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The TAMIL NADU AGRICULTURAL PRODUCE MARKETING REGULATION ACT, 1987

Tamil Nadu · state statute
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THE TAMIL NADU AGRICULTURAL PRODUCE MARKETING (REGULATION) 
ACT, 1987. 
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ARRANGEMENT OF SECTIONS. 
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CHAPETER 1. 
PRELIMINARY. 
SECTIONS: 
1. Short title, extent and commencement. 
2. Definitions. 
3. Notification of intention of regulating marketing of agricultural produce 
in specified area. 
4. Declaration of notified area. 
 
 
CHAPTER II. 
MARKET COMMITTEES. 
5.  Establishment of market committee. 
6. Establishment of markets. 
7. Establishment of special and subsidiary markets. 
8. Trading in agricultural produce in notified area. 
9. Alteration o f notified area, etc. 
10. Constitution of market committee. 
11. Publication of names of members of market committee. 
12. Chairman and Vice-Chairman of market Committee. 
13. Disqualification for membership of market committee. 
14. Assistant Director of Agriculture to be Ex- Officio member. 
15. Term of office of members, etc. 
16. Incorporation of market committee. 
17. Market committee to be a local authority. 
18. Sub-committee, special committee and delegation of powers. 
19. General meetings. 
20. Proceeding of market committee not to be invalidated by informalities. 
21. Nominated person to cease to be a member in certain cases. 
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22. Officers and servants of market committee. 
23. Execution of contracts by market committee. 
24. Levy of fee by market committee. 
25. Establishment of check – post or barrier. 
26. Issue of receipt by market committee. 
27. Determination of fee, etc ., not to be question in  prosecution. 
28. Levy of subscription for market reports, etc., 
29. Market Committee fund. 
30. Purpose for which Market committee fund may be expended. 
31. Power to borrow. 
32. Trade allowance not permissible except in certain cases. 
33. Special provision where there is delay in reconstitution of new market 
committee, etc., 
34. Delivery of possession of records and properties of market committee. 
 
 
CHAPTER  III 
MARKETING BOARD 
 
35. Establishment of Tamil Nadu State Agricultural Marketing Board. 
36. Constitution of Board. 
37. Officers and servants of Board. 
38. Powers and functions of Board. 
39. Execution of contracts by Board. 
40. Power to borrow. 
41. Estimate of income and expenditure of Board. 
42. Annual audit of accounts. 
43. Superintendence and control by Government. 
44. Market Board Fund. 
45. Market Development fund. 
 
CHAPTER  IV 
MISCELLANEOUS. 
 
46. Powers and functions of Director. 
47. Delegation of powers. 
48. Penalties. 
49. Liability of accused to pay fee, or other amount. 
50. Composition of offences. 
51. Power of Magistrate to recover summarily fee or other amount. 
52. Power to make rules. 
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53. Power to make regulation and by-laws. 
54. Power to write-off irrecoverable amount, etc., 
55. Bar of certain proceedings. 
56. President, Vice- President, Chairman and Vice – Chairman to be public 
servants. 
57. Limitation for certain suits and prosecutions. 
58. Trail of offences. 
59. Recovery of sums. 
60. Revision. 
61. Registration of document executed on behalf of board or market 
committee. 
62. Injunction not to be granted in certain proceedings, etc. 
63. Liability of President, Vice- president, chairman, Vice- chairman and 
member for loss, waste or misapplication of property. 
64. Exemption. 
65. Power to amend the schedule. 
66. Power to remove difficulties. 
67. Repeal and savings. 
       Schedule. 
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINARY 
 
 The following Act of the Tamil Nadu Legislative Assembly received the 
assent of the President on the 17 th May 1988 and is hereby published for 
general information:- 
ACT No. 27 OF 1989. 
An Act to amend and consolidate the law relating to, and to make better 
provisions for, the regulation of buying and selling of agricultural produce and 
the establishment and proper administration of markets for agricultural produce 
in the State of Tamil Nadu. 
WHEREAS it is expedient to provide for the better regulation of buying and 
silling of agricultural produce and the establishment and proper 
administration of markets for agricultural produce in the state of Tamil Nadu; 
BE it enacted by the Legislative  Assembly of the State of Tamil Nadu in the 
Thirty-eighth year of the Republic of India as follows:- 
 
CHAPTER I. 
PRELIMINARY. 
 
1. Short title, extent and commencement.-(1) This Act may be called the 
Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987. 
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(2) It extends to the whole of the Tamil Nadu. 
(3)  The provisions of sub -sections (2) and (4) of section 22 and sub -
sections (5) and (7) if section 37 shall come into force at once and the 
remaining and provisions of this Act shall come into force on such date as the 
Government may, by notification, appoint; and different dates may be 
appointed for different areas and for different provisions of this Act. 
2. Definitions.- In this Act, unless the context otherwise requires,- 
(1) "agricultural produ ce" means any produce of agriculture, whether 
processed or unprocessed, specified in the Schedule ; 
(2) "agriculture" includes horticulture, fruit grow ing, seed growing,  
animal husbandry (including breeding of livestock), agriculture, pisciculture 
and sericulture and "agricultural" shall be construed accordingly ; 
(3) "Board" means the Tamil Nadu State Agricultural Marketing Board 
established under section 35 ; 
(4) "broker" means an agent who, in consideration of commission, fee or 
remuneration contrives, makes and concludes a bargain or contracts on 
behalf of his principal, for the purchase or sale of any agricultural produce, 
but does not receive, deliver, transport or pay for the purchase or collect 
payment for the sale of the agricultural produce ; 
(5) "Chairman" means the Chairman of a market committee ; 
(6) "Collector" means the collector of the district in which the notified 
area is situated or,  if such area is situated in two  or more districts, the 
Collector of one of those districts designated in th e Government in that behalf 
; 
(7) "commission agent" means a person, who by himself or through his 
servants, buys and sells agricultural produce for another person keeps it to 
his custody and controls it during the process of its purchase and sale, and 
collects payment therefor from the buyer and pays it to the seller, and receives 
by way of remuneration a commission or percentage upon the amount 
involved in each transaction ; 
(8) "Director" means the Dir ector of Agricultural Marketing and Agri 
Business or the Commissioner or Special Commissioner of Agricultural 
Marketing and Agri Business, as the case may be, and includes any other 
person or authority authorized by the Government by notification  to perform 
the functions of Director under this Act for such area as may  be specified in 
the notification;   
(8-a) β€œe -trading” means a virtual platform created using information 
and communication technology for marketing activities on any notified 
agricultural produce such as billing, booking, contracting, negotiating, 
information exchanging, record keeping, online trading, online payment and 
other connected activities as are done electronically on computer network or 
internet;”. 
(9) "Government" means the State Government ; 
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(10) "market" means any market established under sub -section (1) of 
section 6 and shall, except in sub -sections (1) and (2) of that section, include 
a subsidiary market ; 
(11) "market committee"  means any market committee established 
under sub-section (1) of section 5 ; 
(12) "notified agricultural produce" means by agricultural produce 
specified in the notification under section 3 ; 
(13) "notified area" means any area notified under section 4 as altered 
by any notification under sub-section (1) of section 9 ; 
(14) "notified maket area" means any area notified under sub -section 
(2) of section 6 as altered by any notification under sub-section (1) of section 9 
; 
(15) "person" means an individual or a firm or a company or an 
association or a body of individuals, whether incorporated or not, or a local 
authority. 
Explanation.- In this clause, "local authority" shall have the same 
meaning assigned to it in cla use (20) of section 3 of the Tamil Nadu Public 
Health Act, 1939 (Tamil Nadu Act III of 1939) ; 
(16) "President" means the President of the Board ; 
(17) "Processing" means any one or more of a series of treatments such 
as powdering, crushing ,decorticating, husking, par-boiling polishing, ginning, 
pressing, curing, pasteurising or any manual, mechanical, chemical, physical 
or other treatment to which raw agricultural produce or its product are 
subjected to, to make it fit for marketing or ultimate consumption ; 
(18) "producer" means any person who grows rears, or produces by 
himself, or by hired labour or otherwise, any agricultural produce in an extent 
of land not less than half an hectare but does not include a broker or a trader 
in that produce, although he may grow, rear or produce, that produce : 
      Provided that for the purposes of clauses (a) and (c) of sub -section (2) of 
section 10, a person shall not be deemed to be a producer, unless he has 
grown, reared, or produced the notified agricultural prod uce for a period of 
not less than three years immediately preceding the date  of occurrence of the 
vacancy against which he is to be nominated. 
     If any question arises as to whether any person is producer or not for the 
purpose of this Act, the decisio n of the Collector shall, subject to the 
provisions of section 60, be final. In arriving at a decision, the Collector shall 
follow such procedure as may be prescribed. 
     Explanation.-  For the purpose of this clause, "producer" shall also include 
a tenant ; 
 (19) "Registrar" means the Registrar of Co -operative Societies for the 
State of Tamil Nadu ; 
 (20) "Schedule" means the Schedule to this Act ; 
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(21) "Secretary" means the Secretary of a market committee and 
includes a Joint, Deputy or Assistant Secretary ; 
(22) "subsidiary market"  means any subsidiary market established 
under sub-section (3) of section 7 ; 
(23) "trader" means a person who buys, sells, stocks, processes, treats 
or in any way deals with any notified agricultural produce either for himself or 
as a partner or as an agent of one or more persons and includes a 
commission agent, del credere agent or any other mercantile agent but does 
not include a broker. 
3. Notification of intention of regulating marketing of 
agricultural produce in specifie d area . - The Government may, by 
notification, declare their intention of regulating the marketing of such 
agricultural produce and in such area as may be specified in the notification. 
(2) The notification shall state that any objection or suggestion which 
may be received by the Government, within such period as may be specified in 
the notification, shall be considered by them. 
A copy of the notification shall also be published in such o ther manner 
as may be prescribed. 
4. Declaration of notified area. - (1) After the expiry of the period 
specified in the notification under section 3 and after considering such 
objection and suggestion as may be received before such expiry, the 
Government may be notification, declare the area specified in the notification 
under section 3 or any portion thereof to be a notified area for the purposes of 
this Act in respect of any agricultural produce specified in the notification 
under that section. 
A copy of the notification shall also be published in such other manner 
as may be prescribed. 
(2) A notification under section 3 or under sub -section (1) shall have 
full force and effect notwithstanding any irregularity or defect in the 
publication of a copy of such notification. 
 
CHAPTER II. 
MARKET COMMITTEES. 
5. Establishment of market committee. - (1) The Government shall 
establish a market committee for every notified area. It shall be the duty of the 
market committee to enforce the  provisions  of this Act and the rules and by -
laws made under this Act in such notified area. 
(2) Where, after the establishment  of a market committee under sub -
section (1) any agricultural produce is notified in relation to the notified area 
for which th e market committee has been established, then, the market 
committee shall be deemed, to have been established in respect of that 
agricultural produce also. 
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6. Establishment of markets. - (1) Every market committee shall 
establish in the notified area such number of markets providing such facilities 
including e-trading as the Government may, from time to time, direct for the 
purchase and sale of the notified agricultural produce. 
(2) The Government shall, as soon as may be, after the establishment of 
a market committee under sub-section (1), declare, by notification, the area of 
the market and such area around  the market as may be specified in the 
notification to be a notified market area for the purposes of this Act in respect 
of any notified agricultural produce. 
7. Establishment of special and subsidiary markets. - (1) Notwith 
standing anything contained in section 6, where the Government are satisfied 
that on account of the specialized nature of marketing of any agricultural 
produce, like fresh fruits, fresh vegetables, or wool, in any area, it is expedient 
to ensure the efficient regulation of the marketing of such agricultural 
produce in such area the Government may establish,- 
(a) in such area special market for such agricultural produce, and 
(b) independ ent market committee in relation to such special market 
notwithstanding that such area falls within the local limits of the jurisdiction 
of any other market committee or committees already functioning in the area. 
and every such special market and independ ent market committee shall be 
established and constituted in the same manner in which a market and a 
market committee is established and constituted under this Act. 
 (2) Where a special market and independent market committee are 
established under sub -section (1), the Government may, by notification, 
declare that the provisions of this Act shall with such modification, 
restrictions or limitations as may by specified in the notification, apply in 
relation to such special market and independent market committee. 
 (3) The market committee any, with the previous approval in writing of 
the Government establish, within the notified market area, such number of 
subsidiary markets as may be necessary providing such facilities as the 
Government may, from time to time direct, for the purchase sale of the 
notified agricultural produce. 
 (4) (a) The Government may, be notification, declare their intention to 
direct the independent market committee, or as the case may be, the market 
committee concerned to close such specia l market or subsidiary market as 
may be specified in the notification.  The notification shall state that any 
objection or suggestion which may be received by the Government , within  
such period as may be specified in the notification, shall be considered by it. 
     A copy of the notification shall also be published in such other manner as 
may be prescribed. 
 (b) After the expiry of the period specified in the notification under 
clause (a) and after considering such objection and suggestion as may be 
received before such expiry, the Government may direct the independent 
market committee, or as the case may be, the market committee concerned to 
close the special market or subsidiary market specified in the notification 
under clause (a) and such direction shall be given effect to be the independent 
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market committee, or as the case may be the market committee concerned 
within such period as may be specified in the direction. 
 8. Trading in agricultural produce in notified area. - (1) No person -
shall within a notified area.- 
 (a) setup, establish or use, or continue or allow to be continued any 
place for the purchase or sale , storage, weighment, measurement or 
processing of any notified agricultural produce, or 
 (b) operate as a broker, weighman, measurer, trader  warehouseman or 
in any other capacity in relation to the buying and selling of any notified 
agricultural produce, 
except under, and in accordance with the conditions of a licence granted to 
him by the market committee: 
 Provided that the market committee may exempt from the provisions of 
this sub -section any person who  carries on the business of purchasing or 
selling, storing, weighing, measuring or processing any notified agricultural  
produce in any quantity not exceeding such quantity as may be prescribed: 
 Provided further that a producer selling, storing, weighing, measuring 
or processing any notified agricultural produce which has been grown, reared 
or produced by him, or a co -operative marketing society selling, storing, 
weighing, measuring or proces sing any notified agricultural produce which 
has been grown, reared or produced by any of its members, shall be exempt 
from the provision of this sub-section, but the Government may withdraw, for 
such period as may be prescribed, such exemption in respect of any such 
producer or co-operative marketing society or all of them. 
    Explanation.-"Co-operative marketing society" means any co -operative 
society registered  or deemed to be registered under the Tamil Nadu Co -
operative Societies Act, 1961 (Tamil Nadu  Act 53 of 1961) which has, as its 
principal object, the promotion of the marketing of the agricultural produce 
grown, reared or produced by its members. 
 (2) Noting contained in sub-section (1) shall apply to - 
     (a) a person purchasing any notified agricultural product for his own 
domestic consumption in any quantity not exceeding such quantity as may be 
prescribed; 
     (b)  a person purchasing any notified agricultural produce for his 
own seed purposes in any quantity not exceeding such quantity as  may be 
prescribed; 
     (c)  a Wareshousing Corporation established or maintained by the 
State or central G overnment or a warehouseman licensed under the Tamil 
Nadu Warehouses Act, 1951 (Tamil Nadu Act XV of 1951) in respect of 
storage, weighment or measurement of anyu notified agricultural produce 
accepted for warehousing. 
 (3) Notwithstanding anything contain ed in sub -section (1), no person 
shall, after the date to be notified by the Government  in this behalf in the 
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Tamil Nadu Government Gazeette, purchase or sell any notified agricultural 
produce in a notified market area outside the market in that area. 
 Explanation - For the purpose of this sub -section, purchase or sale 
shar, unless otherwise prescribed, mean the purchase or sale in the first point 
in the notified market area. 
 (4) A licence under sub-section (1) may be refused to a person - 
    (a)  whose license was cancelled and a period of three years has not 
elapsed since the date of the cancellation ; or  
    (b)  who has been convicted of an offence where such offence relates 
to his business or his integrity as a man of business: or  
    (c)  in regar d to whom the market committee is satisfied, after such 
enquiry as it considers adequate, that he is a benamidar for, or a partner 
with, any other person to whom a license may be refused under clause (a) or 
clause (b). 
 (5)  If a market committee is satisf ied, either on a reference made to it 
in this behalf, or otherwise, that - 
              (a) a licence granted under sub -section (1) has been obtained 
by misrepresentation or fraud, or 
    (b) the holder of a licence has contravened, or failed to comply wi th, 
any of the provisions of this Act or the rules or bylaws made under this Act 
or any of the conditions of the license, 
(A Group) IV-2 Ex.(394)-2 
 
then, without prejudice to any other penalty to which the holder of the 
licence may be liable under this Ac t, the market committee may, subject to 
such rules as may be made in this behalf, cancel or suspend the licence, 
after giginv the holder of the lic ence a reasonable  opportunity of showing 
cause against such cancellation or suspension. 
 
 (6) Any person aggrieved by the decision of the market committee,- 
 
(a) refusing to grant, or register 
(b) cancelling or suspending, 
a licence may,  within such time as may be prescribed, appeal to the Board 
and the Board may make such order in the case as it may think fit. 
 (7) A licence granted under sub -section (1) shall be valid for a period of 
- 
 (a) three years in respect of a person who carries on the business, by 
wholesale, of purchasing or selling any notified agricultural produce; 
 (b) one year in respect of others, 
and may be renewed from time to time and the provisions of this Act shall, so 
far as may be, apply in relation to the renewal of a licence as they apply in 
relation to the grant of a licnece. 
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 (8) Every person to whom a licence is granted registered for liable to be 
licnece under sub-section (a) shall comply with the provisions of this Act, the 
rules and by -laws made under this Act and the conditions specified in the 
licence. 
 (9) Every person licensed or liable to be licensed and liable to pay fee or 
any other amount under this Act shall keep and maintain a true and correct 
account and such other records showing such particulars as may be specified 
in the rules and into by -laws of the market committee and shall submit such 
periodical returns relating to his business transaction including processing as 
may be prescribed, to the market committee in such manner and within such 
period as may be prescribed, together with the fee or other amount due on the 
basis of the return.  
β€œ8-A. Trading in agricultural produce in the State -  (1) Notwithstanding 
anything contained in section 8, the Director or the officer authorized by him 
in this behalf may grant a licence to a person for buying or selling or 
operating in any other capacity in relation to buying or selling of any notified 
agricultural produce in any notified market area and every application for 
grant of licence shall be made in such form, in such manner and 
accompanied by such fee,  as may be prescribed. 
 (2) A licence under sub-section (1) may be refused to a person --. 
  (a) whose licence was cancelled by the market committee or the 
Director or the officer authorized by him and a period of three years has not 
elapsed since the date of the cancellation; or  
  (b) who has bee n convicted of an offence where such offence 
relates to his business or his integrity as a man of business; or 
  (c) In regard to whom the Director or the officer authorized by 
him is satisfied, after such enquiry as he considers adequate, that he is a 
benamidar for, or a partner with, any other person to whom a licence has 
been refused under clause (a) or clause (b). 
 (3) If the Director or the officer authorized by him is satisfied, either on 
a reference made to him in this behalf, or otherwise, that- 
  (a) a licence granted under sub -section (1) has been obtained by 
misrepresentation or fraud, or 
  (b) the holder of a licence has contravened, or failed to comply 
with, any of the provisions of this Act or the rules or by -laws made under this 
Act or any of the conditions of the licence. 
then, without prejudice to any other penalty to which the holder of the licence 
may be liable under this Act, the Director or the officer authorized by him 
may, subject to such rules as may be made in this behalf, cancel or s uspend 
the licence, after giving the holder of the licence a reasonable opportunity of 
showing cause against such cancellation or suspension. 
 (4) Any person aggrieved by the decision of the Director or the officer 
authorized by him- 
  (a) refusing to grant, or 
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  (b) cancelling or suspending, 
a licence may, within such time as may be prescribed, appeal to the Board 
and the Board may make such order in the case as it may think fit. 
 (5) A licence granted under sub-section (1) shall be valid for a period of 
three years. 
 (6) Every person to whom a licence is granted under sub -section (1) 
shall comply with the provisions of this Act, the rules and by -laws made 
thereunder and the conditions specified in the licence. 
 (7) Every persons to whom a licence is granted under sub -section (1) 
shall keep and maintain a true and correct account and such other records 
showing such particulars as may be specified by the Director and shall 
submit such periodical returns relating to his business transaction including 
processing as may be prescribed, to the Director in such manner and within 
such period as may be prescribed, together with the fee or other amount due 
on the basis of the return. 
  
 9. Alterat ion of notified area , etc. - (1) The Government may , by 
notification, with effect on and from such date as may be specified in the 
notification,- 
    (a) include any area in, or exclude any area from, any notified market 
area; 
    (b) divide any notified area into two or more separate notified areas; 
(c) amalgamate two or more notified areas into one notified area; 
 (d)  declare that regulating the marketing iof any notified agricultural 
produce in any notified market area shall cease or that the marketing of any 
agricultural produce hitherto not regulated shall be regulated in any notified 
market area; 
 Provided that the power conferred by this section shall, in relation to 
any notified area or agricultural produce, be subject to the provisions of 
section 3. 
 (2) when the limits of the notified area for which a market committee is 
established area altered under sub -section (1) the following consequences 
shall, with effect on and from such date as may be specified in the 
notification, ensure, namely:- 
    (a) the market committee shall stand dissolved and its members shall 
vacate their offices as such members: 
    (b) a new market committee shall be established and constituted for 
the new notified area in accordance with the provisions of section 5 and 
section 10; 
    (c) the licence, if any, granted by the dissolved market committee 
shall be deemed to have been granted by the new market committee having 
jurisdiction and shall continue to have effect accordingly for the remaind er of 
the period for which it was granted; 
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    (d) there shall be transferred to the new market committee such 
portion of the dissolved market committee's funds and other assets, debts and 
obligations as the Government may, by order, direct and the rights and 
liabilities of the dissolved market committee in respect of civil and criminal 
proceedings, contracts, agreements and every other matter or thing arising in, 
or relating to, any part of the notified area within the jurisdiction of the new 
market committee, shall vest in the new market committee. 
 (10) Constitution of market committee, - (1) Every market committee 
shall consist of sixteen members and shall be constituted in the manner 
hereinafter specified. 
    (2) Every market committee shall consist of-  
    (a) eight producers of the notified agricultural produce in the notified 
area, nominated by the Government in consultation with the Director, of 
whom at least three shall be small farmers and another three shall be 
marginal farmers: 
 Provided that wh ere more than one agricultural produce has been 
notified in respect of any notified area, such nomination shall, as far as 
practicable, secure the interests of the producers of all the notified 
agricultural produces in that notified area; 
    (b) three per sons licensed under sub -section (1) of section 8 in the 
notified area in respect of any notified agricultural produce, nominated by the 
Government in consultation with the Director; 
    (c) one producer of any notified agricultural produce residing in the 
notified area, nominated by the Government in consultation with the 
Registrar; and  
    (d) three officials nominated by the Government in consultation with 
the Director of whom one shall be the officer -in-charge of the district in the 
Government Departmen t of Agriculture, and two shall be the officers in -
charge of the district in any two of the Government Departments of Animal 
Husbandry, Forestry, Fisheries, Horticulture, Sericulture or Oil seeds.  
 Explanation - For the purposes of clause (a) - 
(i)"small farmer" means a person whose principal means of livelihood is 
income derived from agricultural land and who holds, whether as owner, 
tenant or mortgagee with possession, or partly in one capacity and partly in 
another, more than half a hectare of irrigated  land or one hectare of 
unirrigated land but not more than one hectare of irrigated land or two 
hectares of unirrigated land; 
 
 (ii) "marginal farmer" means a person whose principal means of 
livelihood is income derived from the agricultural land and who h olds, 
whether as owner, tenant or mortgagee with possession, or partly in one 
capacity and partly in another, not more than half a hectare of irrigated land 
or one hectare of unirrigated land,  
 
and where any person hold both irrigated and unirrigated land, one hectare of 
irrigated land shall be deemed to be equal to two hectares of unirrigated land. 
 
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 (3) The Government may, at any time withdraw any member or 
members nominated by them under sub -section (2) and fill up the vacancy or 
vacancies by fresh nomination. 
 
 11. Publication of names of members of market committee  - The 
names of the members of the market committee nominated under section 10 
shall be notified by the Government in the Tamil Nadu Government Gazette. 
 
 12. Chairman and Vice -Chairman of ma rket committee - Every 
market committee shall elect in such manner as may be prescribed,- 
 
(a) one of its members who is nominated under clause (a) or clause 
(c) of sub-section (1) of section 10 to be its Chairman, and  
 
(b) another member to be its Vice Chairman 
 
13. Disqualifications for the membership of market committee ._ A 
person shall be disqualified for beingnominated as and for being , a member 
of market committee  
(a) if he is a minor or of unsound mind 
 
 (b) if he is  an applicant to be adjudicated as insolvent or is an 
undischarged insolvent; 
 
    (c) if he has been sentenced for any offence involving moral turpitude, 
punishable under any law with imprisonment for one year and upwards, such 
sentence not having been an nulled and a period of five years has not elapsed 
from the date of expiration of the sentence; 
 
    (d) if, and for so long as, there subsists a contract entered into by 
him in the course of his trade or business with that market committee for the 
supply o f goods to, or for the execution of any works undertaken by, that 
market committee. 
 
 Explanation - For the purposes of this clause, where a contract has 
been fully performed by the person by whom it has been entered into with the 
market committee, the contract shall be deemed not to subsist by reason only 
of the fact that the market committee has not performed its part of the 
contract either wholly or in part; 
 
    (e) if he is in default for a period exceeding fifteen days by failing to 
pay any fee or any  other amount due to the market committee, from the date 
on which a demand or notice has been served on him in that regard; 
 
    (f) if he is employed as legal practitioner on behalf of the market 
committee or against it; or  
 
    (g) if he is a paid officer or servant of any market committee. 
 
 14.  Assistant Director of Agriculture to be ex-officio member- 
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The Assistant Director of Agriculture in -charge of marketing having 
jurisdiction over the notified area shall be the ex-officio member of the market 
committee established for which area, or where there are two or more 
assistant Directors of Agriculture in -charge of marketing having jurisdiction 
over different portions of a notified area, one of such Assistant Directors as 
the Government may specify in this behalf. 
 
 15. Term of office of members, etc . - (1) The term of the office of the 
members of a market committee, other than the ex -offcio member or the 
members nominated under clause (d) of sub-section (2) of section 10, shall be 
three year s from the date of publication in the Tamil Nadu Government 
Gazette of the notification under section 11 and such members shall be 
eligible for nomination for not more than another term of three years: 
 
 Provided that, for the purposes of this sub -section, a person who has 
held office in a causal vacancy for a period of not less than one year shall be 
eligible for nomination for not more than another term of three years : 
 
Provided further that, a member notwithstanding the expiry of this 
term of office, sh all continue to hold office and function as a member of the 
market committee until the nomination of his successor, or for a period of 
three months, whichever is earlier : 
 
 Provided also that the Government any, by notification, on or before the 
expiry of term of office of the members of a market committee, for sufficient 
cause, direct that the term of office of such members of the market committee 
as a whole be extended by such period not exceeding six months at any one 
time, but not exceeding one year in the aggregate. 
 
 (2) (a) A member of every market committee, other than the ex -officio 
member or the members nominated under clause (d) of sub -section (2) of 
section 10, shall cease to hold his office if he absents himself from three 
consecutive meetings of the market committee, including meetings which, for 
want of  quorum could not be held. 
 
 (b) For the purposes of clause (a), no meeting of the market committee 
from which a member absents himself shall be counted against him if due 
notice of that meeting was not given to him. 
 
 (3) Where a person ceases to be a member under sub -section (2), the 
Chairman shall at once intimate the fact in writing to such person and report 
the same to the market committee at its next meeting. The market committee 
may suo-motu at that meeting and  shall on an application made by such 
person within fifteen days of the receipt by him of such intimation, at its next 
meeting after the receipt of  such application, restore him to his office as 
member: 
 
    Provided that a member shall not be so restored more than twice during his 
term of office. 
 
 (4) Every causal vacancy in the office of any member of the market 
committee shall ordinarily be filled up not later than three months from the 
date off occurrence of  the vacancy by a fresh nomination in the manner 
prescribed: 
15 
 
 
     Provided that no casual vacancy shall be filled up within four months 
before the expiry of the term of office of the member in whose office the casual 
vacancy has occurred. 
 
 (5) The  member nominated to fill up a casual vacancy under sub -
section (4) shall hold office only so long as the member in whose place he is 
nominated would have been entitled to hold office it the vacancy did not 
occur. 
 
    Explanation.- For the purpose  of this section, "casual vacancy" means a 
vacancy occurring otherwise than by efflux of time. 
 
 (6) If at any time it appears to the Government that any person 
nominated by them has shown himself to be unsuitable for his office, or has 
been guilty of  any  misconduct or neglect which renders his removal 
expedient, the Government may, by notification, remove such person from his 
office. 
 
 16. Incorporation of market committee. - Every market committee shall 
be a body corporate by such name as the Government may specify, shall have 
perpetual succession and a common seal, 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 acquire and hold property, both movable and 
immovable, se ll, lease or other wise 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 purpose for which it is 
established : 
 
     Provided that no immovable pr operty shall be transferred by way of sale, 
lease or otherwise without the prior permission of the Government. 
 
 17. Market committee to be a local authority. - Every market 
committee shall be deemed to be a local authority for the purpose of the Land 
Acquisition Act, 1894 (Central Act I  of 1894) and the Local authorities Loans 
Act, 1914 (Central Act IX of 1914). 
 
 18. Sub-committee, special committee and delegation of powers .- 
The market committee may appoint one or more of its members to be a sub -
committee or to be a special committee for the conduct of any work, or to 
report on any matter, pertaining to its duties or functions under this Act and 
the rules and by -laws made under this Act and may delegate to any one or 
more of its members such of its own power or duties as it may think fit. 
 
 19. General meetings. - (1) The market committee may, at any time, 
call a general meeting of the producers of the notified agricultural produce in 
the notified area and of person licensed under sub -section (1) of section 8, 
and shall call such a meeting  within one month after receipt of a requisition 
in writing from the Director or from such number of producers and of persons 
licensed under sub -section (1) of section  8 or portion of the total number  of 
producers and of p ersons so licensed as may be specified in the bylaws of 
market committee. 
 
16 
 
 (2) If no general meeting is called in accordance with such requisition, 
the director shall have power to call a general meeting himself. 
 
 20. Proceedings of market committee not to be invalidated by 
informalities.- A market committee shall have power to act, notwithstanding 
any vacancy in the membership, or any defect in the constitution thereof and 
the proceedings of a market committee shall be valid  notwithstanding that 
some pe rson, who was not entitled to be a member, had sat, voted or 
otherwise taken part in the proceedings of any such committee. 
 
 21. Nominated person to cease to be a member in certain cases. - 
Any person nominated under clause (a), (b) or (c) of sub -section (2) of section 
10 in his capacity as a member of a particular body or the holder of a licence 
under sub-section (1) of section 8 shall, if he ceases to be a member of that 
body or the holder of that licence, as the case may be, for a period of more 
than three months, cease to be a member of the market committee. 
 
 22. Officers and servants of market committee. - (1) Subject to the 
provisions of sub -sections (2), (3) and (4) and the rules made in this behalf, 
the market committee may appoint a Secretary and ot her paid officers and 
servants as are necessary for the necessary for the efficient performance of its 
functions. The Secretary and other paid officers and servants of the market 
committee shall be whole-time Government servants. 
 
 (2) Notwithstanding anything contained in any law for the time being in 
force, on and from the 17 th November 1981, the Secretary and other paid 
officers and servants of every market committee established under the Tamil 
Nadu Agricultural Produce Markets Act, 1959 (Tam il Nadu Act 23 of 1959) 
shall become whole-time Government servants. 
 
 (3) The salaries, allowances, pensions and other remuneration of the 
Secretary and other paid officers and servants of the market committee shall 
be paid in the first instance from the Consolidated Fund of the State and the 
market committee shall, out of the Market Committee Fund, repay to the 
Government the amounts paid by the Government under this sub-section. 
 
 (4) Notwithstanding anything contained in this Act and subject to the 
provisions of Article 311 of the Constitution, the Government may make rules 
regulating the conditions of service of the Secretary and other paid officers 
and servants of the market committee. 
 
 (5) Any r ule under sub -section (4) may be made so as to have 
retrospective effect on and from a date not earlier than the 17 th November 
1981. 
 
 23. Execution of contracts by market committee. - (1) Every 
contract entered into by the market committee shall be in writing and shall be 
signed on behalf of the market committee by the Chairman, the Secretary and 
one other member of the market committee or where a Special Officer has 
been appointed under sub -section (1) of section 33 in respect of a market 
committee such Special Officer and the Secretary. 
 
 (2) No contract other than a contract executed as provided in sub -
section (1) shall be binding on the market committee. 
17 
 
 
 24. Levy of fee by market committee. - (1) The market committee 
shall levy a fee on any notified agr icultural produce bought or sold in the 
notified market area at a rate not less than one rupee but not exceeding two 
rupees for every hundred rupees of the aggregate amount, for which the 
notified agricultural produce is bought or sold whether for cash or for deferred 
payment or other valuable consideration : 
 
 Provided that, when any agricultural produce brought into any notified 
market area for the purpose of processing only, or for export is not processed 
or exported therefrom within thirty days from the  date of its arrival therein, it 
shall, until the contrary is proved, be presumed to have been brought into 
such notified market area for buying and selling, and shall be subject to the 
levy of fee under this section on the value of the agricultural produc e, as if it 
has been bought and sold  therein. 
 Explanation I.   For the purposes of this sub -section, all notified 
agricultural produces taken out or proposed to be taken out of a notified 
market area shall, unless the contrary is proved, be presumed to be bought or 
sold within such area. 
 
 Explanation II. - In the determination of the amount of the fee payable 
under this Act. any fraction of ten paise less than five paise shall be 
disregarded and any fraction of ten paise eared to or exceeding give paise shall 
be regarded as ten paise. 
 
β€œProvided further that no fee shall be levied more than once on any notified 
agricultural produce bought or sold in any notified market area within the 
State.” 
 
 (2) The fee referred to in sub -section (1) shall be paid by th e purchaser 
of the notified agricultural produce concerned : 
 
 Provided that where the purchaser of notified agricultural produce 
cannot be identified, the fee shall be paid by the seller. 
 
 (3) If any notified agricultural produce liable to payment of fee  under 
sub-section (1) is found to have been processed without payment of fee 
payable in respect of that produce, the fee shall be levied and recovered on the 
equivalent quantity of the notified agricultural produce notwithstanding such 
process. 
 
 (4) (a)  The fee payable under sub -section (1) shall be determined and 
collected in such manner as may be prescribed. 
 
 (b) The burden of proving that any notified agricultural produce is not 
liable for the levy of fee or the fee payable has already been paid unde r this 
section shall lie on the person claiming such exemption or non -liability and 
till it is established with sufficient records to the satisfaction of the market 
committee that the notified agricultural produce has already suffered the 
liability, the fee due on such produce shall be paid. 
 
 (5) Any notified agricultural produce taken or proposed to be taken out 
of a notified market area exceeding such quantity as may be prescribed shall 
be accompanied by a permit issued by the Secretary of the market com mittee 
subject to the by-laws made in this behalf by the market committee. 
18 
 
  
 25. Established of check -post or barrier. - (1) If the Government 
consider that with a view to prevent or check the evasion of payment of fee or 
other amount due to the market committee under the provisions of this Act, it 
is necessary so to do, they may, by notification, direct, the setting up of 
check-post or the erection of barrier or both, by the market committee at such 
place or places as may be specified in the notification. 
 
 (2) At every check -post or barrier mentioned in sub -section (1), or at 
any other place when so required by any officer or servant of the market 
committee empowered by the Government in this behalf, the driver or any 
other person in charge of any animal, vessel, cart or other vehicle as the case 
may be, and keep it stationary so long as may reasonably be necessary and 
allow such officer or servant empowered as aforesaid to examine the goods 
carried by such animal, vessel, cart or other vehicle and inspect all records in 
the possession of such driver or other person in charge of such animal, vessel, 
cart or other vehicle. 
 
 (3) If, or such examine 

Excerpt shown. Open the full act in Lexace.

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