Section 7 — Penalties.

7. Penalties.―
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[(1) If any person contravenes any order made under Section 3,― 

(a) he shall be punishable,― 

(i) in the case of an order made with reference to clause (h) or clause (i) of sub-section (2) 

of that section, with imprisonment for a term which may extend to one year and shall also be 

liable to fine, and 

(ii) in the case of any other order, with imprisonment for a term which shall not be less 

than three months but which may extend to seven years and shall also be liable to fine: 

Provided that the court may, for any adequate and special reasons to be mentioned in the 

judgment, impose a sentence of imprisonment for a term of less than three months; 

(b) any property in respect of which the order has been contravened shall be forfeited to the 

Government; 

(c) any package, covering or receptacle in which the property is found and any animal, 

vehicle, vessel or other conveyance used in carrying the property shall, if the court so orders, be 

forfeited to the Government. 

(2) If any person to whom a direction is given under clause (b) of sub-section (4) of section 3 fails 

to comply with the direction, he shall be punishable with imprisonment for a term which shall not be 

less than three months but which may extend to seven years and shall also be liable to fine: 

Provided that the court may, for any adequate and special reasons to be mentioned in the 

judgment, impose a sentence of imprisonment for a term of less than three months. 

(2A) If any person convicted of an offence under sub-clause (ii) of clause (a) of sub-section (1) or 

under sub-section (2) is again convicted of an offence under the same provision, he shall be 

punishable with imprisonment for the second and for every subsequent offence for a term which shall 

not be less than six months but which may extend to seven years and shall also be liable to fine: 

Provided that the court may, for any adequate and special reasons to be mentioned in the 

judgment, impose a sentence of imprisonment for a term of less than six months. 

(2B) For the purposes of sub-sections (1), (2) and (2A), the fact that an offence under sub-clause 

(ii) of clause (a) of sub-section (1) or under sub-section (2) has caused no substantial harm to the 

general public or to any individual shall be an adequate and special reason for awarding a sentence of 

imprisonment for a term of less than three months or six months, as the case may be. 

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[(3) Where a person having been convicted of an offence under sub-section (1) is again convicted 

convicted of an offence under that sub-section for contravention of an order in respect of an essential 

commodity, the court by which such person is convicted shall, in addition to any penalty which may 

be imposed on him under that sub-section, by order, direct that that person shall not carry on any 

business in that essential commodity for such period, not being less than six months, as may be 

specified by the Court in the Order.]