Assam Drugs (Control) Act, 1950

Preamble.- An Act to provide for the control of the sale, supply and distribution of drugs.
Whereas it is expedient to control the sale, supply and distribution of drugs;
It is hereby enacted as follows:

1. Short title, extent and commencement.-

(1) This Act may be called the Assam Drugs (Control) Act,
1950.
(2) It extends to the whole of the State of Assam.
(3) It shall come into ce at once.

2. Interpretation.-
(1) In this Act, unless there is anything repugnant in the subject or context –
Published in the "Assam Gazette" dated the 24th January, 1951.
Adapted by Meghalaya and Nagaland.
(a) "dealer" means a person carrying on, either
personally or through any other person, the
business of selling any drugs whether wholesale
or retail;
(b) "drugs" means any drug as defined in Cl. (b) of
S. 3 of the Drugs Act, 1940 (Act XXIII of 1943),
in respect of which a declaration has been made
under S. 3;
(c) "offer sale" includes a reference to an intimation
by a person of the price proposed by him for sale
of any drug, made by the publication of a price
list, by exposing the drug sale in association
with a mark indicating price, by the furnishing
of a quotation or otherwise howsoever;
(d) "producer" includes a manufacturer;
(2) A drug shall be deemed to be in the possession of a person -
(i) when it is held on behalf of that person by another person or when held by that person on behalf of another person;
(ii) notwithstanding that it is mortgaged to another person.

3. Drugs to which this Act applies.-
The State Government may, by notification in the official Gazette, declare any drug to be a drug to which this Act shall apply.

4. Fixing of maximum prices and maximum quantities
which may be held or sold.-
(1) The State Government may, by notification in the official Gazette, fix in respect of any drugs-
(a) the maximum price or rate which may be
charged by a dealer or producer;
(b) the maximum quantity which may at any one
time be possessed by a dealer or producer;
(c) the maximum quantity which may in any one
transaction be sold to any person.
(2) The prices or rates and the quantities fixed in respect of any drug under this section may be different in different localities or for different classes of dealers or producers.

5. Restrictions of sale, etc., where maximum is fixed under S. 4.-
No dealer or producer shall -
(a) sell, agree to sell, offer sale, or otherwise dispose of to any person any drug for a price or at a rate exceeding the maximum fixed by notification under Cl. (a) of sub-S. (1) of S. 4;
(b) have in his possession at any time a quantity of any drug exceeding the maximum fixed by notification under Cl. (b) of sub-S. (1) of S. 4; or
(c) sell, agree to sell or offer sale to any person in any one transaction a quantity of any drugs exceeding the maximum fixed by notification under Cl. (c) of sub-S.
(1) of S. 4.

6. General limitation on quantity which may be possessed at one time.
(1) No person shall have in his possession at any one time
a greater quantity of any drug to which this section
applied than the quantity necessary for his reasonable
needs.
(2) This section shall apply only to such drugs as the
State Government may, by order published in the
official Gazette, specify for the purpose:

Provided that nothing contained in this section shall apply to a dealer or producer in respect of any drug sold or produced by him.
.

7. Duty to declare possession of excess stocks.-
Any person having in his possession a quantity of any drug exceeding that permitted by or under this Act shall forthwith report the fact to the State Government or other officer empowered in this behalf by the State Government and shall take such action as to the storage, distribution or disposal of the excess quantity as the State Government may direct.

8. Refusal to sell.-
No dealer or producer shall, unless previously authorized to do so by the State Government without sufficient cause, refuse to sell to any person any drug within the limits as to quantity, if any, imposed by this Act.
Explanation: The possibility or expectation of obtaining a higher price for drug at a later date shall not be deemed to be a sufficient cause the purpose of this section.

9. Cash memorandum to be given of certain sales.
(1) Every dealer or producer when selling any drug for
cash shall, if the amount of the purchase is five rupees
or more, in all cases, and, if the amount of the
purchase is less than five rupees, when so requested
by the purchaser, give to the purchaser a cash
memorandum containing particulars of the
transaction.
(2) The State Government may, by notification in the
official Gazette, prescribe the particulars to be
contained in any such memorandum.
(3) The State Government may, by notification in the
official Gazette, exempt, specified areas, classes of
dealers or producers or classes of drugs from
operation of this section.

10. Marking of prices and exhibiting price list.-
(1) The State Government may direct dealers or producers
in general, or any dealer or producers in general, or
any dealer or producer in particular, to mark any drug
exposed or intended for sale with the sale price or to
exhibit on the premises a price list of drugs held for
sale, and may further give directions as to the manner
in which any such direction as aforesaid is to be
carried out.
(2) No dealer shall destroy, efface or alter any label or
mark affixed to drug and indicating the price marked
by a producer.

11. Obligation to state price separately on composite offer.-
Where a dealer or producer, makes an offer to enter into a transaction for a consideration to be given as a whole in respect both of a sale of any drug and of some other matter, the dealer or producer making the offer shall state in writing the price which he assigns to that drug, if he is required to do so by any person to whom the offer is made, and the offer shall be deemed for the purposes of this Act to be an offer to sell that drug at the price so stated.

12. Prohibition or regulation of the disposal of drugs.-
If in the opinion of the State Government it is necessary or expedient so to do, they may, by order in writing -
(a) prohibit the disposal of any drug except in such
circumstances and under such conditions as may be
specified in the order;
(b) direct the sale of any drug to such dealer or class of
dealers and in such quantities as may be specified in
the order.
and make such further orders as appear to them to be necessary or expedient in connection with any order issued under this section.

13. Penalties.-
(1) Whoever contravenes and of the provisions of this Act,
fails to comply with any direction made under
authority conferred by this Act, shall be punishable
with imprisonment for a term which may extend to
three years or with fine or with both.
(2) A Court convicting any person of an offence
punishable under this Act may order that the whole or
any part of the stock of drugs in respect of which the
offence committed shall be forfeited to the
Government.
(3) It shall be a defence for a person charged with a
contravention of any of the provisions of this section to prove that, in relation to the matter in respect of which he is charged, he acted in the course of his employment as a servant or agent of another person on the instructions of his employers or of some other specified person.

14. Offence by Corporations.-
Where a person committing an offence punishable under this Act is a company or an association or a body of persons, whether incorporated or not, every Director, Manager, Secretary, Agent or other officer or person concerned with the management thereof, shall, unless he proves that the offence was committed without his knowledge or that he has exercised all due diligence to prevent its commission, be deemed to be guilty of such offence.

15. Procedure.- No person other than a Police Officer of or above the rank of an Inspector of Police or an Officer not below the rank of an Inspector of Police authorised in this behalf by the State Government by notification in the official Gazette, shall investigate any offence under this Act.

(1) No prosecution for any offence punishable under this
Act shall be instituted except with the previous
sanction of the District Magistrate.

16. Powers of search and seizure.-
Any person competent to investigate any offence under this Act may search any place in which he has reason to believe that an offence under this Act has bee, or is being committed and take possession of any stock of drugs in respect of which the offence has been or is being committed and the provisions of the Code of Criminal Procedure, 1898 (Act V of 1898), shall so far as may be applicable apply to any search and seizure under this Act as they apply to any search or seizure made under the authority of a warrant issued under S. 98 of that Code.

17. Power to make rules.-
(1) The State Government may make rules to carry out
the purposes of this Act.
(2) In particular and without prejudice to the generality of
the foregoing power, such rules may provide for all or
any of the following matters namely:

(a) the maintenance by dealers and producers
generally, or by any dealer or producer in
particular, of records of all sale and purchases
transactions made by them;
(b) the furnishing of any information as may be
required with respect to the business carried on
by any dealer or producer;

(c) the inspection of any books of account or other documents belonging to, or under the control of, any dealer or producer.

18. Protection of action taken in good faith.-
No suit, prosecution or other legal proceeding shall lie against any person for anything in good faith done or intended to be done under this Act.

19. Saving of other laws.-
The provisions of this Act shall be in addition to and not in derogation of any other law for the time being in force regulating any of the matters dealt with in this Act.