The Meghalaya Agricultural Produce Market Act,1980 (Act No.1 of 1981)

MEGHALAYA ACT 1 OF 1981
THE MEGHALAYA AGRICULTURAL PRODUCE MARKET ACT, 1980
(As passed by the Assembly)
[Received the assent of the President on the 31st January, 1981]
(Published in the Gazette of Meghalaya, Extraordinary, dated 6th February, 1981)
An
Act
to provide for better regulation of buying and selling of certain
agricultural produce and the establishment of markets
therefor in the State of Meghalaya and for
matters connected therewith
Be it enacted by the Legislature of Meghalaya in the Thirtieth Year of the Republic of India
as follows:-
Short title, extent and
commencement.
1. (1) This Act may be called the Meghalaya Agricultural Produce
Market Act, 1981.
(2) It extends to the whole of the State of Meghalaya.
(3) It shall come into force in such area and on such dates as the
State Government may, by notificat ion, in the Official Gazette,
appoint and different dates may be appointed for different areas.
Definition. 2. In this Act, unless the context other-wise requires,
(i) “Agricultural Produce” includes any produce, whether
processed or non -processed, of agriculture, horticulture,
animal husbandry, pisciculture, sericulture and forest as
specified in the Schedule;
(ii) “Agriculturist” means a person who ordinarily by himself
or by his tenants or hired labour or otherwise is engaged
in the production of agricul tural produce but does not
include a dealer or broker in agricultural produce although
such a dealer or broker may also be engaged in the
production or growth of agricultural produce.
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(iii) “Board” means the Meghalaya State Agricultural
Marketing Board constituted under Section 3;
(iv) “Broker” means an agent whose ordinary course of
business is to negotiate and make contracts for the
purchase or sale of agricultural produce on behalf of his
principal and who is remunerated by commission; but
does not includ e the servant of such principal whether
engaged in negotiating or making such contracts;
(v) “Bye laws” means bye-laws made under Section 53;
(vi) “Commission Agent” means a person who on behalf of
another person and in consideration of commission makes
or offers to make purchase or sale of agricultural produce
or does or offers to do anything necessary for completing
and carrying such purchase or sale;
(vii) “Co-operative Agent” means the Meghalaya Co -
operative Apex Bank Ltd,. Registered under the
Meghalaya Co -operative Societies Act (Assam Act 1 of
1950 as adapted by Meghalaya) or any other Cooperative
Bank formed in the State of Meghalaya;
(viii) “Co-operative Marketing Society” means a Co -
operative Society registered under the Meghalaya Co -
operative Societies Act (Assam A ct 1 of 1950 as adapted
by Meghalaya) which has as its principal object the
promotion of the sale of agricultural produce grown,
reared or produced by its members or a Co -operative
Society registered as such and declared to be equivalent to
a Co -operative Marketing Society, by the State
Government;
(ix) “Director” means the Director of Agriculture, Meghalaya
and includes any other person or authority authorised by
the Government, by notification, to perform the functions
of the Director under this Act for such an area as may be
specified in the notification;
(x) “District Council” means a District Council constituted
under paragraph 2 of Sixth Schedule to the Constitution
of India;
(xi) “Licence” means a person to whom a license is granted
under this Act;
(xii) “Local authority” means a Municipal Corporation, a
Municipal Board or a Town Committee constituted under
any law in force;
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(xiii) “Market” means a market established and regulated
under this Act for the Market area and includes a market
proper, a principal market yard and a sub -market yard or
yards if any;
(xiv) “Market area” means any area declared to be a market
area under Section 11;
(xv) “Market Committee” means a Committee established
under Section 13;
(xvi) “Market proper” means any area including all lands
with the buildings and structures thereon within such
distance of the principal or sub-market yard declared to be
a market proper under clause (b) of Section 12 (2);
(xvii)“Measurer” means a person whose business is to
measure consignments of agricultural produce for sale ;
(xviii) “Notified” Agricultural produce means the agricultural
produce specified as such under Section 11;
(xix) “Prescribed” means prescribed by rules made under this
Act;
(xx) “Principal Market Yard” and “sub -market yard” means
an enclosure, building or locality in a market area
declared to be a principal market yard and sub -market
yard, respectively, under clause (a) of Section 12 (2).
(xxi) “Progressive producer” means a producer who in the
opinion of the Director carries on agricultural production
on improved method;
(xxii)“Registrar” means the Registrar of Co -operative
Societies, Meghalaya;
(xxiii) “Retail Sale” means a sale of any agricultural produce
not exceeding such quantity as may be fixed by bye -laws
or rules in respect of such agricultural produce;
(xxiv) “Rules” means rules made  under this Act;
(xxv) “State Government” means the State Government of
Meghalaya;
(xxvi) “Schedule” means a schedule to this Act;
(xxvii) “Secretary” means the Chief Executive of the market
committee and includes officiating, acting, Deputy and
Assistant Secretary;
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(xxviii) “Surveyor” means a person whose business is to
survey a consignment of agricultural produce for sale in
regard to quality, grade, adulteration and such other
purposes;
(xxix) “Trade” means any mind of transaction of sale and
purchase of any agricultural produce;
(xxx) “Trade” means a person who is ordinarily engaged in
the business of buying and selling of agricultural produce
whether by himself or by a duly authorised agent and
includes a person who is ordinarily engaged in the
business of proceeding of agricultural produce;
(xxxi) “Warehousing Corporation” means the Meghalaya
State Warehousing Corporation established in Meghalaya
under section 18 of the Warehousing Corporation Act,
1962;
(xxxii) “Weightman” means a person is or is not an
agriculturist or trader for the pu rpose of this Act shall be
decided in the manner prescribed and such decision shall
be final.
(2) The question as to whether a person is or is not an
agriculturist of trader for the purpose of this Act shall be
decided in the manner prescribed and such decision shall be
final.
Explanation.- For the purpose of this Act the word
‘person’ includes any firm, joint family, association or
body of individuals whether incorporated or not.
Constitution of State
Agricultural Marketing
Board.
3. (1) The State Government may for the purpose of this Act
establish and constitute a Board to be known as the Meghalaya
State Agricultural Marketing Board, with Headquarters at
Shillong, consisting of not more than fifteen members and which
shall includes the following, namely-
(a) Six official members, that is-
(i) The Secretary to the Government of Meghalaya
in the Agriculture Department;
(ii) The Director of Agriculture, Meghalaya;
(iii) The Director of Animal Husbandry and
Veterinary, Meghalaya;
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(iv) The Registrar of Co -operative Societies,
Meghalaya; and
(v) Two others.
(b) Nine non-official members, that is-
(i) The Managing Director of the Meghalaya State
Warehousing Corporation;
(ii) The Secretariat of the Executive Committee of
the three District Council in the State;
(iii) One Agricultural representing the Market
Committees;
(iv) One progressive farmer;
(v) One Licensee;
(vi) One representative of the Co-operative Marketing
Societies; and
(vii) One representative of the Financial Institutions;
(2) The members in item (v) of clause (a) and in items (iii)
(iv), (v), (vi) and (vii) of clause (b) of sub -section (1) shall be
nominated by the Government.
(3) The Secretary to the Government in the Agriculture
Department shall be the Ex-officio Chairman of the board a nd the
Government shall appoint an officer of the Agriculture
Department not below the rank of a Deputy Director to be its
Secretary.
(4) The term of office of the non -official members of the
Board shall be three years;
Provided that th e any non -official member in items (iii),(v)
(vi) and (vii) of clause (b) of sub -section (1) shall cease to be a
member of the Board from the date he ceases to be an
Agriculturist member representing the Market Committee, a
licensee, a representative of th e Marketing Societies or a
representative of the Financial Institutions, as the case may be.
(5) A non -official member of the Board may resign his
membership by tendering his resignation to the Chairman of the
Board and such resignation shall take effect from the date of
acceptance.
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(6) In case of vacancy in the Board caused by the resignation
of otherwise of any non -official member the Government may
nominate another person in his place in the manner provided
under this act and such person shall remain in office for the
remaining term of his predecessor.
(7) Five persons shall constitute a quorum at a meeting of
the Board;
Provided that if a meeting is adjourned for want of quorum,
no quorum shall be necessary at such adjourned meeting.
(8) 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.
(9) No act or proceeding of the board shall be invalid by
reason only of the existence of any vacancy amongst its members
or any defect in the constitution thereof.
Incorporation of the
Board. 4. (1) The Board shall be a body corporate by the name of
the Meghalaya State Agricultural Marketing Board having
perpetual succession and a common seal with power, subject to
the provisions of this Act, to acquire and hold property and shall
by the said name use and be used.
(2) The State Government shall exercise superintendence
and control over the Board and its employees 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 the
State Government may reconstitute it.
Disqualification for
membership in the
Board.
No person shall be eligible to be a non -official member
of the Board who-
(a) is below twenty-one years of age;
(b) has been removed under Section 34 of this Act;
(c) is of unsound mind; or
(d) has been declared as insolvent or sentenced by a criminal
court for an offence involving moral turpitude:
Provided that the disqualification under a clause (d) shall
not apply after the expiry of four years from the date on which
the period of the sentence expired.
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Powers of the Board. 6. (1) The Board shall exercise all the powers conferred on and
perform the functions and duties assigned to it by or under
this Act.
(2) It shall exercise superintendence and control over the
Market Committees in the manner prescribed and may call
for any information, or returns relating to notified
agricultural produce from any Market Committee and shall
have the power to inspect the records of any Market
Committee and shall have the power to inspect the records
of any Market Committee or such funct ionaries under or in
relation to such Market Committee as the case may be.
(3) Notwithstanding anything contained in subsections (1)
and (2) the State Government shall also have powers of
superintendence and control over the Market Committees or
other Fun ctionaries under or in relation to such Market
Committees.
Appointment of
officers and staff.
7.Subject to other Provisions of this Act and rules and bye -laws
framed thereunder the Board may its own officers and staff
for carrying out the functions under this Act.
Power to borrow and
maintenance of funds
and accounts.
8.(1) The Board shall have its own fund into which all moneys
received by it shall be paid and from all expenditure incurred
shall be defrayed.
(2) The Board may, with the previous sanction of the
Government, raise money required for carrying out of the
purposes for which it is established on the security of any
property vested in it.
(3) The accounts of the Board shall be maintained in such
form as the Government may prescribe.
Annual Financial
Statements.
9.Subject to rules made for this purpose the Board shall submit
to the Government a statement of the estimated income and
expenditure for each financial year and the State
Government shall give its approval with or without
modification within two months of the receipt thereof failing
which it shall be deemed to have been approved.
Notification of
intention of exercising
control over purchase
and sale of agricultural
produce in specified
areas.
10. (1) The State Government may, after consul tation with the
District Council concerned, by notification, declare its
intention of regulating the purchase, sale, or storage of such
agricultural produce in such areas as may be specified and
such notification shall be published in the manner
prescribed:
Provided that no such consultation shall be necessary
where an area is within the Cantonment and Municipality of
Shillong.
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(2) The notification under sub -section (1) shall state that
any objection or suggestion received by the State
Government within a period of not less than one month to be
specified in the notification under sub -section (1) shall be
considered by the State Government.
Declaration of market 11. (1) After the expiry of the period specified in the notification
issued under section 10 and after considering such
objections and suggestions as may be received the State
Government may, by notification, declare the a rea so
notified or any portion thereof to be a market area for the
purpose of this Act in respect of all or any of the agricultural
produce specified in the said notification. The notification
shall be published in the manner prescribed.
(2) After the date of the publication of the notification
under sub -section (1) or at such later date as may be
specified therein, no person, local or other authority
notwithstanding anything contained in any law for the time
being in force , shall , within the market area or within a
distance thereof to be notified in the official Gazette in this
behalf, set up, established or continued, any place for the
purchase, sale or storage of any agricultural produce so
notified, except in accordance with the provisions of this
Act, rules or bye-laws framed thereunder.
(3) Nothing in sub -section (2) shall apply to the
purchase, sale or storage of such agricultural produce if the
producer of such produce if the producer of such produce is
himself its se ller and the purchaser is a person who
purchases such produce for his own consumption or if such
agricultural produce is sold by retail sale to a person who
purchases such for his own consumption.
(4) The State Government may, at an time by
notification in the official Gazette, exclude from the market
area any area or any agricultural produce specified for the
market area.
Declaration of market
yard.
12. (1) For each market area there shall be one principal
market-yard and one or more sub -market ya rds as may be
necessary.
(2) The State Government may, by notification in the
official Gazette, declare:-
(a) any enclosure, building or locality in any market area
to be the principal market yard and other enclosures,
buildings or localities in such market areas to be one
or more sub-market yard or yards for the area; and
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(b) any area including all lands with the buildings and
structures thereon within such distance of the
principal or sub-market yard or yards as the case may
be and as it thinks fit, to be market proper.
Establishment of
Market Committee.
13. (1) The State Government may establish a market committee
for every area declared to be a market area under sub-section
(1) of Section 11. It shall be the duty of the market area
under sub-section (1) of Section 11.It shall be the duty of the
market committee to enforce the provisions of this Act and
the rules and bye -laws framed thereunder in such market
area.
(2) The State Government may establish a separate
market committee within the same market area of a part
thereof if it is satisfied that trading in a particular type of
agricultural produce can be regulated only when an
independent market committee already functioning is unable
to undertake regulated trading in that commodity b ecause of
its peculiar nature:
Provided that not more than one market committee shall
be established within the same market area or a part thereof
for the same type of agricultural produce.
Constitution of Market
Committee.
14. Every market committee shall consist of the following
member, namely:-
(i) five agriculturists to be nominated by the Board
from amongst the progressive farmers of the
market area in the manner prescribed;
(ii) three to be nominated by the traders otherwise than
the Co -operative Marketing Societies, holding
valid licence under this Act from amongst
themselves in the manner prescribed;
(iii) two to be nominated by the Registrar from
amongst the members of the Managing Committee
or Board of Directors, as the case may be, of the
Co-operative Societies in the market area holding a
licence under this Act;
(iv) one to he nominated by the State Government;
(v) one to be nominated by the members of the local
authorities, if any, within whose jurisdiction the
principal market yard is situated. When the
principal market yard is situated. When the
principal market -yard is situated within the
jurisdiction of two or more local authorities shall
nominate one members;
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(vi) one to be nominated by the Warehousing
Corporation, if a warehouse has been established
by such Corporation within the market area.
Period of office of
Market Committee
Member.
15. (1) Every member of market committee shall hold office for
a period of three years commencing from the date of the first
meeting of the market committee.
(2) The State Government may, by notification for
sufficient cause to be stated therein, direct from time to time
that the term of office of the members of a market
committee be extended by such period not exceeding one
year as may be specified in the notification.
(3) A member nominated under clauses (i), (ii), (iii) or (vi)
of Section 14 shall cease to hold office, if he ceases to be a
member of the category of persons from which he was
nominated.
(4) A member shall also cease to hold office if here signs
his membership and the same is accepted by the market
committee or if he is removed by the State Government.
(5) Whenever any vacancy occurs in membership for any
of the reasons aforesaid, the said vacancy shall be filled in
the same manner and such member shall hold office for the
unexpired term of the member in whose place he is
nominated.
(6) Notwithstanding any vacancy the market committee
shall be competent to exercise its powers and perform its
duties and none of its action shall b e questioned merely on
the ground of the existence of any vacancy or any defect in
the constitution of the committee.
Election of a Chairman,
etc.
16. (1) Every market committee shall elect, in the manner
prescribed one of its members to be its Chairman.
(2) The Chairman shall exercise such powers and perform
such duties on behalf of the committee under this Act and
the rules made thereunder as may be prescribed.
(3) Whenever for any reason the office of the Chairman of
any market committee falls va cant the Board shall appoint
any one from amongst the members of such market
committee as the Chairman to hold office as such,
temporarily, till a Chairman is elected.
(4) The Chairman shall preside at every meeting of the
market committee and in his a bsence the member present
shall elect one from amongst themselves to preside over that
meeting.
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(5) When a meeting is held for the removal of the
Chairman a duly elected at the meeting shall preside over
that meeting.
Removal of Chairman 17. (1) The Chairman of any market committee may be
removed from office by a resolution adopted by at least
two-third of the total number of members of the market
committee present and voting at the meeting convened for
the purpose, in the manner prescribed.
(2) The State Government may, after giving an
opportunity to explain, remove the Chairman of a market
committee from office if he persistently omits or refuses to
carry out or disobeys the provisions of this Act or the rules
made thereunder or any direc tive issued by the competent
authority under this act or rules made thereunder or if he
becomes incapable of so acting or is declared insolvent or
is convicted by a criminal court for any offence involving
moral turpitude or declared disqualified under any of the
provisions of this act or the rules made thereunder.
Calling of meetings and
quorum.
18. (1) No business shall be transacted at any meeting of
the market committee unless-
(a) such meeting is called by the Secretary, under the
direction of the Chairman or on a requisition by the
members as prescribed, and
(b) there is a quorum.
(2) The quorum referred to in sub -section (1) shall be
one-third of the total number of m embers of the market
committee. If at any meeting there is no quorum, the
meeting shall stand adjourned to some future day to be
appointed by the Chairman or any member who may
preside at the meeting, as the case may be. The members a
present at such adjou rned meeting shall form a quorum
whatever their number may be.
Incorporation of market
committee.
19. (1) Every market committee shall be a body corporate
by such name as the State Government may specify by
notification in the official Gazette. It shall have perpetual
succession and a common seal and may sue and be sued in
its corporate name and shall be competent to acquire, hold
lease, sell or otherwise transfer any property and to contract
and to do all other things necessary for the purpose for
which it is established.
(2) Where a market committee is established in any area,
no person shall function as a trader, commercial agent,
broker, weightman, measurer, surveyor warehouseman or
in any other capacity as the Board may determine within
any market area under this act unless a licence is granted to
such person by the market committee on payment of such
fees and subject to such conditions as may be prescribed.
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Functions of the market
committee.
20. The functions of a market committee shall as follows-
(i) to maintain and manage the market yard and to
control, regulate, and run the market in the interest
of the agriculturists and traders holding licence
from the market committee;
(ii) to regulate and control transactions in the market,
and to deal with any defaulting licence holder with
respect to any notified agricultural produce;
(iii) to settle, mediate or arbitrate in all matters of
claims, difference or disputes between the
licensees, agriculturists or betwee n licensees and
agriculturists making use of the market;
(iv) to control and regulate the admission to the
market, to determine the conditions for the user of
the market, to determine the conditions for the use
of the market and to prosecute and confiscate the
goods belonging to persons trading without a valid
licence;
(v) to bring prosecute or defend or aid in bringing,
prosecuting or defending any suit, action,
proceedings application or arbitration, on behalf of
the market committee or otherwise as directed by
the State Government;
(vi) to purchase, hire, or acquire any land or other
movable or immovable property for the purpose of
its business to raise fund from the Government, or
otherwise with the approval of the board and for
the said purpose to enter into arran gement with the
Government, local authority or otherwise;
(vii) to levy and recover marker charges, fees on
agricultural produce, licence, and other fees and to
impose fines and penalties; and
(viii)to do such other things as may be required for the
purpose of achieving the objects and purposes of
this Act and the rules and bye -laws framed
thereunder.
Power of the Market
Committee.
21. A market committee shall have the power to regulate
entry of person into the principal or sub -market yards, to
supervise the b ehaviour of the person so entered for
transacting business and to take disciplinary action against
the license who fails to fulfil the conditions of the licence
or any direction of the market committee issues within the
purview of this Act or rules or bye-laws framed thereunder.
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Duties of the Market
committee.
22. It shall be the duty of every market committee to
enforce the provisions of this act, the conditions of licence
granted under the rules and bye -laws framed under the Act
in the market area and to provide such facilities as the State
Government may, from time to time, direct in connection
with the purchase and or sale of notified agricultural
produce concerned.
Appointment of sub-
committee and joint
committee.
23. A market committee may appoint a sub -committee or
an ad-hoc committee from amongst its members for the
administration of the sub -market yard, for reporting or
recommending or deciding any matter or matters and may
delegate to such committee such of its powers or duties as
it may think fit. There shall be at least three members in
such committee.
Appointment of
Secretary and other
officers and staff.
24. (1) Every market committee shall have a Secretary
appointed by the Government subject to such terms and
conditions as may be prescribed.
(2) A market committee may also, with the approval of
the Board, employ such other officers an d staff as may be
necessary for the management of the market on such terms
and conditions as may be prescribed.
Execution of contracts. 25. Every contract entered into by a market committee shall
be in writing and shall be executed by the Chairman and
Secretary of the committee.
Power to levy fees. 26. A market committee shall levy and collect fees on the
agricultural produce bought or sold in the notified market
area at a rate not exceeding one rupee for every hundred
rupee of the aggregate amount fo r which an agricultural
produce is bought or sold whether for cash or for deferred
payment or other valuable considerations:
Provided that-
(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) a fee shall be leviable only on the parties to a
transaction in which delivery is actually made.
Market Committee
Fund.
27. All money received by a market committee shall be
paid into a fund to be called “The Market Committee
Fund” and all expenditures incurred by the market
committee under or for purpose of this Act shall be
defrayed out of the said fund. Any surplus remai ning with
the market committee after such expenditure shall be
invested in such manner as may be prescribed in this
behalf.
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Contribution to the
Board.
28. Every market committee shall, out of its fund,
contribute to the Board a sum not exceeding 30 percent of
the moneys received by it as may be determined by the
Government on account of the Board expenses and such
other expenses incurred by the Board in the interest of
market committee including the cost of staff that may be
appointed by the Board fo r giving effect to the provisions
of this Act in the market area.
Purposes for which
market committee fund
shall be expended.
29. The fund of the market committee shall be expended
for the following purposes, namely:-
(i) payment of interest on the loans t hat may be raised
for the purposes of the market and the provisions of
sinking fund in respect of such loans;
(ii) the acquisition of a site or sites for the market;
(iii) the maintenance and improvement of the market;
(iv) the construction and repair of buildings necessary
for the purposes of such market and for the persons
using it;
(v) pay, pensions, allowance, gratuities, compensations
for injuries resulting from accidents while on duty
and compassionate allowances of its employees
and contribution towards leave sa lary and pensions
of the officers and staff on deputation to the market
committee;
(vi) expenses connected with the collection
dissemination of information regarding matters
relating to crop statistics and marketing in respect
of the agricultural produce;
(vii) contribution to the Board under Section 28; and
(viii) other expenses connected with the carrying out
the purposes of this Act and the rules and bye -laws
framed thereunder.
Mis-application of
funds.
30. If a market committee incurs an expenditure for any
purpose other than those specified under the last preceding
section or in excess of the expenditure approved by the
Board then it shall be deemed to be a mis-application of the
land.
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Power to borrow. 31. (1) A market committee may, with the previous
sanction of state Government, raise money required for
carrying out of the purposes for which it is established on
the security of any property vested in it and of any fees
leviable by it under this Act.
(2) A market committee may, for th e purpose of
meeting the initial expenditure on lands, buildings and
equipments required for establishing the market obtain loan
from the State Government or any financial institution.
(3) The conditions subject to which such money or
loan shall be raised or obtained and the time within which
the same shall be repayable shall be subject to the previous
sanction of the State Government.
Acquisition of land for
the purpose of the Act.
32. (1) The State Government may, on the request of the
board or a Market Committee, acquire land required for the
purpose of this act under the provisions of the Land
Acquisition Act, 1894 (Act I 1894).
(2) The Board Market Committee shall be deemed to
be a local authority for the purpose of the Land Acquisition
Act, 1894 (Act I of 1894).
No trade allowance
permissible except as
prescribed.
33. No person shall make or recover any trade allowance
other than an allowance prescribed by rules or byelaws
made under this Act in any market area in any tran saction
in respect of the notified agricultural produce concerned
and no Civil Court shall, in any suit or proceeding arising
out of any such transaction, have regard to or recognise any
trade allowance not so prescribed.
Explanation – Every deduction, other than a
deduction on account of deviation from sample when the
purchase is made by sample or on account of deviation
from standard, when the purchase is made by reference to a
known standard or on account of difference between the
actual weights of the container and the standard weight or
on account of the admixture of foreign matter shall be
regarded as a trade allowance for the purposes of this
section.
Liabilities of members
of market committee to
removal from office.
34. (1) The State Government may, on the recommendation
of the market committee supported by atleast two -third of
the total members or on the recommendation of the Board,
remove any member of the market committee, if such a
member has in the opinion of the State Go vernment, been
guilty of misconduct, in the discharge of his duties or has
become incapable of performing his duties as a member.
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. Provided that no recommendation shall be made by
the made by the market committee or the Board unless the
member has been given a reasonable opportunity of
showing cause why such recommendation should not be
made;
Provided further that no order for removal of any
member shall be passed by the State Government unless the
member has been given a reasonable opportunity of
showing cause why such order should not be passed.
(2) The decision of the State Go vernment under sub -
section (1) shall be final.
Members to be held
responsible for mis-
application of funds.
35. Every member of the market committee shall be
personally liable for the mis -application of fund to which
he shall have been a party, wh ich shall have happened
through, or been facilitated by gross neglect of his duty as a
member, and he may be sued for recovery of the moneys so
mis-applied.
Duty to furnish
information to the
Government or other
authority officer.
36. When the aff airs of the Board or of a market
committee are investigated or the proceedings of such
Board or Committee are examined by the Government or
any officer as may be authorised by the State Government
in this behalf, all officers, and staff members of the Boar d
and of such committee shall furnish such information in
their possession in regard to the affairs or proceedings of
the Board or Committee as the Government or such officer
may require.
Power to inspect. 37. The Director, or any officer authorised by the State
Government by general or special order shall have power to
inspect the accounts of the Board or any market committee
or to institute an enquiry into the affairs of the Board or any
market committee and to require it to do a thing or to desist
from doing anything which the Director or such officer
considers necessary in the interest of the Board or any
market committee, as the case may be, and in case of non -
compliance to furnish a written reply to him within a
reasonable time stating reasons therefor.
Power of the Board in
emergency.
38. (1) In case of an emergency, the Board may
suspend or cancel all or any licence issued under the
provisions of this Act and take such other steps as may be
deemed necessary in the interest of a market.
(2) When a market committ ee is not competent to
perform the duties imposed by under this Act, under orders
or decision of a court, the Board shall make such
arrangement for performing the duties and functions of
such a market committee,
16
Recovery of loss. 39. (1) Any loss that may occur to a market committee
due to its failure to carry out any instruction of the Board
shall be recoverable from the members of the market
committee after due enquiry and reasonable opportunity
have been given to them to show cause as to wh y such loss
should not be recovered from them.
(2) Any amount recoverable from the members of
market committee under this section shall be realised as an
arrear of land revenue.
Suppression of market
committee.
40.(1) If in the opinion of the State Government a
market committee is incompetent to perform or persistently
makes default in performing the duties imposed on it by or
under this Act, or the rules and bye -laws framed
thereunder, or if it abuses its powers, the State Gover nment
may, after giving the market committee an opportunity to
submit an explanation and objections, if any, by
notification, supersede such committee for a period not
exceeding one year at a time or dissolve the committee and
reconstitute it as soon as possible.
(2) When a committee is superseded or dissolved
under his section the State Government may appoint any
person as an Administrator to exercise and perform all
powers, duties and functions of the Market Committee until
a new committee is reconstituted.
Consequences
following supersession
or dissolution.
41 (1) When an order of supersession or dissolution
shall have been passed under the last preceding section the
following consequences shall ensure:-
(a) all the members as well as the Chairman of the
market committee shall, from the date of such
supersession or dissolution, be deemed to have
vacated their offices;
(b) all assets vested in such committee shall during
the period of supersession or dissolution vest in
the State Government subject to all its
liabilities.
(2) On the expiration of the period of supersession
specified in the order
(a) extend the period of supersession for such further
term as it may consider necessary, but not
exceeding a period of one year at a time; or
(b) reconstitute the market committee:
17
Provided that the State Government may at any time
before the expiration of the period of supersession take
action under clause (b) of this sub-section.
(3) On the reconstitution of the market committee under
sub-section (2) the Government shall transfer all assets and
liabilities of the market committee as on the date of such
transfer to the new market committee.
Penalty for
contravention of
Section II.
42. Whoever contravenes the provisions of sub-section
(2) of Section II, shall, on conviction be punishable with
fine which may extend to five hundred rupees and, in the
case of continuing contravention, with further fine which
may extend to one hundred rupees per day during which
the contravention is continued after the conviction.
Eviction of encroacher
of market yards.
43. Every encroacher of market yard or sub -market
yard shall be evicted therefrom in such manner and
procedure as provided in any law in force for eviction of
encroachers.
Penalty for
contravention of
Section 33.
44. (1) Whoever makes or recovers any trade
allowance in contravention of the rules or bye -laws made
under this Act, shall on conviction, be punishable with fine
which may extend to rupees two hundred.
(2) All fines and damages recovered from an offender
shall be paid to the fund of the market committee
concerned.
Penalty for
contravening
Provisions of Section
36.
45. (1) if a ny officer or member of market committee
which required to furnish information in regard to the
affairs or proceedings of the Board or a market committee
under Section 36-
(a) Wilfully neglects or refuse to furnish any
information, or
(b) Wilfully furnished false information, he shall , on
conviction, be punishable with fine which may
extend to rupees two hundred.
(2) If any officer, member, or employee of the Board
or a market committee wilfully neglects or refuses to do
any act or, without any reasonable excuse disobeys an
order issued under the provisions of this Act or fails to
furnish information or return required from him he shall, on
conviction, be punishable with fine which may extend to
rupees five hundred.
18
Chairman Members,
and staff of market
committees to be public
servants.
46. The Chairman, members, Secretary and other
officers and staff of the Board and a market committee
shall be deemed to be public servants within the meaning
of Section 21 of the Indian Penal Code.
Bar of suit in absence
of notice.
47. (1) N o suit shall be instituted against the Board or a
market committee or any member, officer or staff thereof,
or any person acting under the direction of such Board or
market committee, for anything done or purported to be
done in good faith for the purpose of this Act until the
expiration of two months next after notice in writing,
stating the cause of action, the name and place of abode of
the intending plaintiff and the relief which he claims, has
been in the case of the Board or a market committee,
delivered or left at its office, staff or person as aforesaid,
delivered to him or left at his office or usual place of abode
and the plaint shall contain a statement that such notice has
been so delivered or left.
(2) Every such suit shall be barred unless it is instituted
within six months from the date the alleged cause of action
arises.
Trial of Offences. 48. (1) No offence under this Act or any rule or bye -laws
framed thereunder shall be used by a court other than that
of a Magistrate of the First Class.
(2) No court shall take cognizance of any offence
punishable under this act except on the complaint of the
Secretary of the Board or of the Market Committee or any
other officer authorised by the State Government in this
behalf.
Admissibility of copy
of entry as evidence.
49. A copy of any entry in any book, register or list
regularly kept in course of business in the possession of
market committee shall, if, duly certified, in such manner
as may be prescribed, be admissible in evide nce of the
existence of such entry and shall be admitted as evidence of
the matter and the transaction therein recorded to the same
extent the original entry would, if produced, have been
admissible to prove such matter.
Recovery of sums due
to and from market
committee.
50. (1) Every sum due from a market committee to the
State Government or the Board on any Local authority shall
be realised as arrears of land revenue,
19
(2) Every sum due to a market committee from any
person shall be reduced to the form of a demand certificate,
as may be prescribed and signed by the Director or such
officer as may be authorised by him in this behalf.
Power of the State
Government to delegate
its powers.
51. The State Government may delegate by notification
in the official Gazette any of the powers conferred on it by
or under this Act, to any of its officers or to the Board or to
its Chairman or Secretary.
Power to make rules 52. (1) The State Government may either generally or
specially for the Board or any market area or market areas
make rules after previous publication for carrying out the
purposes of this Act.
(2) In particular and without prejudice to the generality
of the foregoing power, such rules may provide for all or
any of the following matters, namely-
(i) The election of the Chairman of the market
committee;
(ii) The powers to be exercised and the duties to be
performed by a market committee and its Chairman
and Secretary;
(iii) The management of the market, minimum and
maximum fee which may be levied and collected
by the market committee, the method, manner and
mode of collection of such fee in respect of such
agricultural produce sold and resold in the market
areas;
(iv) The issue of licences to traders, persons and firms
engaged in processing of agricultural, weightmen,
measurers, surveyors warehousemen and the
cancellation and suspension of such licence and the
category of such other persons operating in a
market ar ea as may be determined by the Board
and the form in which and the condition subject to
which such licences shall be issued, cancelled or
renewed.
(v) The method and manner of holding meetings, the
procedure to be followed at such meetings and the
powers to be exercised at such meetings;
20
(vi) the form in which returns shall be submitted by the
Board or a market committee;
(vii) the person by whom and the form in which copies
of document entries in the books of a market
committee, may be certified and the charges to be
levied for the supply of such copies;
(viii) the kind and description of the weights and
measures and the weighing and measuring
instruments which shall be used in the transactions
in agricultural produce in any market area;
(ix) the periodical inspection of all weights and
measures and weighing and measuring instruments
in use in market areas;
(x) the manner in which inquiry and inspection of the
Board or a market committee shall be held ;
(xi) the matters in respect of which the Board or a
market co mmittee may make bye -laws and the
procedure to be followed in making, amending or
rescinding the bye-laws;
(xii) the declaration of market proper and market
yards;
(xiii) the condition of service, recruitment provident
fund, pension, and such other terms and condit ions
as may be required for the employment of the staff
of the Board and the market committee;
(xiv) the trade allowance which may be made or
received by any person in any transaction in any
agricultural produce in a market area;
(xv) the prohibition of brokers f or acting in any
transaction on behalf of both the buyer and seller of
agricultural produce or as a buyer or seller;
(xvi) the provision of accommodation for storing any
agricultural produce brought into the market;
21
(xvii) the preparation of plans and estimates for works
proposed to be constructed partly or wholly at the
expense of the market committee and the grant of
sanction to such plans and estimates;
(xviii) the form in which the accounts of the Board or a
market committee and the grant or sanction to
plans and estimates shall be kept, the audit,
inspection and publication of the accounts and
audit report and the inspection thereof and supply
of copies of such accounts and reports;
(xix) the preparation and submission for sanction of the
annual budget  and the report and returns to be
furnished by the Board or a market committee;
(xx) the investment and disposal of the surplus funds
of a market committee;
(xxi) the regulation of advance, if any given to
agriculturist by brokers , commis sion agents, or
traders;
(xxii)the prevention of adulteration of agricultural
produce;
(xxiii) the grading and standardization of agricultural
produce;
(xxiv) the keeping of a list of prices of agricultural
produce in respect of which the market is
established;
(xxv)the man ner in which auctions of agricultural
produce shall be conducted and bids made and
accepted in any market;
(xxvi) the recovery and disposal of cost leviable by or
under this Act;
(xxvii) other matters relating to the functioning of the
Board or the Market Committee;
(xxviii) any other matter which has to be or may be
prescribed.
22
(3) Any rules made under this act may provide that any
contravention thereof or any of the conditions of licences
issued will render the offender punishable with fine which
may extend to rupees two hundred.
Bye-laws. 53. (1) Subject to any ru les made by the State
Government under Section 52, 

Excerpt shown. Open the full act in Lexace.

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