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The Haryana Agricultural Produce Markets Act, 1961

Haryana · state statute
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MANUAL OF
HARYANA STATE AGRICULTURAL
PRODUCE MARKETS LAW
ACT, RULES & BYE-LAWS
HARYANA STATE AGRICULTURAL MARKETING BOARD
Sector 6, Panchkula
e-mail : [email protected] - website : www.hsamb.gov.in
For Office use only
Published by :
l e ` ¼  f d l k u ]  g e k j h  i g p k u
 
 
 
 
 
[ THE PUNJAB AGRICULTURAL PRODUCE MARKETS ACT, 1961, 
(PUNJAB ACT NO. 23 OF 1961) 
Received the assent of the President of India on the 18th May, 1961, and 
first published for general information in the Punjab Government 
Gazette (Extraordinary), Legislative Supplement, of the 26th May, 1961] 
 
 
1 2 3 4 
Years No. Short Title Whether repealed or otherwise 
affected by Legislation 
1961 23 The Punjab Agricultural 
produce Markets Act, 
1961 
Amended by Punjab Act 3 of 19222 Amended by Punjab 
Act 40 of 19623 Amended by Punjab Act 40 of 19634  
Amended by Punjab Act 2 of 19665   Amended by 
Haryana Act 28 of 19696   Amended by the Punjab state 
Agricultural marketing Board and Marketin Committees 
(Reconstitiution and Reorganisation), Order Amended by 
Haryana Act 25 of 19708                                                  
Amended by Haryana ACt 30 of 19719   
 
1. For Statement of Objects and Reasons, see Punjab Government Gazette (Extraodinary), 
1969, Page 1047. 
2. For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 
1962, Page 512. 
3. For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 
1962, Page 1640. 
4. For Statement of Objectis and Reasons, see Punjab Government (Extr aordiary), 1963, 
Page 1106. 
6. For Statement of Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1969, Page 508. 
7. See Government of India Ministry of Home Affairs, Natification No. 3021, dated 18 th July 
1969. published in Gazette of India (Extra.), Part II, Section 3 (ii), of 21st July, 1969.  
8. For Statement of Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1971, Page 990. 
The Punjab Agricultural Produce Markets [Punjab Act] 
 
 
1 2 3 4 
   Amended by Haryana Act 31 of 19711  
Amended by Haryana Aet 46 of 19712  
Amended by Haryana Act 4 of 19723  
Amended by Haryana Act 23 of 19724  
Amended by Haryana Act 21 of 19735  
Amended by Haryana Act 32 of 19746  
Amended by Haryana Act 10 of 19747  
Amended by Haryana Act 17 of 19758  
Amended by Haryana Act  21 of 19769    
Amended by Haryana Act  5 of  197610       
Amended by Haryana Act  22 of 197711    
Amended by Haryana Aet  13 of 197812   
Amended by Haryana Act  19 of 197813 
 
1. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1971, Page 1038. 
2. For Statement of Objects and Reasons, See Haryana Covernment Gazette 
(Extraordinary), 1971, Page 1208. 
3. For Statement of Objects and reasons, see Haryana Government Gazette 
(Extraordinary), 1972, Page 48. 
4. For Statement of Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1972, Page 1200. 
5. For Statement of Objects and Reasons, see Haryana Governemtn Gazette 
(Extraordinary), 1974, Page, 275. 
6. For Statement of Objects and R easons, see Haryana Government Gazette 
(Extraordinary), 1973, Page 1426. 
7. For Statement of Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1974, Page 118. 
8. for Statement of Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1974, Page 1852. 
9. For Statement of Object and Reasons, see Haryana Government Gazette 
(Extraordinary), 1975 Page 828. 
10. For Statement of Objects and Reasons, see haryana Government Gazette 
(Extraodinary), 1976, Page 1640. 
11. For Statement o f Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1977, Page 1640. 
12. For Statement of Objects and Reasons, see Haryana Government Gazette 
(Extraordinary), 1978, Page 210. 
13. For Statement of Objects and see Haryana Government Gazett e (Extraordinary), 1978, 
Page 1162.         
The Punjab Agricultural Produce Markets [Punjab Act] 
Act, 1961 
 
1 2 3 4 
   Amended by Haryana Act 10 of 19711  
Amended by Haryana Aet 19 of 19802  
Amended by Haryana Act 28 of 19803  
Amended by Haryana Act 38 of 19804  
Amended by Haryana Act 23 of 19865  
Amended by Haryana Act 4 of 19886  
Amended by Haryana Act 18 of 19887  
Amended by Haryana Act 24 of 19888  
Amended by Haryana Act  2 of 19889    
Amended by Haryana Act  1 of  198910       
 
AN ACT 
 “to provide f or improved regulation in marketing of agricultural produce, development of 
efficient marketing system, promotion of agri -processing and agricultural export and the 
establishment and proper administration of markets for agricultural produce in the State of  
Haryana and to put in place an effective infrastrucuture for marketing of agricultrual produce and 
lay down procedures and systems thereto.” 
 
1. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1979, Page 506. 
2. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1980, Page 444. 
3. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1980, Page 1296. 
4. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1980, Page 2223. 
5. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1986, Page 1310. 
6. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1987, Page 2018. 
7. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1988, Page 368. 
8. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1988, Page 1316. 
9. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1989, Page 387. 
10. For Statement of Objects and Reasons, see Haryana Government Gazette (Extrordinary) 
1989, Page 1799. 
11. Substituted for the Words “State of Punjab” see haryana” by Punjab State Agricultural 
Marketing Board and Marketing Committes (Reconstitution and Reorganisation), Order, 
1969. 
The Punjab Agricultural Produce Markets [Punjab Act] 
Act, 1961 
 
Short title extent 
and 
commencement 
 
 Be it enacted by the Legislature of the State of Punjab in the Twelfth Year of the Republic 
of India as follows :- 
 1[(1)] This Act may the called the Punjab Agricultural Produce markets Act, 1961. 
 1[(2)] It extends to the State of Punjab & Haryana, the territories transferred to the Union 
Territory of Himachal Pradesh under section 5 of the Punjab Reorganisation Act, 1966 (31 of 
1966) and the Union Territory of Chandigarh.] 
2.  In this Act, unless the context otherwise requires,  
(aa) “agriculturist” means a person who is a resident of notified market area and who is 
engaged in production of agricultural produce by himself or by hired labour or otherwise,, but 
does not include any market functionary. If a question arises whether any person is an 
agriculturist or not for the purpose of this Act, the decision of the Collector of the district in 
which such person is engaged in the production or growth of agricultural produce shall be 
final; 
 2  [(b) “Board” means the Punjab State Agricultural marketing Board or the Haryana state 
Agricultural Marketing Board established under the Act for the state of Punjab or the State of 
Haryana and including the Administrator of the Union Territory of Himachal Pradesh 
functioning as the Board for the transferred territory and the administor of the Union Territory 
of Chandigarh functioning as the Board for the Union Territory of Chandigarh.] 
(c) “broker” means a persons other than a private servant or an auctioneer, usually employed 
on commission to enter into contracts on behalf of others for the purchase or sale of 
agricultural produce; 
‘(ca) “bus iness” means purchase -sale, processing, value addition, storage, transportation 
and connected activites of agricultural produce; 
 (cb) “buyer” means a person a firm, a company or co -operative society or governernment 
agency, public andertaking/public agenc y or corporation, commission agentwho himself or 
on behalf of any other person or agent buys or agrees to buy agricultural produce in the 
market area as notified under this Act; 
 3 [(cc) “Chief Administrator” means the Chief Administrator of the Board :] 
(d) “Committee” means a market Committee established and constituted under sections 11 
and 12 : 
4(da) “contract farming” means farming by a contract farming producer under a written 
agreement with contract farming sponsor to the effect that his farm produce  shall be 
purchased as specified in the agreement; 
 
Definitions. 
 
1. Substitued for old sub -section (2) by the Punjab State Agricultural Marketing board and 
Marketing Committees (Reconstitution and Reorganisation), Order, 1969. 
 
2. Substituted by the Pu njab State Agricultural Marketing Board and Marketing Committee 
(Reconstitiution and Reorganisation), Order, 1969. 
 
3. Inserted by ibid. 
 
4. Inserted by Haryana Act 28 of 1980. 
The Punjab Agricultural Produce Markets [Punjab Act] 
Act, 1961 
 
 (db) “contrac t farming agreement” means an agreement made for contract farming between 
contract farming sponsor and contract farming producer; 
 (dc) “contract farming producer” means an agriculturist, association of agriculturists, self -help 
group, authorised tenants of agriculturist, co-operative societies registered under the Haryana Co-operative 
Societies Act, 1984 (22 of 1984), and shall include the successors, heirs, executors and representatives of 
the party executing the agreement; 
 (dd) “contract farming sponsor” means a person, a sole proprietor, a company registered under the 
Companies Act 1956 (1 of 1956), a (9 of 1932), a Government agency, a co -operative society registered 
under the Haryana Co -operative Societies Act, 1984 (22 of 1984), and shall include its  administrators, 
successors, representatives and assignees; 
(e) “Cooperative Society” means a Co -operative Society registered or deemed to be registered under the 
Punjab Co-operative Societies Act, 1954, * 3 [or any other corresponding law for the time bein g in force] 
which deals in the purchse, sale, processing or storage of agricultural produce, or is otherwise engaged in 
the business of disposal of agricultural produce; 
(f) “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 notified under sub -section (1) of section 6 or 
purchases, sells stores, or processes such agricultural produce;  
1[g] “Director” means the Director of Marketing for the State of Punjab or the State of Haryana or the 
transferred territory of the Union territory of Chandigarh, as the case may be, and includes a joint Director of 
Marketing]  
(h) “Godown keeper means a person, other than a producer who stores agricultural produce for 
himself for sales or stores agricultural produce of others in lieu of storage charges; 
2[hh] “Licensee” means a dealer to whom a licence is granted under section 10 and the rules made 
under this Act and includes any person  who  purchases or sells agricultural produce and to whom a licence 
is granted as Kacha Arhtia or Commission agent or otherwise but does not include a person licenced under 
section 13.} 
 
1. Subsituted for clause (g) by the Punjab State Agricul tural Marketing Board and Marketing 
Committees (Reconstitution and Reorganisation), Order, 1969. 
2. Clause (hh) inserted by Haryana Act 5 1976 and shall always be deemed to have to have been 
inserted. 
3. Clause (i) omitted by Punjab Act 40 of 1963. 
4. Clause (kk) added by Punjab Act 40 of 1963. 
5. Subsititued by Haryana Act 28 of 1980. 
6. Inserted by ibid w.e.f. 7-4-1979. 
7. Inserted by Haryana Act 18 of 1998. 
The Punjab Agricultural Produce Markets [Punjab Act] 
Act, 1961 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction of 
certain 
references in 
the Act. 
(i) “Market” means any area including all lands with the buildings thereon, within such 
distance of the Principal market or sub -market yard, as may be notified in the Official 
Gazette by the State Government, to be a market proper; 
‘(ia) “marketing” means all activities involved in the flow of agricultural  produce from 
the production points commencing from the stage of harvest till these reach the 
ultimate consumers viz. grading, processing, storage, transport, channels of 
distribution and all other contract farming; 
 (k) Market proper” means any area including all lands with the buildings 
thereon, within such distance of the Principal market or sub -market yard, as may be 
notified in the Official Gazette by the State Government, to be a market proper;  
 4[kk] “member” includes the 5(Chairman and the Chief Administrator) of the 
Board;)] 
 (l) “notified market area” means any area notified under section 6; 
 (m) “prescribed” means prescribed by rules made under this Act;  
 (n)  “principle market yard” and “sub -market yard” means an enclosure, 
building or locality declared to be a principle market yard and sub -market yard under 
section 7; 
 6[nn “processing” means giving a treatment or a series of treatment to an 
agricultural pro duce in order to make it fit for use or consumption and includes 
manufacturing 7(out) of an agricultural produce;] 
1[o] “producer” means a person whose sole avocation is to produce, grow or rear 
agricultural produce, through tenants or otherwise. If a ques tion arises as to whether 
any person is a producer or not for the purposes of this Act, the decision of the Deputy 
Commissioner of the district concerned shall be final: 
 Provided that no person shall be disqualified from being a producer merely on 
the ground that he is a member of a Co-operative Society: 
 provided further that a person shall be disqualified from being a producer if he 
subsequently obtains a licence under section 10 or section 13 of this Act. 
 Explanation.-The term “producer” shall also include tenants. 
 (p) 2[* * * * * * *] 
 (q) “retail sale” means sale of agricultural produce not exceeding such  
quantity as may be prescribed: 
 
 (r) “Secretary” means the Executive Officer of a Committee and includes an Assistant 
Secretary or a person officiating or acting as Secretary: 
 (s) “trade allowance” includes an allowance having the sanction of custom in the notified 
market area concerned and market charges payable to various functionaries; 
 3[t] “transferred territory” means the territory transferred to the Union territory of Himachal 
Pradesh under section 5 of the Punjab Re-organisation Act, 1966 (31 of 1966)]. 
 4[2A] In the application of the provisions of this Act,- 
 (1) to the State of Haryana, any reference therein to any expression mentioned in column 
(1) of the Table below shall be construed as a reference to the corresponding expression 
mentioned in column (2) of the said Table. 
TABLE 
 
 
1 2 
State Government. 
Punjab State or State of  
Punjab Except in section 
1of the Act. 
State Agricultural Marketing  
Board 
The Government of the State of 
 Haryana. 
State of Haryana. 
 
Haryana State Agricultural  
Marketing Board. 
 
1. Clause (o) substituted by Haryana Act 21 of 1973 and futher substituted by Haryana Act 
4 of 1998. 
2. Clause (p) deleted by the Pu njab State Agricultural Marketing Board and Marketing 
Committees (Reconstitutions and Reorganisation), order 1969. 
3. Clause (t) added by ibid. 
4. Section 2 -A added by the Punjab Agricultural Marketing Board and Marketing 
Committees (Reconstitution and Reorganisation), Oreder, 1969. 
The Punjab Agricultural Produce Markets 
Act, 1961 
 
 3. (1) The State Government may, for exercising the powers 
conferred on and performing the functions and duties assigned to the Board by 
or under this Act, establish and const itute a State Agricultural Marketing Board, 
consisting of 1[a Chairman 2(and a Chief Administrator, who shall be an officer of 
the rank of the Head of the Department,) to be nominated by the State 
Government and eleven other members of whom four shall be o fficials and 
seven non-officials] to be nominated by the State Government in the following 
manner :- 
3[a] official members shall include the Director and three officials, one representing 
the Agriculture Department, the second representing the Co -operative 
Department, and the third representing the Animal Husbandry Department;] 
 (b)  of the non-official members- 
 (i) one shall be producer member of Committees; 
 (ii) one shall be member of the other registered organisations  
  of the farmers’ 
 (iii) one shall be progressive producer of the State of Haryana; 
 (iv) one shall be from among such persons licensed under   
  section 10 as are members of the committee; 5 X X X] 
 (v) one representing co-opertive societies. 
 (vi) one shall be amongst the persons licensed under section  
  10; and  
 (vii) one representing Panchyat Samities. 
 7[2)] The Director shall be the ex-officio Secretary of the Board.] 
 8[(3)] The Board shall be a body corporate as well as a local authority by the 
name of the State Agricultural Mark eting Board having by the name sue and 
be sued, and shall, subject to the provisions of this Act, be competent to 
acquire and hold property both movable or immovable, to lease, sell or 
otherwise transfer any movable or immovable property which may have, 
become vested in or been acquired by it, and to contract and to do all other 
things necessary for the purposes of this Act.] 
 
State Agricultural 
Marketing Board 
constitution, powers and 
duties. 
 
1. Substituted for the words “fifteen other members of whom f our shall be officials and five 
non-officials” by Haryana Act 32 of 1973. 
2. Inserted by Haryana Act 28 of 1980. 
3. Substituted for clause (a) of sub-section (1) of section 3 by Punjab Act 40 of 1963. 
4. Substituted by the Punjab State Agricultural Marketing Board and Marketing Committees 
(Reconstitutions and Reorganisation), Order 1969. 
5. Omitted by Haryana Act 32 of 1973. 
6. Inserted by Haryana Act 32 of 1973. 
7. Substituted for sub-section Act 32 of 1973. 
8. Substituted by Haryana Act 4 of 1972. 
The Punjab Agricultural Produce Markets [Punjab Act] 
Act, 1961 
 
5[4] The non official members of the Board shall hold office during the  pleasure of the State 
Government; provided that their term of office shall not exceed three years.] 
(5) No person shall be eligible to become a member of the Board who- 
(a) does not ordinarily reside within the 1[State of Haryana];  
(b) is below twenty-five-years of age; 
6(c) [* * * * * * * *] 
(d) is of unsound mind ; or 
(e) has been declared as insolvent or sentenced by a crimi nal court, whether within or outside 
the 1[State of Haryana] for an offence involving moral turpitude : 
 2 [Provided that the disqualification incurred under,- 
6(i) [* * * * * * * * *] 
(ii) Clause (e), 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 through the Chairman of the Board and the seat of such mem ber shall 
become vacant on the date of acceptance of his resignation: 
 3[Provided that the Chairman 4and the Chief Administrator) of the Board may resign by 
tendering his resignation to the State Government.] 
 7 * * * * * 
 6[7A] Whenever any member of the Board dies, resignS, ceases to reside within the State 
of Haryana or otherwise becomes incapable of acting as a member of the Board 8(or any 
vacancy occurs otherwise) the state Govt. may appoint another member in his place in 
the manner as provided in sub -section (1) to whichever category the vacating member 
belongs; provided that the term of office of the member so appointed shall expire on the 
same date as the term of office of the vacating member would have expired had the latter 
held office for the full period allowed under sub-section (4).]. 
 
1. Subsituted for the Words “Punjab State” by the Punjab State Agricultural Marketing 
Board and marketing Committee (Reconstitution and Reorganisation) Order, 1969. 
2. Substituted for proviso to sub-section (5) of section 3 by Haryana Act 30 of 1971. 
3. Proviso to sub-section (6) of section 3 added by Punjab Act 40 of 1963. 
4. Inserted by Haryana Act 28 of 1980. 
5. Inserted by H.A. 4 of 1980 and further substituted by H.A. 24 of 1988. 
6. Omitted by H.A. 2 of 1989. 
7. Inserted by H.A. 2 of 1986. 
8. Inserted by Haryana Act 2 of 1989. 
No. 23 of 1961         The Punjab Agricultural Produce Markets 
Act, 1961 
 
 
(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 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 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. 
(9) The Board shall exercise superintendence and control over the Committees. 
1[(10)  The State Government, the Deputy Commissioner, Sub-Divisional Officer (Civil)- (the Chairman, the 
Chief Administrator) or  Secretary of the Board or any other officer of the Board authorised in this 
behalf by the Boa rd, may call for any information or return relating to agricultural produce from a 
Committee or a godown -keeper or other functionaries and shall have the power to inspect the 
records and accounts of a Committee and stock and accounts of any godown -keeper o r other 
functionaries for that purpose.] 
2[(11) * * * * * *] 
2[(12) * * * * * *] 
(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 sub mitted every year for 
sanction of the State government not later than 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. 
(14) 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 : 
 (b) the assignment of duties and powers of the Board to its Chair man, Secretary or persons 
employed by it; and 
 (c) Such other matters as may be prescribed.  
 
1. Substituted by Haryana Act 21 of 1973 and further substituted by Haryana 
Act 28 of 1980. 
2. Omitted by Haryana Act. 21 of 1973. 
The Punjab Agricultural Produce Markets        [Punjab Act]  
Act, 1961 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Execution of 
contracts by Board. 
(15) 1[Four] members shall constitute a quorum at a meeting of the Board:  
 Provided that if a meeting is adjourned for want of quoru m, no quorum 
shall be necessary at the next meeting called for transacting the same 
business. 
(16) All questions before a meeting of the Board shall be determined by a 
majority of votes of the members present and voting and, in case of 
equality of votes, the Chairman may exercise a casting vote. 
(17)(i) The State Government may delegate to the Board or its  2[Chairman, 
Chief Administrator] or Secretary, any of the powers conferred on it by 
or under this Act; and 
    (ii) the Board may, under Intimation to G overnment, delegate any of its 
powers to its 2[Chairman, Chief Administrator], Secretary, or any of its 
officers. 
(18) The headquarters of the Board shall be located at a place to be 
determined by the State government. 
(19) No act or proceeding of the Boar d shall be invalid by reason only of the 
existence of any vacancy among its members or any defect in the 
constitution thereof. 
3[3A(1) Every contract entered into by the Board shall be in writing and shall be 
signed on behalf of the Board by the Chief Administrator or any Group A 
Officer of the Board duly authorised by him in this behalf and shall be 
sealed with the common seal of the Board.] 
(2) No contract other than a contract executed as provided in sub -section 
(1) shall be binding on the Board.] 
4. 4[X X X X X] 
5.  The State Government may, by notification, declare its intention of 
exercising control over the purchase, sale, storage and processing of such 
agricultural produce, and in such area as may be specified in the notification. 
Such notification s hall state that any objection or suggestions which may be 
received by the State Government within a period of not less than thirty days 
to be specified in the notification, will be considered. 
Notification of 
intention of exercising 
control over 
purchase, sale, 
storage and 
processing of 
agricultural produce 
in specified area. 
 
 
1. Subsituted for the word “Seven” by the Punjab State Agricultural marketing Board and 
Marketing Committees (Reconstitution and Reorganistion Order, 1969. 
2. Substituted for the word “Chairman” by the Punjab Act 40 of 1963 and further substituted 
by Haryana Act 28 of 1980. 
3. Section 3-A added by Haryana Act 4 of 1972 Section 3 further sub. by H.A. 38 of 1980 
further substituted by Haryana Act 2 of 1989. 
4. Section 4 omitted by Ha ryana Act 22 of 1977 and shall always be deemed to have been 
omitted. 
     No. 23 of 1961]         The Punjab Agricultural Produce Markets 
Act, 1961 
 
 
 6. (i) After the expiry of the period specified in the notification under 
section 5 and after consideri ng such objections and suggestions as may 
be received before the expiry of such period, the State Government may, 
by notification and in any other manner that may be prescribed, declare 
the area notified under section 5 or any portion thereof to be a notif ied 
market area for the purposes of this Act in respect of the agricultural 
produce notified under section 5 of any part thereof. 
 1[ (2)  * * * * * *] 
 1[ (3)  * * * * * *] 
 (4) for the removal of doubts, it is hereby declared that a notification 
published in the Official Gazettee under this section or section 5 shall have 
full force and effect notwithstanding any omission to publish, or any 
irregularity or defect in the publication of, a notification under this section 
or under section 5 as the case may be. 
 1[ 6A. (1) The State Government may, by notification, declare its intention- 
 (i) to alter the limits of a market area by including therein any other area in 
the vicinity thereof or by excluding therefrom any area comprised therein : 
or 
 (ii) to amalga mate two or more market areas and constitute one 
Committee thereof ; or 
 (iii) to split up a market area and to constitute two or more Committees 
therefor. 
  (2) Every Notification issued under sub -section  (1) shall define the limits 
of the area which is intended to be included in or excluded from a market 
area, or of the market area intended to be amalgamated into  one, or of 
the area of each of the market intended to be constituted after spliting up 
an existing market area, as the case may be, and shall also specify the 
period which shall not be less than thirty days within which objections, if 
any, shall be received by the State government. 
 6.B (1) Any inhabitant of the market area or of the area affected by the 
notification issued under sub-section (1) of section 6A may, if he objects to 
anything contained therein, submit his objections in writing to the State 
Government within the period specified for this purpose in the said 
notification 
 (2) When the period specified in the said notification has expi red and the 
State government has considered and passed orders on such objections 
as may have been submitted to it within the said period, the State 
Government may, by notification.- 
 (a) include the area or any part thereof in the market area or exclude it  
therefrom ; or   ] 
 
Declaration of notified 
market area. 
Notifiction of intention to 
alter limits of or to 
amalgamate or to split up 
markets areas. 
Procedure subsequent to 
notification under section 
6A. 
 
 
1. Omitted by Haryana Act 21 of 1973. 
2. Inserted by Haryana Act 21 1973. 
The Punjab Agricultural Produce Markets           [Punjab Act]             
Act, 1961 
 
 
 
 
 
 
 
Power of State 
Government to 
issue consequential 
order with respect 
to constitution, etc. 
of Committee on 
alteration of limits, 
amalgamation or 
spliting up. 
(b) constitute a new Committee for the market area amalgamated : 
 or 
(c) split up an existing market area and constitute two or more Committees for 
such areas, as the case may be.  
6C. Where a notification under section 6B has been issued the State 
Government may  make such consequential orders as it may deem fit in 
respect of - 
 (a) the constitution of the Committee for the altered area where an area has 
been included in or excluded from market area ; 
 (b) dissolution of the existing Committee which have been amalgamated and 
the constitution of the new committee there for ; 
 (c) the dissolution of the Committee split up and the constitution of the 
Committees established in its place thereafter and matters ancillary thereto. 
6(D) Where a notification under section 6B has been issued excluding any area 
from the market area and including any such area in any other market area 
the State Government shall after consulting the Committee frame a scheme 
to determine what portion of the assets and other properties vested in one 
Committee shall vest in the other Committee and in  what manner the 
liabilities of the Committees shall be apportioned between the two 
Committees and such scheme shall come into force on the date of 
publication in the Official Gazette. 
6E. On the issue of a notification under section 6B constituting a new Committee 
for the market areas amalgamated the following consequences shall ensue, 
namely- 
 (a) all the property under the control of a Committee immediately before the 
date of amalgamation including funds shall be the property and fund of the 
new Committee ; 
 (b) the staff of the Committees of the amalgamated market areas shall, until 
otherwise ordered by the Act, be continued and deemed to be the staff 
appointed by the new Committee ;  
 (c) all rules, bye -laws, orders and notifications in force in the area of the 
Committees amalgamated immediately before the date of amalgamation shall, 
except the rules, bye -laws, orders and notifications in respect of such matters, as 
may be specified by the State Government by notification issued in that behalf, 
stand repealed and the rules, bye -laws, order, and notifications in respect of 
matters specified therein shall operate, throughout the area of new Committee until 
altered, amended or cancelled in accordance with the provisions of this Act ; 
Effect of alteration 
of limits. 
Effect of 
amalgamation. 
 
The Punjab Agricultural Produce Markets 
Act, 1961 
 
 (d) any right, privilege, obligation or liability acquired, accrued or 
incurred by the Committees amalgamated shall be deemed to be the right, 
privilege, obligation or liability acquired, accrued or incurred by the new 
committee. 
 6F On the issue of notification under section 6B splitting up a market 
area into two or more market areas the following consequences shall ensue, 
namely - 
 (a) All rules, by -laws and orders, in force in the area of the original 
Committee immediately before the market area of such Committee is split 
up, shall continue to be inforce in the areas comprised in t he new 
Committees until altered, amended or cancelled in accordance with the 
provisions of this Act; 
 (b) All property vested in the original Committee shall subject to any orders 
of the State Government be held and expended by the Board for the 
purposes of the areas of the newly constituted Committees. 
 6G. (1) The assets and liabilities of Committee of the original market 
area shall in accordance with the provisions of the Act be apportioned by the 
State Government between several Committees of  the new m arket areas 
newly constituted. 
 (2) The staff of the committee of the original market area shall be 
absorbed by the Committees newly constituted, in accordance with the 
orders of the Board issued in this behalf. 
 6H. (1) The Committee or Committees of the new market area or areas 
shall be deemed to be the representative of the original Committee or 
Committees for the purposes of suing or being sued or for continuing 
pending suits or proceedings by or against the Committee or Committees of 
the original market area or areas. 
 (2) If any dispute arises between the Committees as regards their 
respective liability or claim under decree or order the matter shall be referred 
to the State Government whose decision shall be final. 
 6I. When under section 6B a new Com mittee is constituted by 
amalgamation of two or more Committees or where two or more new 
Committees are constituted by splitting up of an existing Committee, the pay 
and allowances, pension and retirement benefits, if any, of all employees of 
the Committees amalgamated or split up shall be the pay and allowances, 
pension and retirement benefits as in force immediately before the date of 
amalgamation or splitting up, as the case may be.] 
 7 (1) For each notified market area, there shall be one principal mark et yard 
and one or more sub-market yards as may be necessary. 
 (2) the State government may, by notification, declare any enclosure, 
building or locality in any notified market area to be principal market yard for the 
area and other enclosures, building or  localities to be one or more sub -market 
yards for the area. 
 
 
 
 
Effect of splitting up. 
Apportionment of 
assets and liabilities 
of Committee split up. 
Suits by or against 
new Committee. 
Saving as to existing 
employees of 
Committees or 
Committees 
amalgamated or split 
up. 
 
 
 
 
Declaration of market 
yards. 
 
The Punjab Agricultural Produce Markets       [Punjab Act] 
Act, 1961 
 
Control of sale and 
purchase of 
agricultural 
produce. 
 1[8(1)  From the date of issue of notification under section 6 or from su ch 
later date as may be specified therein, no person, unless exempted by rules 
made under this Act, shall, either for himself or on behalf of another person 
or the State Government, within the notified market area, set up, establish or 
continue or allow to  be continued any place for the purchase, sale, storage 
and processing of the agricultural produce or purchase, sell, store or 
process such agricultural produce except under a licence granted in 
accordance with the provisions of  this Act, the rules and by e-laws. made 
there under and the conditions specified in the licence. 
 (2) From the date on which the State Government has, by a 
notification under section 7, declared any place to be a principal or sub -
market yard, no person, municipal committee, panchaya t, panchayat samiti 
or any other local authority, not withstanding anything contained in sub -
section (I) or in any enactment relating to  such municipal committee 
panchayat samiti, panchayat or local authority,  shall be competent to set 
up, establish or c ontinue or allow to be continued any place within a 
distance of five kilometers from the outer limits of such market yard for the 
purchase and sale of any agricultural produce: 
 Provided that nothing herein contained shall apply to the sale of agricultural  
produce stored in a cold-storage or processed and kept in a factory. 
 (3)Nothing contained in sub-sections (1) and  (2) shall apply to 
 (a) the sale of agricultural produce by a producer himself to any person who 
purchases it  for his private consumption ; 
 (b)the purchase by a person from any person of any agricultural produce for 
his private consumption ; 
 (c) the sale or purchase of agricultural produce through retail sale ; and 
 (d)The storage or the sale of hypothecated agricultural produce by a 
scheduled bank or ware house established under the Warehousing 
Corporations Act, 1962, or the Punjab Warehouses Act, 1957. 
 (4)The State Government may, for reasons to be recorded in writing, exempt 
any class of dealers from the provisions of sub-sections (1) and  (2)] 
 
 
1. Substituted by Haryana Act 21 of 1973 and further substituted by Haryana Act 21 of 
1975. 
2. Subsituted for the words “Chairman of the Board” by Punjab Act 40 of 1963 and further 
substituted by Haryana Act 38 of 1980. 
3.  Substituted for the word “section 6” Haryana Act 21 of 1973. 
The Punjab Agricultural Produce Markets -16   [Punjab Act]  
Act, 1961 
 
Procedure and form 
of contract farming 
agreement. 
 8(A) (1) The contract farming sponsor shall register himself with the Committee 
or with a prescribed officer in such manner as may be prescribed; 
 (ii) contract farming sponsor shall get the contract farming agreement executed 
with the contract farming producer and get the same registered with the officer 
prescribed in this behalf. The contract f arming agreement shall be in such form 
containing such particuiars and terms and conditions as may be prescribed for 
marketing of contract farming produce. 
 (2) Notwishtanding anything contained in contract farming agreement, no 
title, rights, ownership or possession of the land shall be transferred or alienated 
or vested in the contract farming sponsor his successor or his agent as a 
consequence arising out of the contract farming agreement. 
 (3) The contract farming sponsor shall be the buyer of the agric ultural 
produce covered under the contract farming agreement. The business premises 
of the sponsor shall be deemed to be the market yard for the purpose of sale 
and purchase of agricultural produce covered under contract farming agreement 
of that sponsor. 
 (4) Disputes arising out of the contract farming agreement may be 
referred to any authority prescribed in this behalf for settlement. The prescribed 
authority shall resoirve the dispute in the summary manner within thirty days 
after giving the parties a r easonable opportunity of being heard in the manner 
prescribed. 
 (5) The party aggrived by the decision of the prescribed authority under 
sub-section (4) may prefer an appeal to an appellate authority as may be 
prescribed, within thirty days from the date o f decision. The appellate authority 
shall dispose of the appeal within thirty days after the parties reasonable 
opportunity of being heard and the decision of the appellate authority shall be 
final. 
 (6) The decision by the presribed authority under sub -section (40 and 
decision in appeal under sub -section (5) shall have decrtal amount shall be 
recovered as an arrear of land revenue. 
 (7) Disputes relating to and arising out of contract farming agreement 
shall not be called in question in any civil court.’ 
 9. 2[The Chief Administrator] or any other officer authorised by him in 
writing in this  behalf  shall  be  the  authority  for granting licences required 
under 3[Section 8.] 
 3[10(1) Any person may apply to the authority specified in section 9 for a licen ce 
which may be granted for such period, in such form, on such conditions and on 
payment of such fees and such security as may be prescribed : 
 Provided that if any person carrying on any business of the nature specified in 
sub-section (1) of section 8 in a notiied market area on the date of issue of notification 
under sub-section (1) of section 6 fails to appy for a licence on or before the date 
specified therein for obtaining licence, the proper authority may, before a licence is 
issued, impose on him suc h penalty not exceeding one hundred rupees as may be 
prescribed.] 
Authority to whom 
applications for 
grant of licences 
are to be made 
 
 
Application for 
licences fees to be 
paid and 
cancellation or 
suspension of 
licences. 
 
1. Substituted for the words “C hairman of the Board” by Punjab Act 40 of 1963 and further 
substituted by the Haryana Act 38 of 1980. 
2. Substituted for the words “section 6” by Haryana Act 21 of 1973. 
3.  Substituted by Haryana Act 21 of 1973. 
The Punjab Agricultural Produce Markets 
Act, 1961 
 
(2) 2[The Chief Administrator or any other officer, authorised by him, in writing, in this behalf] may, 
on being satisfied that 2[the licence has been obtained through wilful misrepresentation or 
fraud or] there has been a breach of any of the con ditions specified in a licence, by an 
order in writing, cancel or suspend such licence and may also direct that such licence shall 
not be renewed for such period not exceeding five months for the first breach and not 
exceeding nine months for the second br each and not exceeding one year for every 
subsequent breach, as may be specified in that order : 
 Provided that the Chairman of a Committee of the area concerned may under intimation to 
3[the Chief Administrator or any other officer, authorised by him in w riting, in this behalf] 
suspend a licence for a period not exceeding fifteen days : 
 Provided further that no such order shall be made without giving the licencee, an 
opportunity to show cause why such an order should not be made.  
 (3) 3[The Chief Adminis trator or any other Officer, authorised by him, in writing, in this 
behalf] after such enquiry as he may consider necessary, refuse a licence to a person who 
in his opinion - 
 (a) is a benamidar for or a partner with any person to whom a licence has been r efused or 
whose licence is cancelled or suspended under sub -section (2) for the period of such 
cancellation or suspension : or 
 (b) is convicted of an offence affecting the said person’s integrity as a man of business 
within two years of such conviction ; or  
 (c) is undischarged insolvent: 
 Provided that no such order shall be made without giving such person an opportunity to 
show cause why such an order should not be made. 
 4)  Omitted 
  
 
 1.  Substituted by Haryana Act 21 of 1973. 
 2.  Inserted by Haryana Act 21 of 1973. 
 3.  Substituted for the words “Chairman of the Board” by Punjab   
  Act 40 of 1963 and further substituted by Haryana Act 38 of 1980. 
The Punjab Agricultural Produce Markets [Punjab Act] 
Act, 1961 
 
Establishment of 
market Committee. 
 
Constitution of 
Committees. 
11. The State Government shall by notification establish a market committee for every 
notified market area and shall specify its headquarters. 
 
1[12 (1) A Committee shall consist of eleven or nineteen members as the State 
government may in each case determine, out of whom one shall be an official 
appointed by the State Government : 
 Provided that where in a notified market area there is in existence a Co -operative 
Society, the Committee shall consist of twelve or twenty members as  the case 
may be. 
 (2) The remaining members shall be nominated by the State Government by 
notification as follows :- 
 (a) if the Committee is to consist of eleven members, there shall be  
      nominated - 
 (i) seven  members  from  amongst the producers of the notified                 
market area: 
 (ii) two  members  from  amongst  the  persons licenced under         section 10 
: and 
 (iii) one  member  from  amongst  the  persons  licenced under             section 13 
: 
 Provided that the members nominated under this clause shall include at least one 
person belonging to Scheduled Castes or Scheduled Tribes and one person 
belonging to the Backward Classes, who are otherwise qualified to be nominated 
as members of the Committee; 
 (b) if the Committee is to consist of twelve members, there shall be nominated, in 
addition to the members specified in clause (a) one member representing the Co -
operative Societies ; 
 (c) if the Committee is to consist of ninteen members, there shall be nominated - 
 (i) twelve members from amongst the producers of the notified market area: 
 ( i i )  f o u r  m e m b e r s  f r o m  a m o n g s t  t h e  p e r s o n s  l i c e n c e d  u n d e r  s e c t i o n  1 0  :  a n d 
 ( i i i )  t w o  m e m b e r  f r o m  a m o n g s t  t h e  p e r s o n s  l i c e n c e d  u n d e r  s e c t i o n  1 3  : 
 Provided that the members nominated under this c lause shall include at least two 
persons belonging to Scheduled Castes or Scheduled Tribes and one person 
belonging to the Backward Classes, who are otherwise qualified to be nominated 
as members of the Committee; 
 (d) if the Committee is to consist of twe nty members, there shall be 
nominated, in addition to the members specified in clause (c), one 
member representing the Co-operative Societies ; 
 
 
1.  Section 12 subsituted by Haryana Act 25 o

Excerpt shown. Open the full act in Lexace.

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