THE NAGALAND AGRICULTURAL
PRODUCE MARKETING (REGULATION)
ACT, 1985.
(THE NAGALAND ACT NO 1 OF 1989)
Received the assent of the President of India on 16-3-89 and published in the Nagaland Gazette extraordinary
dated 18th March ‘89.
An
Act
to provide for the better regulation of marketing of agricultural produce and establishment and proper ad-
ministration of markets for agricultural produce and matters connected therewith in the State of Nagaland.
Whereas sanction of the President of India under the proviso to clause (b) of Article 304 of the Constitution of
India has been obtained.
It is hereby enacted by the Legislature of the State of Nagaland in the thirty seventh year of the Republic of India
as follows
CHAPTER-1
PRELIMINARY
Short Title, Extent and commencement
1. (1) This Act may be called the Nagaland Agricultural Produce Marketing (Regulation) Act, 1985.
(2) It extends to the whole of the State of Nagaland.
(3) It shall come into force on such date as the State Government may, by notification, appoint and
different date may be appointed for different areas.
Definition
2. In this Act, unless the context otherwise requires:
(1) “Marketing” means buying and selling of agricultural produce and includes grading, processing,
storage, transport, channels of distribution, and any other function associated with the buying and selling.
(2) “Agricultural produce” means all produce and commodities, whether processed or unprocessed
of agricultural, horticulture, sericulture, forest produce, hides and animal skins, bristle, animal husbandry,
viticulture, apiculture, piscieulture or as specified in the schedule or declared by the Government by notification
and also includes admixture of two or more of such produce.
(3) “Agriculturist” means a person who ordinarily by his own labour or by the labour of any member of his
family or who by the labour of his tenants or by servants or hired labour or otherwise is engaged in the
production or growth of agricultural produce, but does not include trader, commission agent, processor or broker
or a partner in the trading firm or Industrial concern in or in relation to Agricultural Produce.
If a question arises whether any person is an agriculturist or not for the purpose of this Act, the decision of the
Deputy Commissioner of the District in which such person is engaged in the production or growth of
agricultural produce shall be final.
(4) “Market Functionary” means a dealer, a broker, a commission agent, buyer, porter, processor, a
stockist, a trader and such other person as may be declared under rules or by-laws to be market functionary.
(5) “Broker” means an agent who, in consideration of a commission merely negotiates and brings about
a contract for his principal, but does not receive, deliver, transport, pay for the purchase of or collect the
payment for the sale of the notified agricultural produce.
(6) “Buyer” (purchaser) means a person, a firm, a Company or Co-operative society or of Government
Agency, public Undertaking/Public Agency or Corporation, Commission Agent, who himself or on behalf of any
person or agent buys or agrees to buy agricultural produce in the market areas as notified under this Act.
(7) “Commission Agent” means a person who, in the ordinary course of business, makes or offers to
make purchase or sale of agricultural produce, on behalf of the seller or purchaser of agricultural produce within
or cut side the market area or keeps it in his custody and controls it during the process of its sate or purchase
and collects payment thereof for a commission or Arhat.
(8) “Seller” means a person who soils or agrees to sell any agricultural produce and includes a person
who sells on behalf of any other person as his agent or servant or commission agent.
(9) “Trader” means any person who in his normal course carries on the business of buying or selling,
storing or processing of any notified agricultural produce as a principal or as a duly authorized agent.
(l0) “Porter” means a laborer, hamal or coollie or engaged for Dara-making loading, unloading, filling,
stitching, emptying or carrying any agricultural produce in the notified marker area.
(11) “Director” means a person appointed by the State Government by notification, as Director or
agricultural Marketing and includes any officer or officers empowered by the State Government hr
notification, to exercise or perform such of the powers for functions of the Director under the
purchase of this Act or the Rules or the Bye-laws made thereunder as may be specified in such
notification.
(12) “License” means a license granted under this Act.
(13) “License” means a person or association, firm, company, Public Sector Undertaking or Society
holding a license issued under this Act.
(14) “Local Authority” means for the purpose of representation on the market committee in relation to
an area within the local limits of (i) In any Municipal area, Town Committee or the notified
Committee or local Authority for the area (ii) In any rural area, the Village Council, or Area Council
or any other named constituted under Nagaland Village & Area Council Act, 1978.
(15) “Market Area” means area notified under Section 4 of this Act.
(16) “Market Proper” means any area including all lands with the buildings and structures. thereon
within such distance of the principal or sub-market Yard as the State Government may, by a
notification, declare it to the Market Proper.
(17) “Principal Market Yard” in relation to a Market area means a specified place and includes any
enclosures, buildings or locality declared as such in any market area by the State Government or
the Director by notification.
(18) “Sub-Market Yard” in relation to a Market area means a specified place and includes any
enclosures, building or locality declared as such in any market area by the State Government by
notification.
(19) “Notified Agricultural Produce” means any agricultural produce notified under Section 4 of this
Act.
(20) “Processing” means prescribed by Rules made under this Act.
(21) “Prescribed” means any one or more of a series of treatments relating to powdering, crushing,
decorticating, husking, parboiling, polishing, grinding, pressing, curing or any other manual
mechanical, chemical or physical treatment to which raw agricultural product is subjected to.
(22) “Processing” means a person who processes any notified agricultural produce on his own accord
or on payment of a charge.
(23) “Regulation” means regulation made by the Board or Market Committee in accordance with the
provisions of this Act.
(24) “Board” means the State Agricultural Marketing Board established under Section 51 of this Act.
(25) “Market Committees” means the Agricultural Produce Market Committee established under this
Act.
(26) “Secretary” means the Secretary of Market Committee and includes any other officer who is the
Chief Executive Officer of the Market Committee.
(27) “Rules” means rules made under this Act.
(28) “Bye-laws” means bye-laws made under rules framed under this Act.
(29) “Trade allowances” means anything realised in cash or in kind by the purchaser from seller in
any transaction relating to agricultural produce, either by deduction from the price agreed upon
or otherwise.
(30) “Retail Sale” in relation to a notified agricultural produce means a sale not exceeding such
quantity as the market committee may, by bye-laws, determine to be retail sale in respect
thereof.
(31) “Deputy Commissioner” means the Deputy Commissioner of the district and includes an
Additional Deputy Commissioner.
(32) “Market Charges” include charges on account or in respect of commission; brokerage, weighing
measuring, hamali (loading, unloading and carrying, cleaning, seivng, stitching, stacking, hiring,
gunny-hags, stamping, bagging, storing, warehousing, grading, surveying, transporting and
processing.
CHAPTER-II
ESTABLISHMENT OF MARKETS
Notification of intention of regulating marketing of notified agricultural produce in specific area.
3. (1) The State Government may, by notification, and. in such other manner as may be prescribed,
declare its intention of regulating the marketing of such agricultural produce and such area as
may be specified in the notification.
(2) A Notification under sub-section (1) shall state that any objection or suggestion which may be
received by the State Government within a period of not less than forty five days to he specified
in the notification, shall he considered by the State Government.
Declaration of market area and regulation of marketing of specified agricultural produce therein.
4. After expiry of the period specified in the notification issued under Section 3 and after considering such
objections and suggestions as may be received before such expiry and making such enquiry, if any as
may he necessary, the State Government may by another notification issue, declare the area specified in
the notification issued, under Section 3 or portion thereof to he a market area for the purpose of this Act
and that marketing of all or any of the kinds of agricultural produce specified in the notification issued
under Section 3 shall be regulated under this Act in such market area.
Alteration of market area and items of regulated agricultural produce.
5. (1) Subject to the provision specified in Sections 3 and 4, the State Government may, at any time by
notification, exclude from any market area or include therein an additional area or may declare
that the regulation of the marketing of any agricultural produce in any market area shall cease o
that marketing of any agricultural produce (hither to not regulated) shall he regulated in such
market area:
Provided that no notification shall he issued under this section without giving in the gazette previous notice not
less than 45 days as the State Government may consider reasonable of its intention to issue such notification.
(2) Where a notification is issued under sub-section (1) excluding area from any market area and such
excluded area is not declared to be a separate market area or a notification is issued under sub-
section (1), including any area within the market area, the Market Committee constituted for such
market area before the date of exclusion or inclusion shall, notwithstanding anything con-tamed
in this Act, continue to be the market committee for the said market area until reconstitution of
such Market Committee under this Act..
(3) When any area ceases to be market under subsection (1) the market committee constituted thereof
shall cease to exist, and the property and rights vested in any such Market Committee shall
subject to all charges and liabilities effecting the same, vest in the State Government.
(4) Where any such area is included in two or more other market area the State Government shall, by
order direct that such property rights, charges and liabilities shall vest in the Market Committees
of such area in such manner and in such proportions as may be specified in such order.
Amalgamation/Division of Market Committee
6. Where the State Government is satisfied that for securing efficient regulation of marketing of any
agricultural produce in any market area, it is necessary that two or more Market Committees therein
should be amalgamated, then the State Government may after consulting the Market Committees
concerned provided for the amalgamation of such Market Committees into a single Market Committee
for the market area in respect of the agricultural produce specified in the notification, with such
constitution, property, rights, interest and authorities and such liabilities, duties and obligations including
provisions in respect of contracts, assets, employees, proceedings, and such incidental, consequential
and supplementary matters may be necessary to give effect to such amalgamation as may be specified
in the notification.
Division of Market area into two or more separate market areas
7. (1) Subject to the procedure specified in Section 3 and 4 the State Government may divide a market
area into two or more separate market areas.
(2) When during the term of a Market Committee, the market area for which it is established is divided
into two more separate areas, the following consequences shall ensure
(a) the Market Committee constituted for the market area under this Act shall be deemed to
have been dissolved and the State Government shall constitute separate Market Com-
mittee under Section 13 for each of the separate market area subject to such condition
as may be prescribed :
(b) the term of office of the newly constituted Committee shall he the same as is applicable to
the first Market Committee under sub-section (1) of Section 13;
(c) the assets, rights and liabilities of the dissolved Market Committee shall be distributed by the
State Government between the new market committee in accordance with such rule as
may be prescribed;
(d) any appointment notification, notice, fee, order, scheme, licence, permission, by-law or form
made, issued or imposed by the Market Committee which has been dissolved, in
respect of any part of the area subject to the authority of the new Market Committee
shall be deemed to have been made, issued or imposed by such Market Committee
concerned unless and until it is superseded by any notification, notice, fee, order,
scheme, licence, permission, rule, bye-law or form made, issued or imposed by it.
(3) If any difficulties arise in giving effect to the provisions of this Section, toe State Government may by
order published in the official gazette as the occasion may require, do anything which appear to it
to be necessary to remove the difficulty.
Market/Market yards/Sub-Market yards and Market proper
8. (1) For every notified market area, there shall be one principal market yard and one or more sub-market
yards corresponding to market proper, as may be necessary.
(2) The State Government shall, as soon as may he, after the issue of notification under Section 4, by
notification:
(a) declare any specified place including any structure, enclosure, open place or locality, in the
market area whether vested in the Market Committee of the market area or not, to the a
market yard or sub-market yard for such notified agricultural produce as may be specified in
such notification, and
(b) declare, in relation to such market yard or sub market yard any specified area in the market to
be a market proper.
Control of Marketing of notified agricultural Produce
9. On the establishment of a market under Section 4
(a) No local authority shall, notwithstanding anything contained in any law for the time being in
force, set up, establish or continue or allow to be set up, established, continued or used any
place in the market area market proper for the marketing of any notified agricultural produce
except in accordance with the provision of this Act provided that a local authority may
establish or continue any place for retail sale of any notified agricultural produce subject to
the condition that no market functionary shall operate in such place except in accordance
with the provisions of this Act, and the rules and the bye-laws and standing orders of the
Market Committee;
(b) no person shall except in accordance with the provisions of this Act and the rules and bye-laws
made thereunder;
(i) use any place in the market area for the marketing of the notified agricultural produce; or
(ii) operate in the market area as Market functionary in relation to the marketing of the notified
agricultural produce;
Provided that nothing herein shall apply to:
(a) the sale or purchase of such agricultural produce:
(i) the producer whereof is himself its seller and such sale is made to a person who purchases
it for his own private consumption;
(ii) the person who purchases such produce within the market yard or sub-market yard, as the
case maybe, from a trader for retail sale:
(b) Agricultural produce which is purchased by an authorized fair price shop dealer from the Food
Corporation of India, or any other agency or institution authorized by the State Government
for distribution through the public distribution system:
(c) The transfer of such agricultural produce to a Co-operative Society, warehouse or a Bank for the
purpose of securing an advance therefrom:
CHAPTER-III
CONSTITUTION OF MARKET COMMITTEES
Establishment of Market Committee and its incorporation
10. (1) For every market area, there shall be a Market Committee having jurisdiction over the entire market
area :
(2) Every Market Committee shall be a body corporate by such names as the State Government may,
by notification specify, It shall have perpetual succession and a common seal and may sue and be
sued in its corporate name and shall be subject to such restrictions as are imposed by or under
this Act, be competent to conduct and to acquire, hold lease, sell or otherwise transfer any
property and to do all other things necessary for the purpose for which it is established :
Provided that no immovable property shall be acquired or transferred by way of sale, lease or otherwise without
the prior permission of the State Government
(3) Notwithstanding anything contained in any enactment for time being in force, every market com-
mittee shall for all purposes be deemed to be a local authority.
Vesting of property of local authority in Market Committee
11. (1) The Market Committee may require a local authority to transfer to it any land or building belonging to
the local authority which is situated within the market yard and which immediately before
establishment of the market was being used by the local authority for the purposes of the market
and the local authority shall within one month of the receipt of the requisition transfer the land or
building, as the case may be, to the Market Committee on such terms as may be agreed upon
between them.
(2) Where within a period of thirty days from the date of requisition by the local authority under sub-
section (1) no agreement is reached between the local authority and the Market committee under
the said sub-section the land or building required by the Market Committee shall vest in the Market
Committee for the purposes of this Act and the local authority shall be paid such compensation as
may he determined by the Deputy Commissioner under subsection (5) :
Provided that no compensation shall be payable to a local authority in respect of any land or building which had
vested in it by virtue of the provision contained in the enactment relating to the constitution of such local authority
without payment of any amount whatsoever for vesting :
Provided further that any party aggrieved by the order of Deputy Commissioner may, within thirty days from the
of such order, appeal to the State Government :
(3) The local authority shall deliver possession of the land or building vesting in the Market Committee
under Sub-section (2) within a period of seven days from such vesting and on failure of the local
authority to do so, within the period aforesaid, the Deputy Commissioner shall take possession of
the land or building and cause it to deliver to the Market Committee.
(4) The order of the State Government and subject to that order, the order of the Deputy Commissioner
under sub-section (2) shall be final and binding on both the parties.
(5) The Deputy Commissioner shall fix the amount of compensation for the land or building having
regard to :
(i) The annual rent for which the building might reasonably be expected to be let from year to year;
(ii) The condition of the building;
(iii) The amount of compensation paid by the local authority for the acquisition of such land; and
(iv) The cost of the present value of any building erected or other work executed on the land by the
local authority.
(v) the compensation fixed under sub-section (5) may, at the option of the Market Committee, be paid
in lump sum or in such number of equal installments not exceeding ten as the Deputy
Commissioner may fix. Where the compensation is paid in installments, it shall carry interest
at the rate of six percent per annum which shall be payable along with the installments.
Acquisition of land for Market Committee
12. (1) When any land within the market area is required for the purposes of this Act and the Board or the
Market Committee is unable to acquire it by agreement, the State Government may at the request
of the Board or Market Committee, as the case may be proceed to acquire such and under the
provisions of the Land Acquisitions Act of Nagaland and on the payment of the compensation
awarded under that Act by the Board or the Market Committee and any other charges incurred by
the State Government in connection with the acquisition, the land shall vest in the Board or the
Market Committee, as the case may be :
Provided that once a proposal in made by the market Committee, it shall not be withdrawn by it except for
such reasons as may be approved by the State Government.
(2) The Board or the Market Committee shall not without the previous sanction of the State Government
transfer any land which has been acquired for and vest in the Board or the market Committee
under sub-section (1) or divert such land to a purpose other than the purpose for which it has been
acquired.
Appointment of Officer Incharge pending Constitution of first Market
13. (1) When a Market Committee is established for the first time under this Ac, the State Government shall
by an order appoint;
(a) a person to be the officer-in-charge, for a period not exceeding two years, or
(b) a Committee consisting of not more than eleven members to be the Committee-in-charge. The
Market Committee may be appointed form among persons representing the same interest an din
the same proportion as specified in Section (14) of the Act, for a period no the Committee in charge
shall subject to the control of the Director, exercise all the powers and perform all the duties of the
Market Committee under this Act.
Provided that the State Government may at any time during the period aforesaid appoint Committee-in-
charge in place of officer-in-charge and officer-in-charge in place of committee-in-charge, as the case
may be, person so appointed shall hold office or shall function for the remainder of the period available
to its predecessor :
Provided further that in the event of death, resignation, leave or suspension of the officer-in-charge, a
casual vacancy shall be deemed to have occurred in such office and such vacancy shall be filled, as
soon as may be by appointment of a person thereto by the State Government until such appointment is
made, a person nominated by the Deputy Commissioner shall act as officer-in-charge, Provided that if
the Market Committee is constituted before the expiry of the period aforesaid, the officer-in-charge shall
cease to hold office or the Committee in –charge shall cease to function on the date appointment for the
first general meeting of the newly constituted Market Committee :
(2) In the event of a vacancy occurring on account of death, resignation or otherwise of the members of
the Market Committee-in-charge, the vacancy shall be filed in by fresh appointment by the State
Government.
(3) Any officer-in charge or any or all persons appointed on the Committee-in-charge under clause (a) of
sub-section (1) may at anytime be removed by the Director who shall have power to appoint
another person or persons as the case may he, in his or their place or places.
(4) Every person appointed officer-in-charge under sub-section (1) shall receive from the Market
Committee fund for his service such pay and allowance as may be fixed by the Director and every
member of the Committee-in-charge shall be entitled to receive from the Market Committee fund
allowances as are payable to members of the Market Committee.
Constitution of the Market Committee
14. (1) Save as provided in section 13, every Market Committee shall consist of the following members,
namely :
(i) Six members of which one belonging to Scheduled Caste/Scheduled Tribe community shall be
agriculturalist possessing such qualification as may be prescribed to be elected by the village
members of the notified market area in the manner prescribed :
Provided that the agriculturist may include owner of the cattle whenever the Market Committee is constituted for
cattle market.
(ii) Two members shall be Licensed traders elected amongst themselves in the manner prescribed:
Provided that the minority trader are adequately represented whenever the market deals with more than one of
commodities i.e. fruits and vegetables, grains etc.
(iii) One member shall be representative of the cooperative marketing Society/Societies nominated by
the Registrar of Co-operative Society;
Provided that such representative shall be the Chairman or Vice-Chairman or Honorary Secretary of the Co-
operative Marketing Society.
(iv) Two members shall be Government nominees out of which one member shall be representative of
the State Department of Agricultural Marketing and one member shall he the representative of
the State Agricultural or Cooperative Department.
(2) A member elected under clauses (i) (ii) and (iii) of sub- section (1) shall cease to hold office as such
member if he ceases to be a member of the electorate by which he was elected:
(3) The State Government may make rules to provide for the election of the members of the Market
Committee the authority which shall conduct election, determination of constituencies, the
preparation and maintenance of the list of voters, disqualification for being chosen as and for
being a member, the right to vote, the payment of deposit and its future election offences, the
determination of election disputes and all matters ancillary thereto.
(4) On the failure of the electorate mentioned in the clause (i) and (ii) of sub-section (1) to elect a
member referred to in the clause after the election proceeding have been started in accordance
with the Provisions of this Act, and the rules made thereunder the State Government shall
nominate on behalf of one electorate concerned a person or persons qualified to be a member or
members of the Market Committee.
(5) Members of every Market Committee shall hold office for a period of three/ five years form the date
of the first general meeting of the Market Committee.
(6) If within the period mentioned, in sub-section (5), the Market Committee is not newly constituted,
the Market Committee shall, on the expiry of such period, be deemed to have been dissolved.
(7) An elected member of the Market Committee may resign his office at any time by a letter in writing
addressed to the Director/Board to that effect and his office shall become vacant on expiry of fifteen
clear days from the date of such resignation unless within the said period of fifteen days he
withdraws the resignation by another letter in writing addressed to the Director/Board.
(8) In the event of death, resignation or removal of a member before the expiry of his term of office a
casual vacancy shall be deemed to have occurred in such office and such vacancy shall be filled as
soon as may by election or nomination, as the case may be, of a person thereto as member who
shall take office forthwith and shall hold such office for the unexpired term of his predecessor
provided that no casual vacancy shall be filled which occurs within a period of four months
preceding the date on which his term expires.
(9) The chairman and other member of the Market Committee shall be paid from the Market Committee
such honorarium, sitting fees, traveling allowances and other allowances as may be fixed by the
Director from time to time.
Chairman and Vice-Chairman of Market Committee.
15. (1) Every Market Committee shall have a Chairman and Vice Chairman. The Chairman shall be elected
by the elected members of the Market Committee from amongst those who are representatives of
agriculturists. The Vice-Chairman shall be elected by the elected members of the Market
Committee from amongst themselves;
(2) After every general election, the Market Committee shall elect the Chairman and Vice-Chairman at its
first general meeting which shall be convened by the Director within one month of the general
election. The Chairman and Vice-chairman so elected shall hold office for the full term from the
date on which they enter upon their respective offices.
(3) The Chairman and Vice-Chairman shall notwithstanding the expiry of their term of office, continue to
hold office until their successors enter upon their office.
(4) The meeting convened for the election of the Chairman and Vice Chairman shall he presided over by
the Director or any officer authorized by him in this behalf. The Director or such officer, when
presiding over a meeting, have the same power as the Chairman when presiding over a meeting of
the Market Committee hut snail not have the right to vote.
(5) If in the election of Chairman and Vice-Chairman, there is an equality of votes, the result of the
election shall be decided by lots to be drawn in the presence of the officer presiding in such manner
as tie may determine.
(6) In the event of dispute, arising as to the validity of the election of a Chairman or Vice-chairman the
Deputy Commissioner, if he is the presiding officer, shall decide the dispute himself and in any
other case officer presiding shall refer the dispute to the Deputy Commissioner for decision. The
decision of the Deputy Commissioner shall subject to an appeal to the Commissioner be final and
no suit or other proceeding shall lie in any court of law in respect of such decision.
(7) (i) Where the Director is satisfied that books and record of a market Committee are likely to he
suppressed, tempered with or destroyed or the funds and property of Market Committee are
likely to be misappropriated or misapplied the Deputy Commissioner or the person authorized
by him may apply to the executive Magistrate within whose jurisdiction the Market Committee
is functioning for seizing and taking possession of the record and property of the Market
Committee.
(ii) On receipt of the application under sub-section (i) the Magistrate may authorize any police officer
not below the rank of Sub-Inspector to enter and search any place where the records and
property are kept or are likely to he kept and to seize them and hand over possession thereof
to the Deputy Commissioner or the person authorized by him, as the case may be.
Resignation by Chairman and Vice Chairman and vacancy in their office
16. (1) A member holding office of Chairman or Vice-Chairman may resign his office at any time in writing
addressed to the Deputy Commissioner and the office shall become vacant on the expiry of fifteen
clear days from the date of such resignation, unless within the said period of fifteen days he
withdraws the resignation in writing addressed to the Deputy Commissioner.
(2) Every Chairman and Vice-Chairman shall vacate office if he ceases to be member of the Market
Committee.
(3) During the vacancy caused by death, resignation, removal or otherwise and the office of the Vice
chairman is also vacant then, notwithstanding anything contained in this Act, such member of the
Market Committee as the Deputy Commissioner may appoint shall exercise the powers and
perform the functions of the Chairman till the Chairman is duly elected.
No Confidence Motion against Chairman or Vice Chairman
17. (1) A motion of no confidence may be moved against the Chairman or the Vice Chairman at a meeting
especially convened for the purpose under sub-section (2) and if the motion is carried by a majority
of nor less than two-thirds of the members present and voting and if such majority is more than one
half of the total number of members constituting the market committee for the time being, the
Chairman or the Vice-Chairman, as the case may be, against whom such motion is passed shall
cease to hold his office with effect from the date immediately next after the date of which motion is
passed.
(2) For the purpose of sub-section (1) a meeting of the Market Committee shall be held in the
prescribed manner within thirty days of the dare of receipt of the notice of motion or no confidence.
(3) The Chairman or Vice-Chairman shall not preside over the meeting but such meeting shall be
presided over by an officer of the Government as the Director may appoint for the purpose.
However, the Chairman or the Vice Chairman, as the case may be, shall have a right to speak and
otherwise to take part in the proceedings of the meeting.
(4) If the motion of no confidence is not carried as aforesaid or if the meeting could not be held for want
of quorum, notice of any subsequent motion expressing want of confidence in the same Chairman
or Vice Chairman shall be made until after
the expiry of six months from the date of such meeting.
CHAPTER-IV
CONDUCT OF BUSINESS AND POWERS AND
DUTIES OF MARKET COMMITTEE
Meeting etc. of the Market Committee
18. (1) Subject to the provisions of this Act, the Market Committee shall conduct the business in accord-
ance with the rules made for the purpose.
(2) A Market Committee shall meet for the transaction of its business at least once in every
quarter, provided that the Market Committee may in special circumstances meet at any time and
at any place in the market area as may be prescribed.
Powers and duties of Market Committee
19. (1) Subject to the provisions of this Act. it shall he the duty of the Market Committee:
(i) to implement the provisions of this Act, the rules and bye- laws made thereunder in the market
area;
(ii) provide such facilities for marketing of agricultural produce therein as the Director or the State
Government may from time to time direct;
(iii) to do such other acts as may be required in relation to the superintendence, direction and
control of Market or for regulating Marketing of agricultural produce in any place in the market
area, and for purposes connected with the matters aforesaid and for that purposes may
exercise such powers and discharge such functions as may be provided by or under this Act.
(2) Without prejudice to the generality of the foregoing provisions:
(a) a Market Committee may:
(i) maintain and manage the market yard and sub-market yard within the market area;
(ii) provide the necessary facilities for the marketing of agricultural produce within the market
yards and outside the market yards and within the sub-market yards and outside the
Sub-market yards in the market area.
(iii) grant or refuse licences to market functionaries and renew, suspend, or cancel such
licences, supervise that conduct of the market functionaries and enforce condition of
licences;
(iv) regulate or supervise the auction of notified agricultural produce in accordance with the
provision laid down under the rules made under this Act or bye-laws of the marketing
Committee;
(v) conduct or supervise the auction of notified agricultural produce in accordance with the
procedure laid down under the rules made under this Act or bye-laws of the Market
Committee;
(vi) regulate the making, carrying out and enforcement or cancellation of agreements sales,
weighment, delivery, payment and all other matters relating to the marketing of notified
agricultural produce in the manner prescribed;
(vii) organise grading of notified agricultural produce;
(viii) provide for the settlement of all disputes between the seller and the buyer arising out of any
kind of transaction connected with the marketing of notified agricultural produce and all
matters ancillary thereto in the manner prescribed;
(ix) arrange for collection of such agricultural produce in the market area in which all trade therein
is to be carried on exclusively by the State Government by or under any law in force for
that purpose or of such agricultural produce in the market area, as the State Government
may form time to time, notify;
(x) collect, maintain and disseminate information in respect of production, sale, storage,
processing, prices and movement of notified agricultural produce;
(xi) take all possible steps to prevent adulteration of goods and promote grading and
standardization of the notified agricultural produce;
(xii) take measures for the prevention of purchases and sales below the minimum support price as
fixed by the Government from time to time;
(xiii) levy, take, recover and receive rates, charges, fees and other sums of money which the
Marker Committee is entitled:
(xiv) employ the necessary number of officers and servants for the efficient implementation of the
provisions of this Act, the rules and the bye-laws as prescribed;
(xv) regulate the entry of persons and vehicles, traffic into the market yard and sub-market yards
vesting in the Market Committee;
(xvi) prosecute persons for violating the provisions of this Act, the rules and the bye-laws and
compound such offences;
(xvii) acquire, hold and dispose of any movable or immovable property for the purpose of
efficiently carrying out its duties;
(xviii) impose penalties on persons who contravene the provisions of this Act, the rules of the bye-
laws or the orders or directions issued under this Act, the rules or the bye-laws by Market
Committee, its Chairman or by any officer duly authorised in this behalf:
(xix) institute or defend any suit, prosecution action, proceeding, application or arbitration and
compromise such suit, action, proceeding, application or arbitration;
(xx) provide facilities such as provision of space for direct sales by a producer and assist a
producer by preparing invoices an bills in his behalf when he sells his produce to a trade
without employing commission agent;
(xxi) pay, pension, leave, allowances, gratuities. compassionate allowance and contributions
towards leave allowance, pensions or provident fund of the officers and servant
employed by the Market Committee in the manner prescribed;
(xxii) administer Market Committee fund referred to in Section 44 and maintain the account thereof
in the prescribed manner:
(xxiii) keep a set of standard weights and measures in each principal market yard and sub-market
yard against which weighment and measurement may he checked;
(xxiv) inspect and verify scales, weights and measures in use in market area and also the books of
accounts and other documents maintained by the market functionaries in such manner
as may be prescribed;
(xxv) arrange to obtain fitness (health) certificate from veterinary doctor in respect of animal, cattle,
birds etc. which are bought or sold in the, market yard/market area.
(xxvi) carry out publicity about the benefits of regulation, the system of transaction, facilities
provided in market yard etc. through such means as posters, pamphlets, hoardings,
cinema slides, film shows, group meetings etc. or through any other means considered
more effective or necessary;
(xxvii) ensure payment in respect of transactions which take place in the market area to be
made on the same day to the seller, and in default to seize the agricultural produce in
question alongwith other property of the person concerned;
(xxviii) make arrangement for weighmen and hammals for weighing and transporting of goods in
respect of transactions held on the market yard/sub-market yard;
(xxix) recover the charges in respect of weighmen and hammals and distribute the same to
weighmen and hammals if not paid by the purchaser/seller as the case may be;
(xxx) with the prior sanction of the State Government or the Director undertake the construc-
tions of roads in the market area to facilitate movement of agricultural produce to the
market for benefit of producer, sellers and traders operating in the market area.
Appointment of sub-committee and delegation of power
20. The Market Committee may appoint one or more Sub-Committees consisting of one or more of its
members for reporting or giving opinion on any matter relevant to the Market Committee or it may,
subject to such restriction and conditions as may he specified in the bye-laws, delegate to any such
sub-Committee such of its powers or duties as it may think fit.
Power to levy market fees
21. (1) The Market Committee shall levy and collect market fees in respect of agricultural produce brought in
and bought or sold in the market area in a manner and at rates as prescribed in the rules provided
that the fees so levied shall not be less than one rupee per one hundred rupees of the price of the
agricultural produce.
(2) For purposes of sub-section (1) all notified agricultural produce leaving market yard shall, unless
the contrary is provided be presumed to have been brought within such market yard by the person
in possession of such produce.
Power to order production of accounts and powers of entry, inspection and seizure
22. (1) Any officer or servant of the Market Committee/Marketing Board empowered in this behalf, may, for
the purposes of this Act, require any person carrying on business in any kind of notified agricultural
produce to produce before him the accounts and other documents and furnish any information
relating to the stocks of such agricultural produce or purchases, sales and deliveries of such
agricultural produce by such person and also any other information relating to payment of the
market fees and payment to the seller by such person.
(2) All accounts and registers maintained by any person in the ordinary course of business in any
notified agricultural produce and documents relating to the stock of such agricultural produce in his
possession and the office, establishments, godowns, vessels or vehicles of such person shall be
open to inspection at all reasonable times by such officers and servants of the Market Committee
as may be authorised in this behalf.
(3) If any such officer or servant has reason to suspect that any person is attempting to evade the
payment of any market fee or any other charges due from him under this Act or rules or bye : laws
or that any person has purchased any notified agricultural produce in contravention of any of the
provisions of this Act or the rules or bye-laws in force in the market areas, he may for reasons to be
recorded in writing, seize such accounts registers or documents of such person as may be
necessary and shall grant a receipt for the same and shall retain the same only so long as may be
necessary for examination thereof or for a prosecution.
(4) For purposes of sub-section (3) such officer or servant may enter or search any place of business,
ware house, office, establishment, godowns, vessel or vehicle where such officer or servant has
reason to believe that such person keeps or for the time being keeps any accounts register or
documents of his business, or stock of notified agricultural produce relating his business.
(5) The provisions of Section 10 (4) to (8) of the Code of Criminal procedure, 1973, shall, so far as may
be, apply to a search under Sub-section (3)
Power to stop vehicle etc.
23. (1) At any time when so required by any officer or servant of a Market Committee, or by marketing
Board Director, empowered in this behalf, the driver or any other person incharge of any vehicle,
vessel or other conveyance, which is taken or proposed to be taken out of the market area shall
stop the vehicle, vessel or other conveyance, as the case may be, and keep it stationary as long as
may be reasonably necessary and allowed such officer or servant to examine the contents in the
vehicle, vessel or other conveyance and inspect all records relating to the notified agricultural
produce carried and give his name and address and the name and address of the owner of the
vehicle, vessel or other conveyance and of the owner of the notified agricultural produce carried in
such vehicles, vessel or other conveyance.
(2) The Officer or servant of the Market Committee/Board/State Government empowered under sub: -
section (1) shall have power to seize and any notified agricultural produce taken or proposed to be
taken out of the market area in any vehicle, vessel, or other conveyance, if such officer or servant
has reason to believe that any fee or other amount due under this Act in respect of such produce
has not been paid. Such seizure shall forthwith be reported by the officer or servant aforesaid to a
Magistrate having jurisdiction to try the offence under this Act and the provisions of Sections 457,
458 and 459 of the Code of Criminal Procedure, 1973, shall, so far as may, apply in relation to the
notified agricultural produce seized as aforesaid as they apply in relation to property seized by a
police officer.
Power to borrow
24. (1) A Market Committee may, with the previous sanction of the Director/Board raise money or issue
debenture required for carrying out the purposes for which it is established on the security of any
property vested in it and of any fees livable by it under this Act.
(2) The Committee may, for the purpose of meeting the initial expenditure on lands, buildings, staff and
equipments required for establishing the market obtain a loan from the State Government or
Marketing Board or other financial institution.
(3) The condition subject to which money or loan under sub-section (2) shall be raised or obtained and
the time within which the same shall be repayable shall be subject to the previous sanction of the
State Government or the Director or the Board.
Compounding of offence
25. (1) The Market Committee may accept from any person who has committed or is reasonably
suspected of having committed an offence (other than contravention of Sections (37) and 38)
against this Act or the rules or bye-laws made thereunder by way of compounding of such offence;
(a) Where the offence consists of the failure to pay or the evasion of any fee, or other amount
recoverable under this Act or the rules or the bye-laws, in addition to the fee or other amount
and not more than five times the amount of fee or other amount with a minimum of rupees
two hundred and fifty; and
(b) in other cases; a sum of money not exceeding one thousand rupees.
(2) on the compounding of any offence under sub-section (1) no proceeding shall be taken or
continued against the person concerned in respect or that offence and if any proceedings in respect
of that offence have already been instituted against him in any court, the compounding shall have
the effect of his acquittal.
Power to write off irrecoverable fee etc.
26. A Market Committee may write off any fee or other amount whatever due to it, whatever under a
contract or otherwise or any amount payable in condition therewith if in its opinion such fee or amount is
irrecoverable.
Provided that the Market Committee shall, before writing off any such fee or amount obtain the sanction of the
Director of Marketing/ Chairman, Agricultural Marketing Board/Chief Marketing Officer, if the fee or amount
exceeds Rupees five hundred.
Power to remove encroachment on Market Yard
27. Any officer or servant of the committee of the Board empowered by the State Government in its behalf
shall have power to remove any encroachment in. any race in the market yard and the expenses of
such removal shall be paid by the person who has caused the encroachment and shall the recovered in
the same manner as arrears of land revenue.
Use of weighing instruments, weights and measures, their inspection
28. (1) Only such weighing instruments as satisfy the requirement of an such Weights and Measures as are
prescribed by the State Weights and Measures Act, and the rules made thereunder shall be used
for weighing, measuring agricultural produce in a notified market area:
Provided that in transaction of sale and purchase of agricultural produce in the Principal market yard and
Sub:-market yard of the notified market area, the beamscale or platform scale shall only be used.
(2) Every Committee shall keep in that market yard at least one weighing instrument of the capacity of
one quintal and two sets of weights and in places where measures are used two sets of measures,
verified and stamped in accordance with the provision of the State Weight and Measures Act and
the rules framed thereunder. The committee shall cause weights and measures to be tested and
verified once in the course of each calendar year through the agency appointed and in accordance
with the requirement of the said Act and Rules;
(3) The Market Committee shall allow any person to check free of charge any weight or measure in his
possession against the weights and measures maintained under this Section.
(4) Weighing instrument, weights and measures kept by Committee under this Section may at any time
be inspected, examined and checked by the Director or chairman or the Secretary of the Board or
any officer duly authorised in this behalf by the Director, chairman of the Board. After inspection,
the inspecting authority may give such directions as it may deem proper. The Committee shall be
bound to comply with such directions.
(5) The Director or Chairman/Secretary of the Board of the Market Committee, and any other person
authorised in this behalf by the Director/Chairman of the Board or Market Committee shall be
entitled at any time and without previous notice to Inspect, examine and test any weighing
instruments, weight or measure used, kept or possessed within a notified market area by a licensee
under the Act, and every such licensee in possession of any such weighing instrument, weights and
measures shall, when required be bound to produce the same before the person entitled so to
inspect, examine and test it.
(6) Any person authorised to inspect, examine and test any weighing instrument, weight or measures
under Sub-section (2) shall while so acting have all the powers of an Inspector, Weights and
Measures, appointed under the State Weights and Measures Act.
Mode of making contract
29. (1) Subject to the provision of this Act, no contract or agreement on behalf of the market Committee for
the purchase, sale, mortgage or other transfer of or acquisition of interest in immovable property
shall be executed except with the sanction of the Market Committee;
Provided that in cases where the powers under this sub-section in respect of any matter are delegated to a
Sub-committee, sanction of sub-committee shall be obtained.
(2) Save as provided in sub-section (1)
(a) the Secretary of the Market Committee may execute contract or agreement on behalf of the
Market Committee where the amount or value of such contract or agreement does not exceed
rupees five thousand regarding matter in respect of which he is generally specifically
authorised to do so by a resolution of the Market Committee.
(b) the Chairman and the Secretary of the Market Committee may jointly execute contract or
agreement on behalf of the Market Committee when the amount or value of such contract or
agreement does not exceed rupees twenty thousand depending on the class of the Market
Committee as may be prescribed;
(c) in any case other than those referred to in class (a) and (b) a contract or agreement on behalf
of the market committee shall be executed by the Chairman, the Secretary and any other
member of the Market Committee who should have generally or specially been authorised by a
resolution of the Committee to do so;
(3) Every contract entered into by the Market Committee shall be in writing and shall be signed on
behalf of the Market Committee by the person or persons authorised to do so under sub-section
(2);
(4) No contract other than a contract executed as provided in sub-section (1), (2) or (3) shall be valid or
binding on the Market Committee;
(5) (a) Notwithstanding anything contained in the Indian Registration Act. 1908 (No 16 of 1908), it shall
not be necessary for the Chairman or any member or officer or Secretary of a Market
Committee to appear in person or by agent at any registration office in any proceeding
connected with the registration of any instrument executed by him in his official capacity or to
sign as provided in secction 58 of that Act.
(b) Where any instrument is so executed the Registration officer to whom such instrument is presented
for registration may, if he thinks fit, refer to such Chairman, member officer, or Secretary for
furnishing information respecting the same and shall on being satisfied of the execution
thereof, register the instrument.
(6) Where a contract or agreement is entered into on behalf of a Market Committee, the Secretary of
the Market Committee shall report the fact to the Market Committee at its meeting convened and
held immediately following the date of entering into of such contract or agreement.
Act of Market Committee etc. not to be invalidated
30. No Act of a Market Committee or of any such committee thereof or of any person acting as a member,
Chairman, Vice-Chairman, Presiding authority or Secretary, shall be deemed to be invalid by reason only
of some defect in the constitution or appointment of such Market Committee, sub-committee, members,
Chairman, Vice-Chairman, presiding authority or secretary or on the ground the they or any of them were
disqualified for such office, or that formal notice of the intention to hold a meeting of the Committee or of
the Sub-Committee was not given duly or by reason of such Act having been done during the period of
any vacancy in the office of the Chairman, Vice-Chairman or Secretary or member of such Committee or
Sub-Committee of for any other informality not effecting the merit of the case.
CHAPTER-V
BUDGET
Preparation and sanction of Budget
31, (1) Every Market Committee shall prepare and pass the budget of its income and expenditure for the
ensuing year in the prescribed form and shall submit it to the Director for sanction before the
prescribed date every year.
The Director shall sanction the Budget with or without modification within two months from the date of
receipt thereof. If the Budget is not returned by the Director within two months, it shall be presumed to
have been sanctioned.
(2) No expenditure shall be incured by a Market Committee on any item if there is no provision in the
sanctioned Budget therefore unless it can be met by re-appropriation from saving under any other
head. The sanction for reappropriation may be obtained from the Director provided that in case of
reappropriation from minor heads under one major head, sanction for reappropriation will not be
required.
(3) A Market Committee at any time during the year for which any Budget has been sanctioned cause
a revised or Supplementary Budget to be passed and sanctioned in the same manner as if it were
an original Budget.
(4) A Market Committee shall not take up or give order for execution of any construction work estimated
to cost more than rupees twenty thousand without prior permission of the Director even if there is
a provision therefore in the sanctioned Budget.
(5) The Director while according sanction for construction works may, at his discretion, direct that the
execution of the works shall be entrusted to the Public Works Department of the State Government
or Marketing Board or any other agency authorised by the State Government for this purpose.
CHAPTER-VI
STAFF OF MARKETING COMMITTEE
Constitution of State Agricultural Marketing Services
32. (1) The State Government may for the purpose of providing officers to the market committee, con-
stitute in the prescribed manner a service to be called the State Agricultural Marketing Service.
(2) The State Government may make rules in respect of recruitment, qualification, appointment,
promotion, scale of pay, leave allowance, acting allowance, loans, pension, gratuity, annuity,
compassionate fund provident fund, dismissal, removal, conduct, departmental punishment, ap-
peals and other service conditions of the members of the State Agricultural Marketing Service;
Provided that Market Committee shall have power of with-holding promotion and stoppage of increment of
the members of the State Agricultural Marketing Service.
(3) The salary, allowance, gratuity and other payment required to be made to the members of the State
Agricultural Marketing Service in accordance with the conditions of their service, shall be a charge
on the Market Committee.
(4) The Director may transfer any member of the State Agricultural Marketing Service from one Market
Committee to another Market Committee.
Secretary of Market Committee.
33. (1) Every Market Committee shall have a Secretary who shall he the Chief Executive Officer and the
custodian of all the records and properties of the Market Committee and shall exercise and perform
the following powers and duties in addition to such other duties as may be specified in this Act; the
rules or bye-law namely
(i) convene the meetings of the Market Committee and of the Sub-committees if any, and
maintain minutes of the proceedings thereof;
(ii) attend the meetings of the Market Committee and of every Sub-committee and take part in the
discussion but shall not move any resolution or vote at any such meeting;
(iii) take action to give effect to the resolution of the committee and of the Sub-committee, and
report about all actions taken in pursuance of such resolution, to the committee as soon as
possible;
(iv) prepare the Budget proposals;
(v) finish to the Market Committees such returns, Statement, estimates statistics and reports as
the Market Committee may. from time to time require including reports :- (a) regarding the fines
and penalties levied on and any disciplinary action taken against the members of the staff and
the market functionaries and others; (b) regarding over-trading by traders; (c) regarding
contravention of the Act, the rules, the bye-laws or the standing orders by any person; (d)
regarding the suspension or cancellation of licences by the Chairman or the Director; (e)
regarding the administration of the Market Committee and the regulation of the marketing;
(vi) produce before the committee such documents books, registers and the like as may be
necessary for the transaction of the business of the Committee or the Sub-committees and
also whenever called upon by the Market Committee to do so;
(vii) exercise supervision and control over the acts of all officer and servants of the Committee;
(viii) collect fees and other moneys leviable by or due to the Market Committee;
(ix) be responsible for all moneys credited to or received on behalf of the Market Committee;
(x) make disbursements of all moneys lawfully payable by the Market Committee;
(xi) report to the Chairman and Director or the Board as soon as possible in respect of fraud,
embezzlement, theft or loss of Market Committee fund or property;
(xii) prefer complaints in respects of prosecutions to be launched on behalf of the Market
Committee and conduct proceedings civil or criminal on behalf of the Market Committee.
(2) The Secretary shall be a member of the State Agricultural Marketing Service and shall be appointed
by the Director.
Other officers belonging to State Agricultural Marketing Service.
34. There shall he such other Officers to every Market Committee who shall be members of the State
Agricultural Marketing Service as the State Government may determine and they shall be appointed by
the Director provided that an officer may be appointed for more than one Market Committee.
Appointment of Secretary and other officers pending constitution of State Agricultural Marketing
Service.
35. Pending the constitution of the State Agricultural Marketing Service under Section 32 or when no mem-
ber of such service is available for appointment as Secretary or other officer under Section 33 and 34
the State Government or the Director or the Board may depute an officer of the Government to act as
Secretary or such other officer.
Appointment of Staff by the Market Committee.
36. Every Market Committee may appoint such other officers and servants as may be necessary and proper
for the efficient discharge of its duties
Provided that no post shall be created save with the prior sanction of the Director.
CHAPTER-VII
REGULATION OF TRADING
Regulation of persons operating in the market area.
37. No person shall in respect of any notified agricultural produce operate in the market area as trader,
commission agent, broker, weighman, hummal, surveyor, warehouse man, owner of occupier or
processing or pressing factories or such other market functionary except in accordance with the
condition of a licence granted under the provision of this Act and the rules and bye-laws made
thereunder,
Power to grant licences.
38. (1) Every person specified in Section 37 who desire to operate in the market area shall apply to the
Market Committee for grant of a licence or renewal thereof, in such manner and within such period
as may be prescribed bye-law.
(2) Every such application shall be accompanied by such fee as the Director may subject to the limits
prescribed, specify in this behalf.
(3) The Market Committee may grant or renew the licence or for reasons to be recorded in writing
refuse to grant or renew the licence.
Provided that if the Market Committee fails to grant or renew a licence within a period of sixty days from the date
of receipt of application therefore the licence shall he deemed to have been granted or renewed, as the case
may be.
(4) All licences granted or renewed under this section shall be subject to provisions of this Act and the
rules and bye-laws thereunder.
(5) The Market Committee may by a resolution passed in that behalf and with the prior approval of the
Director or the Board, direct that no commission agent or a broker or both shall act in any
transaction between the producer-seller and trader-purchaser, on behalf of producer-seller nor shall
he deduct any amount towards commission or dalali from the sale proceeds payable to the
producer-seller nor shall he act on behalf of both the buyer and the seller:
Provided that the resolution so passed shall not be revoked by the Market Committee until a period of one year
has expired from the date of its approval.
Power to cancel or suspend Licences.
39. (1) Subject to the provision of Sub-section (4) a Market Committee may, for the reason to he recorded
in writing, suspend or cancel a licence:-
(a) if the license been obtained through wilful misrepresentation or fraud;
(b) if the holder of the licence or any servant or any one action on his behalf with his expressed or
implied permission, commits a breach of any of the terms or conditions of the licence;
(c) if the holder of the licence in combination with other holder of licence commits any act or
abstains from carrying out his normal business in the market area with the intention of wilfully
obstructing, suspending or stopping the marketing of notified agricultural produce in the market
yard/yards and in consequence thereof the marketing of any produce has been obstructed,
suspended or stopped;
(d) if the holder of the licence has become an insolvent;
(e) if the holder of the licence incurs any disqualification as may be prescribed; or
(f) if the holder is convicted of any offence under this Act.
(2) (a) Subject to the provisions of sub-section (4) the Chairman of a Market Committee or the person
authorised by the Board in this behalf, may for reasons to be recorded in writing, suspend a
licence for a period not exceeding one month for any reason for which a Market Committee or
the person authorised by the Board in this behalf may suspend a licence under Sub-section
(1).
(b) Subject to the provisions of sub-section (4) the Secretary of a Market Committee may for
reasons to be recorded in writing, suspend a licence for a period not exceeding one week for
any reason for which a Market Committee may suspend a licence under sub-section (1)
(3) Notwithstanding anything contain in sub-section (1), but subject to the provisions of sub-section (4),
the Director or the officer authorised by the Board may, for reasons to be recorded in writing, by
order suspend or cancel any licence granted or renewed by the Market Committees
Provided that no order under this sub-section shall he made without notice to the Market Committee.
(4) No licence shall be suspended or canceled under this Section unless the holder thereof is given an
opportunity to show cause against such proposed suspension or cancellation.
Appeal
40. (1) Any person aggrieved by an order of the Secretary, Chairman of the Market Committee, authorised
person of the Board or the Director under Subsection (1) or 2 (a) & (b) or (3) of Section 39 as the
case may be, may prefer an appeal-
(a) to the Director or the officer authorised by the Board where such order is passed by the Market
Committee or Chairman or Secretary.
(b) to the State Government, where order is passed by the Director/ authorised person of the
Board.
(2) An appeal under sub-section (1) shall be made within a period of thirty days from the passing of
such order.
(3) The Appellate authority may, if it considers necessary to do so, grant a stay of the order appealed
against for such period as it may deem fit.
(4) The order passed by the Chairman, the Market Committee, the Director and the authorised officer of
the Board shall, subject to the order in appeal under this Section, be final and shall not be called in
question in any court of law.
Prohibition of trade allowances other than prescribed under this Act
41. (1) No trade allowance, other than an allowance prescribed by or under this Act, shall be made or
received by any person in any market area in any transaction in respect of the notified agricultural
produce and no civil court shall, in any suit or proceeding arising out of any such transaction, have
regard to any trade allowance not so prescribed.
(2) The weight of a container shall be counterbalanced by the same type of container and no deduction
in any form whatsoever shall be allowed for counter balancing the weight of the container. If the
same type of container is not available, the weight of the container shall be determined and
deducted from the weight of the produce.
Sale of notified agricultural produce in market.
42. All notified agricultural produce brought into the market proper for sale shall be brought into the market
yard/yards specified for such produce and shall not, subject to the provisions of the bye-law be sold at
any other place outside such yard.
Conditions of buying and selling.
43. (1) Any person who buys notified agricultural produce in the market area shall execute an agreement
in triplicate in such form as may be presribed, in favour of the seller one copy of the agreement
shall be kept by the buyer. One copy shall be supplied to the seller and the remaining copy shall be
kept in the record of the committee.
(2) The price of agricultural produce brought in the market yard shall be paid to the seller on the same
day of the sale.
CHAPTER-VIII
MARKET COMMITTEE FUND
Market Committee Fund.
44. (1) Save as provided in sub-section (2) all money received by a Market Committee shall be paid into a
fund to be called “The Market Committee Fund” and all expenditure incurred by the Market
Committee under or for the purposes of this Act shall be defrayed out of the said fund. Any surplus
remaining with the Market Committee after such expenditure has been made shall be invested in
such manner as may be prescribed.
(2) Any money received by the Market Committee by way of arbitration fee or as security for costs in
arbitration proceedings relevant to disputes or any money received by the Committee by way of
security deposit contribution to Provident Fund or for payment in respect of any notified agricultural
produce, or charges payable to weighman, hammal and other functionaries and such other money
received by the Market Committee as may be provided in the rule or bye-laws shall not form part of
Market Committee Fund and shall be kept in such manner as may be prescribed.
(3) Save as otherwise provided in this Act, the amount to the credit of the market fund and all other
money received by the Market Committee shall he kept in a Cooperative Bank or in Post Office,
Saving Bank or with the approval of the Director in any Bank.
Application of Market Committee Fund.
45. Subject to the provisions of Section 44 the Market committee fund may be expended for the following
purposes only, namely :-
(i) the acquisition of a site or sites for the market yards;
(ii) the establishment, maintenance and improvement of the market yards;
(iii) the construction and repairs of buildings necessary for the purposes of the market and for convenience
or safety of the persons using the market yard
(iv) the maintenance of standard weights and measures;
(v) the meeting of establishment charge including payment and contribution towards provident fund,
pension and gratuity of the officers and servants employed by a Market Committee;
(vi) loans and advance to the employees of the Committee;
(vii) the payment of interest on the loans that may be raised for the purpose of the market and provisions of
sinking fund in respect of such loans;
(viii) the collection and dissemination or information relating to crop statistics and marketing of agricultural
produce.
(ix) expenses incured in auditing the accounts of the Market Committee;
(x) Payment of honorarium to Chairman, travelling allowances of Chairman, Vice-chairman and other
members of the Market Committee and sitting fees paybale to members for attending the meeting;
(xi) Contribution to State Agricultural Marketing Board as prescribed and Consolidated Fund of the State to
the extent required for salary of the employees of the Directorate of Marketing;
(xii) Contributions to any scheme for development of agricultural marketing including transport and
scientific storage.
(xiii) to provide facilities like grading services and communication to agriculturist in the market area;
(xiv) to provide for development of agricultural produce in the Market area;
(xv) Payment of expenses on elections under this Act;
(xvi) incurring of all expenses for research, extension and training in marketing of agricultural produce;
(xvii) prevention, in conjunction with other agencies, State, Central and others distress sale of agricultural
produce;
(xviii) fostering co-operative marketing and assisting co-operative marketing societies in the procurement and
organisation of profitable disposal of produce particularly the produce belonging to small and
marginal farmers.
(xix) any other purpose connected with the marketing of agricultural produce under this Act whereon the
expenditure of the Market Committee fund is in the public interest subject to the prior sanction of the
Director.
CHAPTER-IX
MARKETS OF NATIONAL IMPORTANCE
Constitution of the Market Committee for Market of National Importance.
46. (1) Save as provided under sub-section (1) of Section 10 the State Government may by notification
establish separate Market Committee for effective implementation of provisions of this Act for such
markets located in the State which are considered as the “Markets of National Importance”
(2) The State Government may, after consideration of such aspects as the turn over, upstream catch-
ment area, down stream servicing (number of consumers served) and price leadership (whether the
market influence the price at the National level), declare the markets as “Market of National
Importance.”
Provided that the markets handling not less than one lakh ton of produce per year (out of which at least
30% of the arrival may be from not less than two other States) may be comdidered for coferring the status
as the ‘Market of National Importance’ provided such market influences the price of the regulated
commodity at the national level:
(3) All provisions for and inrelation to the Market Committee made in the Act shall mutatis mutandis
apply to the market committee established for the ‘Market of National Importance’ under sub
section (1):
Composition of the Market Committee for Markets of National Importance
47. (i) Save as provided under Section 14, sub-section (1), every Market Committee for the Markets of
National Importance shall consist of the following members namely:-
(1) Agriculturists (To be nominated by the State Government : 5
from amongst the agriculturists residing in the State)
(2) Traders to be nominated by the State Government from : 4
amongst the traders holding trading licence in any Market
Committee in the State
Out of the traders so nominated, at least two shall hold the licence from the Market, Committee of the “Market of
National Importance”
(3) Municipal Commissioner/Town Committee Chairman of the : 1
area where the ‘Market of National Importance’ as located
(4) The Deputy Commissioner of the District in which ‘Market : 1
of National Importance’ is located
(5) Chief Town Planner or the authority exercising such powers : 1
(6) Representative of the Registrar of Co-operative societies : 1
(7) Director of Marketing of the State or his nominee (Ex-offcio : 1
member)
(8) Chief Executive Officer (or his nominee) of the State : 1
Agricultural Marketing Board (Ex-officio member).
(9) Representative of other States where from arrivals are received : 3
in the Market of National Importance (To be nominated by the
respective State Governments on receipt of request for such
nomination by the State Government where Market of National
Importance is located).
(10) Executive Member (To be appointed by the State : Government, : 1
Executive member shall act as the Chief Executive officer of the
Market Committee.
(11) (i) Agricultural Marketing Advisor to the Government of India or his nominee.
(ii) The Market Committee shall meet at least once in six months.
Chairman & vice-Chairman of Market of National Importance
48. The Market Committee for Market of National Importance shall have Chairman and Vice-Chairman who
may be nominated by the State Government. The members shall hold office during the Pleasure of the
State Government.
Executive committee for Market of National Importance
49. (i) There shall be Executive Committee of the Market Committee of the Market of National Importance
consisting of
(1) Chairman of the Market Committee of the Market of National Importance
(2)(a) one representative of the traders holdings the trading licence in the Market Committee
of Market of National Importance.
(b) one representative of growers.
(3) Representative of the Registrar of Co-operative Societies.
(4) Director of Marketing or his nominee.
(5) Chief Executive Officer (or his nominee) of the State Agricultural Marketing Board.
(6) Executive Member of the Market Committee who shall act as the Member Secretary of the
Executive Committee.
(ii) In case of emergency, the Executive Committee may decide issues requiring approval of the Market
Committee However, such decisions shall have to be approved by the Market Committee within 45
days from the date such decision have been taken, Failure in doing so or in the event of disapproval
of such decisions by the Market Committee, such decisions shall stand null and void.
(iii) The Executive Committee will meet as often as necessary but, at least once in two months.
Chairman & vice-Chairman of Market of National Importance
48. The Market Committee for Market of National Importance shall have Chairman and Vice-Chairman who
may be nominated by the State Government. The members shall hold office during the Pleasure of the
State Government.
Executive committee for Market of National Importance
49. (i) There shall be Executive Committee of the Market Committee of the Market of National Importance
consisting of
(1) Chairman of the Market Committee of the Market of National Importance
(2) (a) one representative of the traders holdings the trading licence in the Market
Committee of Market of National Importance.
(b) one representative of growers.
(3) Representative of the Registrar of Co-operative Societies.
(4) Director of Marketing or his nominee.
(5) Chief Executive Officer (or his nominee) of the State Agricultural Marketing Board.
(6) Executive Member of the Market Committee who shall act as the Member Secretary of the
Executive Committee.
(ii) In case of emergency, the Executive Committee may decide issues requiring approval of the Market
Committee However, such decisions shall have to be approved by the Market Committee within 45
days from the date such decision have been taken, Failure in doing so or in the event of disapproval
of such decisions by the Market Committee, such decisions shall stand null and void.
(iii) The Executive Committee will meet as often as necessary but, at least once in two months.
Chief Executive of the Market of National Importance, Functions and Powers
50. Executive members of the Market Committee shall
act as the Chief Executive Officer of the Market Committee of the Market of National Importance. The
Chief Executive shall
(i) exercise supervision and control over the officers and staff of the Market Committee in matters of
executive administration concerning accounts and records and disposal of all questions relating to
the service of the officer and staff of the Market Committee as per the prescribed procedure;
(ii) appoint officers and staff of the Market Committee as per direction and procedure prescribed by the
Market Committee;
(iii) incur expenditure from the Market Committee Fund for the sanctioned items of work:
(iv) in cases of emergency, direct the execution of stoppage of any work and doing of any act which
required the sanction of the Market Committee;
(v) launch prosecution for violation of provisions of this act and rules and bye-laws made thereof;
(vi) issue licences to the functionaries operating in the market,
(vii) prepare annual budget of the Market Committee;
(viii) arrange for summoning the meeting of the Market Committee and maintenance of records of the
proceeding of such meetings;
(ix) inspect from time to time the construction work undertaken by the Market Committee and send
report of such inspection to the Chairman of the Market Committee;
(x) report such acts of the Market Committee or members of the Market Committee including the
Chairman and Vice-Chairman which are contrary to the Provisions of this Act and rules and bye laws
framed thereof to the Director of Marketing;
(xi) take such steps as deemed necessary for effective discharge of the functions and decisions of the
Market Committee.
CHAPTER-X
STATE AGRICULTURAL MARKETING BOARD CONSTITUTION, FUNCTIONS AND POWERS
Establishment of the State Agricultural Marketing Board.
51. The State Government may, for co-ordinating the activities of Market Committees and for exercising
such other powers and performing such functions as are conferred or entrusted by or under this Act
establish and constitute a State Agricultural Marketing Board.
Incorporation of Board.
52. The Board shall be a body corporate having perpetual succession and a common seal and may sue and
be sued in its corporate name and shall be competent to acquire and hold property both moveble and
immoveble and to lease, sell or otherwiae transfer any such property with the sanction of the State
Government and the Contract and to do all other thinks necessary for the purpose for which it is
established..
Composition of the State Agricultural Marketing Board.
53. The Board shall consist of a Chairman and such other members as may be appointed by the State
Government.
Members of the Board.
54. The members of the Board shall all appointed by the State Government from amongst the following
categories of persons, namely;
(1) Seven members to be nominated from amongst the members of the Market Committees in the State
of which five shall be Chairman of the Market Committees representing agriculturists and two shall
be traders.
(2) Agriculture Production Commissioner. Ex-Officio Member
(3) Secretary, Agriculture Department or in-charge Ex-Officio Member
Agricultural Marketing or his nominee not below
the rank of Deputy Secretary.
(4) Director of Agriculture and/or Director of Horticulture Ex-Officio Member
where such posts exists separately.
(5) Agricultural Marketing Advisor to the Government Ex-Officio Member
of India or his nominee.
(6) Representatives of the National Bank for Agricultural Ex-Officio Member
and Rural Development (NABARD) not below the rank
of Deputy General Manager.
(7) Registrar of Co-operative Societies. Ex-Officio Member
(8) Chief Town Planner or the chief Officer concerned Ex-Officio Member
with town planning.
(9) Officer from Revenue Department or any authority of Ex-Officio Member
the State Government concerned with land acquisition
for the markets.
(10) Director or Commissioner Food and Civil Supplies Ex-Officio Member
of the State Government.
(11) Representative of Food Corporation of India posted Ex-Officio Member
at the State level.
(12) Director of Agricultural Marketing or the officer incharge Agricultural Marketing in the State who may
be Secretary of the Board.
Chief Executive officer of the Board.
55. The Member Secretary or the Secretary of the Board shall function as the Chief Executive Officer of the
Board.
Term of office of the non-official members of the Board.
56. The term of office of the non-official members of the Board shall be for three years. The members shall
hold the office at the pieasure of the State Government,
Term of Office of the Member.
57. The tenure of office of the member of the Board shall come to an end as soon as he ceases to hold the
office by virtue of which he was nominated. In the event of suppression of the Market Committee from
where the member/members have been nominated on the Board, the Government shall appoint per-
son/persons as member of the Board representing interest of the suspended committee.
Filling of casual vacancy.
58. In the event of death or resignation or disqualification or removal of any member of the Board or any
vacancy occurring otherwise before the expiry of his term of office, a casual vacancy shall be deemed to
have occurred in such office and such vacancy shall be filled, as soon as may be, by nomination by the
State Government. The person so nominated shall hold such office for un-expired term of his
predecessor.
Resignation of Members.
59. A member of the Board may resign from membership by tendering his resignation to the State
Government under intimation to the Chairman of the Board and the seat of such member shall become
vacant on the date of acceptance of his resignation.
Superintendence of the Board.
60. The State Government shall exercise superintendence and control over the Board and its Officers and
may call for such information as it may deem necessary and, in the event of its being satisfied that the
Board is not functioning properly, it may suspend the Board and till such time as a new Board is
constituted, make such arrangements for the exercise of the functions of the Board as it may think fit:
Provided that the Board shall be constituted within six months from the date of its suspension.
Allowances to Members of the Board.
61, The members of the Board other than ex-officio member shall be paid from the State Marketing
Development Fund such sitting fees and allowances as may be fixed by the State Government from
time to time for attending its meeting and for attending to an other work, assigned to them by Board.
Functions and Powers of the Board.
62. The Board shall, subject to the Provision of this Act, perform the following functions and shall have
power to do such thing as may be necessary or expedient for carrying out these functions:-
(i) co-ordination of the working of the Market Committees and other affairs Thereof including programme
undertaken by such Market Committees for the development of markets and market areas.
(ii) undertaken the State level planning of the development of agricultural produce markets;
(iii) administer the State Marketing Development Fund;
(iv) giving direction to Market Committees in general or any Market Committee in particular with a view to
ensure Improvement thereof;
(v) any other functions specifically entrusted to it by this Act;
(vi) such other functions of like nature as may be entrusted of the Board by the State Government.
Other functions of the Board.
63. Without prejudice to the generality of the foregoing provision, such functions of the board shall include
(i) to approve proposal for selection of the new sites by the Market Committees for establishment of
principal or sub-market yard;
(ii) to approve proposal for constructing infrastructural facilities in the market area;
(iii) to supervise and guide the Market Committees in the preparation of plans and estimates of con-
struction programme undertaken by the Market Committee.
(iv) to execute all works chargable to the Board’s Fund;
(v) to maintain accounts in such form as may be prescribed and get the same audited in such manner
as may be laid down in the regulation of the Board;
(vi) to publish annually at the close of the year, its progress reports, balance sheet, and Statement of
assets and liabilities and send copies thereof to each member of the Board and the State Govern-
ment;
vii) to make necessary arrangements for propaganda and publicity on matters related to regulated to
marketing of agricultural produce;
(viii) to provide facilities for the training of officers and staff of the Market Committees;
(ix) to prepare and adopt budget for the ensuing year;
(x) to grant subventions or loan to Market Committee for the purpose of this Act on such terms and
conditions as the board may determine;
(xi) arrange or organise seminars/workshops/exhibitions etc. on subjects related to agricultural market-
ing;
(xii) to do such other things as may he general interest to Market Committees or considered necessary
for the efficient functioning of the Board.
Regulation
64. (1) The Board may, with the previous approval of the State Government make regulations, not
inconsistent with this Act and rules made thereunder for the administration of the affairs of the
Board.
(2) In particular and without prejudice to the generality of the foregoing power, such regulations may
provide for all or any of the following matters;
(a) the summoning and holding of meetings of the Board, the time and date when such meetings
are to be held, the conduct of business at such meetings and the number of persons
necessary to form a quorum thereof;
(b) the powers and duties of the officers and other employee of the Board.
(c) the salaries and allowances and other conditions of service of officers and other employees of
the Board and officers of the market committees.
(d) the management of the property of the Board;
(e) the execution of contracts and assurances of property on behalf of the Board;
(f) the maintenance of accounts and the preparation of the balance sheet by the Board
(g) the procedure for carrying out the functions of the Boards under this Act;
(h) any other matter for which provision is to be or may be made in regulation.
Marketing Development Fund.
65. All money received by or on behalf of the Board shall be credited to a fund called Marketing
Development Fund.
Payment incurred by the Board.
66. All payments incurred by the Board shall he defrayed out of the said fund.
Contribution towards the Board.
67, Every Market Committee shall, out of its funds, pay to the Board as contribution such percentage of its
income derived from licence fees and market fees as may be prescribed by the State Government by
notification in the official gazette, subject to minimum of forty percent, to meet the expenses of
establishment of the Board and expenses incurred in execution, of the functions assigned to the Board
under this Act.
Borrowing by issue of bonds or storks
68. The board may from, time to time with the pervious sanction of the State Government and subject to
provisions of this Act and to such conditions as the State Government may be general or special order
determine borrow any sum required for the purpose of this Act.
Utilisation of Market Development Fund.
69. The Marketing Development Fund shall be utilised by the Board for discharge of functions entrusted to
the Board under this Act. without prejudice to the generality of this provision, the Market Development
Fund may be utilised for the following purposes namely
(1) payment of administrative expenditure of the Board;
(2) payment of travelling and other allowances to the Chairman and Members of the Board;
(3) payment of legal expenses incurred by the Board;
(4) granting aid to financially weak market committee in the form of loan or grant for development
purposes;
(5) propaganda and publicity on matters relating to marketing of agricultural produce;
(6) training of the officers and staff of the Market Committees and Board;
(7) imparting education in marketing of agricultural produce;
(8) organising and or arranging workshops, seminars, exhibitions etc. on development of marketing;
(9) construction of infrastructural facilities in the market area including construction of link and
approach roads, culvert, bridges etc.
(10) general improvement of the regulation of marketing in the State;
(11) providing technical assistance to the Market Committee;
(12) for any other purposes, deemed necessary for execution of the functions assigned to the Board
under this Act or as directed by the State Government.
Audit of Account of the Board.
70. (1) The accounts of the Board shall be subject to audit under the State Local Fund Audit Act or any
other relevant Act and for the purpose of the said Act, the Board shall be deemed to be a local
authority whose accounts have been declared by the State Government to be subject to audit
under provisions of the said Act.
(2) The Board may make arrangement of internal audit of its accounts, as it may deem fit.
Delegation of Powers.
71. (1) Subject to the provisions of this of this Act, the Board may by general or special order, delegate to
the Member Secretary or Sub-Committee appointed by it or any officer of the Board such of the
powers and duties under the Act, as it may deem fit.
(2) Chairman or Secretary of the Board may delegate his power under this Act to any officer of the
Board.
Supervision and control of the Chairman/Chief Executive.
72. (1) Chairman of the Board shall preside over the meeting.
(2) Subject to the superintendence of the Board, general control and direction over all the officers and
staff of the Board shall be vested with Chief Executive.
Function and Powers of the Chief Executive.
73. The Chief Executive Officer of the Board shall:-
(i) exercise supervision and control over officers and staff of the board in matters of executive
administration concerning accounts and records and disposal of all questions relating to the service
of the employees as per procedure prescibed;
(ii) appoint officers and staff of the Marketing Board as per direction and procedure prescribed by the
Board;
(iii) incur expenditure from the Marketing Development Fund on the sanctioned items of work;
(iv) in case of emergency, direct the execution or of stoppage of any work and of any act which
requires sanction the Board;
(v) Prepare Annual Budget of the Board;
(vi) arrange for internal audit of the Board;
(vii) arrange for the meetings of the Board and maintain records of the proceedings of the meetings of
the Board as per procedure prescribed;
(viii) take such steps as deemed necessary for execution of the decision of the Board;
(ix) inspect the construction work undertaken by the Market Committees either from their own funds or
loans and or grants provided by Board or any other agencies and take corrective measures;
(x) report such acts either of the Market Committees or of the board which are contrary to the
provisions laid down under this Act or rules and bye-laws made thereof to the Government;
(xi) take such steps as deemed necessary for effective discharge of the functions of the Board:
Conduct of Business of the Board.
74. (1) The Board shall meet for the transaction of its business at least once in every three months at such
place and at such time as the Chairman may determine.
(2) Save as otherwise provided in sub-section (1) the provisions of Chapter IV shall mutatis mutandis
apply for the conduct of the business of the Board.
(3) All proceedings of the Board shall be authenticated by the signature of the Chairman, Member-
Secretary and all other order and other instructions issued by the Board shall be authenticated by
the signature of the Chairman, Member-Secretary or such other officer of the Board as may be
authorised in this behalf by regulations.
(4) The Board, shall conduct the business in a manner prescribed under the rules.
Appointment of officers and staff of the Board.
75. (1) The Board shall, with the previous approval of the State Government, create posts and appoint such
other officers and staff as it considers necessary for the efficient discharge of its duties and
functions under this Act.
(2) The terms and conditions of service of officers and staff shall be such as the Board may, from time
to time, determine with the approval of the State Government.
(3) The Board may, with previous approval of the State Government or the Central Government as the
case may be, appoint the Central or State Government servant as officer or staff of the Board or of
a Market Committee on such terms and conditions as it thinks fit.
(4) Notwithstanding anything contained in any other provision of this Act, the Board may constitute
cadre officers and other staff common to all Committees as it may deem fit,
(5) Every person who was holding a post comprised in a cadre referred to in sub-section (4) in any
Market Committee (including a Government servant serving on deputation) shall on and from the
date of constitution of the cadre (hereinafter in this section referred to as the said date) become a
member of the cadre and shall hold his office or service there in on the same tenure at the same
remuneration and upon the terms and conditions and with the same rights and privileges as the
pension, gratuity and other matters as he would have held the same on the said date hut for the
constitutions of the cadre and shall continue to do so until his employment as a member of a cadre
is terminated or until remuneration or other terms and conditions of service are revised or altered by
the Board under or in pursuance of any law or in accordance with any provision which for the time
being govern his service
Provided that nothing contained in section shall apply to any such person who, by notice in writing given to
the State Government may within such time as the State Government may by general or special order
specify, intimate him intention of not becoming a member of the said cadre.
Power and Functions of the Directorate of Marketing.
76, (1) Subject to the provisions of this Act, the Director of Marketing may perform such functions, other
than those prescribed by the Board under this Act, which would enable proper execution of the
provisions of this Act.
(2) In particular and without prejudice to the generality of the provisions of the Section 76, the functions
of the Director of Marketing may include:
(i) Supervision of the Market Committees for effective execution of provisions of the Act relating to
transactions of agricultural commodities taking place on the market yard.
(ii) Launch prosecution for contravening provisions to the Act the rules made thereof,
(iii) Suggest amendments to the Act, and rules framed thereunder for effective execution of the
objectives of the Act.
(iv) Approve bye-laws framed by the Market Committee under this Act and rules formulated
thereunder:
(v) Conduct audit of accounts of the Market Committee.
(vi) Grading and standardization of agricultural produce.
(vii) Approval of the Budget of Market Committee.
(viii) Accord sanction to the creation of posts of officers and staff of Market Committees.
(ix) Appointment and transfer of the members of the State Agricultural Marketing Service and act
as the cadre controlling authority for the personnel of the State Agricultural Marketing Services.
(x) Take steps for timely and proper conduct of the election of the Market Committees, and the
Chairman and Vice-Chairman of the Market Committees.
(xi) Acceptance of resignation of the Chairman of the Market Committees.
(xii) Prefer an appeal from any person aggrieved by the order of the Market Committees.
(xiii) Approval of the resolution passed by the Market Committees.
(xvi) Removal of Chairman/Vice-Chairman or member/members of the Market Committees..
(xv) Inspect or cause to be inspected accounts and office of Market Committees.
CHAPTLR-XI
PENALTY
Penalty for Contravention of Act, Riles and Bye-laws.
77. Any person who contravenes any provision of thisAct or of any rules or bye-laws or order issued there
under shall be punishable with simple imprisonment which may extend to six months or with fine which
may extend to one thousand rupees or with both, Provided that in the case of a continuing contravention
of the provisions of Section 9 and 37 he shall be liable to be punished with a further fine which may
extend to one hundred rupees for every day during which the contravention is continued after the first
conviction.
Recovery of Market dues.
78. Whenever any person is convicted of any offences punishable under this Act, the Magistrate shall in
addition to any fine which may be imposed, recover summarily and pay over to the Market Committee
the amount of fees or any other amount due from him under this Act, or rules or bye-laws made there-
under and may in his discretion also recover and payover to the Market Committee the cost of the
prosecution.
Cognizance of offences.
79. (1) No court inferior to that of Magistrate of the Second Class shall try any offence under this Act or any
rules or bye- laws made thereunder.
(2) No court shall take cognizance of any offence punishable under the Act or any rules or bye-laws
made thereunder except on the complaint made by the Deputy Commissioner or the Chairman,
Vice- Chairman or secretary of the Market Committee or of any person duly authorised by the
Market Committee in this behalf.
CHAPTER-XII
CONTROL
Inspection of Marketing and enquiry into affairs of Market Committee.
80. (1) The Director may :—
(a) inspect or cause to be inspected the account and Offices of Market Committee:
(b) hold enquiry into the affairs of the market committee;
(c) call for from a Market Committee return, Statement, accounts or report which he may think fit
to require such committee to furnish;
(d) require a Market Committee to take into consideration;
(i) any objection on the ground of illegality, inexpediency or impropriety which appears to
him to exist to the doing of anything which is about to be done or is being done by or on
behalf of such committee, or;
(ii) any information he is able to furnish and which appears to him to necessitate the doing of
a certain thing by such committee;
(e) direct that anything which about to be done or is being should not be done, pending con-
sideration of the reply, and anything which should be done but is not being done should be
done within such time as he may direct.
(2) When the affairs of a Market Committee are investigated under this Section or the proceeding of
any Market Committee are examined by the Director under section 88, the Chairman, Vice--
Chairman, Secretary, and all other Officers and servants and members of such Committee shall
furnish such information in their possession in regard to the affairs on proceeding of Market
Committee as the Director or the Officer authorised as the case may be, may require.
(3) An Officer investigating the affairs of the Market Committee under Sub-section (1) or the State
Govt., examining the proceeding of any Market Committee under Section 26 shall have the power
to summon and enforce the attendence of officers and members of the Market Committee and to
compel them to give evidence and to produce documents by the same means and as far as
possible the same manner as is provided in the case of a Civil Court by the Code of Civil
Procedure,1973.
(4) Where the Director has reason to believe that the books and records of a Market Committee are
likely to be tampered with or destroyed or the funds or property of a Market Committee are likely to
be mis-appropriated or misapplied, the Director may issue order directing a person duly authorised
by him in writing to seize and to take possession of such books and records, funds and property of
the Market Committee and officer or officers of the Market Committee responsible for the custody of
such books and records, funds and property shall give delivery thereof to the person so authorised,
Powers to remove a member of the committee.
81. (1) The Director may remove a member, Chairman or Vice- Chairman of the committee where he is of the
opinion that he :-
(a) has been guilty of misconduct or gross negligence of duty as member, Chairman or Vice-
Chairman;
(b) ceases to hold the qualification necessary for his being a member, Chairman or Vice-Chairman;
(2) No order of removal under Sub-section (1) shall be passed unless the person concerned has been
given reasonable opportunity of submitting an explanation in respect of the allegations against him,
Supersession of Committee.
82. If in the opinion of the State Government a Committee is incompetent to perform or persistently makes
default in performing the duties imposed on it by or under this Act, or abuses its power the State
Government may by notification supercede the Committee, after affording it an opportunity.
Emergency Powers
83. If at any time the State Government is satisfied that a situation has arisen in which the purpose of this
Act, cannot be carried out in accordance with the provision thereof the State Government may by
notification:
(i) Declare that the function of Committee shall to such an extent as may be specified in the
notification by exercised by the Board, person or persons as it may direct, or
(ii) Assume to itself all or any of the powers vested in or exercisable by a Committee and
notification may contain such incidental and consequential provisions as max appear to the
State Government to be necessary or desirable for giving effect to the object of the
notifications.
Consequences of Supersession.
84. (a) Upon publication of the notification superseding a committee under Section 82, the following con-
sequences shall ensure :-
(i) all the members including the Chairman, Vice-Chairman of the committee shall, as from the
date of publication of the notification be deemed to have vacated their offices;
(ii) The State Government shall direct that steps be taken for constitution of a new committee
under Section (14) and till such time as a new Committee under Section (14) is constituted as
aforesaid, the Director shall make such arrangement for carrying out the functions of the
committee as it may deem fit, for the period not exceeding one year and may, for that purpose,
direct that all the functions, powers and duties of the Committee and its Chairman, under this
Act shall be performed, exercised and discharged by such person or authority as the Director
may appoint in this behalf and such person or authority shall be deemed to be the Committee
or Chairman, as the case may be.
Power of Director to direct making or amending Bye-laws
85. (1) If is appears to the Director that it is necessary or expedient in the interest of a market or market
Committee to make any bye-law or to amend any bye-law, he may, by order, require the Market
Committee concerned to make the bye-laws or the amendment of the bye-law within such time as
he may specify in such order.
(2) If the Market Committee fails to make such bye-law or such amendment of the bye-law within the
time specified, the Director may, after giving the Market Committee a reasonable opportunity of
being heard by an order, make such bye-law or such amendment of the bye-law and thereupon
subject to any order under Sub- section 3, such bye-law or such amendment of the bye-law shall be
deemed to have been made or amended by the Market Committee in accordance with the provision
of this Act or the rules made there under and there upon such bye-law or amendment shall be
binding on the market Committee.
(3) An appeal shall lie to the State Government from any order of the Director under Sub-section (2)
within thirty days from the date of such order and decision of State Government on such appeal
shall be final.
Powers of write off loss shortages and irrevocerable fees.
86. Where it is found that any amount due to Market Committee is irrecoverable or should be remitted or
whenever any loss of a Committee’s money or store or other property occurs through the fraud or
negligence of any person or for any other cause and the property or money is found to be irrecoverable,
the Market Committee may order to write off as lost, irrecovered or remitted as the case may be.
Provided that, if in any case the amount is in excess of one hundred rupees such order shall not take effect
without the prior approval of the Director.
Power to call for proceedings of Market Committee and pass order thereon
87. The Director may, at any time, call for to examine the proceeding of any Market Committee for the
Purpose of satisfying itself as to legality of propriety of any decision taken or order passed by the Market
Committee, If in any case it appears to the Director that any decision or order or proceeding so called
should be modified, annualled or reversed, the Director may pass such order thereon as he thinks fit
Provided that no such order shall be passed by the Director without giving a reasonable opportunity of being
heard to the Market Committee or to the parties affected thereby.
The Director to Prohibit execution or further execution of resolution passed or order made by the
committee.
88. (1) The Director may, of its own motion or on report or complaints received by order, prohibit the
execution or further execution of a resolution passed or order made by the Committee or its
Chairman or any of its officers or servants if he is of the opinion that such resolution or order is
prejudicial to the public interest, or is likely to hinder efficient running of the business in any market
area. Principal market yards or sub-market yards or is against the provisions of this Act or the rules
or bye-laws made thereunder.
(2) Where the execution or further execution of a resolution or order is prohibited by an order made
under Sub-section (1) and is continuing in force, it shall be the duty of the Committee, if so required
by the Director, take to any which the Committee would have been entitled to take, if the resolution
or order had never been made or passed and which is necessary for preventing the Chairman or
any of its officers or servants from doing or continuing to do anything under the resolution or order.
Liability of Chairman, Vice-Chairman, members and employees for loss, waste or misappropriation
89. (1) If in the course of enquiry or inspection under Section 82 or in the course of audit under this Act, it
is found that any person who is or was entrusted with the management of a Market Committee or
any deceases, past or present Chairman, Vice- Chairman, Member, Officer-in-charge of Market
Committee, Secretary or any other officer or employee of Committee, Secretary or any other officer
or employee of Market Committee or an officer of the State Government has made or directed by
assenting or concurring or participating in any affirmative vote or proceeding related thereto, any
payment or application of any money or other property belonging to or under the control of such
committee to any purpose contrary the provisions of this Act or rules or bye-laws made thereunder
or has caused any deficiency or loss by gross negligences or misconduct or has misappropriated or
fraudulently retained any money or other property belonging to the Market Committee, the Director
may on his own motion or on the application of the market Committee, enquire himself or direct any
officer subordinate to him duly authorised by him by an order in writing in this behalf no enquiry into
the conduct of such person within two years of the date or reports of audit, enquiry, or inspection,
as the case may be,
(2) If in an enquiry made under sub-section (1) the Director is satisfied that there are good grounds for
an order under this sub-section, he may make an order requiring such person; or in the case of a
deceased person his legal representative who inherits his State to repay or restore the money or
property and any party thereof, with interest with such rate or to pay contribution and costs or
compensation to such extent as the Director may consider just and equitable:
Provided that no order under this sub-section shall be made unless the person concerned has been given
reasonable opportunity of being heard in the matter:
Provided further the liability of a legal representative of the deceased shall be to the extent of the property of
deceased which is inherited by such legal representatives.
(3) Any person aggrieved by an order made under Sub-section (2) may, within thirty days from the date
of communication of the order to him, appeal to Director and the order of the Director shall he final
and conclusive.
Provided that in computing the period of limitation, the time required for obtaining a copy of the order
appealed against shall be excluded.
(4) No order passed under sub-section (2) or subsection (3) shall he called in question in any Court of
law.
(5) Any order made under sub-section (2) or subsection (3) shall on the application of the Director, be
enforced by any Civil Court having local jurisdiction in the manner as if it were a decree of such
court, or any sum directed to be paid by such order may be recovered as an arrear of land revenue.
(6) If the Director is satisfied on affidavit, enquiry or otherwise that any person with intention to delay or
obstruct the enforcement of any other that may be passed against him under the Section:
(a) is about to dispose of the whole or any part of his property; or
(b) is about to remove the whole or any part of his property from the State, he may unless
adequate security is furnished, direct the conditional attachment of the said property or such
part there of as he thinks necessary and such attachment shall have the same effect as it may
by a competent Civil Court;
Powers of State Government to amend schedule.
90. The State Government may, by notification add to or amend or delay any of the item of agricultural
produce specified in the schedule and thereupon the schedule shall be deemed to be amended
accordingly
Provided that no notification shall be issued under this Section without giving in the Gazette previous notice of
not less than 45 days as the State Government may consider reasonable of its intention to issue such
notification.
Recovery of Sums due to Market Committee.
91. Any sum due to a Market Committee or the Board on account of any charge, costs, expenses, fees, rent
and any other account under the provisions of this Act or any rule or byelaws made thereunder shall be
recoverable in the same manner as an arrear of land revenue.
Duty of Police Officer.
92. It shall be the duty of every police officer to communicate as soon as may be, to the Market Committee
any information which he receives regarding any attempt to commit or the commission of any offence
against this Act or any rule or bye-law made thereunder and to assist the Secretary or any officer or
servant of the Market Committee demanding his aid in the exercise of his lawful authority.
Chairman, Vice-Chairman, Members, Officers and servants etc. of market Committee and Board to be
public servants.
93. The Chairman, the Vice-Chairman, Member, Secretary, other, officers and servants of a Market
Committee and the Chairman, Vice-Chairman, the members, the officers and other servants of the
Board shall be deemed to be public servant within meaning of section 21 of the Indian Penal Code,
1860 (No. 45 of 1860).
Delegation of powers.
94. (1) The State Government may delegate to Board or any officer of the State Government not below the
rank of Director any of the Powers coffered on it by or under the Act other than the powers to make
rules under Section 100.
(2) The Director may delegate to any officer of the State Government not below the rank of Asstt.
Director or Marketing Officer any of the Powers conferred on him by or under this Act.
Bar to Civil Suit.
95. No suit, prosecution or legal proceedings in respect of anything in good faith done or intended to be
done under this act or rules or bye-laws made thereunder, shall lie against the Director or any officer of
the State Government or against the Board or any market committee or against any officer or servant of
the Board or any market committee or against any person acting under and ii accordance with the
direction of the Director, such officer, or such Committee.
Bar of suit in absence of notice,
96. Notwithstanding anything contained in any section at any Act, no suit shall he instituted against the
Board or a market committee, until the expiration of two months next after notice in writing stating the
cause of action, name and place of abode of the intending plantiff, and the relief which he claims has
been delivered or left at its office, Every such suit shall he dismissed unless it is instituted within six
months from the date of accrual of the alleged cause or action.
Duty of local authorities to give information and assistance.
97. It shall be duty of every local authority to give all the necessary information in the possession of or
under the control of its officers to the market committee or its officers authorised in that behalf relating to
import and export of notified agricultural produce into and out of the area of local authority free of any
charges. It shall also be the duty of every locality and its officers and staff concerned with the collection
of octroi to give all the possible assistance to any officer of the market committee in exercising his
power and discharging his duties under this act.
Protection to persons acting in good faith.
98. No suit prosecution or other legal proceeding shall be instituted against any person for anything done or
intended to he done in good faith under this Act or the rules, regulations or the bye-laws.
Act not be invalidated by informality, vacancy etc.
99. Not act done or proceeding taken under this Act by the Board, by a market committee or sub-committee
appointed by the Board shall he invalidated merely on the ground of :-
(a) Any vacancy or defect in the constitution of Board or sub-committee; or
(b) any defect or irregularity in the appointment of a person acting as a member thereof; or
(c) any defect or irregularity in such act or proceeding not affecting the substance.
CHAPTER XIII
RULES AND BYE-LAWS
Power to Make rules.
100. (1) The State Government may after previous publication make rules for carrying out the purposes of this
Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide
for :-
(i) other manners of publication of notification under Section 3 (1);
(ii) fixation of quantity of sale under clause (29) of Section 2,
(iii) (a) Qualifications which the representatives of agriculturists shall posses under section 14 (1) (i);
(b) qualifications which the representatives of traders shall posses under section 14 (1) (ii).
(c) authority which shall conduct election, determination of constituencies, preparation and
maintenance of list of voters, disqualifications for being chosen as, or for being, a
member, the right to vote; the payment of deposit and its forfeiture, the election offences
and all matter ancillary thereto under Section 14 (13);
(iv) The powers to be exercised and the duties to be performed by market committee and its
Chairman and Vice-Chairman;
(v) (a) the procedure and quorum at a meeting of market committee; and
(b) the form in which accounts of purchases and processing of agricultural produce are to be
maintained;
(vi) the management of markets, the procedure for recovery of market fees, fine for evasion of
market fees and manner for assessment of market fees in default of furnishing returns;
(vii) classification of market functionaries to grant of licences, regulations of licences under this Act,
the persons required to take out licence, the forms in which and terms and conditions subject
to which such licence shall he issued or renew;
(viii) the provisions for the persons by whom and the forms in which copies of documents and
entries in the books of the market committee may be certified and the charge to he levied for
the supply of such copies;
(ix) the kind and description of weights and measures and the weighing and measuring instruments
which shall be used in the transactions in the notified agricultural produce in a market yard;
(x) the periodical inspection of all weights and measures and the weighing and measuring
instruments in use in a market yard
(xi) the Trade allowance which may be made or received by any person in any transaction the
notified agricultural produce in a market yard;
(xii) facilities for settlement of any dispute between a buyer and seller of notified agricultural
produce or their agents including disputes regarding the quality or weight of the articles,
payment in respect of the price of goods sold and the allowances for wrapping, containers, dirt
or impurities or deductions for any cause by mediation, arbitration otherwise;
(xiii) the provisions of accommodation for storing any agricultural produce brought into the market;
(xiv) the preparation of plans and estimates for work proposed to be constructed partly or wholly at
the expense of the market committee and the grant of sanction to such plans and estimates;
(xv) the form in which the accounts of a market committee shall be kept, the audit and publication
of such audit and the inspection of audit memoranda of the account and supply of such
memoranda;
(xvi) the preparation and submission for sanction of the annual budget and the report and returns to
be furnished by a market committee;
(xvii) the time during which and the manner in which a trader or broker or commission agent shall
furnish such returns to a market committee as may be required by it;
(xviii) the regulation of advances, if any given to agriculturists by brokers or commission agents or
traders;
(xix) the grading and standardisation of the agricultural produce;
(xx) the keeping of records of arrivals and prices if agricultural produce;
(xxi) the manner in which auctions of agricultural produce shall be conducted and bids made and
accepted in a market;
(xxii) the recovery and disposal of fees leviable by or under this Act;
(xxiii) compounding of offences and fixing compensation thereunder under this Act or rules or by
laws made thereunder;
(xxiv) manner of constitution of State Agricultural Marketing Services;
(xxv) recruitment, qualification appointment, promotion, scale of pay, leave allowance, acting
allowance, loans, pension, gratuity, annuity, compassionate fund dismissal, removal, conduct
departmental punishment, appeals and other service conditions of the members of the State
Agricultural Marketing Service;
(xxvi) limit of expenditure which may he incurred in reception of distinguished guests;
(xxvii) limits of honorarium to Chairman, travelling, allowances to members and sitting fees payable to
members for attending the meetings;
(xxviii) manner of investment of the surplus in the market committee fund;
(xxix) procedure for framing of bye-laws, theft amendments or conciliation and for their previous and
final publication;
(xxx) classification of market committees on the basis of an annual income for all or any of the
purposes of this Act;
(xxxi) term of the office of the Chairman, Vice-Chairman and members of the Board;
(xxxii) the powers to be exercised by the Chairman and Vice- Chairman, and the Chief Executive of
the Board;
(xxxiii) all matters required to be prescribed by rules under this Act;
(xxxiv) mode of service of notice under the Act;
(xxxv) the guidance of market committee;
(3) In making any rule, the State Government may direct that breach thereof shall be punishable with
fine which may extend to two hundred rupees.
(4) Every rule made under this section shall be laid as soon as may be after it is made before the
Nagaland Legislative Assembly while it is in session for a total period of seven days which may he
comprised in one session or in two successive session, and if, before the expiry of the session in
which it is so laid or the session immediately following, the Nagaland Legislative Assembly agree in
making any modification in the rule or the Nagaland Legislative agree that rule should not be made,
the rule shall thereafter have effect on the modified from or be of no effect as the case may be, so
however that any such modification or annulment shall be without prejudice to the validity of
anything previously done under this rule.
Power to make bye-laws.
10, (1) Subject to the provisions of this Act and the rules made thereunder, a market committee may in
respect of a market area under its management make bye-laws for:-
(i) the regulation of business of the market committee;
(ii) the conditions of trading in a market;
(iii) delegation of powers, duties and function to the officers and servants, appointment pay
punishment, pensions, gratuities, leave, leave allowances, contributions by them to any provi-
dent fund which may be established for the benefit of such officers and servants and other
conditions of services;
(iv) the delegation of powers duties and functions of the sub-committee if any;
(v) market functionaries who shall be required to take licence;
(vi) any other matters for which bye-laws are to be made under this Act or it may be necessary to
frame bye-laws for effectively, implementing provisions of this Act and the rules made in the
market area.
(2) No bye-laws under sub-section (1) shall take effect until it has been confirmed by the Director.
(3) In making any bye-laws the market committee may direct that a breach thereof shall be punishable
with fine which may extend to one hundred rupees and where the breach is a continuing one with
further fine which may extend to ten rupees for everyday after first during which the breach is
proved to have been persisted in.
SCHEDULE
ITEM ENGLISH HINDI
1. Cereals 1. Paddy Dhan
2. Rice Chawal
2. Pulses 1. Pigeon pea Arhar
2. Lentil Massur
3. Cow pea Lobbia & RajMah
4. Pulses split Dal Dali
5. Gram Channa
3. Oilseeds 1. Mustard Sarson
2. Indian Rape Toria
3. Groundnut shelled Muna phali
and unshelled
4. Seasamum Til
4. Vegetables oils All Vegetables Oils Sab Khane ke Tel
5. Fruit 1. Mango Aam
2. Banana Kela
3. Lichies Lichi
4. Sweet orange Mosambi
5. Apple Saib
6. Orange Santola
7. Peach Aru
8. Lemon Neemboo
9. Plum Alucha
10. Pears Naspati
11. Guava Amrud
6. Vegetables 1. Potato Alu
2. Onion Pias Khushak
3. Onion Green Piaz hara
4. Brinjal Baingan
5. Bottle gourd Ghia/Lau
6. Lady’s finger Bhindi
7. Red gourd Halwa kadu
8. Tomato Tamatar
9. Cauliflower Phulgobi
10. Cabbage Banda gobi
11. Knol khol Gandh gobi
12. Green peas Matar hari
13. French bean Paras bean
14. Cow peas Fahras bean
15. Leaves of Mustard Sag
& spanich etc.
16. Carrot Gajar
17. Raddish Muli
18. Turnip Salgam
19. Arum Arbi
20. Bitter gourd Karela
21. Asb gourd Patha
22. Cucumber Kira
7. Fibre 1. Jute/Sanhemp Patua
8. Animal 1. Poultry Murgi
Husbandary 2. Egg Anda
Product 3. Cattle Gai
4. Sheep Pharta
5. Goat Bakri
6. Wool Woon
7. Butter Makhan
8. Ghee Ghee
9. Milk Dudh
10. Hinds & Skins Khal
Processed & cured
11. Goat meat and Bakri or Bhed
Mutton ka gosht
12. Fish Machhli
13. Bristles Sur ka bal
9. Condiments 1. Ginger Addrak/Atoa
spices 2. Garlic Dry Lashun
3. Chilies dry & Green Mircha
4. Turmeric Haldi
5. Opium Dhania Khushk
10. Narcotics 1. Tobacco Tambakoo
2. Opium Kani
11. Miscellaneous 1. Sugarcane Ganna
2. Gur and Shakker Gur or Shakker
3. Molasses Khandsari
4. Oil cakes Khali
5. Edible Mushroom guchi Panaphsa
6. Bamboo Bans
7. Broomstick Charu