The Central Consumer Protection Authority has booked seven ecommerce platforms, including IndiaMART and Justdial, over the listing and sale of unauthorised hazardous explosives. The action led to 3,940 sellers and listing entries being delisted. The ministry of consumer affairs shared the details in a statement.
The items listed included ammonium nitrate, gun powder, picric acid and pentaerythritol tetranitrate, also called PETN. Except for ammonium nitrate, all of these are used only in manufacturing explosives. IndiaMART and Justdial both run listing platforms where sellers post their own inventory.
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How Many Listings Came From IndiaMART And Justdial
IndiaMART accounted for the largest share of the action. The platform had 3,092 affected sellers and listings. ExportersIndia came next with 421, followed by Justdial with 206 and TradeIndia with 166. Dial4Trade, Sigma-Aldrich India and Ibuychemikals also face action. Penalties of Rs 30 lakh were imposed on Dial4Trade and ExportersIndia.
Where The IndiaMART And Justdial Cases Stand
The CCPA issued notices to both companies. The director general of investigation then probed the matter and shared reports with them. IndiaMART replied to the report and later moved the Delhi High Court against the show cause notice.
Justdial has sought adjournments so far and is yet to respond to the investigation. The next and final hearing in the matter is set for October 23.
The Fines On Dial4Trade And ExportersIndia
Dial4Trade was fined Rs 10 lakh for facilitating the sale of ammonium nitrate. ExportersIndia was fined Rs 10 lakh in two separate cases, one on ammonium nitrate and PETN and the other on picric acid.
Dial4Trade took its case to the National Consumer Disputes Redressal Commission. The commission dismissed the appeal on October 9. It held that the listings amounted to misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019. ExportersIndia has also appealed against the orders.
What The Platforms Have To Do Now
The action covers both marketplaces that host third-party sellers and platforms that sell directly. Sigma-Aldrich Chemicals and Ibuychemikals told the authority that they sell their own products. Investigations into TradeIndia, Sigma-Aldrich and Ibuychemikals are still open.
Under the Explosives Act, 1884, buying and selling these substances needs a valid licence. The CCPA expects platforms such as IndiaMART to check that sellers display a licence from the Petroleum and Explosives Safety Organisation. It also wants buyer identity and licence status verified before a purchase goes through. Consumers can report such listings on the national consumer helpline at 1915.