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The Assam Agricultural Produce Market Act, 1972

Assam · state statute
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ASSAM ACT X X III OF 1974
(R eceived the a ssen t o f the P revisent on th e 3rd Septem ber, 1974
THE ASSAM AGRICULTURAL PRODUCE MARKET Act, 1972
CHAPTER I
P relim in ary
CONTENTS
Clause
1. Short title, extent and commencement ...
2. Definitions
CHAPTER II
C onstitution o f the State A gricultural M arketing Board, M arket  
and M arket C om m ittee
3. Constitution of the State Agricultural Marketing Board. ..
4. Notification of intention of exercising control over 
Purchase and Sale of Agricultural Produce in 
specified Areas.
5. Declaration of Market ..
6. Declaration of Market Yard, Area
7. Establishment of Market Committee
8. Constitution of Market Committee
9. Term of Office of Members of Market Committee
10. Chairman and Vice-Chairman of Market Committee
11. Removal of Chairman and Vice-Chairman ... ...
12. Calling of Meetings and Quorum
CHAPTER III
Incorporation o f M arket C om m ittee, its O bjects. P ow ers  
and D uties
13. Incorporation of Market Committee ... ... ...
14. Functions of the Market Committee
 
 
Clause
15. Powers of the Market Committee
16. Duties of the Market Committee
17. Appointment of Sub-Committee and Joint-Committee
18. Appointment of Secretary ...
19. Appointment and Salaries of Staff of Market Com­
mittee.
20. Execution of Contract...
21. Powers to Levy Cess ...
22. Certain differences regarding construction 
of Rules, etc., about Weights and Measures 
to be decided by Market Committee.
23. Market Committee Fund
24. Pool of Officers ... ... ... ... .. ‘
25. Purposes for which the Market Committee 
Fund shall be extended.
26. Mis-application of Fund
27. Power to Borrow
28. Acquisition of land for the purpose of this Act
CHAPTER IV
Trade allowances
29. No Trade Allowance permissible 4[except as prescribed ... »
CHAPTER V
9 
M iscellaneous
330. Liability of members of Market Committee to removal ... 
from Office.
31. Members to be held responsible for Mis-application
of Funds.
32. Duty of Officers and Members toi furnish Information ... 
to Director and other Authorised Officers.
33. Powers to Inspect ... ... ••• ••• •••

(iii)
Clause
34. Power of the Director in Emergency ...
35. Recovery of loss
36. Power to Enforce Attendance ...
37. Supersession of a Market Committee ...
38. Consequences of Supersession ...
«
39. Penalty for contravention of Section 5
40. Eviction of Encroachers of Market yard or yards.
41. Penalty for making or recovering Trade Allowance 
other than an Allowance prescribed by Rules or Bye- 
Laws made under this Act.
42. Penalty for contravening provisions of Section 32
43. Chairman, Vice-Chairman, Members and Staff of 
M arket Committee to be Public Servants.
44. Bar of Suit in absence of Notice
45. Trial of Offences
46. Admissibility of Copy of entry as Evidence
47. Recovery of Sums due to and from Market Committee
48. Power of the State Government to delegate its Power ...
49. Rules ... ... ... ... ...
50. Bye-Laws
51. Powers of the Director to impose Bye-Laws ...
52. Power of State Government to call for Proceedings 
of Market Committee and to pass Orders thereon.
53. Power of State Government to amend the Schedule ...
54. Savings

THE ASSAM AGRICULTURAL PRODUCE M ARKET ACT- 1972 
[ P u b lish ed  in  th e A ssa m  G azette, E xtra rdinary, dated th e 24th  
Septem ber, 1974 J
An 
Act
To provide for b etter regulation  o f buying and se llin g  o f  
agricu ltu ral produce and the esta b lish m en t o f m arkets for agri­
cu ltu ra l produce in  th e State o f  A ssa m  and  
for m a tters connected th erew ith
Preamble. Whereas it is expedient to provide for better 
regulation of buying and selling of agricultural 
produce in the State of Assam and establishment 
of regulated markets for agricultural produce;
And whereas the previous sanction of the 
President of India under the proviso to Article 304(b) 
of the Constitution of India has been obtained 
for the introduction of the Bill in the Legislative 
Assembly;
It is hereby enacted in the Twenty-third year 
of Republic of India as follows :—
CHAPTER I
P relim in a ry
Short title, 1.(1) This Act m aybe called the Assam Agri­
extent and cultural Produce Market Act, 1972.
commence-
m e n t' (2) It shall extend to such area or areas of
the State of Assam as may be notified by the State 
Government from time to time in the Official 
Gazette.
(3) It shall come into force on such date as 
the State Government may, by notification in the 
Official Gazette, appoint.
2. (1) In this Act, unless there is anything repug­
nant in the subject or context S
(i) “Agricultural Produce” means and includes any 
produce whether processed or non-processed of 
agriculture, horticulture, animal husbandry, 
pisciculture, sericulture and forest as specified 
in the Schedule ;
(ii) “ Agriculturist” means a person who ordinarily 
by himself or who by his tenants or hired 
labour or otherwise is engaged in the produc­
tion of agricultural produce but does not in­
clude a dealer or broker in agricultural produce 
although such a dealer or broker may also be 
engaged in the production or growth of agri­
cultural produce;

2
(ill) “ Gaon Panchayat” means a Panchayat esta- 
blished under Section 4 of the Assam Panchayati 0 " '
Raj Act, 1972 ;
(iv) “ Board” means the State Agricultural Market­
ing Board constituted under Section 3 ;
(v) “ Broker” means an agent, whose ordinary 
course of business is to negotiate and make 
contracts for the purchase or sale of 
agricultural produce on behalf of his 
principal and who is remunerated by 
commission; but does not include the 
servant of such principal whether engaged 
in negotiating or making such contracts;
(vi) “Bye-laws” means bye-laws made under 
Section 50 ;
(vii) “ Certificate Officer” means the officer so Bengal Act n
defined in the Bengal Public Demands Recovery 11 of 1913
Act, 1913;
fviii) “ Commission Agent” means a person who 
on behalf of another person and in consi­
deration of commission makes or offers to 
make purchase or sale of agricultural 
produce or does or offers to do anything 
necessary for completing and carrying out 
such purchase or sale ;
(ix) ‘Co-operative Bank” means the Assam Act I of
Co-operative Apex Bank Ltd., registered 1950.
under the Assam Co-operative Societies 
Registration Act, 1949 or any other Co­
operative Bank formed for the State of
Assam as an Apex Bank and includes a 
District Central Co-operative Bank;
(x) “ Co-operative Marketing Society” means « •
a Co-operative Society registered under
the Assam Co-operative Societies Act, 1949 
which has as its principal object the promo­
tion of the sale of agricultural produce 
grown, reared or produced by its mem­
bers or which is declared as such or 
equivalent thereto by the State Government;
(xi) “Director” means the Officer appointd by 
the State Government to discharge all or 
any of the functions of the Director under 
this Act ;

3
(xii) “ District Council”  means a District Council, 
consti tuted under paragraph 2 of the Sixth 
Schedule to the Constitution of India ;
(xiii) “ Gaon Panchayat” means a Gaon Pan Assam Act 
chayat established under the Assam Pan- X I  o f 1973 -  
chavati Raj Act, 1972 ;
(xiv) “ Licencee” means a person or association, 
firm or company granted a licence under 
this A c t;
(xv) “Local authority” means a Corporation, a 
Municipal Board or a Town Committee, a 
Mohkuma Parishad or a Gaon Panchayat;
(xvi) “ Market” means a regulated market esta­
blished under this Act for the market area 
and includes a market proper, a principal 
market yard and a sub-market yard or 
yards, if any ;
(x/ii) “ Market area” means any area declared to 
be a market area under Section 5 ;
(xviii) “Market Committee’’  means a Committee 
established under Section 7 ;
(xix) “ 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 in the official Gazette, 
declare it to be a market proper;
(xx) “ Market year” means the financial year adopt­
ed and followed by the State Government;
(xxi) “ Measurer” means a person whose business 
is to measure consignments of agricultural 
produce for sale;
(xxii) “Mohkuma Parishad”means a Mohkuma Pari- Assam Aet 
shad established under section 3 of the Assam XI of 1 9 7 3 . 
Panchayati Raj Act, 1972;
(xxiii) ' ‘Notification” means a notification publish­
ed in the official Gazette ;
(xxiv) “ Notified agricultural produce” means the 
agricultural produce specified in the notifica­
tion issued by the State Government under 
sub-section (1) of section 5;

4
(xxv) "Prescribed” means prescribed by rules 
made under this Act;
(xxvi) "Principal market yard” and "sub­
market yard” means an enclosure, building 
or locality declared to be a principal 
market yard and sub-market yard respec­
tively in the official Gazette by the State 
Government;
(xxvii) "Progressive producer” means a pro­
ducer who in the opinion of the Director 
of Agriculture, Assam carries on agricul­
tural production on improved method;
(xxviii) “ Proprietor” means the owner of a mar­
ket and includes any person who is in actual 
charge and or in direct control of the market 
whether such person is the owner of the mar­
ket or is the lessee thereof or is acting on 
behalf of such owner or lessee;
(xxix) ''Registrar” means the Registrar of the Co­
operative Societies, Assam;
(xxx) “retail sale” means a sale of any agricultural 
produce not exceeding such quantity as may 
by bye-laws or rules be fixed in respect of such 
agricultural produce;
(xxxi) “ rules” means rules made under this 
Act;
(xxxii) ‘‘State Government” means the State 
Government of Assam;
(xxxiii) “ Schedule” means a schedule to this 
Act;
(xxxiv) “ Secretary” means the Chief Executive of 
the market committee and includes officiating, 
acting, Deputy and Assistant Secretary;
(xxxv) “ Surveyor” means a person whose business 
is to survey a consignment of agricultural 
produce for sale in regard to quality, grade, 
refraction, adulteration and such other pur­
poses;
(xxxvi) “ trade” means any kind of transaction of- 
sale and purchase or any kind of remunera­
tion of sale and purchase of any agricultural 
produce;

(xxxvii) “ trader” means a person ordinarily engaged 
in the business of buying and selling of 
agricultural produce as a principal or a duly 
authorised agent of one or more principals 
and includes a person ordinarily engaged in 
the business of processing of agricultural 
produce;
(xxxviii) “ Warehousing Corporation” means the 
State Warehousing Corpoiation established 
in Assam under Section 18 of the Ware- 
housing Corporation Act, 1972 ;
(xxxix) “weighman” means a person whose business 
is to weigh a consignment of agricultural 
produce for sale ;
(2) If a question arises whether a person is or 
is not an agriculturist or trader for the purpose of 
this Act, it will be decided in the manner prescribed 
and the decision of the State Government thereon 
shall be final.
E xplan ation :  For the purpose of this Act, th c 
word “person” includes any firm, joint family, asso­
ciation or body of individuals whether incorporated 
or not.
CHAPTER II
C onstitution o f th e State A gricultural M ar­
k etin g Board, M arket and M arket C om m ittee.
Constitu- 3 (1) The State Government may for exercising 
Stete ° f  t *i e P o w e r s  conferred on and duties assigned to the 
Agricultural Board by or under this Act, establish and constitute 
Marketing a State Agricultural Marketing Board consisting of 
Board. Chairman and 10 other members to be nominated 
by the State Government as follows:—
(a) One non-official Chairman.
(b) Officials of the Government of Assam—
(i) Director of Agriculture, Assam,
(ii) Director of Veterinary and Animal 
Husbandry, Assam,
(iii) Registrar of Co-operative Societies, Assam,
(iv) Secretary, Agriculture Department, Assam.
 
6 '
(c) Non-officials—
(1) one agriculturist member of the Market 
Committees,
(ii) one representative from Agricultural Farming 
Corporations formed under the Assam 
Agricultural Farming Corporation Act, 1973,
(iii) two progressive producers,
(iv) one licencee,
(v) one from amongst the members of the Co- o
operative Marketing Societies represented
in the Market Committees.
(2) The State Government shall nominate an 
officer of the Agriculture Department not below the 
rank of a Joint Director to be the Secretary of the
Board. *
(3) The Board shall be a body corporate by the 
name of the State Agricultural Marketing Board 
having perpetual succession and a common seal, 
with power subject to the provisions of this Act, to 
acquire and hold property and shall by the said name 
sue and be sued.
(4) The term of office of the Chairman and the 
non-official members of the Board shall be three years:
Provided that any non-official member nominated 
under clause (c) of sub-section (i) of this section 
shall cease to be a member of the Board 
from the date he ceases to be a member of a Market 
Committee representative of Agricultural Farming 
Corporation, or a Licencee or a member of the 
Co-operative Society represented in the Market 
Committee as the case may be.
(5) No person shall be eligible to become a 
Chairman or a member of the Board who—
(a) does not ordinarily reside within the State
of Assam ; a
(b) is below twenty-one year of age;
(c) has been removed under Section 30 of 
this Act;
(d) is of unsound mind ; or
(e) has been declared as insolvent or sentenced 
by a criminal court whether within or 
outside the State of Assam for an offence 
involving moral turpitude :

Provided that the disqualification under clause 
5 (c) on the ground of a sentence by a criminal court 
shall not apply after the expiry of four years from the 
date on which the sentence of such person expired s  \
Provided further that no person shall be 
nominated as Chairman of the Board consecutively 
for more than two terms.
(6) A non-official member of the Board may 
resign from membership by tendering his resignation 
to the State Government through the Chairman of 
the Board and the Chairman of the Board may 
resign by tendering his resignation to the State 
Government and such resignation shall be effective 
from the date of the acceptance by the State 
Government.
(7) The State Government may remove the Chair­
man or any member of the Board who has become 
subject to any of the disqualifications specified in 
sub-section (5) :
Provided that before removing the Chairman or a 
member the reasons for the proposed action shall be 
conveyed to him and his reply invited within a speci­
fied period and duly considered.
(8) In the vacancy caused by cessation of office 
of any member under proviso to sub-clause (4) or by 
resignation or removal of the Chairman or member 
under sub -sections (6) and (7) respectively of this 
section the State Government may nominate another 
in the manner provided in clause 3(1) (a) or 3(1) (c) 
as the case may be and such person shall remain in 
office for the remaining period of the term of his 
predecessor.
(9) The State Government shall exercise superin­
tendence and control over the Board and its emplo­
yees 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 
mismanagement, it may supersede the Board and, 
dll such time as a new Board is constituted, shall 
make such arrangements for the exercise of the 
unctions of the Board as it may think fit :
Provided that the new Board shall be consti­
tuted within six months from the date of its super- 
session.
(10) The Board shall exercise superintendence 
and control over the Market Committees in the 
manner prescribed.

(11) The State Government or the Chairman or the 
Secretary of the Board, or any other employee of the 
Board authorised in this behalf by the Board, may call 
for any information for return relating to notified agri­
cultural produce from a Market Committee or any 
other functionaries under or in relation to such Market 
Committees and shall have the power to inspect the 
records of a Market Committee or such functionaries 
as the case may be.
(12) Subject to the provisions of this Act, and the 
rules and bye-laws made thereunder, the Board may 
employ such persons for the performance of the func­
tions of the Board under this Act, and may give them 
such remuneration, as it may think fit, and may sus­
pend, remove, dismiss or otherwise punish any person 
so employed.
(13) Subject to rules made under this Act, an 
estimate of the annual income and expenditure of 
the Board for the ensuing year shall be prepared and 
passed by ' the Board and submitted every year for 
sanction of the State Government not later than the 
prescribed date. The State Government shall sanc­
tion and return the budget within two months from 
the date of the receipt thereof. If it is not received 
within two months it shall be presumed to have been 
sanctioned.
(14) Subject to rules made under this Act, the 
Board may, with the approval of the State Govern­
ment frame bye-laws for—
(a) regulating the transaction of business at its 
meeting;
(b) the assignment of duties and powers of the
Board to its Chairman, Secretary or per­
sons employed by it; and
(c) such other matters as may be prescribed.
(15) Four members shall constitute a quorum at 
a meeting of the Board:
Provided that if a meeting is adjourned for want 
of quorum, no quorum shall be necessary at such 
adjourned meeting.
(16) All questions before a meeting of the Board 
shall be determined by a majority of votes of the 
members present in the voting and, in case of equality 
of votes, the Chairman may exercise a casting vote.

9
(17) The State Government may delegate, by 
notification in the official Gazette any of the powers 
conferred on it by or under the Act, to any of its 
officers or to the Board or to the Chairman or its 
Secretary.
(18) The headquarters of the Board shall be 
located at a place to be determined by the State 
Government.
(19) No acto r proceeding of the Board shall be 
invalid by reason only of the existence of any vacancy 
among its members or any defect in the constitution 
thereof.
of’V ntem ion (1) The State Government may, by notifi-
of exercising c a t ' o n  in  the official gazette, declare its intention of 
control over regulating the purchase and sale of such agricultural 
purchase andproduce in such areas as may be specified in the notifi- 
cultura^ro- c a t-'o n -  A copy of the notification under this section 
duce'in spe- shall also be published in the area concerned in the 
cified area, manner prescribed:
Provided that no area within the limits of a Dis­
trict Council shall be included in the area specified in 
such notification except after consultation with the 
District Council concerned.
(2) The notification under sub-section (1) shall 
state that any objection or suggestion received by 
the State Government within a period of not less 
than one month to be specified in the notification 
under sub-section (1) shall be considered by the State 
Government.
ofeC ,market 5.(1) After the expiry of the period specified
°re a m a r e  in the notification issued under section 4 and after 
considering such objections and suggestions as may 
be received before such expiry and after holding such 
enquiry a# may be necessary the State Government 
may, by notification in the official Gazette, declare 
the area specified in the notification under section 4 
or any portion thereof to be a market area for the 
purpose of this Act in respect of all or any of the 
kinds of agricultural produce specified in the said 
notification. A copy of the notification under this 
section shall also be published in the area conceined 
in the manner prescribed.
(2) On and after the date of the publication 
of the notification under sub-section (1) or at such 
later date as may be specified therein, no local autho­
rity or other person, notwithstanding anything con­
tained in any law for the time being in force, shall, 
within the market area or within a distance thereof
 
10
to be notified in the official Gazette in this behalf, 
set up, establish or continue or allow to be set up, 
established or continued, any place for the purchase 
or sale of any agricultural produce so notified, except 
in accordance with the provisions of this Act, and 
the rules and bye-laws, framed thereunder for pur­
chase or sale of any agricultural produce so notified.
(3) Nothing in sub-section (2) shall apply to the 
purchase or sale of such agricultural produce if the 
producer of such produce is himself its seller and 
the purchaser is a person, who purchases such produce 
for his own private consumption or if such agricul­
tural produce is sold by retail sale to a person who 
purchases such produce for his own private consump­
tion.
(4) The State Government, may, at any time 
by notification in the official Gazette exclude from 
the market area any area or any agricultural produce 
comprised therein or include in any market area, 
any area or any agricultural produce as included in 
the notification issued under Section 4.
(5) Subject to the provisions of section 4, the 
State Government may at any time by notification in 
the official Gazette withdraw any notification issued 
under sub-section (1).
Declaration 6(1) For each market area there shall be one 
of market principal market-yard and one or more sub-market 
yard*. y a r cj3 a s  m a y be necessary.
(2) The State Government may, by notification 
in the official Gazette, declare—
(i) any enclosure, building or locality in any 
market area to be the principal market-yard 
and other enclosures, buildings or localities 
in such market areas to be one or more 
sub-market yard or yards for the area ; and
(ii) any area including all lands with the 
buildings and structures thereon within 
such distance of the principal or sub-market 
yard or yards, as the case may be, as it 
thinks fit to be market proper.
Establish- 7. (l)T h e  State Government shall establish a 
ment of market committee for every area declared to be a 
myket com- market area under sub-section (1) of Section 5. It 
shall be the duty of the market committee to enforce 
fhe provisions of this Act and the rules and bye-laws 
ram ed thereunder in such market area.
 
11
(2) The State Government may establish a sepa­
rate market committee within the same market area 
or a part thereof provided it is satisfied that trading 
in a particular type of agricultural produce can be 
regulated only if and when an independent market 
committee already functioning is unable to undertake 
regulated trading in that commodity because of its 
peculiar nature :
Provided that not more than one Market Commit 
tee shall be established within the same market areal 
or a part thereof for the same type of agricultura 
produce. •
Constitaution 
of Marke 
Committee.
8. (1) Every market committee or a Gaon Pan 
chayat shall consist of the following members’ 
namely—
(i) seven agriculturists who are voters of Gaon 
Panchayat to be elected by the members 
of the Gaon Panchayat in the market area in 
the manner prescribed ;
(ii) three to be elected by the traders, other­
wise than co-operative marketing societies and 
Gaon Panchayat, holding valid licence under 
this Act from amongst themselves in the 
manner prescribed ;
(iii) one to be elected by the members of the 
Managing Committee or Board of Directors, 
as the case may be, of the co-operative 
marketing societies in the market area hol­
ding a licence under this Act from amongst 
themselves in the manner prescribed ;
(iv) one to be nominated by such co-operative 
Bank as may be decided upon by the State 
Government ;
9
(v) one to be nominated by the State Govern­
ment ;
(vi) one to be elected by the members of the 
Municipal Board, Town Committee or Gaon 
Panchayat within whose jurisdiction the 
principal market-yard is situated from 
amongst the members of the Municipal 
Board, Town Committee or Gaon Pancha­
yat, as the case may be. When the princi­
pal market-yard is situated within the 
jurisdiction of two or more local authorities 
of the type mentioned above, one member 
to be elected jointly by the members of the 
local authorities concerned from amongst 
themselves in the manner prescribed.
» ■

12
(vii) one to be nominated by the Warehousing 
Corporation, if a warehouse has been 
established, by such Corporation within 
the market area and where no such 
warehouse has been established, then two 
persons shall be elected by the Cooperative 
Marketing Societies under clause (iii).
(2) Notwithstanding anything contained in sub­
section (1),
on the failure of any organisation, person or 
authority to elect any member under sub section (1) 
within a period of three months from the date of 
the occurrence of the vacancy, the Director shall give 
notice in writing to the organisation, person or 
authority concerned to elect the member within a 
month from the date of such notice and on the 
failure of the organisation, person or authority to 
elect a member within the said period, the Director 
shall nominate a person on behalf of such organi­
sation, person or authority as a member of the market 
committee.
(3) When a market committee is constituted for 
the first time all the members of the market com­
mittee including the Chairman and Vice-Chairman
thereof shall be nominated by the State Government 
and such members shall hold office for a period 
of three years:
Provided that the State Government may extend 
the term of the Market Committee for a period 
not exceeding two years ;
Provided further that the extension period on 
any occasion shall not exceed one year a t a time.
9. (1) Every member of a market committee 
other than the first one constituted by the State Go-
Period 
office 
Market
Committee, vernment shall hold office for a period of three years 
commencing from the date of first meeting of the 
reconstituted market committee at which a quorum 
is present. The market committee shall, thereafter, 
be reconstituted every 
of the third year and 
prior to such expiry.
three years before the expiry 
not earlier than three months
(2) The term of three years referred to in 
sub-section (1) shall include any period which may 
lapse between the expiry of the said three years and 
the date of the first meeting of the reconstituted 
market committee, at which a quorum is present.
 
 
13
(3) The State Government may, by notification 
for sufficient cause to be stated therein, direct from 
time to time that the term of office of the members 
of a market committee be extended by such period 
not exceeding one year as may be specified in the 
notification.
(4) A member elected or nominated under 
sub-section (1) of section 8 shall cease to hold 
office, if he ceases to be a member of the category 
of persons from which he was elected or nominated.
(5) A member, shall also cease to hold office 
if he in writing resigns his membership and the 
same is accepted by the market committee or if 
he is removed by the State Government under the 
provisions of this Act.
of 
in
Chairman 
and Vice- n f 
Chairman of . 
Market Corn*m
___
(6) Whenever any vacancy occurs in member­
ship for any of the reasons aforesaid, the said vacancy 
shall be filled in by election or nomination as the 
case may be and every such member elected or 
nominated, shall hold office for the unexpired period 
of the term of the member in whose place he is 
elected or nominated.
(7) Notwithstanding any’  vacancy in a market 
committee it shall be competent to exercise its 
powers and perform its duties and none of its 
actions shall be questioned merely on the ground
the existence of any vacancy in or any defect 
the constitution of the committee.
10. (1) subject to the provision of sub-section (3) 
Section 8 every market committee shall elect, 
the manner prescribed, one of its members to 
its Chairman and another member to be its
Vice-Chairman.
(2) The Chairman and the Vice-Chairman shall 
exercise such powers and carry cut such duties on 
behalf of the Committee under this Act and the rules 
made thereunder from time to time, as may be 
prescribed.
(3) Whenever for any reason, the offices of 
both the Chairman and the Vice-Chairman of any 
Market Committee fall vacant, the State Govern­
m ent shall appoint any one from amongst the 
members of such market committee as the Chairman 
to hold office as such temporarily, till a Chairman 
is elected.

14
(4) The Chairman, or in his absence, the 
Vice-Chairman shall preside at every meeting of the 
market committee and in the absence of both the 
Chairman and the Vice-Chairman at any meeting, 
the members present shall elect one from amongst them­
selves to preside over that meeting.
(5) When a meeting is held for the removal 
of the Chairman or the Vice-Chairman or both,
(6) (a) the Vice-Chairman or in his absence, 
a member duly elected at the meeting shall preside, 
if the resolution relates to the removal of the
Chairman, a  >
(b) the Chairman or in his absence a member 
duly elected at the meeting, shall preside if the
resolution relates to the removal of the Vice-Chair- »
man.
(c) a member duly elected at the meeting shall 3
preside if the resolution relates to the simultaneous
removal of both the Chairman and the Vice-Chair­
man.
Removal of 11. (1) The Chairman or Vice-Chairman of
^ d ivj ia n  a n y m a i ’ ket committee may be removed from office 
Chairman.by a  resolution adopted by at least two-third of the 
total number of members of the market committee 
present and voting at the meeting convened for the 
purpose, in the manner prescribed.
(2) The State Government may, after giving 
an opportunity to explain, remove the Chairman or 
Vice-Chairman of a market committee from office 
if he persistently omits or refuses to carry out or 
disobeys the provisions of the Act or the rules made 
thereunder or any directive issued by the compe­
tent authority under this Act or rules made there­
under from time to time, or if he becomes incapa­
ble of so acting or is declared insolvent or is convic­
ted by a criminal court for any offences involving 
moral turpitude or declared disqualified under any „
of the provisions of this Act and the rules made 
thereunder.
Calling of 12. (1) No business shall be transacted at any 
meeting of the market committee unless,
rum.
(a) such meeting is called by the Secretary 
under the direction of the Chairman or 
Vice- Chairman, as the case may be, or as 
may be required on a requisition by the 
members as prescribed, and
(b) a quorum is present.

15
(2) The quorum referr d to in sub-section (1) 
shall be one-third of the total number of members 
of the market committee. If at any meeting the 
prescribed quorum is not present the meeting shall 
stand adjourned to some future day to be appointed 
by the Chairman, Vice-Chairman or any member 
who may preside at the meeting, as the case may 
be. The members present at such adjourned meeting 
shall form a quorum whatever their number may 
be.
CHAPTER HI
Incorpora ion o f M arket Committee, its objects,  
powers and duties
Incorpora- 13. (1) Every market committee shall be a
tion of mar- body corporate by such name as the State Govern- 
ttee 8 0 m In i*  ment may specify by notification in the official 
Gazette. It shall have perpetual succession and a 
common seal, may sue or be sued in its corporate 
name and shall be competent to acquire and hold 
lease, shall or otherwise transfer any property and 
to contract and to do all other things necessary 
for the purpose for which it is established.
(2) Where a market committee is established 
in any area, no person shall function as 
a trader, commercial agent, broker, weighman, 
measurer, surveyor, warehousemen or in such other 
capacity as may be determined by the Director 
in any market within the area, to work in a 
processing or pressing factory, unless a licence 
is issued to such person by the market committee 
on payment of such fees and subject to such 
conditions as may be prescribed.
14. The functions of a market committe 
Funtions shall a s follows : —  
of the 
market (i) to mantain and manage the market yard 
committee and t o  control, regulate, and run the
market in the interest of the agriculturists 
and traders holding licence from the market 
committee;
(ii) to regulate and control transactions in the 
market and to deal with licence holder 
who default to open, close and suspend 
trade in any notified agricultural produce, to 
settle disputes, levy and recover market charges, 
fees on an agricultural produce, licence 
and other fees, to impose fines and penal­
ties;

16
Power of 
the mar­
ket 
committee.
Duties of 
the 
market 
committee.
(iii) to act as a mediator, arbitrator or surve­
yor in all matters of differences, disputes, 
claims, etc., between licencees or bet­
ween them and agriculturists making use 
of the market as sellers of agricultural 
produce;
(iv) to control and regulate the admission to 
the market, to determine the conditions 
for the use of the market and to prosecute 
and confiscate the goods belonging to 
persons trading without a valid licence;
(v) to bring, prosecute or defend or aid in 
bringing, prosecuting or defending any suit, 
action, proceeding, application or arbitration 
on behalf of the market committee or 
otherwise as directed by the State Govern­
ment;
(vi) tn purchase, hire or acquire any land for 
construction of any house thereon or other 
movable or immovable property and other 
equipment for the purpose of its business, 
to raise fund from the Government or other­
wise with the approval of the Director for 
the said purpose and to enter into arrange­
ments with the Government, local authority 
or otherwise and to comply with such 
arrangements; and
(vii) to do such other things as may be required 
for the purpose of achieving the objects and 
requirements of the Act and the rules and 
bye-laws framed thereunder.
15. A market committee shall have the 
power to regulate entry of persons into the prin­
cipal or sub-market yards, to supervise the behaviour 
of the persons so entered for transacting business 
and to take disciplinary action against the licencee 
who fails to fulfil the conditions of the licence or 
any direction of the market committee, issued with­
in the purview of this Act or rules or bye-laws.
16. It shall be the duty of every market 
committee to enforce the provisions of this Act, 
the conditions of licence granted under the rules 
and bye-laws framed under the Act in the 
market area and to provide such facilities as the 
State Government may, from time to time, direct 
in connection with the purchase and or sale of 
notified agricultural produce concerned-.

17
Appoint- 17. A market committee may appoint a sub­
sub-* °f  committee or a joint committee or an ad-hoc 
vouinin e committee from amongst its members or any other 
and j nt ■  person from within the market area for the adm i- 
coninuttee. nistration of the sub-market yard, for the conduct 
of any work or for reporting or recommending 
or deciding any matter or matters and may 
delegate to such committee such of its powers or 
duties as it may think fit. There shall be at 
least three such members in such committee.
menT"^ 18. Every market committee shall have a Secre-
Secretary. t a r y appointed by the Board subject to such 
terms and conditions as may be prescribed.
Appointment 19. (1) A market committee may also employ 
ana salaries such other officers and staff as may be necessary 
market ° f  ^ O r  m a n a Se m e n t  ° f th e  market and may pay such 
committee, officers and staff such salaries as it may think fit.
(2) A market committee may also provide for 
payment of such leave allowances, pensions and gra­
tuities as it may deem proper and may contribute 
to any provident fund which may be established for 
the benefit of such officers and staff.
(3) The powers conferred by this section on 
the market committee shall be exercisable by it 
subject to any rules which may be made in this 
behalf by the Board.
Execution 20. Every contract entered into by a market 
• f  contracts. c e m m jttee shall be in writing and shall be signed 
by its Chairman, Secretary and two o ..er members 
• f  the committee.
Every market committee shall levy and 
c v y ' collect ja cess on the agricultural produce bought or 
sold in the market area at a rate not exceeding 
one rupee for every one hundr cd rupees of the 
aggregate amount for which a notified agricultural 
produce is bought or sold whether for cash or for 
deferred payment or other valuable considerations:
Provided that no cess shall be levied on goods manu­
factured from the agricultural produce on which 
eoss is proposed to be levied and which are ultimately 
e x p o rte d  out of the country.
E xplanation— -1. For the purpose of this 
section all notified agricultural produce taken out or 
proposed to be taken out of a market area, shall unless 
the contrary is proved, be presumed to be bought 
or sold within such area.

18
Explanation—2. The cess referred to in Sec­
tion 21 shall be paid by the purchaser of the notified 
agricultural produce concerned.
Certain diffe- 22. (1) Notwithstanding anything contained in
d'„ ce
Confa r’the Assam Weights and Measures (Enforcement)
Act, 1956, if any difference arises between the Inspector 
rules, etc. or any other officer, empowered to enforce the aforesaid 
about wei- Act and any person interested, as to the meaning 
measures^o01- c o n s t r u c t i° n  °f any r u ’e  framed under the afore- 
beCaSdecideds a id Act, as to the method of evolving, adjusting or 
by market stamping any weight or measure or weighing or mea- 
committee. suring instrument in any market area, such difference 
may, at the request of the person interested or by 
the Inspector or the officer of his own accord, be 
referred to the market committee of the area and 
the decision of the market committee shall subject^ 8am  Act 
to the provisions of the sub-section (2) be final and xiX of 
deemed to have been given under the Assam Weights 1 9 5 6 . 
and Measures (Enforcement) Act, 1956.
(2) An appeal shall lie against the decision of 
the market committee within thirty days (excluding 
the time required for taking copies) from the date of 
the decision under sub-section (1) to the State Govern­
ment or such officer, as the State Government may 
appoint in this behalf. The decision of the State 
Government or such officer as the case may be on 
such appeal shall be final.
Market 23. All money received by a market committee
Committee shall be paid into a fund to be called “The Market 
Fund. Committee Fund” and all expenditures incurred by
the market committee under or for the purpose of 
this Act shall be defrayed out of the said fund.
Any surplus remaining with the market committee 
after such expenditures shall be invested in such 
manner as may be prescribed in this behalf.
Pool of 24. (1) The Board shall create apool of officers
Officeis. as soon as may be convenient for appointment of
such staff at the markets as may be notified from 
time to time in the official Gazette. Every market 
committee shall contribute a sum not exceeding 30 
per cent of its gross revenue as may be determined 
by the Director to the fund of the Board to m eet 
the cost of staff to be appointed by the Board 
under sub-section (2) and also for meeting the cos’  
of general supervision.
(2)The Board shall make appointment to theof 
post notified under sub-section (1) from the pool j- 
officers created by the Board and it shall be obi 
gatory on every market committee to employ sue 1, 
persons. The emoluments and terms and conditions 
of service of such officers shall be fixed by the 
Board:
 
19
Provided that until a pool of officers is created 
by the Board the Director may permit employment 
of other persons to the posts notified under sub­
section (1) purely on temporary basis.
Purpose for 25. Subject to the provisions of Section 23 the 
™  *c -™ “rk e tmarket committee fund shall be expended for the committee 1 r
fund ihall be following purposes, namely :—
•xpended.
(i) contributing to general revenues of the 
Board, Mohkuma Parishads, Gaon Pan- 
chayats, Town Committees, and Munici­
pal Boards as the State Government may 
direct;
(ii) payment of interest on the loans that 
may be raised for the purposes of the 
market and the provisions of sinking fund 
in respect of such loans ;
(iii) the acquisition of a site or sites for the 
market ;
(iv) the maintenance and improvement of the 
market ;
(v) the construction and repair of buildings 
necessary for the purposes of such market 
and for the healthy convenience and 
safety of the persons using it ;
(vi) the provision and maintenance of standard 
weights and measures ;
(vii) pay, pensions, leave, allowance, gratuities, 
compensations for injuries resulting from 
accidents, compassionate allowances and 
contribution towards leave allowances, 
pensions or provident fund of the officers 
and staff employed by it ;
(viii) the expenses of and incidental to elections 
of the Market Committee ;
(ix) collection and dissemination of informa­
tion regarding matters relating to crop sta­
tistics and marketing in respect of the 
agricultural produce notified under Section 
5 ;
(x) payment of the costs referred to in Sec­
tion 24 ;
(xi) propaganda in favour o ! 'agricultural im­
provement ; and

20
(xii) other functions under the Act and the 
Rule:-.
Mis-apphca- 26. f a market committee incurs an expenditure 
tion o n . £ o r  a n y pUr pO se other than those specified under the 
last prec e ding section or in excess of the expenditure 
a pproved by the Director, then it shall be deemed to 
be a mis-application of the fund.
Power to 27. (1) A market committee may, with the pre­
Borrow. vious sanction of the State Government, raise money 
required for carrying out the purposes for which it is 
established on the security of any property vested in o
it and of any fees leviable by it under this Act.
(2) The market committee may, for the purpose *
of meeting the initial expenditure on lands, buildings
and equipment required for establishing the market, 
obtain loan from the State Government or any finan­
cial institution.
(3) The conditions subject to which such money or
loan shall be raised or obtained and time within which a
such money or loan shall be repayable shall be subject 
to the previous sanction of the State Government.
of Jand^for The ^ t a t e  Government may on the request
the purpose the Market Committee, acquire land required for 
of this Act. the purposes of this Act, under the provisions of the 
Land Acquisition Act, 1894.
CHAPTER IV
Trade Allowances
No trade 29. No person shall make or recover any trade 
nermbsible allowance other than an allowance prescribed by rules 
except as or bye-laws made under this Act, in any market areas 
prescribed, in any transaction in respect of the notified agricultural 
produce concerned and no Civil Court shall, in any 
suit or proceedfrigs arising out of any such transaction, 
have regard to or recognise any trade allowance not so 
prescribed. o
I
Explanation:— Every deduction, other than a 
deduction on account of deviation from sample when 
the purchase is made by sample or on account of 
deviation from standard, when the purchase is made 
by reference to a known standard or on account of 
difference between the actual weights of the container 
and the standard weight or on account of the 
admixture of foreign matter shall be regarded as a 
trade allowance for the purposes of this section.

21
CHAPTER V
Miscellaneous
e
e
30. (1) The State Government may, on the 
of the market Committee
supported by at least two third of the total 
members or on the recommendations of the 
Director remove any member of the market 
committee, elected or nominated under this Act, 
if such a member, has in the opinion of the 
State Government, been guilty of misconduct 
in the discharge of his duties, or has 
incapable of 
b e r :
Provided 
made by the 
unless the member has been given a reasonable 
opportunity of showing cause why such recom­
mendation should not be made :
Provided further that no order for removal 
of any member shall be passed by the State 
Government unless the member has been given 
a reasonable opportunity of showing cause why 
such order should not be passed.
(2) The decision of the State Government 
under sub-section (1) shall be final.
31. Every member of the market committee 
shall be personally liable for the mis-appli ca­
tion of fund to which he shall have been a 
party, or which shall have happened through, 
or been facilitated by gross neglect of his duty 
as a member, and he may be sued for recovery 
of the moneys so mis-applied :
Provided that no

Excerpt shown. Open the full act in Lexace.

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