PUNJAB PREVENTION OF SPECULATION IN ESSENTIAL COMMODITIES ACT 2021

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THE PUNJAB PREVENTION OF SPECULATION IN 
ESSENTIAL COMMODITIES ACT 2021 
(XLI of 2021) 
CONTENTS 
1. Short title, extent and commencement. 
2. Definitions. 
3. Information and declarations. 
4. Registration of delivery order. 
5. Period for lifting of. 
6. Power of search and seizure. 
7. Power to sell seized essential commodities. 
8. Penalty for owning or keeping or having charge of a common house. 
9. Penalty for being found in common house. 
10. Penalty for offence of speculation. 
11. Aiding and abetting. 
12. Inquiry, Investigation and Trial. 
13. Cognizance. 
14. Offences. 
15. Offences by corporations etc. 
16. Power to amend the Schedule. 
17. Power to make rules. 
18. Override effect. 
SCHEDULE 
TEXT 
1
THE PUNJAB PREVENTION OF SPECULATION IN ESSENTIAL 
COMMODITIES ACT 2021 
(XLI of 2021) 
[24th December, 2021] 
An 
Act 
to provide for the prevention of speculation in essential commodities. 
It is expedient to provide for prevention of speculation in essential commodities to 
curb artificial price hike and profiteering in the best public interest. 
Be it enacted by Provincial Assembly of the Punjab as follows:  
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Prevention of Speculation in Essential Commodities Act 2021. 
(2) This Act extends to whole of the Punjab. 
(3) This Act shall come into force at once. 
 
2. Definitions.– In this Act: 
(a) “authorized officer” means Director General Industries, Prices, Weights 
and Measures, Punjab, Director Food, a Deputy Commissioner or an 
officer authorized by him in this behalf, or any other officer as may be 
nominated by the Government to perform any function under this Act; 
(b) “Code” means the Code of Criminal Procedure, 1898 (V of 1898); 
(c) “common house” means any structure including a house, room, tent, 
enclosure, vehicle, vessel, warehouse, or any other place in which 
essential commodities or any i nstrument pertaining to an essential 
commodity is kept, stored, used or traded through speculation; 
(d) “dealer” includes any person, trader, firm, an association, body of 
persons or individuals, a company or their agents carrying on the 
business of purcha sing, selling or storing essential commodities and 
includes a manufacturer, producer, packager, importer, exporter, 
wholesaler or retailer of essential commodities; 
(e) “delivery order” means a document, instrument or written order from an 
owner or his agent directed to a warehouse or a carrier authorizing the 
release of transportation of essential commodities to the consignee; 
(f) “essential commodity” means any of the commodities mentioned in the 
Schedule to this Act or any other commodity as the Governme nt may, 
by notification in the official Gazette, declare to be an essential 
commodity; 
(g) “Government” means Government of the Punjab; 
                                                      
1This Act was passed by the Punjab Assembly on 2 4 December 2021; assented to by the Governor of the Punjab on 24 
December 2021; and, was published in the Punjab Gazette (Extraordinary), dated: 24 December 2021, pp. 3141-3144 
(h) “instrument” means any financial instrument used or intended to be 
used as a means of carrying on or facilitating speculation, and includes 
any document used as a register or as record or evidence of any 
speculation; 
(i) “person” includes a natural and legal person; 
(j) “prescribed” means prescribed by the rules; 
(k) “rules” means the rules made under this Act; 
(l) “Schedule” means the Schedule appended to this Act; and 
(m) “speculation” includes wagering, betting or Satta, by whatever name 
called, in trading in an essential commodity for unreasonable profit or 
return through an instrument, a gaming house or any mode o r medium 
including electronic medium such as smartphone, internet or any 
communication appurtenance or technology. 
 
3. Information and declarations.– (1) Every person shall provide to authorized 
officer information regarding production, purchase, stock, s ale or distribution of 
essential commodities and such other information as may be prescribed. 
 (2) An authorized officer may direct the owner or manufacturer of essential 
commodities or owner or manager of godowns  or storage places or their agents to 
declare stocks of essential commodities. 
 (3) The declaration under subsection (2) shall include the quantity of 
stocks, their value, date of purchase, copies of procurement invoices along with 
details of any sale or sale agreements. 
 (4) The authorized 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 
articles. 
 (5) While carrying out the verification of stock in terms of subsection (4) or 
upon receipt of any information from whatever source, the authorized officer may 
require the producer, 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 of ess ential commodities have been made and to whom the sales of 
essential commodities have been or are to be made. 
 (6) Whoever contravenes the provisions of subsection (1) or provides false 
information shall be punishable with imprisonment for a term which may extend to six 
months and fine which may extend to one hundred thousand rupees.  
 
4. Registration of delivery order .– (1) Every person or consignee or owner or 
agent to whom delivery order of essential commodities is made shall get the delivery 
order regis ter with the authorized officer of the district where such essential 
commodity is stored in such manner as may be determined by the authorized officer. 
 (2) Whoever contravenes the provisions of subsection (1) or provides false 
information shall be punishable with imprisonment for a term which may extend to six 
months and fine which may extend to one hundred thousand rupees. 
 
5. Period for lifting of .– (1) Every person or consignee or owner or agent shall 
be bound to lift essential commodities as per delive ry order within fifteen days from 
issuance of the delivery order except for industrial purpose or bulk consumer where 
the lifting shall be done within ninety days:  
provided that in case of force majeure , the authorized officer may extend time for 
lifting of sold essential commodities for another fifteen days.  
 (2) Any sold essential commodities not lifted within the stipulated period 
mentioned under subsection (1) shall be liable to be seized by the authorized officer. 
 
6. Power of search and seizure .– (1) When an authorized 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 common house where a dealer keeps, or is for the time being keeping 
essential commodities stock or instruments of speculation or essential commodities, 
its accounts, registers or any other related items or things ancillary thereto. 
 (2) Upon entry in and search of a premises under subsection (1), if any 
article or instrument is found at such premises in contravention of any of the 
provisions of this Act, the author ized officer shall immediately seize the same and 
prepare a detailed report regarding the articles, instruments or material found during 
such search. 
 (3) The provisions of the Code shall not be applicable on search and 
seizure under this Act. 
 
7. Power to sell seized essential commodities.– (1) Notwithstanding anything 
contained in any other law for the time being in force and in addition to the 
prosecution under this Act, the authorized officer may sell the essential commodities 
seized under this Act at the notified price within thirty days of the seizure.  
 (2) The proceeds collected under subsection (1) shall be deposited in the 
concerned treasury, and if: 
(a) the accused person whose stock of essential commodity is sold 
is acquitted of the offence, the depo sited amount shall be 
released to the accused; or  
(b) the accused person whose essential commodities are sold, is 
convicted of the offence the deposited amount shall be 
deposited into the Provincial Consolidated Fund. 
 
8. Penalty for owning or keeping or having charge of a common house.– 
Whoever: 
(a) having the use of any house, room, tent, enclosure, vehicle, vessel or 
other place keeps or uses, or knowingly or willfully permits the same to 
be occupied, kept or used by any other person as a common house; or 
(b) has the care or management or in any manner assists in conducting 
the business of any common house; or 
(c) advances or furnishes money for the purpose of speculation with 
persons frequenting any common house, shall be punishable with 
imprisonment for a term wh ich may extend to three years or fine which 
may extend to one million rupees but which shall not be less than five 
hundred thousand rupees. 
 
9. Penalty for being found in common house .– Whoever is found in any 
common house in which essential commodities st ock or any instrument of essential 
commodities is being kept or used for speculation, shall be punishable with 
imprisonment for a term which may extend to one year but which shall not be less 
than six months and fine which may extend to five hundred thousa nd rupees but 
shall not be less than one hundred thousand rupees. 
 
10. Penalty for offence of speculation .– Any person found involved in the 
business of speculation in essential commodities 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 articles involved in the case bu t which shall not be less 
than five hundred thousand rupees. 
 
11. Aiding and abetting.– A person shall be guilty of an offence under this Act if 
he participates in, associates, conspires to commit, attempts to commit, aides, 
facilitates, or counsels the commission of an offence specified in the Act and shall be 
punishable with imprisonment for a term which may extend to one year but which 
shall not be less than six months and fine which may extend to five hundred 
thousand rupees but shall not be less than one hundred thousand rupees.  
 
12. Inquiry, Investigation and Trial .– (1) For the purposes of this Act, the 
inquiry, investigation and trial shall be conducted under the Code. 
 (2) For the purposes of subsection (1), the authorized officer shall have all 
the powers conferred by the Code and this Act. 
 (3) The authorized officer shall proceed for enquiry of a matter under this 
Act, and he may seek assistance from any statutory body for the purpose.   
 (4) Notwithstanding anything contained in section 13 and any other 
provision of this Act  or any other law for the time being in force, if an authorized 
officer believes that he is unable to proceed for enquiry under subsection (3) owing 
to any compelling reason, he may refer the matter to Anti -Corruption Establishment 
established under the Punjab Anti -Corruption Establishment Ordinance, 1961 (XX of 
1961), and the Establishment may also co -opt any other agency or regulator of the 
Federal Government or the Government for the purpose of enquiry and investigation 
of the matter. 
 (5) The enquiry, investigation and trial of a matter referred to Anti -
Corruption Establishment under subsection (4) shall be conducted as per the Punjab 
Anti-Corruption Establishment Ordinance, 1961 (XX of 1961).  
 
13. Cognizance.– (1) Notwithstanding anything contained in the Code, all 
offences punishable under this Act shall be cognizable and non -bailable, but a case 
may not be registered under this section without an enquiry.  
 (2) The trial under this Act shall be concluded within ninety days. 
 
14. Offences.– The Court having jurisdiction under this Act shall within its 
territorial jurisdiction, exercise jurisdiction to try and adjudicate the offences 
punishable under this Act. 
 
15. Offences by corporations etc. – If an offence under this Act is committed by 
a company, body corporate, partnership firm, ot her association, body of persons or 
individuals, every director, partner, manager, secretary, member or other officer, 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. 
 
16. Power to amend the Schedule.– The Government may amend the Schedule 
for carrying out the purposes of this Act. 
 
17. Power to make rules .– The Government may, by notification in the official 
Gazette, make rules for the purpose of carrying into effect the provisions of this Act. 
 
18. Override effect .– This Act shall have effect notwithstanding anything 
contained in any other law for the time being in force. 
  
 
SCHEDULE  
Section 2(f) 
Essential Commodities  
 
1. Sugar 
2. Wheat  
3. Vegetable Ghee, Cooking/ Edible oil 
4. Rice