The Essential Commodities Act, 1955 Set-2

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1. Clause (a) of Section 3(3C) requires consideration of the price of sugarcane known as:

a. Minimum support price

b. Procurement price

c. Fair and remunerative price

d. Market price

2. Under Section 3(3C), the manufacturing cost of sugar includes:

a. Cost of machinery only

b. Net cost of converting sugarcane into sugar

c. Labour cost only

d. Export cost

3. Manufacturing cost of sugar also includes transportation cost of sugarcane:

a. From farm to warehouse

b. From purchase centre to factory gate borne by the producer

c. From factory to market

d. For export purposes

4. Clause (c) of Section 3(3C) requires consideration of:

a. Export duty

b. Duty or tax paid or payable on sugar

c. Agricultural tax

d. Land revenue

5. Under Section 3(3C), the price determination must also consider:

a. Profit margin only

b. Reasonable return on capital employed

c. Export subsidy

d. Interest rates

6. The Central Government may determine different sugar prices for:

a. Different areas

b. Different factories

c. Different varieties of sugar

d. All of the above

7. The term “producer” under Section 3(3C) refers to a person:

a. Growing sugarcane

b. Manufacturing sugar

c. Trading sugar

d. Exporting sugar

8. “Fair and remunerative price” under Section 3(3C) means the price of sugarcane determined by the:

a. State Government

b. Central Government

c. Sugar Commission

d. Agricultural Universities

9. “Reasonable return on capital employed” refers to return on:

a. Net fixed assets only

b. Working capital only

c. Net fixed assets plus working capital

d. Land value

10. Explanation II to Section 3(3C) clarifies that FRP, manufacturing cost and reasonable return do not include:

a. State Government price orders

b. Prices agreed between producers and growers

c. Both (a) and (b)

d. Export prices

11. The provision allowing different sugar prices for different areas or factories reflects:

a. Uniform pricing policy

b. Flexible pricing based on economic factors

c. Export regulation

d. Judicial intervention

12. The objective of Section 3(3C) is primarily to ensure:

a. Uniform export price

b. Balanced pricing between sugar producers and consumers

c. Promotion of private trade

d. Reduction of taxes

13. Under Section 3(3C), price determination for sugar may consider reasonable return on capital employed in:

a. Farming sugarcane

b. Manufacturing sugar

c. Exporting sugar

d. Transporting sugar

14. Section 3(3C) specifically relates to:

a. Wheat procurement pricing

b. Sugar procurement and levy pricing

c. Oilseed regulation

d. Foodgrain export pricing

15. The pricing mechanism under Section 3(3C) ensures that the Government considers:

a. Production economics

b. Tax structure

c. Capital returns

d. All of the above

16. Section 3(3D) empowers which authority to control the sale or removal of sugar?

a. State Government

b. Central Government

c. Agricultural Prices Commission

d. District Magistrate

17. Under Section 3(3D), the Central Government may direct that sugar shall not be sold or disposed of except:

a. With approval of the State Government

b. In accordance with directions issued by the Central Government

c. With court permission

d. With approval of local authorities

18. The restriction under Section 3(3D) applies to which of the following persons?

1. Producers

2. Importers

3. Exporters

a. 1 only

b. 1 and 2 only

c. 2 and 3 only

d. 1, 2 and 3

19. Under Section 3(3D), sugar cannot be removed from:

a. Factory bonded godowns

b. Importer warehouses

c. Exporter warehouses

d. All of the above

20. The bonded godowns referred to in Section 3(3D) may be located:

a. Only within the factory premises

b. Only outside the factory premises

c. Either within or outside the factory premises

d. Only in government warehouses

21. Section 3(3D) mainly regulates which activity relating to sugar?

a. Production only

b. Export only

c. Sale, disposal and removal

d. Transportation only

22. The proviso to Section 3(3D) clarifies that the provision does not affect the:

a. Sale of sugar to traders

b. Pledging of sugar by producers or importers to scheduled banks

c. Export of sugar

d. Import of sugar

23. The term “scheduled bank” mentioned in Section 3(3D) is defined under:

a. Banking Regulation Act, 1949

b. Reserve Bank of India Act, 1934

c. Companies Act, 2013

d. Negotiable Instruments Act, 1881

24. The relevant definition of “scheduled bank” under the RBI Act is found in:

a. Section 1

b. Section 2(e)

c. Section 5

d. Section 10

25. The proviso to Section 3(3D) also refers to banks constituted under which Act?

a. Banking Regulation Act, 1949

b. State Bank of India Act, 1955

c. Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970

d. Companies Act, 2013

26. Even when sugar is pledged to a scheduled bank, the bank cannot sell the sugar except:

a. With borrower’s consent

b. With court permission

c. Under direction of the Central Government

d. With State Government approval

27. Section 3(3D) ensures government control over:

a. Export subsidies

b. Movement and disposal of sugar stocks

c. Production of sugarcane

d. Taxation of sugar

28. The purpose of regulating removal of sugar from bonded godowns is mainly to:

a. Promote exports

b. Prevent hoarding and regulate supply

c. Increase industrial production

d. Reduce transport costs

29. Under Section 3(3D), government directions may regulate sugar held by:

a. Producers only

b. Importers only

c. Exporters only

d. Producers, importers and exporters

30. The overall objective of Section 3(3D) is to ensure:

a. Free trade in sugar

b. Government supervision over sugar stock movement and disposal

c. Elimination of sugar exports

d. Privatization of sugar trade

31. Section 3(3E) empowers which authority to issue directions regarding sugar production and distribution?

a. State Government

b. Central Government

c. Agricultural Prices Commission

d. District Magistrate

32. Under Section 3(3E), the Central Government may issue directions by:

a. Notification only

b. General or special order

c. Court order

d. Parliamentary resolution

33. Directions under Section 3(3E) may be issued to:

1. Producers

2. Importers

3. Exporters

4. Recognised dealers

a. 1 and 2 only

b. 1, 2 and 3 only

c. 1, 2, 3 and 4

d. 2 and 4 only

34. Section 3(3E) also allows directions to be issued to:

a. Individual persons only

b. Classes of producers or recognised dealers

c. Courts only

d. Farmers only

35. Directions issued under Section 3(3E) may relate to which of the following activities?

a. Production

b. Maintenance of stocks

c. Storage and sale

d. All of the above

36. Section 3(3E) allows the Government to regulate grading, packing and marking of:

a. Wheat

b. Rice

c. Sugar

d. Oilseeds

37. The Government may also regulate which of the following activities relating to sugar?

1. Weighment

2. Disposal

3. Delivery

4. Distribution

a. 1 and 2 only

b. 1, 2 and 3 only

c. 1, 2, 3 and 4

d. 2 and 3 only

38. Under Section 3(3E), directions regarding sugar must be carried out:

a. According to the discretion of traders

b. In the manner specified in the direction

c. According to State Government rules

d. According to market conditions

39. According to the explanation under Section 3(3E), a “producer” means a person engaged in:

a. Growing sugarcane

b. Manufacturing sugar

c. Exporting sugar

d. Storing sugar

40. A “recognised dealer” under Section 3(3E) means a person engaged in the business of:

a. Manufacturing sugar

b. Transporting sugar

c. Purchasing, selling or distributing sugar

d. Exporting sugarcane

41. Under the explanation to Section 3(3E), “sugar” includes:

a. Plantation white sugar

b. Raw sugar

c. Refined sugar

d. All of the above

42. The definition of “sugar” under Section 3(3E) includes sugar whether:

a. Produced domestically only

b. Imported only

c. Indigenously produced or imported

d. Exported only

43. The regulatory directions under Section 3(3E) aim to ensure:

a. Free market operation

b. Proper control and distribution of sugar

c. Export promotion only

d. Industrial licensing

44. The powers under Section 3(3E) are primarily administrative powers exercised by the:

a. Judiciary

b. Central Government

c. State Governments only

d. Parliament

45. Section 3(3E) complements the provisions of:

a. Section 3(3D) relating to regulation of sugar stocks and sale

b. Section 2A relating to essential commodities

c. Section 1 relating to extent of the Act

d. Section 5 relating to delegation of powers

46. Under Section 3(4), the Central Government may authorize a person to exercise functions of control over an undertaking engaged in production and supply of:

a. Any industrial product

b. Any essential commodity

c. Any agricultural produce

d. Export commodities only

47. A person authorized under Section 3(4) to exercise functions of control over an undertaking is called an:

a. Government inspector

b. Authorized controller

c. Price regulator

d. Licensing officer

48. The Central Government may appoint an authorized controller when it considers it necessary for:

a. Promoting exports

b. Maintaining or increasing production and supply of essential commodities

c. Regulating imports

d. Improving industrial infrastructure

49. The authorized controller may exercise control over:

a. Only the entire undertaking

b. Only a specific department of the undertaking

c. The whole or any part of the undertaking engaged in production and supply

d. Only government-owned undertakings

50. The functions of the authorized controller shall be exercised according to:

a. Orders of State Governments

b. Instructions of the Central Government

c. Court orders

d. Industrial regulations

51. The authorized controller cannot give directions inconsistent with:

a. Market practices

b. Any enactment or instrument determining management functions

c. Government policies

d. International trade laws

52. The authorized controller may override provisions of existing management instruments only when:

a. Approved by the State Government

b. Specifically provided in the order issued by the Central Government

c. Approved by the court

d. Requested by the undertaking

53. Under Section 3(4)(b), the undertaking must be carried on according to directions given by the:

a. State Government

b. Authorized controller

c. District Magistrate

d. Central Excise Officer

54. Persons having management functions in the undertaking must:

a. Ignore directions of the controller

b. Follow directions of the authorized controller

c. Follow State Government directions only

d. Follow market regulations

55. Under Section 3(5)(a), an order of general nature or affecting a class of persons shall be:

a. Announced in Parliament

b. Published in the Official Gazette

c. Sent by registered post

d. Displayed in court

56. If an order under Section 3 is directed to a specified individual, it must be:

a. Published in newspapers

b. Served on that individual

c. Announced in court

d. Displayed in police station

57. An order may be served on an individual by:

a. Delivering or tendering it to the individual

b. Posting it in a newspaper

c. Sending it to the police station

d. Announcing it in court

58. If an order cannot be delivered directly to the individual, it may be served by:

a. Email

b. Publishing in newspapers

c. Affixing it on the outer door or conspicuous part of the premises

d. Announcing in public meeting

59. When an order is affixed on premises, a written report must be prepared and witnessed by:

a. Two police officers

b. Two government officials

c. Two persons living in the neighbourhood

d. Two court clerks

60. Every order made under Section 3 by the Central Government must be laid before:

a. Supreme Court

b. State Legislatures

c. Both Houses of Parliament

d. District Courts

61. The requirement of laying orders before Parliament ensures:

a. Judicial control

b. Legislative oversight

c. Police supervision

d. Administrative secrecy

62. Orders under Section 3 may be made by:

a. Central Government only

b. State Governments only

c. Central Government or its authorised officers or authorities

d. Courts only

63. Section 3(4) essentially provides for:

a. Price fixation of commodities

b. Government takeover of management control of undertakings in certain situations

c. Export regulation

d. Licensing of traders

64. The control exercised by an authorized controller continues:

a. Permanently

b. Until the order remains in force

c. For one year only

d. Until court review

65. The overall objective of Section 3(4)–(6) is to ensure:

a. Government oversight over undertakings producing essential commodities

b. Privatization of industries

c. Export promotion

d. Judicial control over industries

66. Section 4 of the Essential Commodities Act deals with:

a. Delegation of powers

b. Imposition of duties on State Governments and authorities

c. Confiscation of goods

d. Licensing of traders

67. Orders made under Section 3 may confer powers upon:

a. Central Government only

b. State Government only

c. Both Central Government and State Governments

d. Private traders

68. Under Section 4, powers may be conferred on:

1. Central Government

2. State Governments

3. Officers and authorities of Central Government

4. Officers and authorities of State Governments

a. 1 and 2 only

b. 1, 2 and 3 only

c. 2, 3 and 4 only

d. 1, 2, 3 and 4

69. Section 4 allows orders under Section 3 to impose duties on:

a. Courts only

b. Government authorities and officers

c. Private corporations only

d. Traders only

70. Orders under Section 3 may contain directions to:

a. Private individuals only

b. State Governments and their officers or authorities

c. Courts only

d. Exporters only

71. The directions given to State Governments under Section 4 relate to:

a. Tax collection

b. Exercise of powers and discharge of duties under the Act

c. Export control

d. Judicial proceedings

72. Section 4 enables coordination between:

a. Courts and police

b. Central Government and State Governments in implementing control orders

c. Traders and consumers

d. Industries and exporters

73. The primary purpose of Section 4 is to:

a. Provide judicial remedies

b. Ensure administrative implementation of orders under Section 3

c. Regulate international trade

d. Establish special courts

74. Section 4 ensures that officers and authorities responsible for enforcing control orders are:

a. Private traders

b. Government officials

c. Industrial workers

d. Agricultural labourers

75. The powers and duties imposed under Section 4 arise through:

a. Parliamentary resolution

b. Orders issued under Section 3 of the Act

c. Court orders

d. Notifications under Section 2A

76. Section 5 of the Essential Commodities Act deals with:

a. Confiscation of goods

b. Delegation of powers

c. Licensing of traders

d. Judicial proceedings

77. Under Section 5, the Central Government may delegate powers relating to:

a. Section 1

b. Section 2A

c. Section 3

d. Section 6

78. The power delegated under Section 5 relates to:

a. Making rules

b. Making orders or issuing notifications under Section 3

c. Conducting judicial trials

d. Fixing export duties

79. The Central Government may delegate powers under Section 5 by issuing a:

a. Court order

b. Notified order

c. Parliamentary resolution

d. Gazette notice only

80. Under Section 5, delegated powers may be exercised subject to:

a. Judicial approval

b. Conditions specified in the direction

c. Approval of Parliament

d. Consent of traders

81. The Central Government may delegate its powers under Section 5 to:

a. Officers or authorities subordinate to it

b. State Governments

c. Officers subordinate to State Governments

d. All of the above

82. Delegation under Section 5 may relate to:

a. All matters under the Act

b. Specific matters specified in the direction

c. Only judicial matters

d. Only licensing matters

83. The delegation of powers under Section 5 helps to:

a. Centralize all authority

b. Facilitate administrative implementation of control orders

c. Reduce government involvement

d. Promote export trade

84. The authority receiving delegated powers under Section 5 exercises those powers:

a. Independently of the Central Government

b. Subject to conditions specified in the delegation order

c. Under the supervision of courts only

d. Without any restrictions

85. Section 5 primarily enables the Central Government to:

a. Transfer legislative power permanently

b. Delegate administrative powers for effective enforcement of Section 3 orders

c. Create new essential commodities

d. Establish special courts

86. Section 6 of the Essential Commodities Act deals with:

a. Confiscation of essential commodities

b. Effect of orders inconsistent with other enactments

c. Delegation of powers

d. Establishment of special courts

87. According to Section 6, an order made under Section 3 shall have effect:

a. Only if approved by State Government

b. Subject to other laws

c. Notwithstanding anything inconsistent in other enactments

d. Only after judicial review

88. The overriding effect under Section 6 applies over:

a. This Act itself

b. Any enactment other than this Act

c. Constitutional provisions

d. Judicial decisions

89. Section 6 provides that orders under Section 3 will prevail even if they are inconsistent with:

a. Administrative rules

b. Other enactments or instruments having effect under such enactments

c. Court judgments

d. International treaties

90. The term “instrument having effect by virtue of any enactment” may include:

a. Government notifications or orders issued under other laws

b. Private contracts only

c. Judicial precedents

d. International agreements

91. Section 6 ensures the supremacy of orders made under:

a. Section 1

b. Section 2A

c. Section 3

d. Section 5

92. The overriding clause in Section 6 is commonly referred to as a:

a. Saving clause

b. Non-obstante clause

c. Penal clause

d. Procedural clause

93. The purpose of Section 6 is to ensure:

a. Judicial supremacy

b. Effective implementation of control orders under the Act

c. Export regulation

d. State autonomy

94. Section 6 prevents conflicts between orders under the Essential Commodities Act and:

a. Only criminal laws

b. Only taxation laws

c. Other enactments or instruments under other enactments

d. Constitutional provisions

95. The overriding effect provided in Section 6 applies to:

a. Rules made by traders

b. Orders issued under Section 3 of the Act

c. Judicial orders

d. Local government regulations only

96. Section 6A of the Essential Commodities Act deals with:

a. Seizure of property

b. Confiscation of essential commodities

c. Delegation of powers

d. Judicial appeals

97. When an essential commodity is seized under an order made under Section 3, a report must be made to:

a. The State Government

b. The Magistrate

c. The Collector of the district or Presidency town

d. The High Court

98. The report of seizure under Section 6A must be made:

a. Immediately

b. Within 24 hours

c. Without unreasonable delay

d. Within seven days

99. The authority empowered to order confiscation under Section 6A is the:

a. Magistrate

b. Police officer

c. Collector

d. Central Government

100. The Collector may order confiscation when he is satisfied that there has been:

a. A market shortage

b. A contravention of an order made under Section 3

c. A tax violation

d. A transportation error

101. Under Section 6A, confiscation of packages or receptacles applies when they contain:

a. Agricultural produce

b. Essential commodities seized in contravention of the order

c. Imported goods

d. Taxable goods

102. Vehicles or conveyances used for transporting essential commodities in violation of orders may be:

a. Registered by the government

b. Confiscated by the Collector

c. Returned immediately

d. Sold in auction only

103. According to the proviso to Section 6A, foodgrains or edible oilseeds seized from a producer shall not be confiscated if:

a. They were purchased from another trader

b. They were produced by the producer himself

c. They were stored in a warehouse

d. They were imported goods

104. The proviso protecting producers from confiscation applies specifically to:

a. Sugar and oil

b. Foodgrains and edible oilseeds

c. Fertilizers and seeds

d. Industrial commodities

105. If an animal or vehicle used for transport is normally used for carriage of goods or passengers for hire, the owner may:

a. Avoid confiscation by paying a fine

b. Appeal to the High Court immediately

c. Request government compensation

d. Seek arbitration

106. The fine payable in lieu of confiscation of such conveyance shall not exceed:

a. Cost of the vehicle

b. Double the value of the goods

c. Market price of the seized essential commodity at the date of seizure

d. Government fixed penalty

107. Section 6A allows confiscation proceedings:

a. Only when prosecution is instituted

b. Only after conviction

c. Whether or not prosecution is instituted

d. Only after court order

108. The Collector may require the seized essential commodity to be:

a. Destroyed immediately

b. Produced before him for inspection

c. Exported

d. Stored indefinitely

109. Section 6A aims primarily to:

a. Encourage trade

b. Penalize hoarding and illegal transport of essential commodities

c. Promote exports

d. Increase taxation

110. Under Section 6A(2), the Collector may order sale of the seized essential commodity when:

a. It is subject to speedy and natural decay

b. It is expedient in the public interest

c. Both (a) and (b)

d. Only when ordered by the court

111. If an essential commodity is subject to speedy and natural decay, the Collector may:

a. Destroy it immediately

b. Order it to be sold

c. Export it

d. Return it to the owner

112. When a controlled price for the seized essential commodity exists, the Collector shall order its sale at:

a. Market price

b. Export price

c. Controlled price fixed under law

d. Auction price only

113. If no controlled price is fixed for the seized essential commodity, the Collector may order the sale by:

a. Private negotiation

b. Government tender

c. Public auction

d. Direct export

114. In the case of foodgrains, the Collector may order sale through:

a. Wholesale traders

b. Public distribution system fair price shops

c. Private markets

d. Export agencies

115. Food grains sold through fair price shops must be sold at the price fixed by:

a. Local authorities

b. Central Government or State Government

c. District Magistrate

d. Wholesale traders

116. The sale of seized food grains through fair price shops aims to ensure:

a. Export promotion

b. Equitable distribution and availability at fair prices

c. Higher profits

d. Industrial supply

117. After the sale of seized essential commodities, the proceeds shall first be adjusted for:

a. Government taxes

b. Transport charges

c. Expenses of sale or auction and incidental expenses

d. Judicial fees

118. If no confiscation order is ultimately passed by the Collector, the sale proceeds shall be paid to:

a. The State Government

b. The police department

c. The owner or the person from whom the commodity was seized

d. Local traders

119. When an appellate order under Section 6C requires payment of sale proceeds, the amount shall be given to:

a. The Collector

b. The Central Government

c. The owner or person from whom the commodity was seized

d. The court registry

120. If the accused is acquitted in prosecution relating to the seized commodity, the sale proceeds shall be:

a. Retained by government

b. Transferred to court

c. Paid to the owner or person from whom it was seized

d. Donated to public welfare

121. The deduction of sale expenses under Section 6A(3) includes:

a. Auction expenses

b. Sale-related incidental expenses

c. Storage expenses related to sale

d. All of the above

122. The objective of Section 6A(2) regarding sale of seized commodities is to:

a. Promote exports

b. Prevent wastage and ensure public supply

c. Increase taxation

d. Support private traders

123. The Collector may sell seized commodities even before confiscation proceedings conclude when:

a. Ordered by court

b. They are perishable or public interest requires it

c. Traders demand it

d. Police recommend it

124. Section 6A(2) and (3) together provide for:

a. Seizure and prosecution

b. Interim disposal and handling of sale proceeds of seized commodities

c. Export regulation

d. Licensing of traders

125. Section 6B of the Essential Commodities Act deals with:

a. Appeal against confiscation

b. Show cause notice before confiscation

c. Delegation of powers

d. Disposal of seized commodities

126. Before confiscating any essential commodity under Section 6A, the authority must:

a. Obtain court permission

b. Issue a show cause notice

c. Seek police approval

d. Obtain consent of the State Government

127. The show cause notice under Section 6B must inform the owner about:

a. Market value of goods

b. Grounds on which confiscation is proposed

c. Transportation charges

d. Export restrictions

128. The notice regarding confiscation must be given to:

a. The Collector

b. The owner of the commodity or the person from whom it was seized

c. The police officer

d. The court registry

129. After receiving the notice under Section 6B, the person concerned must be given an opportunity to:

a. File a police complaint

b. Make a written representation against confiscation

c. File an appeal immediately

d. Seek compensation

130. The representation against confiscation must be made:

a. Orally before police

b. In writing within a reasonable time specified in the notice

c. Before the High Court

d. Through government authorities only

131. Section 6B ensures that the person concerned is also given:

a. A chance to negotiate price

b. A reasonable opportunity of being heard

c. Automatic release of goods

d. Immediate appeal

132. According to Section 6B(2), confiscation of an animal or vehicle shall not occur if the owner proves:

a. The vehicle is registered

b. The commodity was legally transported

c. It was used without the knowledge or connivance of the owner

d. The vehicle is insured

133. To avoid confiscation under Section 6B(2), the owner must show that:

1. He had no knowledge of the illegal use

2. His agent had no knowledge

3. The person in charge had taken precautions

a. 1 only

b. 1 and 2 only

c. 1, 2 and 3

d. 2 and 3 only

134. The owner must also prove that reasonable precautions were taken to prevent:

a. Theft of vehicle

b. Use of the vehicle for illegal transport of essential commodities

c. Market manipulation

d. Tax evasion

135. According to Section 6B(3), a confiscation order shall not become invalid merely due to:

a. Delay in proceedings

b. Minor defect or irregularity in the notice

c. Police mistake

d. Administrative delay

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