CCPA Reports 3,940 Explosive Substance Delistings

The Central Consumer Protection Authority (CCPA) has reported the removal of 3,940 seller and listing entries linked to regulated explosive substances from seven online platforms, as part of a wider crackdown on the unauthorised online sale and advertisement of hazardous chemicals.

According to a press release issued by the Ministry of Consumer Affairs on October 19, the regulator has imposed penalties totalling ₹30 lakh on Dial4Trade and ExportersIndia, while proceedings involving IndiaMART, Justdial and several other platforms remain under examination. The enforcement action covers online listings of ammonium nitrate, gunpowder, picric acid and pentaerythritol tetranitrate (PETN), substances whose sale and purchase are subject to licensing and regulatory restrictions.

The seven platforms identified by the CCPA are IndiaMART, TradeIndia, Dial4Trade, Justdial, Sigma-Aldrich India, ExportersIndia and Ibuychemikals. Under the Explosives Act, 1884, and applicable rules, the sale of regulated substances requires prescribed authorisation. Online platforms are expected to disclose valid licences issued by the Petroleum and Explosives Safety Organisation (PESO) and ensure that prospective buyers meet the relevant verification requirements.

IndiaMART accounts for most entries identified

IndiaMART accounted for 3,092 seller entries in the government's disclosure, including 2,700 involving ammonium nitrate, 370 involving picric acid and 22 relating to gunpowder or PETN. ExportersIndia reported 421 sellers associated with the listed substances, while Justdial accounted for 206 and Dial4Trade for 11.

TradeIndia reported 166 sellers across 210 listing entries involving picric acid and PETN. The ministry also identified Sigma-Aldrich India and Ibuychemikals in its regulatory action, although it noted that both companies sell their own products rather than hosting third-party sellers. The CCPA said the relevant listings had been removed following its intervention. However, the government's figures combine seller counts and listing entries, meaning the reported total of 3,940 should not be interpreted as the number of unique sellers identified across the platforms.

₹30 lakh penalties imposed; appeals and hearings continue

The regulator has issued three penalty orders involving two companies. Dial4Trade Technologies Private Limited was fined ₹10 lakh for facilitating online listings of ammonium nitrate. The company challenged the order before the National Consumer Disputes Redressal Commission (NCDRC), but its appeal was dismissed following a hearing on October 9, according to the ministry.

The CCPA had found that the platform's listings constituted misleading advertisements and unfair trade practices under the Consumer Protection Act, 2019. It directed the company to stop listing or facilitating sales of the regulated substances. ExportersIndia, operated by Weblink.In Private Limited, has been penalised ₹20 lakh through two separate orders. One ₹10 lakh penalty concerns ammonium nitrate and PETN, while the second relates to picric acid. The company has appealed both orders before the NCDRC, with hearings yet to be scheduled, the government said.

Proceedings against IndiaMART have not reached a final regulatory order. The CCPA's Director General of Investigation has completed its investigation and shared the report with the company, which has submitted its response. IndiaMART has also approached the Delhi High Court, challenging show-cause notices issued by the regulator.

In Justdial's case, the investigation has been completed and the company has submitted its response. The CCPA said four hearing opportunities had been provided, with the company seeking adjournments on each occasion. The next hearing has been scheduled for October 23, 2026. Investigations are also continuing into TradeIndia, Sigma-Aldrich Chemicals and Ibuychemikals. The regulator has not announced final penalties against these companies in the October 19 statement.

Earlier action against Dial4Trade

The latest disclosure follows enforcement proceedings initiated earlier this year. On May 27, the CCPA announced a broader investigation into e-commerce platforms listing hazardous chemicals and explosive substances. The regulator issued notices seeking information about seller licences, buyer verification, quantities sold, import details and regulatory approvals. It also shared seller information with PESO for examination under the relevant laws.

As Education Post's September 2 report previously reported, the CCPA had found that Dial4Trade allowed ammonium nitrate to be advertised without adequate safeguards, including seller licence disclosures, buyer verification and transaction-tracking arrangements. The investigation also found that the product listing carried images depicting explosions and lacked sufficient warnings about the restrictions governing possession and use of the substance.

Dial4Trade had argued that it operated as a business-to-business marketplace and should not be held responsible for third-party listings. The CCPA rejected that defence, finding that the platform permitted purchases in small quantities without adequate institutional-buyer verification.

The proceedings raise broader questions about how online marketplaces verify sellers dealing in restricted products and whether removing unlawful listings after they appear is sufficient to meet their regulatory obligations. The CCPA has maintained that digital platforms must exercise due diligence before allowing the advertisement or sale of substances requiring licences and safety checks. Consumers can report suspected online sales of regulated explosive substances through the National Consumer Helpline at 1915, the ministry said.