Aizawl, April 3, 2026: MAHFED Ltd. has become aware of instances of illegal sale and distribution of urea in and around Sihphir, Aizawl, which violate the provisions of the Fertilizer (Control) Order, 1985.
Acting on credible information, the Managing Director of MAHFED Ltd. conducted a detailed field inspection in Sihphir on March 20, 2026, and March 23, 2026, including verifying distribution practices and interacting with farmers and end-users. The findings of the inspection, supported by statements from purchasers, revealed that urea, being a controlled and subsidized essential commodity, was being sold at prices significantly exceeding the Government-specified Maximum Retail Price (MRP) of ₹266.40 per 45 kg bag (including GST), with instances of sales reported at rates as high as ₹450 per bag.
Such actions constitute a clear and unequivocal violation of Clause 3(3) of the Fertilizer (Control) Order, 1985, which strictly prohibits the sale of fertilizers above the prescribed price, and attract penalties under the Essential Commodities Act, 1955.
Furthermore, it has been detected that an unregistered private entity, namely M/s Zekyl Enterprises, Sihphir, Aizawl, has been engaged in the unauthorized procurement and distribution of urea through irregular and illegal channels, without possessing the mandatory Certificate of Registration under the Fertilizer (Control) Order, 1985. Such activities, including the unregulated movement and sale of subsidized fertilizer, constitute a serious breach of Clause 7 of the said Order and indicate the existence of an illicit parallel supply mechanism.
In light of the foregoing, stringent and time-bound action has been initiated. MAHFED Ltd. is taking action against the defaulting cooperative societies through the issuance of formal show cause notices, while necessary steps are being taken, in coordination with the relevant authorities, to investigate and prosecute the unauthorized operations of M/s Zekyl Enterprises, including initiating penal proceedings and closing illegal activities.
The Government reiterates its zero-tolerance stance against any form of malpractice in the distribution of subsidized agricultural inputs. Such actions not only undermine the regulatory framework but also exploit the farming community and distort the equitable distribution mechanism intended for their welfare.
All stakeholders are hereby cautioned to strictly adhere to the provisions of the Fertilizer (Control) Order, 1985 and other applicable laws. Any deviation will invite strict legal action, including prosecution under the relevant statutory provisions.
This is issued with the approval of the competent authority.
