The ARUNACHAL PRADESH (HORTICULTURAL PRODUCE, MARKETING AND PROCESSING) BOARD ACT, 2014

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THE ARUNACHAL PRADESH (HORTICULTURAL PRODUCE,
I]lARKETING
AND PBOCESSING) BOARD ACT, 2014
(ACT NO. I OF 2014)
(Received the assent ol the Governor on 30th May,2014 and
published in lhe Arunacal Pradesh E.O. Gazette No 100, Vol. XXI
dated 5th June, 2014)
An
Act
to provide for improved regulation in marketing of horticultural
produce, development ol eflicient marketing system by constituting State
Marketing and Processing Board for promotion of horti-processing and
horticultural exports, establishment and proper administration of markets
for horticultural produce in the State of Arunachal Pradesh and to ensure
level playing field lor competitlve markets to operate through setting up of
minimum standards for facilities, procedures and system, thereby promoting
the establishment of well administered and efficient infrastructure for
marketing ol horticultural produce in and from the Sate ofArunachal Pradesh
and matters connected therewith and incidental thereto.
BE it enacted by the Government of Arunachal Pradesh in the
SixtyJifth Year of the Republic of lndia, as follows :
CHAPTER-I
PRELIMINARY
1. (1) This Act may be called the Arunachal Pradesh
Horticultural Produce Marketing and Processing
Board Act, 2014.
(2) lt shall extend to whole ofArunachal Pradesh.
(3) lt shall come into force on such date as the Sate
Government may by notilication in the Official
Gazette appoint.
2. ln this Act unless the context othen /ise requires -
(i) "Horticultural Produce" means all produce and
commodities whether processed or unprocessed,
ol Horticulture produce as are specified in the
Schedule to this Acl or declared by the
Government of Arunachal Pradesh by notilication
under section 19 ol this Act and also includes a
mixture of two or more than two products.
Short title,
Extent and
commence-
ment.
Definition
66
(ii) "Horticulture grower/Producer" means a person
who is bonafide Arunachalee and possesses land
in Arunachal Pradesh who is engaged in
production of horticultural produce by himself/
herself or by hired labour or otherwise, but not
include any market funclionary
(iii) "Board" means Arunachal Pradesh Horticultural
Produce l/arketing and Processing Board
established under section 3 of this Act.
(iv) "Business" means purchase, sale, processing,
value addition, storage, transportation and
connected to activities of Horticultural produce.
(v) "Buyer" means a firm, a company or a Cooperative
Society or Government agency, Public
Undertaking/Public Agency or on behall of any
other person or agent who buys or agrees to buy
horticultural produce in the markel areas.
(vi) "Bye-Laws" means the bye-laws made by the
Board for the Committee under section of 78 of
this Act.
(vii) "Chairman" means Chairman of the Board.
(viii) "Commission agent" means a person who on
behalf of his principal trader and in consideration
ol a commission or percentage on the amount
involved in such transaction buys horticultural
produces and makes payment, keeps it in his
custody and delivers it to the principal trader in
due course or who receives and lakes in his
custody horticultural produce lor sale within the
market areas or from oulside the market area
and sells the same in the market area and collect
payment thereof from the buyer and remits the
sale proceeds to his principal trader.
(ix) "Committee" means horticultural produce market
committee established under section 29 ;
(x) "Contract farming" means farming by a person
called "contract farming producei'under a written
agreement with another person called "contract
farming sponsol,'to the effect that his larm produce
shall be purchased as specified in the agreement;
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Explanation : "Contract Farming Producef'
means an individual horticultural growers or
an association of growers by whatever name
called registered under any law for the time
being enforce.
(xi) "Cooperative Society" means a Cooperative
Society of producers registered under the
provisions of the Arunachal Pradesh
Cooperative SocietyAct 1979 which deals in
the purchase, sale, processing, or storage of
Horticultural produce or is otheMise engaged
in the business of disposal of horticultural
produce.
(xii) "Export" means dispatch ol horticultural
produce outside lndia.
(xiii) "Exporter" means a person who exports
horticultural produce.
(xiv) "E-trading" means trading in which billing,
booking, contracting, negotiating, informa-
tion exchange, record keeping, and other
connected activities are done electronically
on computeri lnternet.
(xv) "Labour" means, a person engaged in
loading, unloading, lilling, stitch ing,
emptying, carrying, cleaning, drying, grading,
storing,stacking,bagging,stamping etc of any
horticultural produce in the notified market
area.
(xvi) "lmport" means bringing horticultural produce
from outside lndia.
(xvii) "lmporters" means a person who imports
horticultural produce from outside lndia.
(xviii) "License" means license granted under
section 25 ol the Act.
(xix) 'Licensee" means a person or association,
firm, company, public sector undertaking or
soclety holding a license issued under this
Act.
(xx) "Market" means a market established under
section 19 of this Act which includes market
area, market yard/sub-yards and principal
market.
(xxi)
(xxii)
(xxiii)
(xxiv)
(xxv)
(xxvi)
(xxvii)
(xxviii)
(xxix)
(xxx)
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"Market area" means area notified under
section 19 of this Act.
"Market charges" includes on account ol or
in respect of commission, brokerage,
weighing, measuring, loading, unloading, or
carrying, cleaning, drying, sieving, stitching,
slacking. hiring. gunny bags. stamping.
bagging, storing, warehousing, grading,
surveying, transporting and processing.
"l\rlarket functionaries" means a trader. a
commission agent. buyer, processor, a
stockiest, and any other person as may be
declared by the State Government.
"Market Yards" in relation to a market area
means a specified place and includes any
enclosures, buildings or locality declared as
such in any market by the State Government
by notification.
"Member" means Member of the Board and
including the Chairman ot the Board.
"Marketing" means all activities involved in
the flow of Horticul-tural produce tromthe
production points commencing lrom the
stage of harvest till they reach the ultimate
consumers. viz, grading, p rocessing.
storage, transport, channels ol distribution
and all other tunctions involved in the
process.
"Notification" means notification issued
under this Act and published in the official
gazette.
"Notilied horticultural produce" means any
horticultural produce notified under section
19 ol this Act.
"Person" means includes any individual,
any company, or association whether
corporate or not.
"Producef'means a person who in his normal
course ol avocation, grows, manufactures,
rears or produces, as the case may be,
(xxxi)
(xxxii)
(xxxiii)
(xxxiv)
(xxxv)
(xxxvi)
(xxxvii)
(xxxviii)
(xxxix)
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horticultural produce personally, through or
otherwise but not doesn't includes a person
who work as trader or a brokers or who is
partner of the company or firm of traders or
brokers otherwise engaged in the business
of disposal or storage of horticultural produce
other than grown, manufactured, reared or
by himself through tenants or othenvise.
"Prescribed" means prescribed by rule made
under this Act.
"Processing" means any one or more of a
series of treatments relating to powdering,
crushing, decorticating, dehusking,parboi-
ling. polishing. Ginning. pressing. curing.
cleaning, or any other manual, lvlechani
cal, chemical or physical treatments to the
raw horticultural produce or its products is
subjected to.
"Processor" means a person who undertakes
processing of any notified holticultural
produce on his own accord or on payment
of a charge.
"Private market yard" means such place other
than the market yard/sub-market yard
in the notified market area where infrastruc-
ture has been developed and managed
by a person for making of notified horti-
cultural produce holding a license for this
purpose under this Act.
"Registration" means registration done under
this Act.
"Regulation" means regulations made by
the Board under section-7o of this Act.
"Retail rate" means sale of horticultural
produce not exceeding such amount as may
be prescribed.
"State Government" means the Govern-
ment of Arunachal Pradesh.
"Seller" a person who sells or agrees to sell
any horticultural produce.
(xxxx)
(xxxxi)
(xxxxii)
(xxxxiii)
(xxxxiv)
(xxxxv)
"Tradef'means a person who in his course
of business buys or sells any notified horti-
cultural produce and includes a person
engaged in processing of horticultural
produce but doesn't includes growers.
"Transportation" means taking horticul-
tural produce by push cart, bullock cart,
truck other vehicle etc. in course of business
for marketing from one place to another.
"Transportea' means a person who trans
port horticulturai produce.
"Value addition" means processing, grad-
ing, packaging or other activities due to
which value is added to horticultural pro-
duce.
"Managing Directof' means any person
appointed by the State Government for the
purpose of this Act.
"Secretary" means the Secretary otthe mar-
ket committee and includes any other offic-
ers empowered to exercise such powers
and functions of the secretary.
Establishment 3
of the Board.
CHAPTER-II
ESTABLISHMENT, CONSTITUTION,
POWERS AND
FUNCTIONS OF THE BOARD
(1) The State Government may, by notification, for
coordinating the activities of market and for
developmenl, promotions, and regulation of
horticultural produce marketing, establish the
Arunachal Pradesh Horticu ltu ral Produce
marketing and Processing Board.
(2) The Board shall be a body corporate having
perpetual succession and acommon sealand may
sue and be sued in its corporate name and shall
be competent to acquire and hold property both
movable and immovable and to lease, sale or
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otherwise transfer any such property aimed to
contract and to do all other things necessary for
the purpose which it is established.
4. The Board shall consist of one non-official Chairman,
seven other Ex- Otficio members and trvo non-otficial
members to be nominated/ appointed by the State
Government in the following manner, namely :-
(A) Ex-Ot icio Members i
(i) TheCommissioner/Secretary(Horticulture)to
the Governmenl ofArunachal Pradesh 'Vice-
Chairman.
(ii) The Commissioner/Secretary (Agriculture)to
the Government of Arunachal Pradesh.
(iii) The Secretary (Finance) or his representative
to the Government of Arunachal Pradesh.
(iv) The Registrar Cooperative Society or his
Representative, Arunachal Pradesh.
(v) The Director ol Horticulture, Arunachal
Pradesh.
(vi) The Director of Agriculture, Arunachal Pradesh.
(vii) The Managing Director, of the Horticultural
l\rlarketing Board who shall be the l\ilember
Secretary.
(viii) One representative of NABAFID, ltanagar.
(B) Non-oflicial members :-
(i) The President of Arunachal Chamber ol
Commerce and lndustry.
(ii) One of the horticultural progressive farmer.
5 (1) The term and tenure of the Board shall be for 5
(five) years.
(a) "The term of the otfice of Chairman of the Board
shall be for five years and the Chairman of the
Board shall be appointed or nominated by the
Governmenl from such non-official members
of prominent public Ieaders or elecled
Constitution
ol the Board
Term of office
of the Chair-
man and the
non-otlicial
members of
the Board.
Disqualif ication
of l\.4ember of
the Board.
Resignation of 7
Members of
Board.
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representative and shall not be removed from
the post before the expiry oftenure as specified
under the Act, unless, his removal is
extremely warranted under law on ground of
his/her involvement in the corrupt practice. lf
State Government feel appropriate, the
Chairman of the Board may be re-appointed
for another term as deem fit.
(b) The Chairman of the Board shall exercise such
powers and functions as may be delegated to
him by the Board or as may be prescribed."
(2) The tenure of the Non-Official members of the
Board shall hold office during the pleasure ol the
State Government and shall come to an end as
soon as he ceases to hold the office by virtue of
which he was nominated.
(3) Whenever there is a temporary vacancy in the
office of the Chairman, the Vice-Chairman shall
act as the Chairman during the period.
6. No person shall be eligible to become a member of
the Board who :-
(a) Does not ordinarily reside within Arunachal
Pradesh;
(b) ls below 25 years oi age ;
(c) Has been removed under section 8 or Section
33 of this Act ;
(d) ls of unsound mind;or
(e) Has been declared insolvent or sentenced by
a criminal court, whether within or outside
Arunachal Pradesh for an offence involving
immoral turpitude.
Provided that the disqualification under
clause (e) on the ground of a sentence by a
criminal court shall not apply after the expiry
of tenure lrom the date on which the sentence
of such person has expired.
The Chairman of the Board may resign by tendering
his resignation to the State Government and a member
other than the Chairman of the Board may resign from
membership by tendering his resignation to the State
Government through the Chairman of the Board, and
the seat of such Chairman or the member. as the case
may be, shall become vacant on the date of acceptance
of his resignation.
8. The State Government may remove any non-otficial
member of the Board who has become subject to any
of the disqualilicatlon specified in section 6 or who is,
in its opinion, is unlit to act, as a member or remiss in
the discharge of his duties.
Provided that before removing a member, the
reasons for the proposed action to be taken shall be
conveyed to him/her and his/her reply invited within a
specified period and duly considered :
Provided further that any vacancy of the ndn-
official member shall be filled in as early as practicable.
I (1) The Board shall have a Managing Director who
shall be appointed by the State Government and
consist of the following other otficers (i) One
General Manager (ii) Two Assistant General
Manager (Personnel, Accounting & Packaging)
(Redesignated lrom the existing Deputy
Manager) (iii) Seventeen Marketing Manager
and Seventeen Assistant Marketing Managers
(iv) One Accountant cum Cashier and such
other office bearer as may be appointed by the
State Government.
(2) The l\,lanaging Director appointed under sub-
section (l) shall also function as the Member
Secretary of the Board and shallbe appointed from
amongst the officers of Department of Horticulture
or Department of Marketing or from the serving
General l\,tanager of the Board.
(3) The General Manager shall function as Chief
Executive Ofticer of the Board and shail be
nominated/appointed from the Deputy Managers
of the Board on seniority basis by the State
Government.
(4) For the efficient discharge of dutles and functions
o{ the Board and the Committees, the State
Government, may appoint such other officers and
employees including Civil Engineer on deputation
as may be necessary.
Removal of
t\.,lembers ol
Board.
Appointment
of Officers
and
Servants of
the Board.
Allowances to 10
Chairman and
Non-Official
members of
the Board.
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(5) The Superintendence and control over all the
officers and employees of the Board and
Committees shall vest in the Managing Director
of the Board.
The Chairman and Non-Officialmembers of the Board
shall be paid from the Marketing Development Fund
for such sitting fees and allowances as may be
prescribed.
Powers and
functions of
Board.
11 . (1) The Board shall, subject to the provisions of this
Act perform the following functions and shall have
power to do such thing as may be necessary or
expedient for carrying out the following functions.
(l) Exercise superintendence and controlover all
the Committees established and constituted
under this Act.
(ll) Coordinate the working of the Committees
and other affairs thereof including progra-
mmes undertaken by such Committees for
the development of markets and market
areas;
(lll) Undertake the State Level Planning of the
Development of Horticu ltu re produce
markets;
(lV) Administration of the lvlarketing Development
Fund;
(V) To give directions to the Committees in
general or any Committees in particular with
a view to ensure improvement thereof ;
(Vl) Any other functions specifically entrusted to
it by this Act ; and
(Vll) Such other functions as may be entrusted to
the Board by the State Government.
(2) Without prejudice to the generality of the foregoing
provisions, such functions of the Board shall also
include-
(l) To approve proposals for selection ol new siles
by the Committees for establishment of
principal or sub-market yard;
(ll) To approve proposallor constructing infrastruc-
ture facilities in the market area such as
grading, pack houses, storages. processing.
other post harvest management facilities
etc ;
(lll) To supervise and guide the Committees in
the preparation of plans and estimates of
construction programme undertaken by the
Committee :
(lV) To execute all works chargeable to the Board'
fund:
(v) To maintain accounts and get the same
audited in such form and in such manner as
may be prescribed.
(Vl)To publish annually at the close ol the financial
year its progress report, balance sheet and
statement of assets and liabilities and send
copies thereof to each member of the Board
and the Slate Government.
(Vll) To undertake marketing extension activities
in the Board for the lransfer of marketing
technology and extension services. lt may
also make necessary arrangement for
propaganda and publicity on matters related
to regulate marketing of an Horticulture
produce and development of marketing ;
(Vlll)To provide lacilities for the trajning of otficers
and slaff ot committees and lhe Board after
assessing the demand for trained personnel
in Horticulture at all levels ;
I To prepare and adopt budget for the ensuing
rinancial year ;
1'ange or organize seminars/workshop/
. rtions, etc; on subjects related to
rre mafteting ;
Powers and 12
functions of
the Managing
Director of the
Board.
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(Xl)To do such other things as may be of general
interest to Committees or considered
necessary for the efficient functioning of the
Board :
(Xll) To organize and promote grading and
standardization of notified Horticu lture
produce and e-trading ; and
(Xlll) To set up Horticulture Produce Marketing
Standards Bureau to perform such functions
and duties as may be prescribed for the
purpose of promotion of grading, standardiza-
tion and quality certification of Horticulture
produce in the State;
The Managing Director of the Board shall :-
(l) 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 in accordance
with the procedure as may be prescribed ;
(ll) lncur expenditure from the Marketing
Development /corpus fund on the sanctioned
items ol work i
(lll) Havethe same powers as are conferred under
the financial rules of the Slate Government
on the Head of the Department and declared
as head of the Department and exercise such
other powers and discharge such other duties
as may be prescribed;
(lV) To sanction all type of leave, draw salaries,
lA. Bills etc of all categories of employees
under the Board ;
(V) To be the appointing authority of group C and
D employees including contingency staff.
(Vl) Have the power to transfer employees
Committee o{ the Board and vice-\,
administrative grounds ;
(Vll) ln case of emergency, directt
or stoppage of any work and (
which requires the sanction
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(Vlll) Prepare annual budget of the Board;
(lX) Anange for internal audit of the Board and
maintain records of the proceedings of the
meeting of the Board in accordance with the
procedure as may be prescribed ;
(X) Take such steps as deemed necessary for
execution of the decision of the Board ;
(Xl) lnspect the construction work undertaken by
the Committees either from their own tunds
or loans and or grants provided by the Board
or any other agencies and take corrective
measures;
(Xll) Report such acts either of the Committees
or ol the Board which are contrary to the
provisions laid down under this Act or rules
and bye-laws made thereunder to the State
Government ; and
(Xlll) Take such steps as deemed necessary for
etfective discharge of the tunctions of the
Board.
13. (1) The Board shall meet lor 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) All proceeding of the Board shall be authenticated
by the Chairman and the l\/lanaging Director ol the
Board.
(3) The Board shall conduct the business in such
manner as may be prescribed by regulation.
14. One third of the total members shall constitute a quorum
for meeting of the Board. All questions that may come
up before a meeting of the Board shall be determined
by a majority of votes of the members present and
voting; and in case ol equality ol votes, the Chairman
shall have a casting vote or the Chairman may overrule
any decision of the Board as may be deemed
necessary.
Provided that if a meeting is adjourned for want
'rorum, no quorum shall be necessary at the next
rg called for transacting the same business.
Meetings of
the Board.
Quorum.
Act of the
Board not be
invalidated.
Appointment
of Sub-
Committee.
Delegation of
Powers,
Notification of
intention of
developing
and regulating
Marketino ol
Notified Forti-
cultural
Produce.
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15. No act or proceeding of the board shall be invalid by
reason only on of the existence of any vacancy among
its members or any defect in the constitution thereof.
16. The Board may appoint Sub-Committees consisting
of three or more members which shall include
Chairman or Vice Chairman for the performance of
any of its duties or functions or for giving advice on
any matter incidental thereof and may delegate to such
Sub-Committee any of its duties or functions as it
may deem necessary.
1 7. 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, or is abusing its powers or
is guilty of corruption or mis-management, it may
suspend the Board and, tili such time as a new Board
is constituted, make such arrangement forthe exercise
of the functions ol the Board, as it may think lit :
Provided that the Board shall be constituted
within six months from the date of its suspension.
18. (1)The State Government may confened any power
to the Board under this Act except power to
make rules.
(2) Subject to the provisions of this Act, the Board
may by general or special order delegate to the
l\,lanaging Director of the Board or Sub-Committee
appointed by it or to any ofiicer of the Board any
of powers and duties conferred on it by or under
this Act as it may deem fit.
CHAPTER - III
REGULATION OF TRADING AND CONTRACT
FARi'lING
19. (1) The State Government on its own or on the
representation made by the growers or on the
recommendation otthe Board may, by notification,
declare its intention of exercising control over th.
purchase, slorage, processing and sale of'
Horticultural produce, in such area as ma''
specified in the notification, by inviting o'
or suggestions from the general pul"
period of thirty days from the date c
ol notilication which shall be cons
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(2)
20. (1)
After the expiry of the period specified in the
notilication issued under Sub-section (1), and afler
considering objections and suggestions, if any,
received before the expiry of the specified period,
and alter making such inquiry, as may be
necessary, the State Government may by
notification, declare the area specified in the
notification, or any portion thereof to be a market
area forthe purpose of this Act and that marketing
of all or any of the kinds of Horticultural produce
specilied in the notification shallbe developed and
regulated in such market area in accordance wath
the provisions ol this Act.
The State Government may, by notification ;
(a) Alterthe limits of a market area by including,
within it any other area in the vicinity thereof
orby excluding therefrom any area comprised
therein ; or
(b) Amalgamate two or more market areas and
constitute one committee thereof ; or
(c) Split up a market area and constitute two or
more committees thereol I or
(d) De-Establish a market.
(2) Every notification issued under sub-section ('l)
shall define lhe limits of the area to be included in
or excluded from a market area, or of the market
area to be amalgamated into one, or of the area
ol each of the markets to be de-established. as
the case may, be and shallalso specify the period
which shall not be less than six weeks from the
date ot publication ol the notification within which
objeclions or suggestions, if any, may be received
by the State Government.
Any person likely to be affected by the notification
rbjections issued under Sub-section (1) may,
hmit his objections or suggestions in writing to
'ltate Government.
Notification
of intention to
alter Limits of
or to split up
market
area to De-
stablish a
market .
l\ilarket yards, 21
Sub-l\,4arket
Yards, farmer's
Consumer and
private [,4arket
Yards.
80
(4) Objections and suggestions received under sub-
section (3) within the stipulated period shall be
considered and decided by the State Government
and lhereafter the State Government may. by
notification:
(a) lnclude the area or any part thereof in the
market area or exclude it therefrom :
(b) Constitute a new Committee for the
market area amalgamated ;or
(c) Split up an existing market area and constitute
two or more Committees for such areas, as
the case may be : or
(d) De-Establish a market.
(5) Where a notification under sub-section (4) has
been issued excluding such area in other market
area, the State Government shall, after consulting
the Board and the Committee concerned frame a
scheme to determine what portion of the assets
and other properties vested in one Committee shall
vest in the Committees and in what manner the
Iiabilities ol the Committees shall be apportioned
between the two Committees and such scheme
shall come into force on the date ol publication of
the scheme in the Oflicial Gazette.
(1) ln every market area, there may be-
(l) Market yard managed by the Committee ;
(ll) One or more than one sub-market yards
managed by the Committee ; and
(lll) Private market yards, private markets
farmers and consumer markets managed by
a person other than a Committee.
(2) The Board may with the prior approval of'
Government, by notification, declare an,
place including any structure, encl,
place, or locality in the market area
yard or sub-market yards for th.
area.
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22. Any person who desires to establish private yard for
the purchase ol Horticulture produce direct lrom
Horticulture, or for providing infrastructure lacilities, in
any market area for :-
(a) The process of the nolified Horticultural
produce.
(b) The Trade of notified Horticultural produce
of particular specification ;
(c) The export of notified Horticulture produce ;
and
Establishment
of private
yards, and
direct
purchase of
Horticulture
Produce from
Horticultural
producers.
Establishment
of consumer's
or farmers
markets and
creation of
post harvest
management
Facilities by
the Farmers/
Horticulturist
0r
Horticultural
producer.
23. (1)
(21
(3)
(4)
(d) The grading, packing and transaction in other
way by value addition of notified Horticultural
produce, shall make an application for
obtaining license in accordance with the
provisions of section 25 of this Act.
Consumer's orfarmeas market may be established
by developing infraskucture as may be prescribed,
by any person in any market area, and producer
may, himself sell his Horticulture produce direct to
the consumer in such market area. in the manner
as may be prescribed.
lr,larket service charge shall be collected on sale
of Horticulture produce by the seller and shall be
remitted to the proprietor of the consumer market.
Save as otherwise provided in this Act, no market
fee shall be leviable on the transactions undertaken
in the consumer's or farmer's market.
Notwithstanding anything contained in thisAct, any
farmers and Horticulturist may, for his bonafide use,
create post harvest management infrastructure
facilities at the farm level such as grading
standardization pack houses, storages (including
cold storages), primary processing for Horticultural
produce and other post harvest management
facilities forwhich the Central or State Government
may provide different scheme and the scheme
under Horticulture Technology lvlission being
.xecuted by the Department of Horticulture through
.ectorate of Marketing under the lnspection of
Governmenl of lndia.
Contract
Farming
Grant and
renewal of
license of
Private yard.
Power to
cancel or
suspend
license
oa
24. No person shall undertake contract larming unless
registered under Section 37 of this Act, and shall have
to enter into an agreement with contract farming
producer on such form and in such manner as may be
prescribed.
25. (1) Any person who under section 22 desires to
purchase notified Horticulture produce direct from
the Horticulturer or the producer or wishes to
establish a private market yard or under sub-
section (1) of section 23 desires to establish
consumer or ,armer markel in one or more than
one market area, shall apply to the lvlanaging
Director of the Board lor grant or renewal of
license, as the case may be, lor such period, in
such form, on such conditions and on payment of
such lees as may be prescribed.
(2) Application received under sub sectlon (1)for grant
or renewalof license may be accepted or rejected
for the reason to be accorded in writing, provided
that license shall not be granted or renewed il :-
(i) The Committee dues are outstanding against
the applicants.
(ii) The applicants are minor or bonalide ;
(iii) The applicant has been declared defaulter
under the Act and the rules and bye-laws
made thereunder ;
(iv) The applicant having been declared guilty
in any criminal case and convicted with
imprisonment;
(v) The State Government is satisfied that
granting or renewalof license to the applicant
is not going to promote the interest of the
producers;
(vi) There ls any other reasons which the
Managing Director of Board may consider
to be against the interest of producers or
consumers.
26. Subject to the provisions of this Act, any license issued
or renewed under section 25, may be suspended '
cancelled by the Managing Director olthe Board
affording the holder of such license the opn'
being heard, on lhe lollowing grounds :-
(a) Il the license has been obtained
mis-represenlation or lraud ; or
83
(b) lf the holder of the license or any of his/her
servant or any person acting on his/her behalf,
commits a breach of any of the terms or
conditions of license ;or
(c) ll the holder of the license in combination with other
license commits any act or abstains lrom carrying
on his/her normalbusiness in lhe market area with
the intention of willfully obstructing, suspending
or stopping the marketing of notified horticultural
produce in the market yard/sub-market yard and
in consequences whereol the marketing of the
nolified horticultural produce has been obstructed,
suspended;
(d) lf the holder ol the license has become an
insolvent : or
(e) lf the holder of the license incurs any disqualifica-
tion as may be prescribed ; or
(l) ll the holder of the license has committed of any
offence under this Act, for the first time and
committed the same offence within three years
tor subsequent convictions.
27, (11 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 markel area for the
marketing of nolified horticultural produce and
(ii) Operate in the market area as a market
functionaries.
(2) Nothing in sub-section (l) shall apply to the
following sale or purchase ol such horticultural
produce:-
(i) Where the sale is made by the producer
himsell to any person lor his/her domestic
consumption in the quantity up to prescribed
. limit ;
purchase or sale ol which is made by a petty
rder as may be prescribed;
Begulation of
marketing of
Notilied
horticultural
produce.
Sale of
notified
horticultural
Produce in
the market.
Establishment
of the
Comm-ittee in
district.
84
28. (1) All notified horticultural produce shall ordinarily
be sold in the marketyards, sub-marketyard orin
the private yards ot the license holder, subject
to the provision of sub-section (2) ;
Provided that notified horticultural produce
may be sold at other places to a license holder
especially permitted in his behalf under section
22 and 23 of this Act :
Provided further that it may not be necessary
to bring Horticulture produce covered under
contract farming to the market yard, sub-market
yard or private yard and such Horticulture produce
may be directly sold to contract farming sponsor
from farmers fields.
(2) The price of the notified Horticulture produce,
brought for sale into the market yard, shall be
settled by open auction or by any other transparent
system as may be prescribed and no deduction
shall be made kom the agreed price on any
account whatsoever from the seller :
Provided that the price of notified Horticulture
produce in the private yards shall be settled in the
manner as may be prescribed.
(3) Weighment or measurement or counting of all the
notified Horticulture produce so purchased shall
be done by such person and in such manner as
may be provided in the bye-laws.
CHAPTEB - IV
ESTABLISHMENT, CONSTITUTION, POWERS AND
FUNCTIONS
OF THE COMMITTEE IN DISTRICTS
29. (1) The State Government shall nolify, establish a
Horticulture produce market Committee for every
notified market area and shall specify itc
headquarter.
(2) Euery Committee established under .
(1) shall be a body corporate, h.
succession and a common sea'
and be sued in its corporate n'
the provisions ol section 7
85
acquire and hold property both movable and
immovable and to lease, sell or otherwise transler
any such property which may have become vested
in, or been acquired by it, and to contract and to
do all other things necessary for the purposes for
which it is established :
Provided that no Committee shall permanently
lransfer any immovable properly excepl in
pursuance of a resolution passed at a meeting
convened specify for the purpose by a majority ol
not less than threejorth of the members of the
Committee and with the prior approvalof the Board.
30. (1) The District Committee shallconsist of the following
members of whom 8 (eight) shall be ex-officio
members and two non-official members.
(2) Ex-officiomembers :-
(l) Deputy Commissioner/ADc - Chairman ;
(ll) DHO/Districl Marketing Officer-Vice-
Chairman
(il r) DAO
(rv) DVo
(v) ABCS
(vr) DFDO.
(Vll) SDHOs shall function as Marketing
Manager-cum-SecretaryiH DO Headqua(er.
(Vlll) Assistant Nlarketing Managers or HMOS
(3) The two non-official member shall be appointed
by the State Government out ol a panel of names
duly recommended by the Deputy Commissioner
concerned to be filled in the manner provided
hereunder:-
'' One non-official member from the producers
.f the notified market area; and
r non-otficial member lrom lhe traders
led under section 37 from the notilied
area.
Constitution
ot the
Committee
in Districts.
Term of office 31
of the
member of
the
Committee.
DiEualification 32
of member of
the
Committee.
Removal of
members of
the
Committee.
lvleeting ol the
Committee
86
(1 ) Subject to the provisions ol section 33 every non-
official member ol the Committee shall hold otfice
at the pleasure of the State Government.
(2) The term of an ex-officio member of the
Committee shall come to an end as soon as he
cease to hold the office by virtue of which he was
nominated.
No person shall be eligible to become a member of
the Committee if heincurs any of the disqualification
specified under section 6 of lhis Act.
33. The State Government may, at any time during the
period ol his office remove by notification. any
member, if such member has, in its opinion,been
guilty of misconduct or neglect of duty or has lost the
qualification on the strength of which he was
nominated:
Provided that before the Board notilies the
removal ol a member under this section, the reasons
for his proposed removal shall be communicated to
the member concerned and he shall be given an
opportunity of tendering an explanation in writing :
Provided lurther that any vacancy of the non-
otlicial members arising as a result of death,
resignation, retirement, transfer or removal shall be
filled in as early as practicable.
34. (1) Committee shall meet for the transaction of its
business at least once in three months provided
that the Committee may in specialcircumstances
meet at any time and at any place in the market
atea.
(2) The Chairman shall preside over meetings ol the
Commitlee and if he/she is absent, the Vice-
Chairman shall preside over the meeting of i'
committee and if both are absent one
members present in the meeting as
chosen by the members present
Chairman.
(3) SubJect to the provisions oI this A
shall conduct its business as r
87
35. No act of Committee or ol any Sub-Committee thereof
or of any person acting as a member, Chairman, Vice
Chairman, presiding Authority or Secretary of the
Committee shall be deemed to be invalid by reason
only of some defect in the constitution or appointment
of such Committee, Sub-Committee, Members,
Chairman, Vice-Chairman, presiding authority or
Secretary of the Committee or on the ground that they
or any of them were disqualified for such office, or
that forrnal notice of the intention to hold meeting of
the Committee orof the Sub-Committee was not given
duly or by reason of such act having been done during
the period of any vacancy in the olfice of the Chairman,
Vice Chairman, or Secretary of the Committee or
member of such Committee or Sub-Committee or for
any other inlirmity not affecting the merits of the case.
36. (1) Subjecttothe provisions of this Act, the Committee
may :-
(a) enforce the provisions of this Act, and the
rules and bye-laws made thereunder in the
notified markets.
(b) establish a market in the market area and
provide such facilities for persons visiting in
connection with the purchase, sale, storage,
weighment and processing of horticultural
produce concerned as the Board may, from
time to time direct.
(c) do such other act as may be required in the
relation to the superintendence, direction and
control of market or for regulating marketing
ol horticultural produce in any place in the
market area and Ior the purposes connected
with the matters aloresaid, and for that
purpose may exercise such powers provided
under this Act ; and
(d) do all such other acts which may bring
complete transparency in the pricing system
and transaction taking place in the market
area.
(2) Wilhout prejudice to the generality of the
foregoing provisions, the Committee may :-
(i) Maintain and manage the market yards and
sub-yard market yards within the market area.
Act of
Committee
not to be
invalidated
Powers and
functions of the
Committee.
8B
(ii) Provide necessary facilities for the marketing
and tacilities for the transportation of
horticultural produce within the market yards
and sub-market yards and outside the yards
and within the sub-market yards and outside
sub- market yards in the market area.
(iii) Regulate, conduct or supervise the auction
of notilied Horticultural produce in
accordance with the provision and procedure
laid down under the rules made under lhis
Act or bye-laws of the Committee.
(iv) Regulate the making. carrying out and
enforcement or cancellation of agreements
of sales weighment, delivery, payment and
all other matters relating to the market of
notilied Horticultural produce in the manner
prescribed.
(v) Provide for the settlement ol all disputes
betyveen the seller and the buyer arising out
on any kind of transaction Horticullural
produce and all matters ancillary thereof.
(vi) Take all possible steps to prevent adulteration
of notilied Horticulture produce.
(vii) Make registration for weighmen and labour
for weighing and transporting of goods in
respect of transactions held in the market
yard or sub-yards
(viii) Set up and promote public-private partnership
in management of the markets.
(ix) Promote public -private partnership for
carrying out extension activities in its area
viz, collection, maintenance and
dissemination of information in respect of
production. sale. storage. processing. prices
and movement of notified Horticulture
produce.
(x) Levy, take, recover and receive rates,
charges, fees and other sums of money to
which the Committee is entitled.
(xi) Regulate the entry of persons and vehicles,
trattic into the market yard and sub-market
yard visiting the market.
89
(xii) Compound otlences committed under this Acl
(except section 27) or rules and bye-laws
made thereunder.
(xiii) Acquire land and dispose off any movable
or immovable property for the purpose of
efliciently carrying out its duties.
(xiv) lnstitute or defend any suit, prosecution,
action, proceeding, application or arbitration
and compromise such suit, action,
proceeding, application or arbitration.
(xv) Keep a set of standard weights and measures
in each principal market yard and sub-market
yard against which weighment and
measurement may be checked.
(xvi) lnspect and venfy scales, weight and
measures in use in a market area and also
the books of accounts and other documents
maintained by the market functionaries in
such form and in such manner as may be
prescribed.
(xvii) Arrange to obtain fitness (health) certificates
from which are bought or sold in the market
yard or market area.
(xviii) Cany out publicity about the benetits of
regulation, the system of transaction, facilities
provided in the market yard etc; through
various means such as poster, pamphlets,
hoardings, cinema slides, film shows, group
meetings, electronic media etc; or through
any other means considered more etleclive
0r necessary.
(xix) Ensure payment in respect of transaction
which take place in the market yard to be
made on same day to the sellel, and in default
to seize the Horticultural produce in question
alongwith other property of the person
concerned and to arrange tor re-sale thereof
and in the event of loss, to recover with
charges lor recovery of the losses, if any,
lrom the original buyer and effect payment
of the price of the Horticulture produce to the
seller.
Registration
of market
functionaries
90
(xx) Recover the charges in respect of weighmen
and distribute the same totheweighmen and
iabour if not paid by the purchaser or seller,
as the case may be.
(xxi) Collect and maintain information in respect
of production. sale, storage. processing prices
and movement of notified Horticulture
produce and disseminate such information as
may be directed by the Board.
(xxii) With a view to maintain stability in the market,
take suitable measures to ensure that traders
do not buy Horticultural produce beyond their
capacity and avoid risk to the sellers in
disposing otf the produce, and grant llcenses
only after obtaining necessary security in cash
as bank guarantee according to the capacity
of the buyers ; and
(xxiii)Promote and undertake Horticu ltu re
processing including activity for value addition
in Horticultural produce.
(3) With the prior sanction of the Board, lhe
Committee may undertake the lollowing
functions:-
(l) Construction of roads, godowns, ropeways
and other inlrastructure in the market area to
facilitate marketing of Horticultural produce
and for the purpose give funds by the Board.
(ll) To provide on rent storage facilities for
stocking of Horticulture produce to
Horticultural producers.
(lll) To promote and encourage e-trading,
system, create inlrastructure and undertake
other activities and steps needed thereof.
(lV) To maintain and circulate lrom time to time
the data ol arrivals and rates of Horticulture
produces standard-wise brought into the
market area for sale as may be prescribed.
('1) Every person who, in respect of notified
Horticulture produce, desires to operate in the
market area as lrader, commission agent,
weighmen, labour, surveyor, ware housemen,
contract farming buyer, owner or occupier of
37
(21
(3)
(4)
38. (1)
(2)
91
processing factory or any other market
functionaries, shall apply to the Secretary ol
registration in such manner and within such period
as may be prescribed. The Secretary of the
Committee shall be the authority to grant
registration certificate with lhe prior approval of
the Committee.
Provided that any person may buy
Horticultural produce in the market yard/sib-market
yard on day to day basis even without getting
registered.
Provided lurther that any person who desires
lo trade or transact or deal in

Excerpt shown. Open the full act in Lexace.

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