Introduction
The Bureau of Indian Standards (‘BIS’) is the national standards body of India, established under the Bureau of Indian Standards Act, 2016 (‘BIS Act’). It plays a pivotal role in ensuring the quality, safety, and reliability of goods, articles, processes, and systems in India. To effectively enforce its mandates, BIS has been granted extensive powers, including the authority to conduct search and seizures in cases of non-compliance. The article in this issue of BIS Amicus delves into the legal framework, procedural aspects, and case studies relating to BIS’s enforcement mechanisms.
Legal framework governing BIS enforcement
The BIS Act, 2016, and the rules made thereunder provide the statutory basis for enforcement actions, including search and seizure. The key provisions include:
Powers to enter premises
Section 9 (d) of the BIS Act empowers the Bureau to enter into and search places, premises or vehicles, and inspect and seize goods or articles and documents to enforce the provisions of the Act.
Further, as per Rule 48 of the Bureau of Indian Standards Rules, 2018, the certification officer has the power to enter and search any place wherein a certificate of conformity has already been granted, in order to ascertain that the Standard Mark is being used correctly, and inspect and seize any goods or articles to enforce provisions of the Act. The relevant portion of the Rule is extracted herewith:
‘48. Powers of certification officer.—Without prejudice to the powers conferred under Section 27 and Section 28 of the Act, a certification officer may—
(a) at any time during the usual business hour enter upon any premises in which any goods, article, process, system or service, in respect of which a licence or certificate of conformity has been granted, with a view to ascertain that the Standard Mark is being used in accordance with the terms and conditions imposed by the Bureau and that the Scheme of inspection and testing specified by the Bureau is being correctly followed;
(b) inspect and take samples at such premises of any such goods or article or any material used or intended to be used in the manufacture of such goods or article which is marked with a Standard Mark;
(c) inspect any process, system or service at such premises in respect of which the certified body or licence holder has been granted a certificate of conformity or given the authority to use the Standard Mark;
(d) examine the records kept by the certified body or licence holder relating to the certificate of conformity or use of the Standard Mark;
(e) seize any such goods or articles or material or document which in his opinion will be useful, or relevant to any proceeding under the Act or under these rules.’
Power to search and seize
Section 28 of the BIS Act empowers authorized BIS officers to enter and search any premises where non-standardized or falsely marked goods are suspected to be manufactured or sold. If any contraventions are found, officers can seize the articles, documents, or materials that violate BIS regulations. The relevant portion of the section has been extracted herewith:
‘28. (1) If the certification officer has reason to believe that any goods or articles, process, system or service in relation to which the contravention of section 11 or sub-sections (6) or (8) of section 14 or section 15 or section 17 has taken place are secreted in any place, premises or vehicle, he may enter into and search such place, premises or vehicle for such goods or articles, process, system or service, as the case may be.
(2) Where, as a result of any search made under sub-section (1), any goods or article, process, system or service has been found in relation to which contravention of section 11 or sub-sections (6) or (8) of section 14 or section 15 or section 17 has taken place, the certification officer may seize such goods or article and other material and documents which, in his opinion will be useful for, or relevant to any proceeding under this Act:
Provided that where it is not practicable to seize any such goods or article or material or document, the certification officer may serve on the owner an order that he shall not remove, part with, or otherwise deal with, the goods or article or material or document except with the previous permission of the certification officer.
(3) The provision of the Code of Criminal Procedure, 1973, relating to searches and seizures shall, so far as may be, apply to every search or seizure made under this section.’
Offences and penalties for non-compliance
The relevant provisions of the BIS Act dealing with contravention of Quality Control Orders (‘QCOs’) and appropriate penalties are tabulated hereinbelow:
|
Sl. No. |
Provision |
Particulars |
| 1. | Section 17 | Prohibits the manufacture, import, distribute, sell, hire, lease, store or exhibit for sale of any such goods, article, process, system or service, which are covered by any QCO, but are not conforming to the relevant standard. |
| 2. | Section 29(3) |
Anyone who contravenes Section 17 of the BIS Act will be punishable with: * imprisonment for a term which may extend up to two years, or * fine which shall not be less than two lakh rupees for the first contravention and not be less than five lakh rupees for the second and subsequent contraventions, but may extend up to ten times the value of goods or articles produced or sold or offered to be sold or affixed or applied with a Standard Mark, including Hallmark, or * with both imprisonment and fine: |
| 3. | Section 29(4) | The offence under Section 29(3) shall be cognizable. |
| 4. | Section 30 | Officials (directors, managers, secretary, other officers) of the company, who were in charge of and responsible for the conduct of the business of the company, can be held guilty for offences committed by the company. |
Search and seizure procedure
The prevalent procedure of conducting a search and seizure operation is as follows:
I. Intelligence gathering and authorization: BIS officials may act upon complaints, intelligence reports, or routine surveillance to identify non-compliant entities.
II. Approval from Competent Authority: Search and seizure actions require prior approval from designated officers to ensure procedural compliance.
III. Assignment of Officers: The relevant branch office of BIS is allocated, which has jurisdiction over the area of business of the manufacturer against whom the complaint has been filed. Accordingly, an officer is assigned.
IV. Conducting the search:
* Initially, a discreet investigation is conducted to determine the validity of the complaint;
* If the complaint is found to be true, a qualified team is appointed to conduct the search and seizure operation;
* Officials enter the premises with necessary authorization;
* Inspection of records, manufacturing processes, and products is carried out;
* Samples may be collected to be tested at BIS-accredited laboratories;
* A detailed report is prepared and filed by the team to submit to the head of the branch office.
V. Seizure of non-compliant goods: If violations are detected, non-conforming goods and relevant documents may be seized.
VI. Legal action & prosecution: BIS may initiate prosecution against the entities that are in violation of the provisions of the Act in the appropriate judicial forums.
VII. Post-Seizure Adjudication: Entities have the right to present their case before BIS authorities or the relevant appellate bodies.
Challenges and the way forward
While BIS has made significant strides in enforcing compliance, certain challenges persist:
* Limited manpower and resources: Effective enforcement requires more trained personnel and logistical support.
* Legal hurdles in prosecution: Lengthy legal proceedings can delay justice and impact deterrence.
* Market infiltration of counterfeits: Despite BIS enforcement, counterfeit goods continue to flood markets, necessitating stricter surveillance.
To address these challenges, BIS is strengthening its enforcement mechanisms by leveraging technology, enhancing coordination with law enforcement agencies, and increasing consumer awareness about BIS standards.
LKS comments
The search and seizure powers vested in BIS play a crucial role in ensuring the integrity of products available in the Indian market. With stringent legal provisions, systematic enforcement actions, and proactive industry oversight, BIS continues to safeguard consumer interests and maintain the quality of goods and services in India. However, continued vigilance, industry cooperation, and legal reforms are essential to further strengthen the enforcement framework.
[The authors are Partner, Senior Associate and Intern, respectively, in BIS practice at Lakshmikumaran & Sridharan Attorneys]
