The SIKKIM STATE AGRICULTURAL PRODUCE MARKETING (DEVELOPMENT AND REGULATION) ACT,2005

SiKKIM
GOVERNMENT GAZETTE
EXTRAORDINARY
PUBLISHED BY AUTHOniTV
--------------------------------..Gangtok Wednesday 20th April, 2005
----------~------------~~.---------~------------------~---~GOVERNMENT Of SIKKIM
LAW DEPABTMENT
GANGTOK
No. 163
No.7/LDlPf2005 Dated.15.4.2005.
NOTIFICA TION
The fo!lowing Act of tile Sikkim Legislative Assembly having received the assent of tile Governor on 9th
day of March, 2005 is hereby published for general intorrnation.-
THE SIKKIM STATE AGRICULTURAL PRODUCE MARKETING
(DEVELOPMENT AND REGULATION) ACT, 2005
ACT NO. '7OF 2005
AN
ACT
to provicJefor improved requlation in marketing of agricultural produce, development of efficient marketing
system, promotion of aqri-processinq and agricultural export and tile establishment and proper administration of
markets tor agricultural produce in the State of Sikkim and whereas, it is expedient to put in place an effective
infrastructure for marketing of agricultural produce and lay down procedures and systems thereto,
Be it enacted by tile Sikkim State Legislature in the Fifty-sixth Year of the Hepublic of India as follovvs:-
ARRANGEMENT OF SECTIONS
CHAPTER-i
PRELIlVIlNARY
SECTIONS:
1. Short title, extent and commencement
2. Definition
CHAPTER-II
ESTABLISHMENT OF MARKET
3. Notification of intention of requlatinq marketing of notified Agricultural Produce in specified area
4. Declaration of market area and development and regulation of marketing of specified agricultural produce
therein
5. Market yards, sub-market yards, consumer /tarrners market and private market
6. Notification of intention to alter limits of or to amalgamate or to split up market areas ;.o-reestablish a
market
7. Procedure subsequent to notification under Section 6
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B. Effect of alteration of limits
!)..... Power of State to issue consequential order with respect to constitution, etc. of market committees
on alteration of limits, amalgamation or splitting up
CHAPTER-III
CONSTITUTION OF MARKET COMMITTEE
10. Establishment of Market Committee and its incorporation
11. Vesting of property of Local authority in Market Committee,
12. Acquisition of land for Market Committee
13. Appointment of officer-in-charge of Market Committee pending constitution of firs Market Committee.
14. Constitution of the Market Committee
Or
14A. Constitution of the Market Committee
14B. Division of Market area for constituencies and reservation of seats
14C. Qualification to vote and to be representative of agriculturist.
140. First meeting, terms of officer, resignation by Chairman, Vice Chairman orMember and vacancy in their
office
15. Chairman and Vice-chairman of Market Committee
Or
15A. Election of Chairman and Vice-Chairman
16. Resignation by Chairman and Vice-chairman and vacancy in their office
17. No confidence motion against Chairman and Vice-chairman
18. Seizure and taking possession of record and property of Market Committee under certain conditions
CHAPETR-IV
CLASSIFICATION OF MARKET AND SPECIAL MARKET
19. Classification of Market
20. Special Market and Special Commodity Market
21. Constitution of the Market Committee for special market
22, Chairman and Vice Chairman for special market
23. Executive committee for special market
24. Chief Executive of Market Committee of Special market, Functions and power
CHAPETR-V
CONDUCT OF BUSINESS AND POWERS AND DUTIES OF MARKET COMMITTEE'
25. Meeting etc. of the Market Committee
26. Powers and duties of the Market Committee
27 Publishing and circulation of arrival with rates
28. Appointment of sub-commlttee and delegation of powers
29. Power to borrow
30. Compounding of offences
31. Power to write off irrecoverable fee, etc.
32. Powerto remove encroachment on rnarket yard
33. Use of weighing instruments, weights and measures, their inspection and seizure
34. Mode of making contract
35. Act of Market Committee etc. not to be invalidated
CHAPTER-VI
STAFF OF MARKET COMMITTEE
36.
37.
Chief Executive Officer of Market Committee
Appointment of staff by the Market Committee
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-:
38.
39.
40.
41.
42,
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.,
53.
54.
55.
56.
CHAPTER-VII
CONTRACT FARMING
Prccedure and Form of Contract Farming Agreement
CHAPTER - VIll
REGULATION OF TRADING
Regulation of marketing of notified agriculture produces
Sale of notified agricultural produce in market
Terms and procedure of buying and selling
Power to levy market fees (Single point levy)
Permission for transportation of notified aqricultural produce
Registration of functionaries
Establishment of private yards & direct purchase of agricultural produce from Agriculturist (Direct
purchasinq from producer)
Establishment of Consumer/ Farmer Market (Direct sale by the producer)
Grant /renewal of license of private yard, consumer/ farmer market and weigh man
Power to cancel or suspend license/registration
Appeal
Redressed of dispute between Private market or Consumer market and Market Committee
Prohibition of trade allowances other than prescribed under this Act
Power to order production of account and entry, inspection and seizure
Submission of annual account by licensee Registered functionaries and assessment of market fee
Assessment of market fee on his own motion by the Chief Market Executive officer, payable to Market
Committee by License /registered functionaries
Power to stop vehicle and inspect store
Power to grant exemption from market fee
CHAPTER-IX
BUDGET AND MARKET COMMITTEE FUND
57. Preparation and sanction of budget
58. Market Committee Fund
59, Application of Market Committee fund
CHAPTER-X
STATEAGRICULTURALMARKETINGBOARD
CONSTITUTION, FUNCTIONS AND POWERS
60. Establishment of the State Agricultural Marketing Board
61. :ncorporation of Board
62, Constitution of the State Agricultural Marketing Board
63. Members of the Board
64. Appointment of Managing Director, officers & Employees of the Board
65, Term of office of the non-official members of the Board
66. Term of official members
67. Allowance to mernber of the Board
68. Filling of casual vacancy
69. Resignation of members
70. DisqualificationofthememberoftheBoard
71. Appointment of sub-committee
72. Superintend rice of the Board
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73., Functions and powers of the Board Regulations
75. Marketing Development Fund Payments incurred by the Board
77. Contribution towards the Board
78. Borrowing by issue of bonds or stocks
79. Utilization of Marketing Development Furred
80. Audit of Accounts of the Board
81. Delegation of powers
82. Supervision and control of the Chairman/Chief Executive
83. Functions and powers of the Managing Director
84. Conduct of business of the Board
85. Powers and Functions of the Director of Marketing Board
86. Powers of Chairman of Board
CHAPTER-XI
PENALTY
87. Penalty for contravention of Act, Rules and By-laws
88. Recovery of market dues
89. Cognizance of offences
CHAPTFR.- XII
CONTROL
90. Inspection of markets and inquiry into the affairs of Market Committee
91. Powers to remove a member of the Market Committee
92. Supersession of the Market Committee
93. Consequence of Supersession of Market Committee
94. Supersession of Board
95. Consequences of Supersession of Board
96. Power of Director or Managing Director to direct Market committee for amending Bye-laws
97. Power of the Director to prohibit execution or further execution of resolution passed or orders made by
the Market Committee
98. Power to call for proceeding of Market Committee by Managing Director/ Director
99. Liability of Chairman, Vice-Chairman, members and employees for loss, Waste or misappropriation, etc
100. Power of State Government to amend schedule
101. Power of State Government to give dir~ction
102. Recovery of sums duo to Board or Market Committee
103. Chairman, Vice-Chairman, memhers, officers and servants etc. of Market Committee and Board to be
public servants
104. Delegation of powers
105. Bar to Civil suit and protection to person acting in good faith
106. Bar to suit in absence of notice
107. Duty of local authorities to give information and assistance
108. Act not to be invalidated by informality, vacancy etc.
CHAPTER-XIII
RULES AND BYE-LAWS
109 Power to make rules
110. Power to make Bye-laws
CHAPTER - XIV
REPEAL AND SAVING
111. Repeal and Savings
112. Power to remove difficulty
113. Addendum on Contract Farming Agreement and its Model Specifications

Short title extent and
commencement
Definition
CHAPTER I
Preliminary
(1) This Act may be ca!led "The Sikkim State Agricultural Produce Marketinq
(Development and Regulation) Act, 2005
(2) It extends to the whole of State of Sikkim.
(3) It shall come into force on the date of their publication in the official Gazette.
appoint.
2. In this Act, unless the context otherwise requires.-
(1) "Agricultural Produce" means all produce and Commodities, whether processed
or unprocessed, of agriculture, horticulture, apiculture, sericulture, livestock
and products of livestock. fleeces (raw wool) and skins of animals, forest
produce etc. as are specified in the schedule or declared by the
Government by notification from time to time and also includes a mixture of two
or more than two such products.
(2) "Agriculturist" means a person who is a resident of the notified area of the
market and who is engaged in production of agricultural produce by himself or
by hired labour or otherwise, but does not include any market functionary.
Ifa 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.
(3) "Bill" means bill issued by the traders as prescribed.
(4) "Board" means the State Agricultural Marketing Board, established under Section
60 of this Act.
(5) "Business" means purchase-sale, processing, value addition, storage, trans-
portation and connected activities of agricultural produce.
(6) "Buyer" means a person, afirm, acompany or cooperative society or Government
Agency, Public Undertaking/ Public Agency or Corporation, Commission agent,
who 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.
(7) "Bye-laws" means the bye-laws made by the Market Committee under this Act.
(8) "Chief Executive Officer" means the Chief Executive Officer of a Mark.et
Committee appointed under Section 36.
(9) "Collector" means the Collector of the district or any officer empowered to
discharge the duties of the Collector under the provisions of this Act.
(10)"Commission Agent" means a person who on behalf of his principal trader and
in consideration of a commission or percentage on the amount involved in
such transaction buys agricultural produce and makes payment, keeps it
in his custody and delivers it to the principal trader in due course or who
receives and takes in his custody agricultural produce sent for sale within the
market area or from outside the market area, sells the same in the market area
and collects payment thereof from the buyer and remits the sale proceeds to
his principal trader.
(11) " Contract Farming" means farming by a person called "Contract Farming
Producer" under awritten agreement with another person called "Contract Farming
Sponsor" to the effect that his farm produce shall be purchased as specified in
the agreement.
Explanaticn: 'Contract Farming Producer' means individual agriculturist or
associatonof agriculturists bywhatever name called registered under any law
for the .time being in force. In North Eastern States where the ownership or
control over the agricultural lands lies with Village panchayats or similar bodies
legally recognized, such body will be treated as 'Contract Farming Producer'.
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(12)"Contract Farming Agreement" means the agreement made for contract farming
between Contract Farming Sponsor and Contract Farming Producer.
(13)"Director" means the person appointed, by the State Government by notification. as
Director of Agricultural Marketing and includes any officer or officers empowered by
the State Government by notification, to exercise or periorm such of the powers or
functions of the Director under the provisions of this Act or the Rules or the Bye-
laws made there under as may bespecified in such notification.
(14)"Export" means dispatch of agricultural produce outside India.
(15) "Exporter" means such person/firm who exports agricultural produce.
(16)"e-trading" means trading inwhich billing, booking, contracting, negotiating information
exchange, record keeping and other connected activities are done electronically on
computer network/internet.
(17)"Hamal" means a laborer, hamal orcoolie engaged for Dara-making, loading, unloading,
filling, stitching, emptying or carrying any agricultural produce in the notified market
area.
(18)"Import" means bringing agricultural produce from outside India.
(19)"Importers" means such person/firm who imports agricultural produce from outside
India.
(20)"License" means - license granted under this Act.
(21)"Licensee" means a person or association, firm, company, public sector undertaking
or society holding a license issued under this Act.
(22)"Local authority" means for the purpose of representation on the Market Committee
in relation to an area within the local units of (i) in any Municipal area, the Municipal
Corporation, the Municipal Council, the Cantonment Board, the Sanitary Board, the
Town Board, Town Improvement Trust or the notified committee or Local authority
for the area; (ii) In any rural area, the Zila Parishad, the Village Panchayat, or
Panchayat Samiti, Taluka Panchayat or the Nagar Panchayat, or Gaon/Gram
Panchayat, Mokhurn - Parishad or any other named constituted under the
Panchayat Act of respective state.
(23)"Managing Director" means the managing director of The State Agricultural Marketing
Board appointed under this Act.
(24)"Market" means a market established under Section 4which includes market area,
market yard/sub yards and Market Committee.
(25)"Market Area" means area notified under Section 4 of this Act.
(26)"Market Charges" includes charges on account of or in respect of commission,
brokerage, weighing, measuring, hammali (loading, unloading, and carrying), cleaning,
drying, sieving, stitching, stacking, hiring, gunny bags, stamping, bagging, storing,
warehousing, grading, surveying, transporting and processing.
(27)"Market Committee" means the agricultural produce Market Committee established
under this Act.
(28)"Market Functionary" means a trader, acommission agent, buyer. Hamal, Processor.
a stockiest, a trader and such other person as may be declared under the rules or
Bye-laws to be a market functionary.
(29)"Market Yard" in relation to a market area means a specified place and includes any
enclosures, buildings or locality declared as such in any market area by the State
Government or the Director or the Managing Director by notification.
(30)"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-functions involved in the process.
(31)"Notified Aqrlcutturai Produce" means any agricultural produce notified under Section
4 of this Act.
(32)"Other Backward Classes" means the other backward classes of Citizens as specified
by the State Government from time to time.
(33)"Prescribed" means prescribed by rules made under this Act.
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Notification of
Intention of
developing and
regulating marketing
of Notified
Agricultural produce
in specified area
(34) "Private Market Yard" means such place other than the market yard/sub market
yard in the market area where infrastructure has been developed and managed
by a person for marketing of notified agricultural produce holding a license tor this
purpose under this Act.
(35) "Processing" means anyone or more of a series of treatments relating to powdering,
crushing, decorticating, desusking, parboiling, polishing, grinding, pressing, and curing
or any other manual, mechanical, chemical or physical treatment to which raw
agricultural produce or its product is subjected to.
(36)"Processor" means a person who undertakes processing of any, notified agricultural
produce on his own accord or on payment of a charqe.
(37) "Registration" means registration done under this Act.
(38)"Regulation" means regulation made by the Board/Director, in accordanc. -, II the
provisions of this Act.
(39)"Retail Sale" in relation to a notified agricultural produce means a sale not exceeding
such quantity as the Market Committee may by bye-laws, determine to be a retail
sale in respect thereof.
(40)"Rules" means rules made under this Act by the State Government.
(41)"Scheduled Castes" and "Scheduled Tribes" shall carry the same meaning as
assigned to them under clause (24) and (2) respectively of Article 366 of the
Constitution of India.
(42)"Seller" means a person who sells or agrees to sell any agricultural produce.
(43) "Special Market" means a market notified as such and includes special commodity
market.
(44) "Sub-Market yard" in relation to a market area means a specified place other than
Market Yard and includes' any enclosure, building or locality, declared as such in
any market area by the State Government or the Director IManaging Director by
notification.
(45) "Trader" means a person who in his normal course of business buys or sells any
notified agricultural produce, and includes a person engaged in processing of
agricultural produce, but does not include an agriculturist.
(46)"Transportation" means taking agricultural produce by truck or other vehicle in course
of business for marketing from one place to another.
(47) "Transporter" means a person who transports agricultural produce.
(48)"Value addition" means processing, grading, packing or other activities due to which
value is added to agricultural produce.
(49)"Year" means the year as may be notified by the Government from time to time.
(50)"Schedule" means Schedule prepared by under the Act.
(51) "Market Committee Fund" means any money received by the Market Committee by
way of arbitration fee or security deposit and other fund prescribed in the rules and
bye-laws.
CHAPTER II
Establishment of Markets
3. 1. Upon a representation made by any person Local authority or by the growers of
any agricultural produce within the area for which a market is proposed to be
established or otherwise, the State Government or the Director or the Ma:laging
Director may, by notification and in such other manner as may be prescribed,
declare its intention of developing and regulating the marketing of such
agricultural produce and in such area as may be specified in the notification.
2. A notification under sub-section (1) of Section 3 shall state that any objection or
suggestion which may be received by the State Government or the Director or
the Managing Director within aperiod of not less than thirty days, to be specified
in the notification shall be considered by the State Government. IDirector
Managing Director.
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Declaration of
market area and
development and
regulation of
marketing of
specified
agricultural produce
therein
Market Yards, Sub-
Market Yare/s,
Farmers/ Consumer!
Farmers market and
Private Market
Notification of
intention to alter
limits of or to
amalgamate or to
split up market area
to di-established a
- market
Procedure
subsequent to
notification under
Section 6
4. After the expiry of the period specified in the notification issued Linder section 3
and after considering such objections and suggestions as may be received
before such expiry and making such inquiry, if any, as may be necessary, the
State Government orthe Director/Managing Director may, by notification, declare
the area specified inthe notification issued under Section 3 or any portion thereof
to be market area for the purpose of this Act and that marketing of all or any of
the kinds of agricultural produce specified inthe notification issued under section
3 shall bedeveloped and regulated under this Act in such market area.
5. (1) In every market area, there may be-
(i) market yard managed by the Market Committee,
(ii) One or more than one sub market yards managed by the Market Committee,
(iii) One or more than one private market yards/ Market. Private markets managed
by a person other than a Market Committee,
(iv) One or more than one farmers/ consumer markets managed by a person other
than a Market Committee.
(2) The State Government shall, as soon as may be, after the issue of notification
under Section 4, by notification, declare any specified place including any
structure, enclosure, open place, or locality in the market area to be a market
yard or sub-market yard, as the case may be and
6. (1) The State Government may, by notification,signify its intention :-
(i) to alter the limits of a market area by including within it any other area in the
vicinity thereof or by excluding thereof any area comprised therein; or
(ii) To amalgamate two or more market areas and constitute one Market Committee
thereof; or
(iii) To split up a market area and to constitute two or more Market Committees
thereof; or
(iv) To de-establish a market;
(v) To modify the list of agricultural produce to be regulated in the market.
(2) Every notification issued under sub-section(,1 )of Section 6 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 markets intended to be constituted after splitting up an existing
market area or of the area of the market intended to be de-establish, as the
case may be, and shall also specify the period which shall not be less than six
weeks within which objections, ifany, shall be received by the State Government.
7 (1) Any inhabitant of the market area or of the areas affected by the notification
issued under sub-section (1) of Section 6 may, ifhe objects to anytring contained
therein, submit his objections in writing to the State Government within the
period specifie<i for this purpose.
(2) When the period specified in the said notification hasexpiredandtheState
Government has considered and passed orders on such objection as may have
been submitted to it within the said period, the State Government may, by
notification.-
(a) Include the area OJ' any part thereof in the market area or exclude itthere from;
(b) constitute a new Marice! Committee for the market area amalgamated; or
(c) Split up an existing market area and constitute two or more Market Committees
for such areas, as the case may be; or
(d) De-establish the market;
(e) Publish modified list of agricultural produce to be regulated in the market.
..8-

Effect of alteration of
limits
Power of State
Government to issue
consequential order
with respect to
constitutions, etc. of
market commkittees
on alteration of limits,
amalgamation or
splitting up
8. (1) Where a notification under Section 6 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 Market Committee involved frame a
scheme to determine what portion of the assets and other properties vested in
one Market Committee shall vest in the other Market Committee and in what
manner the liabilities of the Market Committees shall be apportioned between
the two Market Committees and such scheme shall come into force on the date
of publication in the Gazette.
9 (1) Where a notification under Section 6 has been issued the State Government
may pass such consequential orders as it may deem fit in respect of:-
(a) Where a notification is issued under sub-section (2) of Section 7 excluding area
from any market area and such excluded area is not declared to be separate
market area or a notification is issued under sub-section (2), including any area
within the market area, the Market Committee constituted for such market area
before the date of such exclusion or inclusion shall notwithstanding anything
contained in this Act, continue to be the Market Committee for the said market
area until the reconstitution of such Market Committee under this Act.
(b) In the event of amalgamation of dissolved Market Committee, the committee-
in-charge shall consist of the following members. Namely:-
i) A Chairman to be nominated by the State Government! Director/ Managing
Director;
ii) Ten representatives of Agriculturists to be nominated by the State Government!
Director/ Managing Director;
iii) One representative ofTraders to be nominated bythe State Government! Director/
Managing Director;
iv) One representative of the Cooperative Marketinq Society functioning in the
market area to be nominated by the State Government! Managing Director/
Director;
v) An Officer of Agriculture/ Cooperation Department working in the district to be
nominated on the recommendation of the Collector/ Director);
vi) One member of the Weigh men and Hammals operating in the market area
holding license from the Market Committee to be nominated by the registered
union of Hamal & Weigh men;
vii) One representative of the Local authority of the headquarter of the committee
(Chairman of Nagarpalika/ rvlahanagarpalika, Panchayat Samiti or Zilla Parishad
as the case may be);
(c) Where in case of split up of a Market Committee each committee-in-charge
consisting of a Chairman, Ten representatives of Agriculturists and a represen-
tative of Traders shaf be constituted:
Provided that-
i) Chairman of the dissolved Market Committee shall be nominated Chairman of
the newly established Market Comrnittee of which he is a voter and for the other
Market Committee. The State Government shall nominate a Chairman who
possesses the qualifications prescribed in sub-section (I) of Section 15;
ii) Representative of agriculturists of dissolved Market Committee shall also be
nominated as member of newly established Market Committee of which he is
voter and remaining representatives of the agriculturists shall be nominated by
the State Government who possesses the qualifications prescribed in sub-
sections (1), (2) and (3) of Section 14C;
iii) Representative of traders of the dissolved Market Committee shall be nominated
as a member of the newly established Market Committee of which he is a voter
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Establishment of
Market committee
and its incorporation
Vesting of property
of Local Authority in
Market Committee
and for the other Market Committee, the State Government shall nominate such
licensee trader as representative of traders who possesses the qualifications
prescribed in clause (c) of sub-section (1) of Section 14C;
iv) One representative ofthe Cooperative marketing society functioning inthe market
area to be nominated by the State Government / Managing Director / Director
(who shall be elected by the managing committee of such society);
v) Anofficerof the FoodSecurity&AgricultureDevelopment!Horticulture&
Cash Crop Development Departmenfworking in the district to be nominated on
the recommendation of the Collector/ Director;
vi) One member of the Weigh men and Hammals operating to be nominated by the
registered union of Hamal & Weigh men;
vii) One representative of the Local authority of the places where the Market
Committee is located (Chairman of Nagarpalika/ Mahanagarpalika. Panchayat
Samiti or Zilla Parishad as the case may be);
viii) The committee-in-charge constituted under sub-section (1) shall subject to the
control of the Director/ Managing Director, exercise all the powers and perform
all the duties of the Market Committee under this Act.
(2) The provisions of constitution of a sub-section (1) as they apply to the
constitution of a Market Committee first time under Section 14 shall apply
to the Market Committee under sub-section (4) for a market established for the
first time.
CHAPTER III
Constitution of Market Committee
10. (1) For every market area, there shall be a Market Committee havinq jurisdiction
over the entire market area.
(2) Every Market Committee shall be a body Corporate Committee and by such
name as the State Government or the Director may, by notification, specify. It
shall have perpetual succession and a common seal and may sue and be sued
in its corporate name and shall subject to such restrictions as are imposed by
or under this Act, be competent to conduct and to acquire, hold, lease, sell or
otherwise transfer any property and to do all other things necessary for the
purpose for which it is established:
Provided that no immovable property 'shall be acquired or transferred by
way of sale, lease or otherwise without the prior permission of the Director/
Managing Director.
(3) Notwithstanding anything contained in any enactment for the time being inforce,
every Market Committee shall for all purposes, be deemed to be a Local authority.
11 (1) The Market Committee may require a Local authority to transfer to itany land or
building belonging to the Local authority which is situated within the market
area and which, irnmediately before the establishment of the market was being
used by the Local authority for the purposes of the market and the Local authority
shall within one month of the receipt of the requisition, transfer the land and or
building, as the case may be, to the Market Comrnittee on such terms as may
be agreed between them.
(2) Where within a period of thirty days from the date of receipt of requisition by the
Local authority under sub- section (1) no agreement is reached between the
Local authority and the Market Comrnittee under the said sub-section, the land
or building required by tho Market Committee shall vest in the Market Committee
for the purposes of this Act and the Local authority shall be paid such compen-
sation as rnay be determined by the Collector under sub- section (5).
-1D-

Appointment of
Office-in-Charge of
Market committee
pending constitution
of first Market
Committee
Provided that no compensation sha'l be payable to a Local authority in respect
of any land or building this had been vested in it by virtue of the incurred by the
State Government in connection with the acquisition, the land shall vest in the
board or the Market Committee, as the case may be:
Provided that once a proposal is made by the Market Committee, it shall
not be withdrawn by it except for such reasons as may be approved by the
State Government.
(12)The Board or the Market Committee shall not without the previous sanction of
the State Government transfer any land which has been acquired for this purpose
by the Board or the Market Committee under sub-section (1) or divert such land
to a purpose other than the purpose for which it has been acquired:
Provided that the premises used for market yard, sub market yard or for
the purpose of the Board shall not be deemed to be included in the limits of
the Municipal Corporation. Municipal Council Notified Area, Gram Panchayat
or a Special Area Development Authority, as the case may be.
13. (1) When a Market Committee is established for the first time under this Act, the
State Government orthe Director or Managing Director shall by an order appoint;
A person to be the officer-in-charge for a period not exceeding two years, or a
committee-in-charge for a period not exceeding two years. Tile members of the
Market Committee may be appointed from among persons representing the same
interests and in the same proportion as specified in Section 14. The Officer-in-
Charge or the Committee-in-charge shall subject to the control of the Director/
Managing Director, exercise all the powers and perform all the duties of the Market
Committee under this Act:
Provided that the State Government or the Director may at any time during
the period aforesaid appoint committee-in-charge in place of Officer-in-Charge and
officer-in-charge in place of Committee-in-charge as the case may be, so appointed
shall hold office or shall function for the remainder of the period available to its
predecessor:
Provided that in the event of death, resignation, leave or suspension of the
Officer-in-charge, a casual vacancy shall be deemed to have occurred in such
office and such vacancy shall be filled, as soon as may be, by appointment of a
person thereto by the State Government or the Director / Managing Director and
until such appointment is made, a person nominated by Director/Managing Director
shall Act as Officer-in- charge:
Provided that if the Market Committee is constituted before the expiry of the
period aforesaid the officer- in-charge shall cease to hold office or the committee-
in-charge shall cease to function on the date appointed for the first general
meeting of the newly constituted Market Committee.
(2) Inthe event of a vacancy occurring on account of death, resignation or otherwise
of the members of the Market Committee-In-charge, the vacancy shall be
filled in by fresh appointment by the State Government or the Director or the
Managing Director.
(3) Any officer- in-charge or any or all persons appointed as the committee-in-charge
under clause (a) of sub-section (1) may at any time be removed by the Director/
Managing Director who shall have power to appoint another person or persons,
as the case may be, in his or their place or places.
(4) Every person appointed officer-in-charge under sub-section (1) shall receive
from the Market Committee fund for his services such honorarium and allowances
as may be fixed by the Director/Managing Director and every member of the
committee-in-charge shall be entitled to receive from the Market Committee
-11-

Constitution of
Market Committee
fund. Allowances at such rate at which allowances are payable to members of
the Market Committee.
14. (1) Every Market Committee shall consist of the following members, namely
(i) Five members shall be agriculturists possessing such qualifications as may
be prescribed to be elected by the Managing Committee members of the primary
agriculturalcooperativesocietiesfunctioningin themarketareaandbythe
Sarapanch and members of the Village Panchayat of which two shall be elected
from amongst the committee members of Primary Agricultural Societies:
Provided further out of 5 representatives of agriculturist at least one shall
belong to each of the following sections of the society -
1. Scheduled Caste!Tribe (one member)
2. Other Backward Class (one member)
3. Most Backward Class (one member) (Women):
Provided further that no agriculturist will be eligible to be elected as
representative of agriculturists unless he has sold agricultural produce in the
market in proceeding two successive years:
Provided further if the committee is established first time, then no
agriculturist will qualify to be elected as a representative of agriculturist unless
he has sold agricultural produce in the market durinq the last six months;
(ii) Two members shall be licensed traders elected amongst them in the manner
prescribed;
(iii) One member shall be a representative of the Co-operative Marketing Societyl,
which has the headquarters within market area:
Provided further if there is more than one such society the representative
will be elected as prescribed;
(iv) Two members shall be the Government nominees out of whom one member
shall be the representative of the State Department of Food Security and
Agriculture Development I Horticulture & Cash Crop Development land District
Collector Office each;
(v) One representative of Local authority (Chairman of Nagarpalika from Munici-
palities, or Municipal Corporation Mahanagarpalika, Panchayat Samiti or Zilla
Parishad as the case may be).
(2) A member elected under clauses (i), (ii), (iii) and (vi) of sub-section (1) shall
cease to hold office as such member if he ceases to be a member of the
electorate by which he was elected.
(3) The State Government may make rules to.provide for the election of the members
of the Market Committee, the authority which shall conduct election, determination
of constituencies, the preparation and maintenance of the list of voters,disquali-
fications for being chosen as and for being, a member the right to vote, the
payment of deposit and its forfeiture, election offences, the determination of
election disputes and all matters ancillary thereto.
(4) On the failure of the electorate mentioned in clause (i) and (ii) of sub-section (1)
to elect a member or members referred to inthe said clause after the proceedings
have been started in accordancewiththeprovisionsofthisActortherules
made there under, the State Government shall nominate on behalf of the
electorate concerned a person or persons qualified to be a member as member
or members of the Market Committee.
(5) Members of every Market Committee shall hold office for a period of five years
from the date of the first general meeting of the Market Committee.
(6) Ifwithin the period mentioned in sub-section (5) the Market Comrnittee is not
newly constituted, the :v1arketCommittee shall on the expiry of such period, be
. deemed to have been dissolved.
(7) An elected member of the Market Committee may resign his office at any time
by a letter in writing addressed to the Director/Managing Director to that effect
and his office shall become vacant on expiry of fifteen days from the date of
..12-

Constitution of
Market Committee
such resignation unless within the said period of fifteen days he withdraws the
resignation by another letter in writing addressed to the Director/ Managing
Director.
(8) In the event of the death, resignation or removal of a member before the expiry
of his term of office, a casual vacancy shall be deemed to have occurred in
office and such vacancy shall be filled as soon as may be by the election or
nomination, as the case may be, of a person thereto as member, who shall take
office forthwith and shall hold such office for the unexpired term of his
predecessor; provided that no casual vacant shall be filled which occurs
within a period of four months preceding the date on which his term expires.
(9) The Chairman and other members of the Market Committee shall be paid from.
the Market Committee funds such honorarium. sitting fees, traveling allowances
and other allowances as may be fixed by the Director/ Managing Director from
time to time.
OR (Choose 14 or set of 14A, 148, 14C, 14D)
14.A
(a)
(b)
(1) A Market Committee shall consist of-
the Chairman elected under Section 17;
Ten representatives of agric,ulturists possessing such qualifications as may be
prescribed chosen by direct election from the constituencies of a market area in
accordance with the provisions of this Act and the rules made there under:
Provided further that no agriculturist may be qualified to be elected as
representatives of agriculturist unless he has sold agricultural produce in the market
successively for last two years:
Provided further if the committee is established first time, then no agriculturist
will qualify to be elected as a representative of agriculturist unless he has sold
agricultural produce in the market during the last six months.
(c) One representative of traders possessing such qualifications as may be
prescribed, elected by and from amongst the persons holding registration from
the Market Committee for a period of two successive years as traders or owners
or occupiers of processing factories under this Acts:
Provided that in the case of Market Committee established for the first time
under Section 13, the qualifying period of holding license from such Market
Committee shall be six months:
Provided further if total number of registered traders for a period of their
successive years is more than 100 then there will be two representatives:
Provided also that no person shall be avoter of more than one Market Committee
at a time:
Provided also that no person shall be a voter unless.-
i) he has completed the age of 18 year;
(ii) he is not a defaulter of the Market Committee.
(2) Every committee will have following committee members-
(a) One representative of the Cooperative Marketing Society functioning inthe market
area who shall be elected by the managing committee of such society:
Provided that if more than one such society functions in the market area.
such member shall be elected by all the members of tile managing. Committees of
such societies:
-13-

Division of Market
Area
constituencies and
reservation of seats
Qualification to vote
and to be
representative of
Agriculture
for
Provided further that nothing inthis clause shall apply ifthe managing committee
of any society stands superseded under the provisions of the State Co-
operative Societies Act;
(b) An Officer of the Food Security Agriculture Development Department of the
State Government to be nominated by the Collectorl Director;
(c) One representative of the Weigh men and harnrnals operating in the marketing
area holding license from the Market Committee to be nominated by the Chairman
of the Market Committee;
(d) One representative of the Gram Panchayat or Zilla Panchayat that falls within
the jurisdiction of the market area nominated by the Chairperson of the Zilla
Panchayat:
Provided that in the Market Committee situated at the District headquarters
the representative shall be nominated from amongst the members of the Zilla
Panchayat only,
(3) Only members under sub-section (1) shall have a riqht to vote,
(4) The State Government may make rules for the preparation of voters' list and
conduct of election.
(5) If the electorate under clause (b) or (c) of subsection (1) fails to elect a
representative, the Collector shall nominate the representative ofthe agriculturists
or traders, as the case may be.
(6) Every election and nomination of the member shall be notified by the Collector
in the Official Gazette.
148.(1) The Collector shall by notification divide a market area into as many numbers of
constituency's equal 32 to the number of the representatives of the agricultu rists
to be chosen from that area.
(2) Seats shall be reserved for Scheduled Castes and Scheduled Tribes in every
Market Committee and the number of seats so reserved shall bear as nearly as
may be the same proportion no the total number of seats to be filled in that
Market Committee as the population of Scheduled Castes or Scheduled Tribes
in that Market area bears to the total population of that area and SUCllseats
shall be allotted to the constituencies in the prescribed manner.
(3) Where the total number of seats belonging to Scheduled Castes and Scheduled
Tribes in a market area is fifty percent 01' less than fifty percent, twenty five
percent of total number of seats shall be reserved for Other Backward Classes.
(4) Not less than one third of the total number of seats reserved under sub-sections
(2) and (3) shall be reserved for women belonging to Scheduled Castes or
Scheduled Tribes or Other Backward Classes, as tile case may be.
(5) Not less than one third (including the number of seats reserved for women
belonging to Scheduled Castes, Scheduled Tribes and Other backward Classes
of the total number of seats shall be reserved for women and such seats shall
beallotted bythe Collector to different constituencies inthe prescribed manner.
(if the election is indirect, this will not apply).
14C(1) Every person .-
(a) whose name is entered as Land owner in the village land records;
(b) who ordinarily resides in the market area;
(c) who has completed the age of 18 years; and
(d) whose name is included in tile voter's list prepared under the provisions of this
Act and the Rules made there under: shall be qualified to vote at the election of
a representative of agriculturists:
Provided that no person shall be eligible to vote in more than one constituency.

First meeting, terms
of officer, resignation
by Chairman, vice-
Chairman or Member
and vacancy in their
office
Chairman and Vice-
Chairman of Market
Committee
(2) No person shall be qualified to be elected as a representative of agriculturists
unless-
(a) his name is included in the list of voters as agriculturist of the market area;
(b) he is an agriculturist;
(c) he is otherwise not disqualified for being so elected.
(3) No person shall be eligible for election from more than one Market Committee or
constituency as the case may be.
140. (1) The first meeting of the Market Committee shall be convened by the Collector
within one month from the date of publication of result of election of and members
in the official gazette.
(2) The Chairman, Vice Chairman and members of the Mai-ket Committee shall
hold office for a period of their five years from the date of the first meeting of
Market Committee provided that if on the expiry of the term of the Market
Committee, a new Market Committee is not constituted the Market Committee
shall be deemed to have been dissolved and in such an event the provisions of
Section 13 shall apply.
(3) The Chairman, Vice Chairman or a member may 

Excerpt shown. Open the full act in Lexace.

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