The Haryana Rural Development Act, 1986 (6 of 1986)

13
 THE  HARYANA  RURAL  DEVELOPMENT  ACT,  1986
(HARYANA  ACT  No. 6  OF  1986)
Table of Contents
Sections:
1. Short title and Commencement.
2. Definitions.
3. Establishment of Board, its constitution, powers and duties.
4. Officers and servants of  Board.
5. Imposition and collection of fee.
6. Constitution of fund.
7. Penalty.
8. Power to make rules.
9. Protection of action taken in good faith.
10. Power to remove difficulties.
11. Retention of cess.
 RURAL DEVELOPMENT ACT1986: Hr. Act 6]
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15
Short title and
commencement.
1THE  HARYANA   RURAL   DEVELOPMENT   ACT,  1986
(HARYANA ACT NO. 6 OF 1986)
(Received the assent of the Governor of Haryana on the 13th March, 1986
and was first published in the Haryana Government Gazette (Extraordinary),
Legislative Supplement Part 1 of the 27th March, 1986.)
12 3 4
Year No. Short title                 Whether repealed or otherwise
affected by Legislation
1 98 6 6 The Haryana Rural Amended by Haryana Act 22 of
Development Act, 1986 1988 2
Amended by Haryana Act 12 of
1991
3
Amended by Haryana Act 19 of
1998 
4
Amended by Haryana Act 15 of
1999
5
Amended by Haryana Act 7 of
2012
6
Amended by Haryana Act 9 of
2013
7
Amended by Haryana Act 19 of
20148
AN
ACT
to provide for the establishment of the Haryana Rural Development Fund
Administration Board for augmenting agricultural production and
improving its marketing and sale.
Be it enacted by the Legislature of the State of Haryana in the Thirty-
seventh Year of the Republic of India as follows:—
1. (1) This Act may be called the Haryana Rural Development Act,
1986.
(2) It shall be deemed to have come into force with effect from the
30th September, 1983.
1986 : Hr. Act 6]  RURAL DEVELOPMENT ACT
1 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 26th February, 1986, Page 295.
2 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 23rd March 1988, Page No. 402.
3 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated 22nd February, 1991, Page 458.
4 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 15th July, 1998, Page 1080.
5 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 23rd June, 1999, Page 1314.
6 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 1st March, 2012, Page 694.
7 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 22nd February, 2013, Page 899.
8 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary),
dated the 1st March, 2014, Page 971.
16
2. In this Act, unless there is anything repugnant to the context,—
(a) “agricultural produce” means all produce whether processed or
not, of agriculture, horticulture, animal husbandry or forest as
may be prescribed;
(b) “Board” means the Haryana Rural Development Fund
Administration Board constituted under section 3 of the Act;
(c) “dealer” means any person who within the notified market area
sets up, establishes or continues or allows to be continued any
place for the purchase, sale, storage or processing of agricultural
produce, or in the notified market area purchases, sells, stores or
processes such agricultural produce;
(d) “Fund” means the Haryana Rural Development Fund;
(e) “rural area” means area other than the area of a municipality
administered under the Haryana Municipal Act, 1973;
(f) “prescribed” means prescribed by rules made under this Act;
(g) “processing” means giving a treatment or a series of treatment to
an agricultural produce in order to make it fit for use or
consumption and includes manufacturing out of agricultural
produce; and
(h) words and expressions not defined in this Act shall have the
meaning assigned to them in the Punjab Agricultural Produce
Markets Act, 1961.
3. (1) The State Government shall, for exercising powers conferred on
and performing the functions and duties assigned to the Board by or under this
Act, establish and constitute the Haryana Rural Development Fund Administration
Board.
(2) The Board constituted and established by the State Government
in terms of sub-section (1) shall consist of a Chairman and such other official and
non-official members as the Government may determine and appoint.
(3) The Board so constituted shall be a body corporate having
perpetual succession and a common seal with powers, 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 non-official members of the Board shall
be three years.
 1[(4-A) The non-official members shall hold office during the pleasure
of the State Government.]
1. Inserted by Haryana Act 22 of 1988.
Definitions.
Establishment of
Board, its
consitution,
powers and duties.
[1986 : Hr. Act 6 RURAL DEVELOPMENT ACT
17
(5) No person shall be eligible to become a member of the Board
who—
(a) does not ordinarily reside within the State of Haryana;
(b) is below twenty-five years of age;
(c) is of unsound mind; or
(d) has been declared as insolvent or sentenced by a criminal
court, whether with in or outside the State of Haryana for an
offence involving moral turpitude:
Provided that the disqualification incurred under clause (d) 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 has expired.
(6) A member of the Board may resign from membership by tendering
his resignation to the State Government and the seat of such member shall become
vacant on the date of acceptance of his resignation.
1[(6-A) The State Government may appoint a member against a
vacancy caused by the death or resignation of a member:
Provided that the term of the member so appointed shall expire
on the same date as the term of office of vacating member would have expired.]
(7) The State Government may remove the Chairman or any member
of the Board who has become subject to any of the disqualifications specified in
sub-section (5) or who is, in its opinion, remiss in the discharge of his duties and
may appoint another member in his place:
Provided that before removing any member the reason for the proposed
action shall be conveyed to him and his reply invited within specified period and
duly considered:
Provided further that the term of the member so appointed shall expire
on the same date as the term of office of the vacating member would have expired.
(8)  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 th e 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 suspend the Board and, till such time as a new Board is
constituted, make such arrangements for the exercise of the functions of the Board
as it may think fit:
Provided that the Board shall be constituted within six months from
the date of its suspension.
1 Inserted by Haryana Act 12 of 1991.
1986 : Hr. Act 6]  RURAL DEVELOPMENT ACT
18
(9) 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 sanction 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.
(10) Subject to rules made under this Act, the Board may, with the
approval of the State Government, frame bye-laws for—
(a) regulating the transaction of business at its meetings; and
(b) such other matters as may be specified.
4. (1) The Board may with the prior approval of the State Government
create such posts and appoint officers and servants thereto as it may consider
necessary for the efficient discharge of its duties.
(2) The conditions of service, functions and duties of the officers
and servants of the Board shall be such as may be prescribed.
5. (1) With effect from such date, as the State Government may by
notification appoint in this behalf, there shall be levied on the dealer for the purposes
of this Act, a fee on ad-valorem basis, at the rate of 
1[two] percentum of  the sale
proceeds of agricultural produce bought or sold or brought for processing in the
notified market area:
Provided that except in case of agricultural produce brought for
processing—
(a) no fee shall be leviable in respect of any transaction in which
delivery of the agricultural produce bought or sold is not
actually made; and
(b) the fee shall be leviable on the dealer only in respect of a
transaction in which delivery is actually made :
2[Provided further that rate of fee on cotton with effect
from 1st November, 2011 shall be 0.8 per centum :
Provided further that rate of fee on potato during the
period from 22nd December, 2011 to 31st March, 2012
shall be 1 per centum :]
3[Provided further that with effect from 1st September,
2012, the rate of fee on vegetables and fruits only, as
mentioned in Schedule under clause (b) of rule 2 of the
Haryana Rural Development Rules. 1987, shall be one
per centum :]
4[Provided further that from the date of notification
of the Haryana Rural Development (Amendment) Act,
2014, no fee shall be charged on vegetables and fruits,
as mentioned in Schedule under clause (b) of rule 2 of
the Haryana Rural Development Rules, 1987.]
1. Substituted By Haryana Act 15 of 1999.
2. Added by Haryana Act 7 of 2012.
3. Added by Haryana Act 9 of 2013.
4. Added by Haryana Act 19 of 2014.
Officers and
servants of Board.
Imposition and
collection of fee.
[1986 : Hr. Act 6 RURAL DEVELOPMENT ACT
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(2) The fee as hereinfore provided shall be paid by the dealer, in
such manner as may be prescribed, to such officer or person, as may be appointed
or designated by the Board in this behalf.
(3) Since the burden of fee imposed by sub-section (1) is not intended
to be put on the dealer, the dealer shall be under a statutory obligation to add the
amount of fee in the purchase price recoverable by him from the next purchaser of
agricultural produce or the goods processed or manufactured out of it.
(4) The arrears of fee shall be recoverable as arrears of land revenue.
6. (1) There shall be constituted a fund called the Haryana Rural
Development Fund which shall vest in the Board.
(2) It shall be administered by such officer or officers of the Board as
may be appointed by it in this behalf.
(3) The amount of fee paid to the officer or the person shall be credited
to the Haryana Rural Development Fund within such period as may be prescribed.
(4) To the credit of the Fund shall be placed—
(a) all collections of fee under section 5;
(b) grants from the State Government and local authorities; and
(c)
1[contributions made by corporations, institutions, other
agencies or individuals.]
(5) The fund shall be applied by the Board to meet the expenditure
incurred in the rural areas in connection with the development of roads,
establishment of dispensaries, making arrangements for water supply, sanitation
and other public facilities, welfare of agricultural labour, conversion of the notified
market areas falling in rural area as defined under this Act, into model market
areas by utilizing technical know-how thereto and bringing about other necessary
improvements therein, construction of godowns and other places of storage, for
the agricultural produce brought in the market area for sale/purchase and the
construction of rest houses, equipped with all modern amenities, to make the stay
of visitors (both sellers and purchasers) in the market area, comfortable and for
any other purpose which may be considered by the Board to be in the interest of
and for the benefit of the person paying the fee. The Fund may also be utilized by
the Board to meet the cost of administering it.
(6) The Board shall publish annually a report of the activities
financed from the Fund, together with an estimate of receipts and expenditure of
the Fund and a statement of accounts.
7. Any person who contravenes the provisions of this Act or the rules
framed there under shall be punishable with fine which may extend to five hundred
rupees or upto the amount of fee which, the dealer is liable to pay, whichever is
more.
8. (1) The State Government may make rules to carry into effect the
purposes of this Act.
(2)  Without prejudice to the generality of the foregoing power, such
rules may provide for—
1. Added by Haryana Act 19 of 1998.
Constitution of
fund.
Penalty.
1986 : Hr. Act 6]  RURAL DEVELOPMENT ACT
Power to make
rules.
20
(a) the preparation and submission for sanction of an annual
budget under sub-section (9) of section 3;
(b) the making of refunds and recoveries of the fee imposed
under section 5;
(c) period within which the amount is to be deposited under
sub-section (3) of section 6; and
(d) any other matter which has to be or may be prescribed.
9. No suit, prosecution or other legal proceeding shall lie against the
State Government or any officer of the State Government or Board or local authority
in respect of anything which is in good faith done or intended to be done in
pursuance of this Act or of any rules or orders made thereunder.
10. If any difficulty arises in giving effect to the provisions of this Act, the
State Government may by order do anything not inconsistent with such provisions
which appears to it to be necessary or expedient for the purpose of removing the
difficulty.
11. (1) The cess/fee levied and collected under the provisions of the
Haryana Rural Development Fund Act, 1983 for the period commencing from the
30th September, 1983 to the date of notification issued under sub-section (1) of
section 5 of this Act, shall be deemed to have been levied and collected under this
Act and notwithstanding anything contained in any judgment, decree or order of
any court, it shall be lawful for the State Government to retain the cess so levied
and collected from the dealer if the burden of such cess was passed on by the
dealer to the next purchaser of the agricultural produce or the goods processed or
manufactured out of it in respect whereof such cess was levied or collected.
(2) No suit or other proceedings shall be instituted, maintained or
continued in any court for the refund of whole or any part of the cess retained by
the Government under sub-section (1) and no court shall enforce any decree or
order directing the refund of whole or any part of such cess.
(3) If any dispute arises, as to the refund of any cess retained by the
Government by virtue of sub-section (1) and the question is whether the burden of
such cess was passed on by the dealer to the next purchaser, it shall be presumed
that such burden was passed on by the dealer.
(4) If the amount of cess retainable by the Government under
sub-section (1) has not been paid by, or has been refunded to, any dealer the same
shall be recoverable by the Government as arrear of land revenue.
Protection of
action taken in
good faith.
Power to remove
difficulties.
Retention of cess.
[1986 : Hr. Act 6 RURAL DEVELOPMENT ACT

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