This Act empowers Govt. for regulating or prohibiting and regulating the production supply and distribution thereof and trade commerce therein for the purpose of maintaining or increasing supplies of any essential commodity or for securing their equitable distribution and availability at fair prices, or for securing any essential commodity for the Defence of India or the efficient conduct of Military Operation.

Govt. can regulate by licenses and permit controlling the prices by prohibiting the with holding from sale etc, under this Act. Section 2 (i) (a) of this Act. After issuance of order under this Act. After issuance of order under this Act no person employed in any essential services related to that order can go or remain in strike. Any strike declared or commended before or after the issue of that order become illegal.

Similarly Govt. can prohibit Lock Outs and Lay-off in any essential services.

Persons engaging in illegal strikes are liable to be dismissed from their services with imprisonment upto 6 months. Any person who instigates illegal strikes is also liable to imprisonment upto 1 year.