The Levy Sugar Price Equalisation Fund Act, 1976 (briefly LSPEF Act) was enacted to provide for the establishment, in the public interest, of a Fund to ensure that the price of levy sugar may be uniform throughout India and for matters connected therewith or incidental thereto.

The LSPEF Act provides for establishment of a fund called the Levy Sugar Price Equalisation Fund (briefly LSPEF) into which shall be created (a) the amounts representing all excess realisations made by the producers either before or after the commencement of the Act, and (b) the amounts of loans advanced or grants made, if any, by the Central Government for carrying out the objects of the Fund. The Fund shall be administered by the Central Government (Section 3). Moneys remaining unclaimed for a period of six months from the date on which they are credited shall vest in the Central Government and shall be utilised, having regard to the interests of consumers of levy sugar, as a class, and the need to ensure that the retail issue price of levy sugar is uniform throughout the Country (Section 8). The LSPEF Act also empowers the Central Government to recover excess realisations made by sugar factories as " Arrears of Land Revenue" (Section 11) Penal provisions, prescribing imprisonment or fine or both, in respect of defaulting sugar mills in the matter of crediting excess realisations are also contained in the Act (Section 13). Section 16 of the Act provides for power to make rules. In exercise of such power, the Levy Sugar Price Equalisation Fund Rules, 1977 were made, to provide for the manner of (i) crediting moneys to the Fund (ii) accounting and transactions of the Fund (iii) inviting applications from buyers for refund, (iv) utilisation of the Fund by the Central Government, etc. besides prescription of forms for various purposes in terms of the LSPEF Act.

The Act was amended in 1984 to provide for certain modifications in the principal Act, with a view to obviating litigations on the subject in the light of the experience gained during the administrations of the LSPEF Act, 1976.

There has been no challenge in courts of law after the amendment of 1984.