Section 16 in Chhattisgarh Public Distribution System (Control) Order, 2004
16. Penalty.
(1)If shopkeeper contravenes any provision of agreement, his shop shall be liable for suspension or cancellation by authorized officer for allotment of Fair Price shop.(2)During inspection of shop, if any irregularity found then without prejudice to any action the whole or part of amount deposited by shopkeeper as security, shall be forfeited in favour of the State.(3)Before cancellation of authority letter of Fair Price Shop or forfeiture of whole or part of security, Food Controller or Food Officer of district, Sub-Divisional Officer of sub-division shall issue show cause notice and after giving him appropriate opportunity of hearing decision shall be made. This action shall be completed within a month from issuance of show cause notice.(4)The inspection of Fair Price Shop and other agencies engaged in supply and distribution of essential,commodities under public distribution system shall be done by the officers mentioned in the sub-rule (2) of rule 13 of this order. If irregularities found against Fair Price Shop run by cooperative societies, then inspecting officer communicate it to Deputy Registrar/Assistant Registrar, Cooperative societies, who will send his report within 15 days to officer designated for allotment of Fair Price Shop. If the said Deputy Registrar/Assistant Registrar, Cooperative societies does not submit his report within 15 days then it well be presumed that the consent of Deputy Registrar/Assistant Registrar, Cooperative societies is favourable and proposed action can be completed.(5)If any person, society or group contravenes any provisions of this Order, he shall be liable to punishment under section 7 of Essential Commodities Act. In case of cooperative societies, Gram Panchayat or other institution the prosecution may be started on the approval of Collector but in such cases the action shall not be restricted to salesman of Fair Price Shop only it can be extended to President and executive officers of society and other institutions and Sarpanch, Secretary of Panchayat or Gram Panchayat.(6)If there is prima-facie evidence that any individual is operating a shop as a proxy/"benami" shop keeper or de-facto owner by using the self-help groups, primary credit societies, forest protection committees, other credit societies or Gram Panchayat, she/he will be prosecuted under the provisions of the Essential Commodities Act as if she/he were running the shop. i
