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The Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996

Tamil Nadu · state statute
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The Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 
1996 
 
Act 24 of 1996 
 
 
 
 
 
 
 
 
Keyword(s): 
Local Area, Local Authority, Market Area, Market Committee, Registered 
Wholesale Trader, Sale, Specified Commodity 
 
Nu. 4221 MADRAS, MONDAY, AUGUST 26, 1996 
Aavani 1 1, Thadhu. '.ihinnvalluvar Aandu -2027 . . 
Tamil Nadu Acts and Ordinanem. 
C r) 
ARRANGEMENT OF SECTIOHS. 
CHAPTER I. 
1. Short title, extant and commencament. 
!JEC'L 4PIZTlON OP M4RKEf AREA AYD ESTABLJSHMPTT f)P 
I 
SIARKEI C~M- A3D ? IARKET. 
3. ?( tlfiratro:l ol intention of d~:clahg a marlrat arm and rw~mmondaticm of Irml 
zutboriti. to Governrnmt to declare market area 
4. Declaration of njarkct area. 
6. Market committee to be a loci11 authority tor purposes of Central Auts I of 1894 and 
IX of 1914. 
! 7. Altoration of may.ket area, etc. 
116 -- mp!F -. TAMIL NADU GOVERNMEW GAZETTE EXTRAORDINAPY - ._ --- 
-/ 
# 
-I_--_.. -- -- - 
Constitution of market committee. 
Nomination of Chairman and Vice-Chairman of market cornmittae. 
Publication of names of Chairman, Vioe-Chdirman csnd lnembers of markat committee, 
Disqualification of Chairmzn, Vice-chairman and mem5er of market aommittor. 
Term of office of Chairman, Vice-chairman and rnernbers. 
Non~inated person to csase to be a member in certain cases. 
Resignation of mern7~ers of masket cio~~r,.~,~~. 
Resignation of Chbirmsn and Vi0e-Chair~nan of maraeb committee. 
Removal of Chairrran and Vice-Chairman of market committac. 
Meetings of market coinmittae. 
Establishment of: mhrkcts. 
Establishment of spociat markots. 
CHAPTER ,111. 
REGISTKATJON OF WHOLESALE TRADERS AND /WHOLESALE TMdWG 
JN SPECJWED COMMODITY IN MARKET AREA UNDER LICENCE. 
20. Registralion of wholesale rraderu. 
sence. 21. Wholesale trading in speclned cornmodlty in :market area to be regulated ,by 1' 
22. Market Committee to provide alternative tr:tding facilities to registered; wlrolesalc traders 
in mafket. 
CHAPTER IV. 
POWERS AND DUTIES OF MARKET COMMITTM. 
23. Powers and duties of market committee. 
24. Power (of market committce to levy fees 
25. Provis: -? regarding ,transfer ,of ;immovable pl ocel ty of ma1 ket commlti eo. 
26. Zxecution of contracts by market committee. 
-. 
27. Power to acquire land under Land Acquisition Act, 1894i 
28. Acquisition of land. 
29. Offlcers and servants of market commitiee. 
30. Powers and duties of Chief Administrative Officer. 
31. Acts of market committee not to be inval dated by irreguiariky, kacallcy, etc. 
, r tCHAPTER iv. 
MARKET COMMITTEE FUND ANDlFINANCE. 
32. Market Committe Fund. 
33. Purposes for which Market Committee Fund may be expended. 
34. Power to borrow. 
35. Budget. 
36. Annuol audlt ,of account?. 
37. A~-l\liculion 01 propcl'ty, luitds, etc. 
TAMIL NADU GOVERNMENT GAZETPE EXTRAORDINARY 
.-- j 119 
CHAPTER VI. 
CONTROL OF MARKET COMMITTEE. 
Inspection, enquiry, submission of statements, etc. 
Duty of officers, servants or members to furnish information to local als~&y, 
Seizure of account books and other documents. 
Supersession of market committee. 
Appointment of Special Officer. 
Powers of Special Officer. 
Delivery ,of possession of records and properties of market committee. 
CHAPTER- 1W. 
APPEAL AND REVISION. 
Appeal. 
Revision. 
OFFENCES AND PENALTIES. 
Penalties. 
Liability of accused to pay fee or other amount, 
Compositio~l of offences. 
Pewer of Magistrate to recover summarily fee or othar amount. 
Trial of offences. 
Offenccs by companie?. 
CHAPTER m. 
MISCELLANEOUS. 
Bar of certain proceedings. 
~llairman and Vicc-Chdrman and the Chief Administrative Officer to be public servants. 
Limitai ion for certain suits and prosecutions. 
Recovery of sums. 
Registration of documents executed or, behalf of market cctmmlttee. 
~niu~~ction not to be granted in certain proceedings, etc. 
.-A "7 Liability of Chairman, Vice-Chairman and Member for loss, waste or misappliation. 
~xemptioll. 
power to amend Schedule. 
Power to write off irrecoverable amount, etc. 
~ct to override other laws. 
power to remove difficulties. 
power to make rules. 
Power to make by-laws. 
~ulcs, notifications and orders to bc placed before I he Legislative Assembly. 
THE SCIIEDTJLE 
-- 
.. - -- 
'Re following Act of tlie Tamil Nadu Legislative Assembly receivd W m11t of the 
I'wiw'daat oa the 23rd 'August 1996 and ib hereby published f& generirl-hf-& :- 
;& - .. An rdd rr(ol ~igIfl~e'~'~h~~locatloh .of markst areas and wholesa&' $brk&k '-in' r&ecl, 
of specified comnrudities in the Madras Merropolit~n ~lanni& ' c3d ' 
olikw; loen1 areas and to establislz ntarht ccrnmittee~ to manage andjconrrd diqct~nt tnarkcts cslablished in! clifferenr 1 .mark~r areps for, different' , specifid 
ebmhr6'diti~s aria to provide for matters connected therewith or incidcnral bhe~:Iro. 
..i ,:, 
AND WHEREAS i~ view of such congestion and consequent, traffic, it is 
necessary in the public interest- to de"co&ii cert&ri of kuch:dfe$s an& to shift 
as many commercial activities as possible to placei outside ku6h' parts: thekby 
paving way for, planned development of such areas and better public health ; 
" .J . ,' 
.& ,,., 11,. .. .. 
B~it enacted by the Legislative Asseinbly of the State of Tamil Nadu id the Fortv- 
seventh Year of the Republic of India as Pollows :- 
.i ,. ,-' lev * 
I. . - ,:;:, i I 
CHAPTER-11. ' 
2U.l 
. , . * 
, * -. . " . - , d . 1 . < .commoaOe.r 
.. ,. 
(3) It shall come into force in the Madras Metrcpolitan Planning Area 
at once and in any other local area, on such date as the Government nay, by notifi- 
cption, appoint and different dates may be appointed for different IocaI areas. 
, . ', 
(2) "ChleY Adbiriiitrative OWcer" means the Chief ~dminirtrative Ofiacr 
1 
of 3. market cominitiee appointed by the Government under section 29 ; 
(3) "Government", . *a,. , . -,I .means . a= the - 'st& .Goyepgent g",, 
L- I,. . t I .' . 
, #I 
' t**, 
I 
.I .1*- , 
' . ' ., 1, *A. .;. .,' ..> I- 
,- 
(g) any otbcr ,Municipal Corpsratien that may be constituted under ally 
law for the time b&hg in force, or 
(5) Uloorrl Qufhorily'' mapa+ : , ; . 
(b) the Municipal Corporations of Maduni, Coimbatore, Tiruchirappalli, 
'Iirunelveli, Salem or aay other Municipal Cerporation constituted undct any law 
fer the time being in forae; or 
' 
I 
,, . ' I, , I> . 
. ' 
' . I I I.' 
4 
. . , , .I :;. , , , , 
(10) regis-. wb~k99k i&2;t9.' m~a.6 a wh~ltsde trader whose name isjor the time being. registemd, in .the sscgistcp,un&r stction 20; ,, 
.<.! . . . . 
,.<"j 'V 
/ 2 - 
--."-tw - . r. ,.. - --*-m*-v- "" *, . * C 
$!I ., ,A 
(13) " specified commodity " means aay commodity specified in the 
Schedule : 
I , / } , 'L 1 *. ,h 1 .I' , + 1. j.. . 
(14) " wholesale trade " means sale or purchase 6f ai&'s&cifieii t?omthodit foy purposes other than dircct consumption or use by tho purchaser, and sha r 1 
iac&&.k&Iippl ,of stgcks .or ~v@ousi~;o~pch."$~ifi~ qmnaiity at any placa 
in the inarket arp (but does not include any saic or pur&ae,q,, by ~JIY primary 
producer or retail trader, as the case may be, oi such specified commodity) ; and any such seller, buyer, holder of stock or warehouse-keeper shall be deemed to be a 
'! wWWe trtrhet '''3 
3 
, . ), . . .. - . 
(15) words and expressions used in this Act and not defined herein shall 
glr(r,dcc ha,vc,#@~mta@n~ assifled te then in,&c Tm.1 .Nadn Towamti Goyntry Planning 
%m. - Act, 1971. . . ,# - I 
'DECLA~AT~ON OF MARKET AREA AND BSTA~ISHMENT OF ,,, . ;\ 'i .!I, 
'rjj ~~RKET COM M1'M"EE! AND;MA~(KW:' ' ' 
I ,I, ' '1 ;f .>I 
3.1 (0 Wheneyir loco1 author~typof my ldul &eafqr tbag$Irpb%7 pt decon- Notification of 
gesting any part of the local area, considers ncccssary to sh~ft, tb .commercial activi- in'cation of declaring a ties in respect of a ly specified commodity .to places outside such part, such ,htorea 
local, authority may, by notification, speafy its intention to recommend and 
tall tad ~dvernment to ' declare any. ' . other a in such local rec0mmondatio~- 
f I area to be a market area in reSpect of such specified commod ity as s@cd in .such $fog!ty to 
notificatism. Govstnmont to 
. . daclm market 
1, , , ;>I(, .I 1. ,, , I area. ' . 1 :1(2) f&) The notification shall state *at any objectiqp ';or suggestion which 
? hy'be tec:eitwd by the local authority, ~withlr such period as:mryy bc,sfizc;ified in the 
I 
notification, will be considered by it. . , 1.. ,I .- > ,'" - 
. I , i t~. @J I 4 copy.of the notification r,h;aIl $so be published in, suck other manner 
as may be prescribed. 
of the period specified in the notificalicn undcr sub-section 
objectiods ad suggestions ab may bb i&eivbd before 
after considering the intertat' "of the w h desale 
traders carrying on business in such spccificd commodity and such other factors, 
if any, the local authority shall recommend to the Government t~ declare such area 
: tor:lxmtjmrkett &rea.in,su~b local areg,i?l;~?s~~t iof such spec* aomtpodity as 
specified in the notification under su~tion (1) : '.s -,',I: 
provided that the local authority may plake recommendation in respect of more 
i+ytb-~&& 'ddb&$& -&mjhdditp b 6etfatab pk?thb sslmdmab:4;rbt'a,fqarket area &&fii&* $rov$ded 'i~Xhi$ !seCtiod;' ,' . : 6\ w?fj ?I:I~ : 9 + , - 
UNadu nor 
i:; .I' . 3 . . 
I t','D.t 
122 TAMIL NADW GGVE,D,,NMENr GAZI4?i'TE EXIRl\c)KI !\NARY 
,-- - I----- - -. - -. . - 
(b) A copy of the notlticatioa shall also be ;,ub!~s!le.l i:) S:IZI\ L)L;~<~ m 111: 1,:: 
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 such 
notisication. 
. 2. 
I - stablisb~ut 5. (i; The Government shall esgbh a_gadcct committee for every market 
r~f market 
I mnmittee. area. It shall be the duty of the marL&mittee to enforce the provisions of this Act and the rules and bylaws made. u~der this Act in such market area. 
Markat 
committee to be a local authority.for 
~umf-@f@ CeJRtral -Ads. - 
I of 1894md IX of 191 3.. 
Alteration of market area ,etc., 
(2) Eve@ market committee shall be a body corporate by sucb nnnle as the 
Government may specify, shall have perpectual succession and a cotlirnon seal, 
may sue and be sued in its corporate nalae, aad shall, subiect to such restrictions 
as are imposcd-bytor under tb!s Act, be eomptent 'to* aauire and hold property, 
both movable and immovable, shall, lease or otherwise transfer any nlovable or 
immovable property which pay bave,@co.ne vested in or been acquired by it and' 
to contract and to do all other things necessary for the purposes for which it is 
established: 
Provided that any land required for the purposes of this Act shall be acquired Central Act 1 
under the provisions of the Lmd Acquistion Aot, 1894 as provided in sectio~l 28 dfi18aQ 
of this Act: 
Provided further that do immovable pr&erty shall be transferred by way of 
sale, lease or otherw~se by a market cohmit'tet? 'without the prior prr~iiission of 
the Govenunent. 
-,11 . ...... '.-. \' ". . . . ,*. 
(3) Where, after the establishment of a'market committee under sub-sactioil 
(I), any declaration is /made in ,respect of any other specified comnojitv under 
section 4 in relation to that market am, then, the market committee shall be 
deemed to have.been established in. respect of that specified commodity also. . . , ,, * .* . : .: 9, > r 
PI) - I 
6; Every market committee shall be deemed to be a local authority for the C,ntralAct 
purposes of the LM~ino 'Acqdisit ion' Act, 1894 and the Local Authorities Loans' Act, I of 1894. 
1914. - 8. 
Central Act Ut of 1914. 
.,... ..'i .... ........... . ,4 
I .) . - . ,. . s 
t' . - 
\. 
7.. (1) The Government may, by notification, with effect on and from such 
date a8 may .be speoified in the notificati8n;- 
1 &) include any area in, or exclude any area from, any market area ; 
4 ,' ... . f (b) divide aq. parket,area .in$o.two ar.more qparato market areas ; . .- b<, - 
- i . . \." . (c) amalgamate two or inore market areas'into one market areap; 
8.. .. .. , ,. . I , 8 ' *a- -2. (,".* .. . x 
I' 
1 - " -' (d) declare that the ~vhol~e" ~d'e of any specified commodity in any 
! mark&.$ea shall-mase at that l&c' @hiiltd~.ti8de of ah9 specified commodify 
I hithertqi,not.mwried 'on- $hall be carried on in any market area : 
<' 
provided that the power conferred by this section shall, in rcliltion to any maIXc: 
area or speoif ed.eommodityr-be subject.. to the. provisions dl sections 3 arid 4. 
. . - , 1 . -c 111,, + * 2s.. ' .' 
(2) When tht- limits 01 rbe market area for whit!, a mari,el l;(,rn~nitlc~ i'r 
ertabi;,;) ed art: rltczx~ un&-r ~uka,~,:iuu (!), !/12 fi)qrov/~n4 U~I~~C~UC,IC'C~ ~tji*j', #I/\) 
ctrecioe and fi?m,such ...... date asmay& spocihcdjn 1 be sotificirtior,, erisuc, narf~oJy.- 
<, ' . 9, , 
. ' 9. . ,.' , , 4. . ' , 
.kt (a] thp. market . ~oayrnittec~shail stand dissolved and 1 r IS mcmks sla!! 
vacat~ mar offipes .gs ,such .~;lemiqels : ..%...., -- .... 
1 Ahlr~ I :ADU GOVERNMENT GAZETTE EXTRAORDINARY 
--- 
(5) a new market committee shall be established and constituted for rrre 
new market area in accordance with the provisions of sections 5 and 8 ; 
(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 remainder of the period 
for which it was granted; 
(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 thlng arising m, or relating to, any part of the market area 
within the jurisdiction of the new market committee, shall vest in the new market 
committee. 
8. Every market committee shall consist of a Chairman, Vice-Chairman and of the following members, namely :- market 
committee. 
(a) three representatives nominated by the Goverament from among the 
wholesale traders holding valid licences for carrying wholesale trade in the market 
area ; 
1 
(b) three representatives nominated by tbe Government from among tne 
members of the trade associationri in the market area recogniscd by the local authority; 
(c) two notusfficials nominated by the Government in consultation with the 
3ocal authority ; 
(d) (i) in the Madras Metropolitan Planning Area,- 
(A) the Commissioner, Corporation of Madras, ex-offib or his nominee ; 
(B) the Chief Planner, Madras Metropolitan Development Authority, 
ex-ojjicio and 
(C) the Chief Executive Officer, Madras Metropolitan Development Authority, 
ex.ojfici~ ; and 
(ii) io any other local area, the Commissioner or the Executive Authority, 
of tnc local authority concerned, ex-08icio ; 
(e) Direc.tor of Agricultural Marketing, ex-ofJicio or his nominee not below 
the rank ot Deputy Director of Agricultural Msrketing ; 
(j) two officials nominated by the Government in coasulta::. 1 ~ith tne 
local authority; and 
(q) the Chiet Administrative Officer, ex-officio: 
Provided that the first market committee after :he date of commellcernenc 01 
this Act shall be constituted without the memoers ipecified in clauses (a) and (b) 
and it &all be reconstituted in accordance with the provlslons of ths section as soon 
as the licences are granted to the wholesale traders by the first market committee 
and the trade associations are formed in the market area. 
9. (I) Tbt Government may nominate, In sucn miinnel as may be prescribed, 
my person, who possesses such qualifications as may be prrribed, to be the Nomination 
Cbwrnan or the Vicechairma2 of my markst committee. 
of and Chairmail. 
Vidhairtn 
of market 
(?) The Chrirman aqd VjcbChalrman shall be aeemed to be members of tne com~tt,X. 
nlarkct colnmittee and shall have voting and other rights as the members of tne , 
marXet CommlttS. 
YubUcation ot 10. The names of the members, the Chairman and the Vice-Chairman of names of Chairman, the market committee pominated under section 8 and section 9 shall be published 
VjcsChalrm, by notification by the Government in the Tmzl ,Vadu (iovernmeril Gazette. 
and membtts 
of market committw. 
~i~ualification 11. A person shall be disqualified for being nominated as, and for being, the ofchairman, Chairman or the Vice-Chairman or a member of a market co~mittee- Vic~Chairman 
tiid membar of market (a) if he is a minor or of unsound mind ; 
committe. 
(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 yea1 and upwards, such sentence 
not having been annulled and a period of five years has not elapsed from the date 
of expiration of the sentence; 
(n) 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 committes for the supply of goods 
to, or fcr the execution of any works undertaken by, that market committee. 
Explanation.-For the purposes of this clause, where a contract has been 
fully pertomed by the person by whom it h:ts been enter :d itlto with the market 
committee, the contract shall be deemed not to subsist bjr 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 whi~h 
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 agalnst it; or 
(g) if he js a paid officer or servant of any market committee other than 
the Cbief ~dministi~ative Officer. 
rerm of of 12. (1) The term of office of the Chairman, Vice-chairman and the members 
Chairman, vice- of a market commiltee, other than the ex-oflcio members, shall be three years fr>m 
Chairman and the date of publication of the notification in the Tamil Nadu Government Gazette mem her", under section 10 and such Chairman , Vice-Chairman and members shall be eligibk 
I for nomination for another term of three years: 
Provided that for the purposes of this sub-section, a person who has held office 
in a casual vacancy for a period of not less than one year shall be deemed to have 
held ofRce for one full term of three years: 
Provided further that the Chairman or the Vize-Chairman or a member, not.. 
withstanding the expiry of his term of office. shall continue to hold office and fl7nctiofl 
as the Chairman or the Vice-Chairman or a rnember,as the case may bc,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 may, by notifisation, on or before the expu\ 
of the term of office of the Chairman, the Vice-Chairman and the members of 
market committee. for suficient cause, direct that the term of o8ce of c~ich C'h,qlrman, 
Vice-Cliairman and members of the market committee as a wliole be extended by 
such period not cxcxwiing si~ months at an) one time, but no: xceeiling one year 
in the apgregal~, 1s may be specified therein. 
(2) (a) The Chairman or Vice-Chairman or a memtxr of every malket 
committee, other than the ex-oificio member or ti12 mcm!):rs nominated under clause (f) of section 8, shall cease to hold oEce :f he absents 111rrrr;df from three con=- 
cutive meetings of the market committee, includrtig 11jt.cting.. which, ror want 
qr~nruni collld not bc held. 
TAMIL NADU GOVERNMENT GAZETTE EXTRAORDINh 127 - 
I AS .- . --- - , i 
3 
(b) For the purposes cf ciause Cr.). no meeting of the market committee 
from which the Chairman or the Vice-Chairman or a member absents himself shall 
be counted against him if due notice of that meeting was not given to h'im. ' ', 
(3) Where a person ceases to be the Chairman or the Vice-Chairman or a member under sub-section (2), the Chief Administrative OfFcer shall ..: once intimate 
the fact in writing to such person and report the same tu che Government. The 
Government may, on their own motion, or on an application made by such persoh 
within fifteen days of thc receipt by him of such intimation, restore him to his ofiw 
as the Chairman or the Vice-Chairinan or the member, as the case may be: 
Provided that the Chairman or the Vice-Chairman or a member shall not be 
so r es~ored more than twice during his term of office. 
(4) Every casual vacancy in the o%ce of the Cl~airman or the Vice-Chairman 
or any membc~ of the market corn mittee shall ordic;!rily be filled up not later than 
three months from the date of occurrence of the vacancy by a il~h nomination In 
the manner prescribed : 
Provided that no casual vacancy shall LE filled up within four inonthsbefore the 
cxpiry of the term of office of the Chairman or the Vice-Chairman or the member 
in whose office the casual vacallcy has occurred. I 
(5) The Chairman or the Vice.Chairman or the rnember nominaled to tit! up a casual vacaIlcv under sgb-section (4) shall hold office only so long as the Cha~rmslo 
or the Vice-Chairman or the member in whose place hc is nominated would have 
been entitled to hold office if the vacancy had not occurred. 
Explanation. -.For the purpose of this section, "casual vacancyw means a vacanoy 
occurring otherwise than by efflux of time. 
(6) If at any time it appears to the Government that any person nominated by them as a member has shown himself to be unsuitable for his office, or has beeo 
guilty of any misconduct or neglect which renders his removal expedient, the 
Government may, after giving him a,n opportunity of making his representation 
against the proposal by notizcation, remove such person from his office. 
13. Any persoil nomlndt~u U,A;GL clause (a) or clause (b) of section 8 in his Nominated 
capacity as a member of a particular body ~r the holder of a licence under sub-section to (1) of section 21 shall, if he ceases to be a member of that body or the holder of that ceaseto ba 
licence, as the case may be, for a psriod of more than three months, cease to be a a member in 
member of the market Comrn~ttee. - certain cam. 
14. Any member of the market committee nominated under clause (a), Resignation of 
clause (b) or clause (c) of section 8 may tesie his o$ce by tendering bjs members of 
resignation in wr~tinf: to the Chief Administrative Officer and such resigqatiop market 
shall be effective on its receipt by the Chief Administrative Officer. ~ommittcd. 
15. A Chailman or a \iceChainnan of a market committee may resig? his Rosignationol 
office by tender~ng his resignation in writing to the Govnrqment and the resignation Chairmanand 
shaii be effective on its receipt by the Government. Vice-Chainnan 
of market committee. 16. If at any time it appears to the Government that the Chairman or the 
Vice-Chairman of a ma~ket committee has shown himself to be unsuitable lor his 
office,or has been g~lilty of'~~iisconduct or neglect which renders his remcvalexpedient, vioa-chairmao 
tkie Go~ernme~t may, after giving him an opport-mity of makiog his re~~sentritlon of marltat 
dgainst the proposal, by notification, remove, such Chairman -or Vice-chairman, committee. 
as the case may be, from office. 
17. The meetings, quorum and procedure of the market committee shall be Mcetinp o, 
regulated in accordance with the bylaws made iri this behalf. market 
committee. 
18. Every market committee shall establish in the market area such number of 1 mavkets providing such faalities, as the Governmenl may, from time to time, direct Establisbmem . for the w11ol:aale trade of the specified commoditv. +Fmark.ets. ' 
3stablsbmdt 
at specla1 I 
markets. 
19. Notwithstanding anytlling contained in section1 8, where a market cc;m mitlec 
is satisfied that on account of the specialised nature of the wholesale trade of any 
specified commodity like fresh fruits, fresh vegetables, fresh flowers, or other pcrisl~ahle 
goods in any market area, it is expedient to ensure the efficient ~egulation 
of the wholesale trade of such specified commodity in such market area, the market 
committee may establish, in such market area, special market for such specified 
commodity. 
CHArnR 111. 
REGISTRATION OF WHOLESALE TRADERS AND WHOLESALL 
TRADING IN SPECIFIED COMMODITY IN MARKET AREA 
UNDER LICENCE. 
20. (1) The Chief Administrative Officer of every market committee shall 
maintain a reglsre,, for every specified commodity for registering the wholesale 
traders, rn such form and in such manner as may be prescribed. 
(2) As soon as may be, after any area is declared to be a market area for 
any specified commodity? the Chief Administrative Officer shall issue a notice in 
such form and publish it In such manner as may be prescribed,inviting all ,be whole- 
sale traders actively engaged in the wholesale trade of such specified commodity 
in the local area, to apply in writing to him for regictering themselves with the market 
committee. Such applicaPons shall be invited within such period as may be pres- 
cribed, calling upon the applicants to adduce evidence that the applicants have been 
actively engaged in the wholesale tradc of such specified commodity in the local 
area immediately before the date of publicaltion of the noufication under sub-section 
(1) of section 4. 
(3) Every person other than the persons referred to in sub-section (2) intending 
to carry on the wholesale trade of such specified commodity in any market a:ea 
shall also apply to the Chief Administrative Officer for registering his name wth 
the market committee. 
(4) The application for such registration shall be made in such form and 
shall be accompanied by such fees aud documents as may be prescribed. 
(5) The Chief Administrative Officer shall consider all applications received 
by hfm and if he is satisfied on making such further inquiry, ifany, as he may deem 
fit that an applicant was actively engaged in, or intending to carry on,the wholesale- 
trade, he shall include his name in the register maintained by him under sub-see 
tion (1) and inform the applicant accordingly. Every such registered wholesale 
trader shall be eligible to get a licence as provided in section 21. 
(6) If the Chief Administrative Officer refuses to register the name of any 
person who has applied for the same, he shall communicate his decision in writing 
with reasons therefor to such person: 
Provided that no order under this sub-section shall be passed unless the person 
concerned is &en a reasonable opportunity of being heard. 
(7) If the Chief Administrative Officer, on application made to him or 
information received by him or on his own motion, a satisfied afier such inquiry 
as he deems fit, that any entry in the register is erroneous or defective in any pmi- 
cu]ar or should be omitted on the ground that the person concerned has ceased to 
mY on the wholesale trade in such specified commodity, he may, after giving the 
a-d pson a reasonableopportunity of being heard, amend or omit the m~ry 
UI the regster. 
((0 Any person aggrieved by any declsion of the Chief Admln~strative Officer 
in regard to the refusal of registration ar amendment or omission of any entr~.~f 
his name the register, may make an appeal in writing to the local aulhority within 
sud period as may be prescribed. 
... t. - - -. v 
I.AMJL NADU GOVERNMENT~GAZE~E E~AORMNA~~ 
--- -.-___-____ -.A -- -- 
(9) The decision of the Chief Administrative Offleer in re&il tb such regs- 
bation, and where an appeal is made against such decision, the decision of the local 
authority, shall be fulal. 
21. (1) On and after the date specified by. the IoCaI authority, by notification (hereafter In this secflcln referred to as the notified date), no person shall, within 
a market area.- 
(a) set up, establish or use, or continue or allow to be csntinued, any place tor the wholesale trade of any specified commodity: or 
(b) operate as weighman, measurer, trader, wareriouserhan or in any other 
capacity m relation to the wholesale trading of any specified comrnodity; or 
(c) carry on any wholesale trade 6f any specified commodity in any place 
in the market qea other than in the rnatket br special market, ds the case may bkz 
exmpt under, and in accordance with the anditions of, a Ii&nce grantkd to him ih 
that behalf by ths market committee under this Act: 
Pibvided tbdt- 
? ,.-- 0) All orders $ant& renewing, ,rghUsiqg to grant or re&iing t6 renew, 
osde?ing 01- suspending any licence &t~l!_bp in writing and no or& refusing b 
@a& or renew or cancellihg or +uspendin& t,lience shall be m@e wit)rout giving 
the pel.son' concerned a reasonable opportunity of statirrg hrs case ; 
(ii) the reasons for any such refusal, cancellation or suspension of a lice~r .: shall be recorded in writing ; 
(iii) , the market cbmmittee shall not t=fdse to ba$t dd o!iitihf ficence to any 
registered wholesale trader. 
(2) Nothing contained in sub-section (1) shall apply to a ~arehoushii ~6rf.x)- 
ration established or maintained by the State or Central Government pf ti wart. 
hoysernan licensed under the Tamil Nadu Warehouses Act, 1951 jn r$Q~pi bi 
storage, weighmeat clr measurement of any specified coinmodity ac~pt6d for 
warehousing. 
(3) A Iicence under sub-section (I)' may be refused to a person,- 
, < I< 
(a) whose licence was cancelled, and a period of thee years has not elapsed 
since the date of the cancellation ; or 
(b) who has been coniicted of an offence where such offence relates 
to his business or his integrity as a man of business ; or 
(c) in regard to whom the market committee is satisfied, after sucn enqu~ry 
as IC considers adequate, that he is a benamidar for, ~r a partner with, any other 
person to whom a licence may be refused under clause (a) or clause (6). 
(4) If a market committee is satisfied, either on a reference made to it in 
this behalf, or otherwise, that- 
(a) a Iiccnce granted under sub-section (I) has been obtained byllmisrepre- 
sentation or fraud, or 
{b) the holder of a lience has conwavened, or failed to comply wlth, any or 
the provisiulls of. ~hi-i Act or the rules or ,by laws made under this Act or any of th e 
conditions of the licence, 
then, without prejudice to any other penalty to which the holder of the liceace 
& liable under this Act, the markst committee may, subject to such rules as 
may be made in this behalf, cancel or suspsnd the lience, after givmg the h~lclw 
of the licence a reasonable opportunity of showing cause agaiast such caorellatl~a 
or suspension. 
- - 8 d?7\-,g 
Wholesale 
trading in 
specified * 
commodity ir\ 
market area 
to be regulatec- 
by licence. 
Market 
committee to 
provide altmnativa - 
trading facilities to 
registm"$ wholesal traders in 
market. , 
- * - - -- 
(5) Any person aggrieved by the dccisioa of the mark~-t c;o~unirL~ce - 
(a) refusing to grant, or 
(b) cancelling or suspendin& 
a licencz may, withm such time as may be prescribed, appeal to the local authoilty 
and tl~e local authority may make such order in the case as it may think fit. 
(6) A licencegianted under sub-section (1) shall be valid foi a period of th~ ee 
years 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 liceace. 
(7) Etiiy psrson to whom a license is granted under sub-section (1) shall comply with the provisions of this Act, the rules and by laws made under this Act 
and-the conditions specified in the licence. 
(8) (a) Notwithstanding anything contained In any law for the time being 
in force, no local authority, including the Madras City Municipal Corporation 
i 
constituted under the Madras City Municipal Corporation Act, 1919 having juris- 
diction over the market area, shall, on and after the notified date, establish, authorise 
or continue, or allow to be established, authorised or continued, any place inl&= 
local areaincluding the market area as a market or a place'to cab on the wholesale 
Gde in respect of any specified commodity and any permission or licence already 
granted by ,such local authority shall stand cancelled on the notified date. 
;(b) Upon (such cancellatioll of any permission or licence, if the holder of 
such ,peimission or licence refuses to discontinue his wholesale tra-le in rt.apet of 
! any specified commodity in the place ref_erpA to in clause (a), the market committee 
may, by notice in writing, direct such person, within a period of one month or such 
: further period as may be specified therein, to stop carrying on the wholesale trade 
I in such place. 
(c) If any direction glven under clause (b) is not complied with, within the time specified in the notice, the market comniittee may, without prejudice to any 
penalty that may be imposed for any contravention of the provisions of this section, 
have such direction carried into effect at i+~ crwt and have the amount thereor recovered from the defaulter in the same manner as arrears of land revenue. 
(dl Upon such c~ncellation of any pernlission or licence, the holder of such 
~ermission or licence shitH not be entitled to claim and receive any compensation, 
but shall. be entitled to claim and receive such amount towards refund of the fees 
by him as is proportional to the unexpired period of such permission or licence. 
22. (1) It shall ,be incumbent on the market committee tc provide every registered wholesale trader with suitable alternative facilities at such plams in the 
market, of such nature and size, and on s~~ch terms and conditions as the market 
committee may determine, to enable him to carry on his wholesale trade in Jbe market : 
Provided that if any such person hils to utilise the alternative facilities so pro- 
vided, within such period as may be prescribed, the liability of the market committee 
to- ,provide such facilities shall Lease. 
(2) Any registered wholesale trader ;.ggrieved , by anythin; dcne by themarket committeeunder sub-section (l),may appeal to the lnal authority 
w~thin such period as may be pmcl ihed and the order of the local authority, on 
ouoh appeal. shall be final: 
provided that no orrier shall be passed by the local authority oo slicb appeal 
against any registered H llolcsale tia~ter *ithout qiving hh a reasol~able opportunitv 
of being heard. 
w* r 
1 AMlL NADU GOVERNMENT GAZETTE EXTRAORDINARY 
'2. 
129 
- - ----_____--_--- - - --- . - -- - 
CHAPTER iV. 
POWERS AND DUTIES OF MARKET COMMITTEE. 
23. Without prejudice to the generality of the powers conferred and duties 
imposed upon it by or under this Act, a market committee may- duties of 
market 
(1) construct, maintain and inanage the buildings or structures in the market 
area ; 
(2) provide, maintain and manage any instruments or implements reqrlired 
in the market; 
(3) grant, renew, refuse, suspend or cancel licences to carry on wholesale 
trade in the market; 
(4) regulate the entry of vehicular traffic into the market ar ea and JG; up 
check posts or erect barriers or both at such place or places as mu; be necessary; 
(5) collect or maintain, disseminate and supply information in respect of 
production, sale, storage, processing, prices and movement of specified commodities; 
(6) provide fcr tlle Iicengeec and other persons visiting the market, common 
services including transport. grading, weighing, restaurant?, petrol pumps, and * 
temporary accomii~odaiicrn for persons visiting the mzrket; 
(7) enforce the provisions of this Act, rules, bylaws made thereunder and 
conditions of tPe !icences granted under this Act; and 
(8) perform such other functions and duties as may, from. time to time, 
be necessary or expedient for the purpose of maintaining or managlng the market. 
24. (1) It shall be competent to a market committee to levy and collect fees 
in such manner and at such rates as may be laid down in the bylaws,- Power of 
markei 
commi~ttetQ 
(a) subject to the provisions of sub-section (2) of section 25, for stalls, levy fds. 
?ffices, shops, godowns, and other open spaces in the market area; 
(6) for the grant and renewal of licences; 
(c) fbr any common services, amenities and fddlities provided or arran- 
ged by the market committee; 
(d) for the entry of vehicles and goods into the market are&; and 
(e) for any other matter f~r which fee is to be oi may t>e levied and collec- 
ted by it. 
(2) Ti- _,-d-r det-rriLirj.~ .d; ."ze oi othx arnwnt paydblc unda this 
4ct sh~l! i.2 ~33:luji.r~ el idace in any pioxcutian Qr other proceediagq. 
(3) The vdlidity of the levy or collection of any fee or other amount made 
under this Act or the liability of any person to any fee or other amount so assessed 
or levied shall not be questioned in any criminal court in any prosecdtion or other 
proceeding, whether urider this Act or otherwise. 
&-Wm 
25. (1) N~tw~thitanriing a~lything ~ontaincd in kc (2) of section S, a market mm- Rowlimb 
mttee shall not, except with the concurrence of the local authority and the previa~s w,,g sanztion of the Got~cr nment, transfer by sale, lease, exchange, mortgage or other- trander 
any land or building vested in it or acquired by it and situated in the market area immovabl~ 
property of ' 
(2) Subject to tc e provisions of sab-section (I), the market committee may gT$,Ca dispase of by sale, lem. exchange, .n~rtgage or otherwise any building, sbll,  rho^. 
stand, enclosure or things attacned to ahe land or pamauently fastened to aqything 
atr.nc;~ %d t~ ihe laid, subject to such condi~ioos and such limitatiors as mav bo 
dercrttirucd by bylaws made in that behalf. 
130 TAMIL NADU GOVERNMENT GAZETTE EXTR .A0 R ? , J .-.. _ _ _.__ __ -- - -.._- ._ - 
Execul ion of 26. (1) Every contract entered into by the market comnlittee shall be in writing 
contracts by and si~?ll be signed on behalf of the market comnl ittee by tile Chai man, the Chief market 
ccmmittaa. Admirustrative Office1 and me other membsr of the market Cornnittee, or where 
a Special Weer has been appointed under sub-seetion (1) of sectim 42 in respcct of a 
market committee, such Special Officer and the Chief Administra~ive ORicer. 
(2) No contract other than a cmtract executed as provided in sub-section (1: 
shall be binding oxi the market committee. 
I 
Pow? to, 27. Any land acquired far the purpose of this Act shall bz dzsmzd to be 
awu~r0~afi~ land needed for a public purpose, within ths meaning of the Land Acquisition Centra!~~t I 
~~~~&~ Act. 1894 and such land may be acquiied under the said Act. of 1894. 
&t, 1894. 
Acquirition d 28. (1) Wheeie any land is required for the purposes of this Act, tile market 
bud. committee may make an application to the Government for acquiring such land CmtralAa( I 
under the Land Acquisition Act, 1894. of 1894. 
(2) On receipt of an application under sub-section (I), if the Government 
are satisfied that the land specified in the a plication is needed for a public purpose CentralAct I 
specified therein, they 'may acquire such d in accordance with the provisions- of 1894. 
of the Land hquisitlon Act, 1894.1 
P, 
'~~umrs and~~er- 29. (1) There shall be a Chief Administrative Officer for every market vaotsof mpfw conhilittee, who shall be appointed by the Government. 
Snrrn- 
(2), The market committee may, with the appl oval of the local author ity, 
appbint other pao 2cers and servants as are necessary for the efficient pcrfor- - 
mance c: :.s functions. 
(3)' The Chief Administrative ~&ccr and other paid officers and servants 
of the market committee shall be whole time Government servants. 
(4) The salaries, allowances, pensions and other remuneration of the Chief 
Administrative Officer and other paid oliiszrs and seivaltts df tne market committee 
shall be paid in the fixsl insttnce from the Consolida~ed Fund of the State and 
the market committee shall, out of the Market Committee Fund, repay to the 
Government the amount paid by the Government under this sub-section. 
(5) Notwithstandibg anming contained in this Act and subject to the pro- 
visions of Article 31 1 of  he Caustitution, the Govzrnment may make rules regulau 
the conditions of service of the Chief Administrative Officzr and other paid officers 
and servants of the inarket coin)mittee. 
Powers and 
dutias of 
Chief 
Adddtrativa 
Qsar. 
Acts ol 
ak0t 
committee 
not to be 
invalidated by 
irregu!arity, 
M-. etC* 
30. (1) Subject to the supeiintendeqce, direction and control of tht: market comlliittee, all the executive functions of the market committee shall be exercised 
by the Chief Administrative Officer. 
(2) hhoV$ piejudjce to the provisions of sub-section (I), the mef 
Administrative Officer shall- 
(I) supervise the financial and executiVe administration of the market CO~(@ 
and exercise such powers ad perform' mch dFti& an'd functions as day bb con erred 
or imposed upon him by tl is Act or the ruks niade thereunder; add 
rtrponslble fclr coll'n 6f a11 suhs dLe to tfie market c~mmitt~ 
of all! sulhs paya61e 69 the darketi Comhiitte6 
3. H6 ict' efoii6' oi pro&di@' taked hder this A& by the market commiaw 
sb;all be invalidated merely on the ground- 
b;r &iy vacancj; or deidt in the constitution of the market committm ; 
(4 of any defect or irregularity in the appointment of a person acting 
a rneulwr thereof ; or 
-----A--d-a&m- -. -I7 - 
TAMIL NAD LJ GOVERNFAENT GAZETTE EXTRAORDINARY 131 
-- 
I- 
-- --.--- 
(c) of :in7, defect or rrregularity in sucl~ act or proceeding nclr :$kcti? 
the nierits tl~c C:ISL'. 
CHAPTER V. 
MARKET COMMITTEE FUND AND FINANCE 
Markct 
32. (1) All moneys received by a market committee shall be paid into a fund a,,,,,,,,,,. 
to be calleil the "Market Cornmitt.: Fund". All expenditure incurred by the market Fund. 
committee under, or f.>r the purposes of, tilis Act shall be defrayed out of the said 
fund; and any surplus remaining after such expenditure has been met shall be invested 
in such manner as rnay be pres:iibed. 
(2) (a) Every market committee shall, in addition to the amounts payable 
under sub-section (4) of section 29, out of the Market Cornn~ittee Fund pay to the 
Government tlie cost of any special or additional staff employed by the Government 
in consultation with the markel coqmittee for giving effect to the provisions of this 
Act in the market area. 
(b) The Government shall determine the cost of special or additional staff 
and shall, where the staff is employed for the purpsses of more than one market 
committee, apportion such cost among the market committees concerned in such 
manner as they think fit. The decision of the Government determining the amount 
payable by any market committee shall be final, 1 211 
(3) A11 amount received to the credit of the Market Committee Fund shall 
.be kept or invested in such manner as may be prescribed. 
33. Subject to the provisions of section 32, the amount standing to the P&yM$& 
credit of the Market Committee Fund] may be expended for all or any of the 
%folio wing purposes, namely :- 
(a) acquisition or requisitioning of any site or building or purchase of 
other assets for the market committee for carrying out the purposes for which lt 
3s established ; 
(b) establishment, maintenance and improve:inent of the markets and 
providing such facilities in the market as the Government may direct under 
section 18 ; 
ecessary for the pur- 
fety of the persons 
(d) provision and maintenance of standard weights and measures ; 
(e) paymt:nt of amount: to the Government under sub-section (4) ot 
section 29 ; 
(f) payment 01 amount under su

Excerpt shown. Open the full act in Lexace.

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