Consumer watchdog pulls 3,940 explosive-chemical listings off seven trading websites

India’s consumer protection regulator has forced seven business-to-business and listing websites to take down 3,940 sellers and listings offering explosive substances, including ammonium nitrate, gunpowder, picric acid and pentaerythritol tetranitrate (PETN), without the safeguards required by law.

The Central Consumer Protection Authority (CCPA), which sits under the Department of Consumer Affairs, announced the action on Monday, 19 October. The platforms it named are IndiaMART, TradeIndia, Dial4Trade, Justdial, Sigma-Aldrich India, ExportersIndia and Ibuychemikals. The Consumer Affairs Ministry described the move as a step towards consumer safety, public security and more responsible e-commerce.

Where the listings were

By far the largest share sat on IndiaMART, from which 3,092 entries were delisted, according to the regulator. ExportersIndia removed 421, Justdial 206 and TradeIndia 166 sellers.

All four substances are classed as explosives under the Explosives Act, 1884, and the rules made under it, which means they can be lawfully bought and sold only by licence holders. The CCPA said platforms are expected to make sure each seller displays a valid licence from the Petroleum and Explosives Safety Organisation (PESO), and to check a buyer’s identity and licence before any sale goes through.

Fines and court fights

Final orders have so far been passed in three cases against two companies, with penalties totalling Rs 30 lakh. Dial4Trade was fined Rs 10 lakh over ammonium nitrate listings. ExportersIndia received two separate Rs 10 lakh penalties, one covering ammonium nitrate and PETN and the other picric acid.

Dial4Trade challenged its order before the National Consumer Disputes Redressal Commission (NCDRC), which threw out the appeal on 9 October. The commission upheld the regulator’s view that the listings amounted to misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019.

IndiaMART has filed a petition in the Delhi High Court questioning the CCPA’s show-cause notices, and that case is pending. For Justdial, the regulator said the company had sought adjournments at earlier hearings and that the next and final hearing is fixed for 23 October. The cases involving Sigma-Aldrich, TradeIndia and Ibuychemikals remain with the CCPA’s Director General (Investigation).

The authority had first issued notices to several of these platforms over such listings in May.

What buyers should know

The action comes as households prepare for Diwali, when many shoppers turn to the internet for festival supplies. Chemicals of this kind are not consumer products: under the 1884 law, anyone selling or buying them needs a PESO licence, and an online listing that skips that step is a red flag. The CCPA has asked anyone who spots explosives being offered for sale on a website to report it through the National Consumer Helpline on 1915.

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