Section 26: Punishment for certain acts by licensee or his servants

If the holder of any licence, permit or authorisation granted under this Act or any rule or order made thereunder or any person in his employ and acting on his behalf–

(a) omits, without any reasonable cause, to maintain accounts or to submit any return in accordance with the provisions of this Act, or any rule made thereunder;

(b) fails to produce without any reasonable cause such licence, permit or authorisation on demand of any officer authorised by the Central Government or State Government in this behalf;

(c) keeps any accounts or makes any statement which is false or which he knows or has reason to believe to be incorrect; or

(d) wilfully and knowingly does any act in breach of any of the conditions of licence, permit or authorisation for which a penalty is not prescribed elsewhere in this Act,

he shall be punishable with imprisonment for a term which may extend to three years or with fine or with both.

Simplified Explanation

Section 26 of the Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) outlines the punishments for certain violations committed by the holder of a license, permit, or authorization granted under the Act, or by a person employed by them. These violations typically involve failure to comply with record-keeping, reporting, or other duties stipulated by the Act or its rules.


Key Provisions of Section 26

Violations by Licensee or His Servants

A licensee or their employees may be punishable under Section 26 if they:

  1. Failure to Maintain Accounts or Submit Returns
    • The licensee or their employee fails without reasonable cause to maintain accounts or submit required returns as mandated by the NDPS Act or its rules.
  2. Failure to Produce License on Demand
    • If the licensee or employee fails to produce the license, permit, or authorization on demand by an officer authorized by the Central Government or State Government, and there is no reasonable cause for this failure.
  3. False Accounts or Statements
    • If the licensee or their employee knowingly keeps false accounts or makes a statement that is false or incorrect (or has reason to believe it is false or incorrect), they are in violation of the Act.
  4. Breach of Conditions of License
    • If the licensee or their employee willfully and knowingly violates any condition of the license, permit, or authorization, for which no separate penalty is specified in the Act.

Punishment for Violations

  • Imprisonment:
    A person found guilty of any of the above offenses can be punished with imprisonment for a term that may extend to three years.
  • Fine:
    Alternatively, or in addition to imprisonment, the individual may be fined.
  • Both Imprisonment and Fine:
    The court may impose both imprisonment and fine as penalties, depending on the severity of the violation.

Purpose of Section 26

The objective of Section 26 is to ensure compliance with the regulations and conditions that govern the license, permit, or authorization granted under the NDPS Act. By penalizing the failure to keep accurate records, the submission of false reports, and violations of conditions, this provision aims to uphold accountability among those authorized to handle narcotic drugs and psychotropic substances.


Impact of Section 26

  • Promotes Accountability and Transparency:
    This section forces those handling controlled substances to maintain transparency in their dealings and ensure that accurate records are kept, which can be scrutinized by authorities.
  • Discourages Negligence and Fraud:
    By establishing penalties for neglecting statutory duties (such as keeping accounts or making false statements), Section 26 acts as a deterrent against carelessness or fraudulent activities by licensees or their employees.
  • Ensures Compliance with Licensing Conditions:
    Violating the terms of the license, permit, or authorization not only jeopardizes the license holder’s operations but also harms public safety by enabling illegal activities. Section 26 helps ensure that license holders follow the conditions stipulated by the authorities.

Conclusion

Section 26 of the NDPS Act seeks to maintain high standards of accountability and compliance among individuals and entities authorized to handle narcotic drugs and psychotropic substances. By penalizing violations such as failure to maintain accurate records, providing false statements, or breaching licensing conditions, this section safeguards the regulatory integrity of the NDPS framework and ensures that individuals and entities in possession of licenses act responsibly.

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