Facts
On September 2, 2014, the Circle Officer (Informant) conducted a raid at a godown in Bakhthan Astan, where individuals were found repackaging rice from F.C.I. printed bags into "double tiger" marked bags for local market supply.
Source reference: para. 2Initially, the Petitioner was not named in the F.I.R., but was later added as an accused based on a statement by a clerk (munsi) claiming the godown belonged to the Petitioner.
Source reference: para. 2-3The Petitioner contended that the godown actually belonged to his brother, who had leased it to a third party (Suresh Prasad), and that the seized goods had already been released to said tenant.
Source reference: para. 4The S.D.J.M., Begusarai, took cognizance against the Petitioner on December 6, 2016, under Section 465 of the IPC and Section 7 of the Essential Commodities (E.C.) Act.
Source reference: para. 1Issues
Whether a prosecution under Section 7 of the Essential Commodities Act can be sustained if the F.I.R. fails to specify which Control Order issued under Section 3 of the Act was violated.
Source reference: para. 15-18Whether mere suspicion of "black-marketing" of free-sale commodities like rice and wheat constitutes a criminal offence under the E.C. Act in the absence of restrictive orders.
Source reference: para. 17-18Law Applied
The Court applied Section 7 of the Essential Commodities Act, 1955, which penalizes the contravention of orders made under Section 3 of the Act.
Source reference: para. 16It relied on the precedent *Hari Narain Mahto v. State of Bihar (2009)*, establishes that a specific Control Order violation must be cited for a valid prosecution.
Source reference: para. 15It further applied *Ranjeet Kumar v. State of Bihar (2009)* and *Pritamlal Yadav v. State of Bihar (1982)*, which held that because there is no statutory price fixation or movement restriction on rice/wheat in Bihar (following G.S.R. 2 dated 12.10.2002), allegations of "black-marketing" these items are legally unsustainable.
Source reference: para. 8, 17Reasoning
The Court reasoned that Section 7 of the E.C. Act is derivative; it requires the breach of a specific Section 3 Control Order to be triggered.
Source reference: no citationIn this case, the F.I.R. contained only "bald and vague" allegations of black-marketing without identifying any specific statutory order violated by the Petitioner.
Source reference: para. 15, 18The Court noted that the Petitioner was not a Public Distribution System (P.D.S.) dealer, and since rice/wheat are free-sale commodities in Bihar with no licensing or movement restrictions under the Bihar Trade Articles (Licensing Unification) Order 1984, the act of keeping or selling them does not constitute an offence.
Source reference: para. 5-8, 19Furthermore, the Court observed that the Petitioner was not the owner/occupier of the godown in question, and the release of goods to the actual tenant undermined the case against the Petitioner.
Source reference: para. 19Holding
The Court answered the issues in the negative, holding that prosecution under the E.C. Act cannot be launched based on mere suspicion of black-marketing without citing a specific Control Order violation.
The Court concluded that the criminal proceeding was an abuse of the process of law.
Source reference: para. 16Consequently, the High Court allowed the application and quashed the cognizance order dated December 6, 2016, passed by the S.D.J.M., Begusarai, against the Petitioner.
Source reference: para. 20Original Court PDF
Rajeev Singh @ Rajeev Kumar v. The State of Bihar [2026:PHC:25530]
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