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MARKETS 1h ago

Ammonium nitrate to PETN: CCPA cracks down on 7 online platforms over explosive listings; 3,940 sellers delisted

Livemint Companies
Published 20 Oct 2026, 08:24 pm IST

The Central Consumer Protection Authority (CCPA) has initiated regulatory action against seven online platforms over the unauthorised listing, advertising and facilitation of sales of regulated and hazardous explosive substances, including ammonium nitrate, gunpowder, picric acid and pentaerythritol tetranitrate (PETN).

Following the CCPA's intervention, 3,940 sellers were delisted from the platforms, the Ministry of Consumer Affairs, Food and Public Distribution said in a press release issued on October 19.

The platforms named by the authority are IndiaMART, TradeIndia, Dial4Trade, Justdial, Sigma-Aldrich India, ExportersIndia and Ibuychemikals.

The CCPA has imposed penalties totalling ₹30 lakh on Dial4Trade and ExportersIndia in three cases involving the listing and facilitation of sales of regulated explosive substances. Proceedings against other platforms are at different stages.

Consumers can report instances of explosives being sold through online platforms by calling the National Consumer Helpline at 1915.

IndiaMART accounted for the largest number of affected sellers, with 3,092 delistings, followed by ExportersIndia with 421, Justdial with 206 and TradeIndia with 166.

The four platforms together accounted for 3,885 delistings. The ministry's release did not provide a platform-wise breakdown of the remaining 55 sellers.

The CCPA said the action was initiated under the Consumer Protection Act, 2019, and the Consumer Protection (E-Commerce) Rules, 2020, read with the Explosives Act, 1884, the Ammonium Nitrate Rules, 2012, and other applicable regulations.

These substances are regulated under the Explosives Act and the rules framed under it. Their lawful sale and purchase require prescribed licences.

Online platforms are expected to disclose sellers' valid licences issued by the Petroleum and Explosives Safety Organisation (PESO) and verify buyers' identities and licensing status before facilitating purchases.

The CCPA has passed final orders in three cases involving Dial4Trade Technologies Private Limited and ExportersIndia, operated by Weblink.In Private Limited.

Dial4Trade was fined ₹10 lakh for the listing and facilitation of sales of ammonium nitrate. The company was also directed to discontinue listings and the facilitation of sales of ammonium nitrate and other explosive substances on its platform.

The company challenged the order before the National Consumer Disputes Redressal Commission (NCDRC) under Section 24 of the Consumer Protection Act, 2019. The NCDRC dismissed its appeal after hearing the parties on October 9, 2026, according to the ministry's release.

The order held that the listings constituted misleading advertisements and unfair trade practices under Sections 2(28) and 2(47) of the Act.

ExportersIndia was fined ₹10 lakh in one case for listing and facilitating the sale of ammonium nitrate and PETN.

In a separate case, the company was fined another ₹10 lakh for listing and facilitating the sale of picric acid.

ExportersIndia has filed appeals against both orders before the NCDRC, which are expected to be listed for hearing.

The CCPA issued notices to IndiaMART InterMESH Limited concerning the listing, advertising and facilitation of sales of ammonium nitrate, PETN, gunpowder and picric acid on its platform.

The Director General of Investigation has completed the investigation and shared the report with the company. IndiaMART has submitted its response to the report and presented its submissions during hearings before the authority.

The company has also approached the Delhi High Court through a writ petition challenging the show-cause notices issued by the CCPA.

The matter remains under regulatory consideration, and the ministry's release does not report a final penalty order against IndiaMART.

The CCPA issued notices to Justdial Limited concerning the online listing and facilitation of sales of ammonium nitrate.

The Director General of Investigation has completed the investigation, shared the report with the company and received its response.

According to the ministry, Justdial has been given four opportunities for a hearing, but the company sought adjournments on each occasion.

The next and final hearing in the matter is scheduled for October 23, 2026. A final order has yet to be passed.

The CCPA said investigations by the Director General of Investigation are continuing into alleged listings and the facilitation of sales of regulated explosive substances on three other platforms.

- Sigma-Aldrich Chemicals Private Limited: The investigation concerns listings of ammonium nitrate, PETN and picric acid.

- TradeIndia: The investigation concerns listings of picric acid and PETN. The platform is operated by Infocom Network Private Limited.

- Ibuychemikals: The investigation concerns listings of picric acid.

The proceedings against these platforms remain under investigation, according to the release.

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Originally reported by Livemint Companies.Source: livemint.com