Section 6 in The Hoarding and Profiteering Prevention Ordinance, 2000
6. Restriction on price where no maximum is fixed under section 3.
(1)Where no maximum has been fixed by notification under clause (c) of sub-section (1) of section 3, no dealer or producer shall sell or offer for sale, or otherwise dispose of an article for a consideration which is unreasonable.(2)[ For the purposes of this section a consideration is unreasonable if, whether it is exclusively in money or not,-(a)the purchaser is, as a condition of sale, required to purchase at the same time any other article ;(b)where the sale is by a dealer, the consideration exceeds the amount represented by the addition allowed by the normal trade practice in force on the 31st day of August, 1939, to-(i)the landed cost of the article, in the case of an article imported from outside India or, where the article is delivered to the consignee elsewhere than at a port, that cost increased by any charges incurred for freight and octroi or other duties before delivery, or(ii)the price at which producer sold the article in the case of article produced in [India excluding the Jammu and Kashmir State] increased by any charges incurred for freight, customs, octroi or other duties before delivery, or(iii)the price at which the producer sold the article, in the case of an article which is not imported;(c)where the sale is by a producer, the consideration exceeds the amount represented by the addition allowed by the normal trade practice in force on the 1st day of August, 1939, to the cost of production [of the article, such cost of production being deemed to be exclusive of the amount, if any, by which the price paid by the producer for any component part of the article exceeded- [Inserted by Ordinance VII of 2003.](i)the maximum price fixed for the component part under section 3 and in force at the time of its purchase by the purchaser; or(ii)where no maximum price has been so fixed for the component part, the amount represented by the addition allowed by normal trade practice in force on the 31st day of August, 1939, to the cost of production of the component part:]Provided that where the addition allowed by such normal trade practice exceeds or is alleged to exceed 20 per cent, the dealer or producer, as the case may be, shall report the fact to the Controller General who may either sanction such addition or, for reasons to be recorded in writing, order its variation; [and the dealer or producer, as the case may be, shall be deemed to sell for a consideration which is unreasonable, if such report has not been made or if after such report has been made and the Controller General has varied such addition, the price charged exceeds the limits approved by the Controller General under this proviso] [Substituted by Ordinance VII of 2003 for certain words.].(3)The Controller General may make or cause to be made a certificate stating the landed cost of any imported article dealt in by a dealer, and shall, on request made by any dealer, grant or cause to be granted to that dealer a certificate stating the landed cost of any such imported article.] [Sub-section (2) and (3) of section 6 substituted by Ordinance VI of 2001.][(3-a) For the purposes of this section, the landed cost of any imported article shall, save as hereinafter provided, be the cost thereof to the importer, that is to say, the sum of-(i)the price of article charged by the exporter in the country of origin;(ii)freight, marine and war risk insurance and other charges, incurred in respect of the article up to the time when it is delivered to the transit sheds at the port of entry ;(iii)the amount of duties payable on the importation of the article :Provided that if, in the opinion of the Controller General, there is substantial disparity-(a)between the landed cost so determined of the article and the landed cost of any other similar article ; or(b)between the consideration for the sale of the article computed on the basis of its landed cost so determined and the minimum price fixed under the Ordinance at which any other similar article, whether imported or not, may be sold,the Controller General may, in making a certificate referred to in subsection (3) in respect of the article, take such disparity into consideration to fix the landed cost of the article at such amount as he thinks equitable.] [Sub-section (3-a) to section 6 inserted by Ordinance VII of 2003.](4)[ Where a dealer or a producer disposes of an article by having it sold by auction on his behalf, the auctioner as well as the dealer or producer shall be liable to the penalty provided by sub-section (1) of section 13, if in any such sale, there is a contravention of sub-section (1).] [Sub-section (4) to section 6 substituted by Ordinance VII of 2003.](5)[ Where any article is sold, offered for sale, or otherwise disposed of in contravention of sub-section (1), by a dealer or producer through any person employed by him or acting on his behalf, such person and also, unless they prove that they exercised due diligence to prevent such contravention, the dealer or producer, as the case may be, and any person having the charge on behalf of the dealer or producer of the place where such contravention occurred, shall be liable to punishment provided by sub-section (1) of section 13, whether or not they were present when the contravention occurred.] [Sub-section (5) to section 6 added by Ordinance VII of 2003.]
