Introduction
Profiteering refers to the act of making excessive or unfair profits, especially during times of crisis or scarcity, by selling essential goods at prices significantly higher than what is considered reasonable or legally permitted.
For example, if a retailer sells rice at ₹80 per kg when the government-fixed maximum price is ₹50, that constitutes profiteering. Similarly, during a flood, if a shopkeeper charges ₹200 for a bottle of kerosene that normally costs ₹60, exploiting the urgent demand, it is a clear case of profiteering.
The West Bengal Anti-Profiteering Act, 1958 criminalizes such practices to protect consumers and ensure equitable access to daily necessities.
Purpose and Context
Purpose and Context
Enacted in the Ninth Year of the Republic of India, the West Bengal Anti-Profiteering Act, 1958 (Act XXIV of 1958) was a legislative response to the urgent need for protecting consumers from exploitative pricing practices in essential commodities. Passed by the West Bengal Legislature and receiving Presidential assent in 1960, the Act aims to curb profiteering and ensure fair pricing of daily-use articles.
Key Definitions (Section 2)
Key Definitions (Section 2)
The Act introduces several important terms:
- Dealer: Any person engaged in selling scheduled articles, including producers, importers, wholesalers, and retailers.
- Profiteering: Selling scheduled articles at prices higher than those fixed by the government.
- Scheduled Article: Items listed in the First Schedule, including rice, wheat, pulses, edible oil, medicines, and kerosene.
- Wholesaler/Retailer: Defined based on the nature of transactions—whether to other dealers or directly to consumers.
Regulatory Powers and Offences
1. Price Control (Section 3)
The State Government is empowered to fix maximum and minimum prices for scheduled articles through official notifications. These prices may vary by locality or dealer category.
2. Profiteering (Section 4)
Selling above the fixed price constitutes profiteering and is punishable with:
- Rigorous imprisonment up to 2 years,
- Fine, or
- Both,
- Along with possible forfeiture of the goods.
3. Refusal to Sell or Undercutting (Section 5)
Section 5 penalises unfair trade in scheduled articles. A dealer refusing to sell or refusing to sell at the fixed price without reasonable excuse faces up to two years’ rigorous imprisonment, fine, or both. Expectation of higher price is not a valid excuse. Purchasers buying below the fixed minimum price face similar punishment.
Compliance Obligations
4. Record-Keeping and Disclosure (Section 6)
Dealers must:
- Submit stock returns in prescribed formats (Second Schedule),
- Maintain daily accounts (Third Schedule),
- Display price lists publicly,
- Provide information and allow inspection by authorized officers.
Failure to comply can lead to imprisonment up to 6 months, fines, or both (Section 8).
Enforcement Mechanisms
- Search and Seizure (Section 7): Police officers (Sub-Inspector or above) can search premises and seize goods/documents if they suspect violations.
- Penalty for contravention of Section 6 or 7 (Section 8): Section 8 imposes penalties for violating section 6 requirements or failing to comply with related requisitions, and for obstructing authorized officers under section 7. Such acts are punishable with rigorous imprisonment up to six months, or with fine, or both, ensuring compliance and preventing interference with enforcement.
- Cognizable Offences (Section 9): All offences are cognizable, allowing arrest without warrant based on credible information.
Legal Protections and Overrides
- Indemnity (Section 10): Public servants acting in good faith under the Act are protected from legal proceedings.
- Supremacy of Central Law (Section 12): If any order under the Essential Commodities Act, 1955 conflicts with this Act, the former prevails.
Schedules and Amendments
- First Schedule: Lists 11 essential items subject to regulation.
- Second & Third Schedules: Prescribe formats for returns and stock accounts.
- Section 11: Allows the State Government, with Central approval, to add more items to the First Schedule.
Conclusion: The State’s Mandate for Economic Justice
The West Bengal Anti-Profiteering Act, 1958, stands as a foundational piece of economic legislation that underscores the State’s non-negotiable commitment to economic justice. Enacted in the shadow of post-independence market volatility, the Act serves as a vital statutory sentinel against the unscrupulous exploitation of consumers. It fundamentally recognizes that while market forces drive commerce, they must be contained by the ethical imperative to protect vulnerable citizens from unreasonable pricing, hoarding, and speculative greed, especially during times of shortage or crisis. By granting the government the power to investigate and punish exploitative pricing mechanisms, the Act reinforces the public policy that essential goods are a matter of public welfare, ensuring that profit motives do not override the collective good of the community.
