The Gujarat Agricultural Produce Markets Act, 1963

GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENTS
Gujarat Act No. XX of 1964
The Gujarat Agricultural Produce
Markets Act, 1963
(As modified up to the 30th June 2006)
THE GUJARAT AGRICULTURAL PRODUCE MARKETS ACT, 1963.
CONTENTS.
PREAMBLE
SECTIONS.
CHAPTER I.
PRELIMINARY.
1. Short title, extent and commencement.
2. Definitions.
3. Determination of whether person is agriculturist.
CHAPTER II.
DIRECTOR AND OTHER OFFICERS.
4. Director and other officers.
CHAPTER III.
DECLARATION OF MARKET AREA, CONSTITUTION OF MARKETS
AND ESTABLISHMENT OF MARKET COMMITTEES.
5. Declaration of intention of regulating purchase and sale of agricultural
produce in specified area.
6. Declaration of market areas.
7. Declaration of market, market yard and market proper.
8. Operation in market under License.
9. Establishment of market committee or committees.
CHAPTER IV .
I
NCORPORATION AND CONSTITUTION OF MARKET COMMITEE
ITS POWERS AND DUTIES.
10. Incorporation of market committee.
11. Constitution of market committee.
12. Resignation of members.
13. Liability of members of market committee to removal from office.
1964 : Guj. XX]
Gujarat Agricultural Produce Markets Act, 1963 1
SECTIONS.
14. Disabilities from continuing member.
15. Filling up of vacancies.
16. Vacancy or defect in constitution not to affect proceedings of market
committee.
17. Chairman and Vice-Chairman of market committee.
18. Conduct of business of market committee.
19. Execution of contracts.
20. Budget estimate.
21. Accounts, audit, annual report.
22. Appointment of servants of market committee and conditions of ser-
vice.
23. Powers and duties of market committee.
24. Provisions for performance of duties of common nature where more
than one committee exists.
25. Appointment of sub-committee and delegation of powers.
26. Duties of market committees.
27. Licenses their issue, renewal, suspension or cancellation etc. and ap-
peals against refusal, suspension etc. of license.
28. Power to levy fees.
29. Power of entry and search.
30. Power to remove unauthorized persons from market.
31. Certain differences regarding construction of rules etc. about weights
and measures and other disputes to be decided by market committee.
CHAPTER V .
M
ARKET COMMITTEE FUND AND STATE AGRICULTURAL PRODUCE MARKET FUND.
32. Market Committee Fund.
33. Purposes for which the fund shall be expended.
34. [Deleted]
ii Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
SECTIONS.
CHAPTER V-A.
THE GUJARAT STATE AGRICULTURAL MARKETING BOARD.
34. Establishment of Agricultural Marketing Board.
34A. Constitution of Board.
34B. Disqualification for election on Board.
34C. T erm of office and conditions of service of members.
34D. Meetings of Board.
34E. Cessation of membership.
34F . Vacancies how to be filled.
34G . Temporary absence of Chairman.
34H. Proceedings presumed to be good and valid.
34.I. Officers and servants of Board and their conditions of service, etc.
34.T. Powers and functions of Board.
34K. Power and duties of Managing Director.
34L. Establishment and administration of State Agricultural Marketing De-
velopment Fund.
34M. Contributions to be paid to Board.
34N. Power of Board to borrow.
34.O. Utilization of Development Fund.
34P. Audit of Account.
34Q. Delegation of power.
34R. Appointment of committees.
34S. Power of State Government to hold inquiry.
34T. Liability of Chairman, other members, officers and servants of Board
for loss, waste or misapplication of funds,
34U. Super session of Board for default.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 iii
CHAPTER VI.
TRADE A LLOWANCE.
35. No trade allowance permissible except as prescribed.
CHAPTER VII.
OFFENCES, PENALTIES, INVESTIGATION AND PROCEDURE.
36. Penalty for contravention of section 6 or 8.
37. Penalty for making or recovering unauthorized trade allowance.
38. Payment of amount of fines to market committee.
39. Penalty for failure to furnish information etc.
40. Offences by companies.
41. Trial of offences.
42. Previous sanction necessary for prosecution.
43. Powers and duties of police officer.
CHAPTER VIII.
C
ONTROL.
44. Power to hold inquiry.
45. Power of Director to provide for performance of duties in default of
Market Committee.
46. Super session of market committee.
46A. Powers and duties of market committee not validly constituted to be
performed by Administrator by Government.
47. Power of Director to call for proceedings etc.
48. Powers of State Government to call for proceedings of market com-
mittee and to pass orders thereon.
CHAPTER IX.
M
ISCELLANEOUS.
49. Acquisition of land for purposes of this Act.
50. Members to be held responsible for misapplied funds.
iv Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
SECTIONS.
51. Recovery of dues as arrears of land revenue.
52. Power to denotify or divide market area.
53. Effect of denotification or exclusion of market area.
54. Power of State Government to dissolve and constitute market commit-
tee on alteration of limits of market.
55. Vesting of property etc., of dissolved market committee in new market
committee.
56. Admissibility of copy of entry as evidence.
57. Chairman, Vice-Chairman, Members, Secretary and servants of market
committee to be public servants.
58. Bar of suit in absence of notice.
59. Rules.
59A. Regulations.
60. Bye-laws.
61. Power to direct making of bye-laws.
62. Power of State Government to amend Schedule.
63. Provisions of certain laws not to apply.
64. Repeal and saving.
S
CHEDULE
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 v
GUJARAT ACT NO. 20 OF 1964. 1*
[THE GUJARAT AGRICULTURAL PRODUCE MARKETS ACT, 1963]
[20th May 1964]
Amended by Guj. 5 of 1965. Amended by Guj. 2 of. 1989 +++
Amended by Guj. 3 of 1979. + Amended by Guj. 10 of 1990
Amended by Guj. 17 of. 1985 ++ Amended by Guj. 3 of 1993.
An Act to consolidate and amend the law relating to the regulation of
buying and selling of agricultural produce and the establishment of
markets for agricultural produce in the State of Gujarat.
It is hereby enacted in the Fourteenth Year of the Republic of India as
follows :–
CHAPTER I.
PRELIMINARY.
1. (1) This Act may be called the Gujarat Agricultural Produce Markets
Act, 1963.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force on such date as the State Government may, by
notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise requires—
(i) “agricultural produce” means all produce, whether processed or not, of
agriculture, horticulture and animal husbandry, 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 production or growth of
agricultural produce, but does not include a trader or broker in agricultural produce
although such a trader or broker may also be engaged in the production or growth
of agricultural produce;
2(ii-a) “Board” means the Gujarat State Agricultural Marketing Board estab-
lished under section 34;]
(iii) “broker” means an agent whose ordinary course of business is to
negotiate and make contracts on payment of commission for purchase or sale of ag-
ricultural produce on behalf of his principal but does not include a servant of such
principal whether engaged in negotiating or making such contracts ;
(iv) “bye-law” means a bye-law made under section 60;
(v) “co-operative marketing society” means a society registered or deemed
to be registered as such under the Gujarat Co-operative Societies Act,  1961 and
engaged in the business of buying or selling of agricultural  produce or of process-
ing of agricultural produce and holding a licence;
3[(v-a) “Development Fund” means the State Agricultural Marketing De-
velopment Fund established under section 34L;]
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 1
Guj.
X of
1962
Short title
extent and
commence-
ment,
Definitions,
(vi) “Director” means the Director of Agricultural Marketing and Rural Fi-
nance, Gujarat State ;
(vii) “general commission agent’’ means a trader who bona fide buys or sells
or offers to buy or sell for an agreed commission, any agricultural produce on
behalf of another person and does or offers to do anything necessary for completing
and carrying out the transaction of such sale or purchase ;
(viii) “joint family” means an undivided Hindu family and in the case of
persons other than Hindus a group or unit the members of which are by custom joint
in estate or residence ;
(ix) “licence” means a licence granted under section 6 or, as the case may be,
a general or special licence granted under section 27 ;
(x) “licensee” means a person holding a general licence under this Act;
(xi) “local authority” means—
(a) a corporation constituted under the Bombay Provincial Municipal
Corporations Act, 1949; or
(b) a municipality constituted or deemed to be constituted under-
(i) the Bombay District Municipal Act, 1901, or that Act as  adapted
and applied to the Saurashtra area; cr
(ii) the Bombay Municipal Boroughs Act, 1925 or that Act as  adapted
and applied to the Saurashtra area or that Act as applied  to the Kutch area;
or
(c) a village panchayat constituted or deemed to be constituted under
the Bombay Village Panchayats Act, 1959 or a gram panchayat or nagar
panchayat constituted under the Gujarat Panchayats Act, 1961;
(xii) “market” means a market declared or deemed to be declared under this
Act ;
(xiii) “market area” means any area declared or deemed to be declared  to be
a market area under this Act ;
(xiv) “market committee” means a market committee established or deemed to
be established under this Act ;
(xv) “market proper” means any area declared or deemed to be declared to
be a market proper under this Act ;
(xvi) “prescribed” means prescribed by rules made under section 59;
(xvii) “principal market yard” means an enclosure, building or locality declared
or deemed to be declared to be a principal market yard under this Act ;
4[(xvii-a) “regulations” means regulations made under section 59A;]
(xviii) “retail sale” means a sale of any agricultural produce not exceeding
such quantity as a market committee may by bye-laws determine to be a retail sale
in respect of such agricultural produce ;
Bom,
LIX
of
1949.
Bom.
III of
1901.
Bom.
XVIII
of
1925
Bom.
III of
1959.
Guj.
VI of
1962
2 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
(xix) “rules” means rules made under section 59 ;
(xx) “Secretary” means a Secretary of a market committee appointed under
this Act ;
(xxi) “sub-market yard” means an enclosure, building or locality declared or
deemed to be declared to be a sub-market yard under this Act ;
(xxii) “surveyor” means a person who carries on the business of surveying
agricultural produce in respect of it’s quantity, quality, refraction, price and such
other factors as may be prescribed ;
(xxiii) “trader” means any person, who carries on the business of buying or
selling of agricultural produce or of processing of agricultural produce for sale and
includes a co-operative society, joint family or an association of persons, whether
incorporated or not, which carries on such business;
(xxiv) “weighman” means a person engaged in the business of weighing or
measuring agricultural produce ;
(xxv) “year” means a period of twelve months commencing and ending on
such dates as may be prescribed.
3. (1) Should a question arise whether or not any person is an agricul-
turist for the purposes of this Act, the Director shall decide the matter.
(2) Any person aggrieved by the decision of the Director may file an
appeal to the- State Government within sixty days from the date of such decision.
(3) The decision of the State Government under sub-section (2)  and sub-
ject thereto the decision of the Director under sub-section (1) shall be final.
CHAPTER II.
D
IRECTOR AND OTHER OFFICERS.
4. (1) The State Government may, by notification in the Official Gazette
appoint an officer to be the Director of Agricultural Marketing and Rural  Finance,
Gujarat State, who shall exercise such powers and perform such functions and
duties as are conferred or imposed on him by or under this Act and shall subject
to such general or special orders as the State Government may pass, superintend the
administration and carry out the purposes, of this Act.
(2) The State Government may appoint such number of officers as may be
deemed necessary to be Joint Directors or Deputy Directors who shall subject to the
control of the Director, exercise such powers, and perform such of his functions and
duties under this Act as the State Government may by general or special order
direct.
Determination
of
whether
persons is
agriculturist
Director and
other
officers.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 3
CHAPTER III.
DECLARATION OF MARKET AREA, C ONSTITUTION OF MARKETS AND
ESTABLISHMENT OF MARKET COMMITTEES.
5. (1) The Director may, by notification in the Official Gazette, declare
his intention of regulating the purchase and sale of such agricultural produce and
in such area, as may be specified therein. Such notification shall also be
published in Gujarati in a newspaper having circulation in the area and in
such other manner as may be prescribed.
(2) Such notification shall state that any objection or suggestion received
by the Director within the period specified in the notification which shall not be less
than one month from the date of the publication of the notification, shall be con-
sidered by the Director.
(3) The Director shall also send a copy of the notification to each of the
local authorities functioning in the area specified in the notification with a request
to submit its objections and suggestions if any, in writing to the Director within the
period specified in the notification.
6. (1) After the expiry of the period specified in the notification issued
under section 5 (hereinafter referred to in this section as “the said notification”),
and after considering the objections and suggestions received before
its expiry and holding such inquiry as may be necessary, the Director may,
by notification in the Official Gazette, declare the area specified in the said
notification or any portion thereof to be a market area for the purposes of
this Act in respect of all or any of the kinds of agricultural produce specified
in the said notification. A notification 
5[under this sub-section] shall also be
published in Gujarati in a newspaper having circulation in the said area and
in such other manner, as may be prescribed.
(2) Notwithstanding anything contained in any law for the time being in
force, from the date on which any area is declared to be a market area under sub-
section (1) , no place in the said area shall be used for the purchase or sale of any
agricultural produce specified in the notification except in accordance with the
provisions of the Act :
Provided that pending the establishment of a market in such area the Director
may grant a licence to any person to use any place in the said area for the purchase
or sale of any such agricultural produce and a licence so granted shall, unless it is
cancelled or otherwise ceases to be in force, continue in force until the establish-
ment of a market in the said area and for such period thereafter as may be pre-
scribed.
(3) Nothing in sub-section (2)  shall apply to the purchase or sale of any
such agricultural produce, if its producer is himself its seller and the purchaser
purchases it for his own private consumption.
Declaration
of interntion
of regulating
purchase
and
sale of agri-
cultural
produce in
specified
area.
Declaration
of market
areas.
4 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
(4) The Director may, on the report of the market committee or an officer
appointed by the Director in this behalf and after holding such inquiry as he deems
fit, suspend or cancel any licence granted under sub-section ( 2).
(5) After declaring in the manner specified in section 5 his intention of so
doing, and following the procedure therein, the Director may, at any time by noti-
fication in the Official Gazette, exclude any area from a market area specified in a
notification issued under sub-section ( 1), or include any area therein and exclude
from or add to the kinds of agricultural produce so specified any kind of agricultural
produce. 
6[A notification under this sub-section shall also be published in Gujarati
in a newspaper having circulation in the said area and in such other manner, as may
be prescribed.]
7. (1) For each market area, there shall be a market which shall consist
of—
(i) one principal market yard,
(ii) sub-market yards, if any and
(iii) all markets proper;
notified under sub-sections (2)  and (3).
(2) The Director may, by notification in the Official Gazette, declare any
enclosure, building or locality in any market area to be a principal market yard and
any other enclosure, building or locality to be a sub-market yard.
(3) Whenever the Director declares for any market area, the principal mar-
ket yard or a sub-market yard, he shall simultaneously declare, by notification in the
Official Gazette, an area within such distance of the principal market yard or sub-
market yard, as the case may be, as he thinks fit, to be a market proper, and
thereupon all industrial concerns in the said area with their compounds, godowns
and warehouses, where agricultural produce is stored shall stand included in the
market proper.
(4) For the purposes of this Act, a market shall be deemed to have been
established for any market area with effect from the date on which the principal
market yard and a market proper are declared for that area.
8. No person shall operate in the market area or any part thereof except
under and in accordance with the conditions of a licence granted under this Act.
9. (1) Save as otherwise provided in sub-sections (2)  and (3), the Direc-
tor shall establish a market committee for every market area.
(2) Where on the declaration of any area as a market area, the Director is
satisfied that it is necessary to establish a separate market committee for the effi-
cient regulation of the purchase and sale of any specified kind of agricultural pro-
duce in the market area, he may in addition establish for the market area a separate
market committee for the purpose.
Declaration
of market,
market yard
and market
proper.
Operation
in market
under
Licence.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 5
Establishment
of market
committee
or
committees.
(3) Where in respect of a market area for which a market committee has
been established any kind of agricultural produce is added under the provisions of
sub-section ( 5) of section 6, the Director may if satisfied that a separate market
committee for the regulation of its purchase and sale is necessary establish one for
the purpose.
(4) “Where more market committees than one are established for any
market area, subject to the provisions of section 24 each such market committee
shall be deemed to be separately established for a separate market area.
(5) Every market committee shall be deemed to be established under this
section with effect from the date on which it is duly constituted for the first time
under section 11.
CHAPTER IV .
I
NCORPORATION AND CONSTITUTION OF MARKET COMMITTEE.
Its powers and duties.
10. (1) Every market committee shall be a body corporate by such name
as the Director may specify by notification in the Official Gazette. It shall have
perpetual succession and a common seal, may sue and be sued in its corporate name
and shall be competent to acquire, hold, lease, sell or otherwise transfer property,
to raise loans upon the security of its property in the manner and subject to the
limits and other requirements including guarantees prescribed by rules, and to con-
tract and to do all other things necessary for the purposes for which it is established.
(2) A market committee shall be deemed to be a local authority within the
meaning of clause ( 26)  of section 3 of the Bombay General Clauses Act, 1904.
11. (1) Every market committee shall consist of the following members,
namely :—
(i) eight agriculturists who shall be elected by members of managing com-
mittees of co-operative societies (other than co-operative marketing societies) dis-
pensing agricultural credit in the market area;
(ii) four members to be elected in the prescribed manner from amongst
themselves by the traders holding general licences;
(iii) two representatives of the co-operative marketing societies situate in
the market area and holding general licences, to be elected from amongst the mem-
bers (other than nominal, associate or sympathiser members) of such societies by
the members of the managing committees of such societies:
Provided that where the number of co-operative marketing societies so situate
does not exceed two, only one representative shall be so elected;
(iv) one member to be nominated by the local authority (other than the
market committee) within whose jurisdiction the principal market yard is situated
from amongst its councillors or, as the case may be, members who do not hold any
general licence :
Provided that where under the law applicable to the local authority its coun-
cillors or members have vacated office and any person or administrator has been
appointed to exercise the powers and perform the functions of the local authority,
Incorporation
of market
committee
Constitation
of market
committee.
Bom.
I of
1904
6 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
such person or, as the case may be, administrator shall nominate a member under
this paragraph form amongst persons qualified to be councillors or members of the
local authority and not holding a general licence;
(v) two members to be nominated by the State Government :
Provided that when a market committee is constituted for the first time all the
members thereof shall be persons nominated by the State Government and shall
hold office for a period of two years from the date of their nomination.
(2)( a) If for any reason in the case of a market committee no election
is held, the Director shall report the fact to the State Government and with the
previous approval of the State Government nominate on the market committee
members of the respective class specified in sub-section (1) from amongst persons
qualified to be elected as members of the respective class.
(b) The persons so nominated shall hold office for such period not exceed-
ing two years as the Director may, with the approval of the State Government
determine.
(3) If for any reason in the case of a market committee an election does
not result in the return of the required number of qualified persons to take office,
the Director, after taking into consideration the views of the members already
elected shall as soon as possible nominate from amongst persons qualified to be
elected such number as is necessary to make up the required number and the
persons so nominated shall be deemed to have been duly elected as members of
the market committee.
(4)( a) The term of office of a market committee shall, save as otherwise
provided in this Act, be four years form the date of its first general meeting.
7[‘‘(aa) The state Government may, by order published in the Official Gazette
and for reasons to be recorded therein, extend the said term for a period not
exceeding one year in the aggregate.]
(b) Save as otherwise provided in this Act, the term of office of the
members of the market committee shall be co-extensive with the term of the market
committee and also shall be deemed to extend to and expire with the day immedi-
ately before the 8[date of the appointment of an Administrator under clause (a) of
sub-section (5)].
9[(5) (a) Where the term of office of a market committee has expired, the
State Government shall, by order published in the Official Gazette direct that–
(i) such parson as may be appointed by the State Government from time
shall be the Administrator to manage the affairs of the market committee, during the
period beginning with the date specified in the order and ending on the day imme-
diately preceding the date of the first general meeting of the market committee as
reconstituted on the expiry of the term of the market committee (hereinafter in this
sub-section referred to as “the said period”);
(ii) the market committee shall be reconstituted within such period not
exceeding one year in the aggregate as may be specified in the order.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 7
(b) Daring the said period, all powers, functions and duties of the  market
committee under this Act shall be exercised and performed by the Administrator.
(c) The Administrator may by an order in writing delegate any of the
powers, functions and duties to be exercised or performed by him under  clause (b)
to any officer for the time being employed by the market committee.
(d) The Administrator shall receive such remuneration from the Market
Committee Fund as the State Government may from time to time by general or
special order determine.”]
12. Any member of a market committee may in the prescribed manner resign
his office by tendering his resignation to the market committee, and the resignation
shall take effect on the date on which it is accepted by the Director  or on the expiry
of sixty days from the date of tendering the resignation whichever event occurs
earlier.
13. (1) The Director may, on the recommendation of the market commi-
ttee supported by atleast two-thirds of the whole number of members by an order
remove any member of the market committee elected or nominated under this Act,
if after holding such inquiry as he may deem fit, the Director is of the opinion that
such member has been guilty of neglect or misconduct in the discharge of his duties
or of any disgraceful conduct or has become incapable of performing his duties as
a member :
Provided that no resolution recommending the removal of any member shall
be passed by the market committee unless the member to whom it relates has been
given a reasonable opportunity of showing cause why such recommendation should
not be made :
Provided further that no order for removal of the member shall be passed by
the Director unless the member has been given a reasonable opportunity of being
heard.
(2) A member so removed may, within 30 days of the date of commu-
nication thereof to him, make an appeal to the State Government.
(3) The decision of the State Government on appeal made under sub-
section ( 2) and, subject thereto, the decision of the Director under subsection ( 1),
shall be final.
14. (1) An elected or nominated member shall cease to hold office as
such member if—
(i) he ceases to be a member of the electorate by which he was elected;  or
(ii) he being a member of the class specified in clause ( i) of subsection
(1) of section 11 is granted a general licence under this Act; or
(iii) he being a member nominated by a local authority, ceases to be a
councillor, or as the case may be, a member of the local authority, or is granted a
general licence under this Act.
Resignation
of members.
Liability of
members of
market
committee
to removal
from office.
Disabilities
from
continuing
member.
8 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
(2) The question whether any member ceases to hold office under sub-
section ( 1) shall be determined by the Director.
15. If at any time any vacancy occurs for any reason in a market committee
and remains unfilled, it shall be filled within such period and in such manner as may
be prescribed by the election or nomination as the case may be, of a member thereto.
The member so elected or. nominated shall hold office so long only as the member
in whose place he is elected or nominated would have held it if the vacancy had
not occurred.
16. No act or proceedings of a market committee shall be questioned on
the ground merely of the existence of any vacancy in, or any defect in the consti-
tution of, the market committee.
17. (1) Every market committee shall elect one of its members from the
members of the class specified in clauses ( i), (ii), and ( iii) of sub-section ( 1) of
section 11 to be its Chairman and another member to be its Vice-Chairman in  such
manner as may be prescribed.
(2) The Chairman or Vice-Chairman may resign from office by tendering his
resignation in writing to the market committee but it shall not take effect until it is
accepted by the Director or on the expiry of sixty days from the date of tendering
the resignation whichever event occurs earlier.
(3) A temporary vacancy in the office of the Chairman or Vice-Chairman
shall be filled in such manner as may be prescribed.
(4) The Chairman and Vice-Chairman shall exercise such powers and per-
form such duties and hold office for such terms as may be prescribed.
18. Save as otherwise provided in this Act, the business of a market
committee (including the holding of its meetings) shall be conducted in accordance
with the rules, which may also prescribe the quorum at meetings.
19. Every contract entered into by a market committee shall be in writing
and shall be signed on behalf of the market committee by its Chairman and two other
members, and no contract not so executed shall be binding on it.
20. (1) Every market committee shall have prepared each year on or
before such date, and in such manner, as may be prescribed a budget estimate of
its income, and expenditure for the next succeeding year.
(2) The market committee shall before such date as may be prescribed
sanction the budget so prepared without modifications or with such modifications
as it thinks
(3) Subject to any rules made in respect of reappropriation, no expenditure
shall be incurred unless there be a provision in the budget estimate so sanctioned.
Filling up of
vacancies
Vacaney or
defect in
constitution
not to affect
proceedings
of market
committee.
Chairman
and Vice-
Chairman of
market
committee.
Conduct of
business of
market
committee
Execution
of cont acts.
Budget
estimate.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 9
(4) A market committee may at any time during the year for which any
budget estimate has been sanctioned cause a revised or supplementary budget es-
timate to be prepared. Every such revised or supplementary budget estimate shall
be considered and sanctioned by a market committee in the same manner as if it
were an original budget estimate.
21. (1) The accounts and records of a market committee shall be mined
and the accounts audited, in the prescribed manner.
(2) Every market committee shall prepare an annual statement of accounts
and an annual report in the prescribed manner and submit the same to such authority
as may be prescribed.
22. (I) There shall be a Secretary for every market committee,, who shall
be appointed by the market committee with the approval of the Director and
subject to the terms and conditions prescribed. The Secretary shall exercise
such powers and perform such duties as the market committee may from time
to time direct.
(2) The market committee may employ such other officers and servants as
may be necessary for the management of the market. The market committee
shall, in the case of any officer or servant of Government whom it employs pay
such pension, contribution, gratuity or leave allowance as may be required by
the conditions of his service under Government for the time being in force.
(3) Subject to any rules made in this behalf, the market committee may
provide for the payment to its officers and servants of such salaries, leave allo-
wances, pensions or gratuities as it deems proper, and may contribute to any
provident fund which may be established for their benefit.
23. A market committee shall exercise the powers and perform the func-
tions and duties conferred or imposed on it by this Act and the rules.
24. (1) Where more market committees than one are established for any
market area, the Director may, notwithstanding anything contained in this Act, issue
general or special directions as to which of the market committees shall exercise,
perform and discharge respectively all or any of the powers, duties and functions
of the market committees under this Act, in which they are jointly interested or
which are of a common nature.
(2) The cost incurred by a market committee in pursuance of directions
issued under sub-section ( 1) shall be shared by the other market committees con-
cerned in such proportions as may be agreed upon, or in default of agreement, as
may be determined by the Director or such officer as the Director may designate
in this behalf. The decision of the Director or officer, as the case may be, shall be
final.
Accounts
audit, annual
report.
Appointment
of servants
of market
committee
and
conditions of
service.
Powers and
duties of
market
committee.
Provisions
for
performance
of duties of
common
nature where
more than
one
committee
exists.
10 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
25. (1) A market committee may appoint one’ or more sub-committees
consisting of such number of its members as it may determine, for carrying  out any
work or to report to it on any matter.
(2) A market committee may delegate to any one or more of its members
or to any such sub-committee such .of its powers and duties as it may deem nec-
essary.
26. It shall be the duty of every market committee to maintain and manage
the market, to take all possible steps to prevent adulteration and to promote grading
and standard dilation of the agricultural produce as may be prescribed, to provide
such facilities in the market as the Director may from time to time direct and to
enforce in the market area the provisions of this Act, the rules, bye-laws and the
conditions of licences granted under the Act in connection with the purchase and
sale of the agricultural produce with which it is concerned. It shall also be the duty
of every market committee to collect and maintain such information relating to
market intelligence as may be prescribed and to supply the same to Government
whenever so required.
27. (1) On the establishment of a market, the market committee may,
subject to rules made in that behalf, grant or renew a general licence or a special
licence for the purpose of any specific transaction or transactions to a trader, gen-
eral commission agent, broker, weighman, surveyor, warehouseman or any person
to operate in the market area or part thereof, or after recording its reasons there for,
refuse to grant or renew any such licence.
(2) Licences may be granted under sub-section ( 2) in such forms, for
such periods, on such terms and conditions and restrictions (including any provision
for prohibiting brokers and commission agents from acting in any transaction both
as buyer and seller, or on behalf of both the buyer and seller, and provision for
regulating advances, if any, to be made to agriculturists by brokers, commission
agents or traders and any provision for prescribing the manner in which and the
places at which auctions of agricultural produce shall be conducted and the bids
made and accepted and places at which weighment and delivery of agricultural
produce shall be made in any market area)as may be prescribed or determined by
he bye-laws and on payment of fees determined by the market committee Which
maxima as may be prescribed
(3) A market committee may, for reasons to be recorded in writing, sus-
pend or cancel a license,— •
(i) if the licence has been obtained through wilful misrepresentation or
fraud, or
(ii) if the holder thereof or his servant or any person acting on his behalf
with his express or implied permission, commits a breach of any of the terms,
conditions, or restrictions imposed by the licence, or
Appointment
of sub-
committee
and
delegation
of powers.
Duties of
market
committees.
Licences,
their
issue,
renewal,
suspension,
or
cancellation
etc. and
appeals
against
refusal,
suspension
etc. of
licence.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 11
(iii) If the holder of the licence has adjudged and insolvent and has not
obtained his discharge, or
(iv) if the holder of the licence is convicted of any offence under this
Act :
Provided that no licence shall be suspended or cancelled unless the holder
thereof has been given a reasonable opportunity to show cause against such suspen-
sion or cancellation.
(4) If in respect of any holder of a licence, it appears to the Director that
on any ground specified in sub-section ( 3) an action under that sub-section by the
market committee was necessary but that the market committee has not taken any
such action the Director may, on any such ground and for reasons to be recorded
in writing and after giving a reasonable opportunity to the holder of the licence ,to
be heard, by order suspend or cancel any licence granted or renewed under this
section.
(5) Any person aggrieved by an order refusing to grant or renew a licence
or suspending or canceling any licence may, appeal within thirty days from the date
of the communication of the order to him—
(i) to the Director, if such order has been made by a market committee and
(ii) to the State Government, if such order has been made by the Director.
(6) The Director or as the case may be, the State Government after giving
the appellant a reasonable opportunity of being heard, shall on such appeal make
such order as is deemed just and proper.
28. The market committee shall, subject to the provisions of the rules
and the maximal and minima from time to time prescribed levy and collect
fees on the agricultural produce bought or sold in the market area :
Provided that the fees so levied may be collected by the market committee
through such agents as it may appoint.
29. The Chairman, Vice-Chairman or Secretary of the market committee-
or any member, officer or servant authorized by the committee in this behalf, may—
(a) for carrying out any of the duties imposed on the market committee
under this Act at all reasonable times enter and search any place, premises
or vehicle, and
(b) seize any article in respect of which he has reason to believe that an
offence under this Act has been or is being or is about to be committed and
any vehicle or animal which he has reason to believe to be in use or to have
been used or to be about to be used for carrying such articles, and shall
detain the same so long as may be necessary in connection with any proceeding
under this Act or for a prosecution :
Power to
levy fees.
Power of
entry and
search.
12 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
Provided that a report of the seizure- shall forthwith be made by the person
seizing the article, vehicle or animal to the Chairman if he is not the Chairman
himself:
Provided further that the grounds for seizing any such article, vehicle or
animal shall be communicated in writing within twenty four hours of the seizure to
the person from whose possession the same was seized.
30. (2) The Chairman, “Vice-Chairman or Secretary of the market com-
mittee or any other member, officer or servant authorized by the committee in this
behalf may summarily evict from the market any person found to be opening  in the
market area without holding a valid licence.
(2) Such eviction shall be without prejudice to any punishment to which
the person evicted may be liable under this Act.
31. (1) Notwithstanding anything contained in the Bombay Weights and
Measures (Enforcement) Act, 1958 if any difference arises between an Inspector
appointed under section 15 of the said Act and any person interested as to the
meaning or construction of any rule or regulation or as to the method of verifying,
adjusting or stamping any weight or measure or weighing or measuring instrument
in any market area, at the request of the person interested it shall be and in other
case may be, referred by the Inspector to the market committee and the decision of
the market committee shall, subject to the provisions of sub-section (3), be final.
(2) If any dispute arises in the course of business under this Act between
persons operating in the market, any person who is party to the dispute may refer
it to the market committee and the decision of the market committee, subject to the
provisions of sub-section (3), shall be final.
(3) From a decision under sub-section ( 2) or ( 2) an appeal shall within
the time prescribed lie to the State. Government or such officer as the State Gov-
ernment may appoint in this behalf. The decision of the State Government or, as the
case may be, such officer shall be final.
CHAPTER V .
M
ARKET COMMITTEE FUND AND STATE AGRICULTURAL PRODUCE MARKET FUND.
32. All moneys 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 expen-
diture has been met shall be invested in such manner as may be prescribed in this
behalf.
m.
LXIX
of
1958.
Power to
remove
unauthorised
persons from
market.
Certain
differences
regarding
construction
of rules
etc. about
weights and
measures and
other
disputes to be
decided by
market
committee.
Market
Committee
Fund.
1964 : Guj. XX] Gujarat Agricultural Produce Markets Act, 1963 13
33. Subject to the provisions of section 32, the Market Committee Fund
shall be expended for the following purposes, namely :—
(1) the acquisition of a site or sites for the market;
(2) the maintenance and improvement of the market;
(3) the construction and repair of buildings necessary for the purposes of
such market and for the health, convenience and safety of the persons using it;
(4) the provision and maintenance of weights and measures;
(5) the pay, pensions, leave allowances, gratuities, compensation for inju-
ries resulting from accidents, compassionate allowances and contribution towards
leave allowances, pension or provident fund of, and loans not exceeding Rs. 2,000
in the aggregate to, the officers and servants employed by it;
(6) the expenses of and incidental to elections;
(7) the payment of interest on loans raised for the purposes of the market
and the provision of a sinking fund in respect of such loans;
(8) the collection and dissemination of information regarding matters relat-
ing to crop statistics and marketing of the agricultural produce notified under sec-
tion 6;
(9) payment of contribution to the State Agricultural Produce Markets Fund;
(10) propaganda in favour of agricultural improvement;
(11) Payment of allowances and travelling expenses to the members of the
market committee and sub-committees; and
11(11A) donation of an amount note exceeding twenty per cent. of the
Market Committee Fund (excluding the loans and funds raised or obtained for any
specific purpose) for the charitable purpose within the meaning of section 2 of the
Charitable Endowments Act, 1890 with the previous approval of the State Govern-
ment and subject to such conditions, as it may impose; and.’’]
(12) such other purposes under this Act as may be prescribed.
34. [State Agricultural Produce Markets Fund.] Deleted by Guj. 17 of 1985, s.3.
10[CHAPTER V-A
V-A THE GUJARAT STA TE AGRICULTURAL MARKETING BOARD.
34. (1) The State Government may, by notification in the Official Gazette,
establish, with effect from such date as may be specified in such notification, a
Board to be called “the Gujarat State Agricultural Marketing Board”.
(2) The Board shall be a body corporate, and shall have perpetual succe-
ssion and a common seal, and may in its corporate name sue and be sued and shall
be competent to acquire, hold and dispose of property, both movable and immov-
able, and to contract and to do all other things necessary for the purposes for which
it is established.
Parposes for
which the
fund shall
be expended.
Establishment
of State
Agricultural
Marketing
Board.
14 Gujarat Agricultural Produce Markets Act, 1963 1964 : Guj. XX]
(3) The Board shall be deemed to be a local authority within the meaning
of clause (26) of section 3 of the Bombay General Clauses Act, 1904.
34A. (1) The Board shall consist of the following members, namely :—
(i) the Chairman, who shall be nominated by the State Government;
(ii) nine members to be elected from amongst themselves by represen-
tatives consisting of one member each of a market committee to be determined from
amongst such of its members who are agriculturists by a resolution passed by such
market committee;
(iii) three members to be elected from amongst themselves by represen-
tatives consisting of one member each of a Market Committee to be determined
from amongst such of its members who are trades by a resolution passed by such
market’s Committee ;
(iv) the Secret

Excerpt shown. Open the full act in Lexace.

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