A mobile court in Ghatail upazila seized 16 tonnes of waste from oil used by ships on Wednesday night.
The waste was kept in 65 drums in a godown at Niribili Market in Ghatail municipal area for selling as rice bran oil after mixing mustard oil with it.
The court fined the godown owner Mozammel Hossain Tk 1 lakh and destroyed the waste.
Assistant Commissioner (Land) in Ghatail, also Executive Magistrate, Ambia Sultana passed the order under Section 50 of Consumer Rights Act.
She told this correspondent that the godown owner was fined after he admitted to the court that he took the waste of shipping oil from Narayanganj for mixing with mustard oil and selling it as rice bran oil.
The waste is harmful for human health and can cause different diseases, including cancer, she added.