auctioned is convicted of an offence 
under section 3, the  deposited amount alongwith the profit shall be released  into the 
government exchequer. 
 
8. Cognizance of offence and arrest without warrant.—(1) Notwithstanding anything 
contained in the Code of Criminal Procedure, 1898 (V of 1898), all offences punishable under this Act 
shall be cognizable and non- bailable. 
 
(2) The Special Magistrate under section 8 shall take cognizance of an  offence under this Act, 
upon written information by the officer. 
 
(3)  An officer may arrest any person without warrant against whom  there is credible information 
that he has committed an offence under this Act. 
 
9. Offences by corporations etc. —If an offence under this Act is  committed by a company or 
body corporate or a par tnership or other association  or body of persons or individuals, every director, 
manager, secretary, member or other officer, the principal, primary or beneficial owner or agents thereof 
shall, unless he proves that the contravention took place without his  knowledge or that  he exercised all 
due diligence to prevent such contravention, be deemed to be  guilty of such contravention and shall be 
liable to punishment under this Act. 
 
10. Power to try offences summarily. —(1) Offences punishable under this Act shall be tried by 
a Special Magistrate appointed under section 14A of the  Code of Criminal Procedure, 1898 (Act V of 
1898), in a summary manner as provided in sections 262 to 265 of the said Code: 
 
Provided that sub-section (2) of section 262 of the Code of Criminal Procedure, 1898 (Act V 
 
Page 5 of 7 
 
of 1898) shall not apply. 
 
(2) If a Special Magistrate has reason to suspect that any offence punishable under this Act has 
been committed by any dealer or owner of a godown or a storage place or its management or agent thereof, 
he may enter the place or premises where the offence has been committed and try the offence on the spot. 
 
(3) The trial under this Act shall be concluded within thirty days. 
 
11. Appeal.—(1) A person aggrieved by an order of conviction and  sentence under of this Act 
may file an appeal before a District and Sessions Judge of the Islamabad Capital Territory within thirty 
days of the said order. 
 
(2)  An appeal under sub-section (1) shall be disposed of within thirty days. 
 
12. Reward for informers. —Anyone who provides an information to  an officer with regard to 
any act or acts of hoarding, which results in a conviction  and release of funds into the government 
exchequer, shall be entitled to an award equivalent to ten percent of the amount released to the government 
exchequer, in the manner as may be prescribed. 
 
13. Information and declarations. —(1) Every dealer shall provide to  an officer, such 
information regarding production, importation, exportation, purchase, stock, sale or distribution of any of 
the scheduled articles as the officer may, by an order in writing, require. 
 
(2) The officer may direct the owners or manufactures of scheduled  articles or owners and 
management of godowns or storage places or their agents to declare stocks of any particular item, owned or 
managed by them at their premises, at any point in time or at such periodical intervals as may be deemed fit. 
 
(3) The declaration to be made under sub -section (2), shall, inter alia, include, the quantity of 
stock, its value, date of purchase, copies of procurement invoices in any given time frame, along with details 
of any sale or sale agreements. 
(4) The officer may verify the stock as well as the books or documents  in respect of the stock, 
purchase or sale, at any time, in respect of scheduled articles. 
 
(5) While carrying out the verification of stock in terms of sub-section (4) or upon receipt of any 
information from whatever source, the officer may require the dealer, owner or manager of a godown or 
storage place to furnish the details of persons, shops, firms or  companies, etc. from whom the purchases 
have been made and to whom the sales have been or are to be made. 
 
14. Offences in respect of false reporting and failure to disclose information.—Any dealer or 
owner of a godown or a storage place or their  management or agent, who fails to provide information or 
gives fake or false  information with regard to any of the items or details under section 11, or provides 
information of contracts, agreements or arrangements found to be fake  or false, or is otherwise found to 
be involved in speculative dealings or market  manipulation, creating artificial, false or misleading 
appearance with respect to the price of, or market for, the scheduled articles, shall be guilty of an offence 
 
Page 6 of 7 
 
punishable with simple imprisonment upto three years and fine equivalent to one million Rupees. 
 
15. Protection of action taken under the Act.—(1) No suit, prosecution or other legal 
proceedings shall lie against any person for anything done in good faith. 
 
(2) Except as provided in this Act, no suit or other legal proceedings shall lie to challenge 
any proceedings under this Act on any ground. 
 
16. Action in aid of an officer. —In giving effect to the provisions of  this Act, an officer, where 
he deems fit, may seek the aid of law enforcement agencies. 
5. Power to make rules.—Within six months of the commencement of this Act, the Government 
may, by notification in the official Gazette, make rules to carry out the purpose of this Act. 
 
6. Act to override other laws. —The provisions of this Act shall have  effect notwithstanding 
anything contained in any other law for the time being in force. 
 
7. Power to amend Schedule.—The Government may, by notification in official Gazette, 
amend the schedule so as to add to, amend or omit from it, any commodity or class of commodities. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Page 7 of 7 
 
 
 
 
 
 
 
 
 
SCHEDULE 
(see section 2) 
 
Sr. No. Item Sr. No. Item 
(1) (2) (1) (2) 
1 Tea 17 Spices and Vegetables 
2 Sugar 18 Red Chilli 
3 Milk 19 Drugs and Medicines 
4 Powdered Milk 20 Kerosene oil 
5 Milk and food for infants 21 Rice 
6 Edible oil, hydrogenated or 
otherwise 
22 Wheat, Flour all sorts 
7 Aerated water, fruits juices and 
squashes 
23 Chemical fertilizers all sorts 
8 Salt 24 Poultry food 
9 Potatoes 25 Surgical gloves 
10 Onions 26 Face masks 
11 Pulses all sorts 27 N95 masks 
12 Fish all sorts 28 Sanitizers 
13 Beef 29 Surface cleaning products 
14 Mutton 30 Pesticides 
15 Eggs 31 Match sticks 
16 Gur 32 Isopropyl Alcohol