The Department of Supply Management (DoSM) is making preparations to file cases against seven business outlets found to have involvement in anomalies.

Bhatbhateni Food Products, the supplier of food items to Bhat Bhateni Super Market; Siddhibinayak Khaddya Store at Tinthana; Saleways Cash and Carry, and Fashion Flow at Maharajgunj; Big Mart’s Kalopool outlet; and Non-Stop 365 and Organic Kitchen Mart at Nayabazaar, were found selling substandard products and charging exorbitant prices to the customers during market inspections carried out three weeks ago.

DoSM officer Deepak Raj Pokhrel said they would file the cases under the Consumer Protection Act 1998. He said the department on Tuesday forwarded the files to the Ministry of Supplies seeking legal advice.

As per the Consumer Protection Act 1998, anyone who sells substandard products and is involved in black-marketeering could face a cash penalty of Rs50,000 or three years in jail or both.

Following Prime Minister Pushpa Kamal Dahal’s direction to take immediate action against those involved in black-marketeering and artificial price hikes, the ministry has intensified market monitoring in the Kathmandu valley. Bhatbhateni Food Products was found repackaging expired products. Bhat-Bhateni, one of the popular departmental store chains, serves more than 40,000 customers daily. It has 12 outlets across the country .

Another retail chain Big Mart has been charged with tampering with government seals pasted on products. Fashion Flow and Non Stop 365 were found overcharging customers, while Organic Kitchen Mart was found selling medicine products without licence.

According to the department, the rest of firms have been charged with selling substandard products posing risk to consumers’ health.