LexThe Telangana (Agricultural Produce and Livestock) Markets Act, 1966.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA (AGRICULTURAL PRODUCE AND LIVESTOCK)
MARKETS ACT, 1966.
(ACT NO. 16 OF 1966)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
3. Declaration of notified area.
4. Constitution of a market committee and
declaration of notified market area.
5. Composition of market committee.
5A. Constitution of market committee for Special
Markets.
6. Reconstitution of the market committee.
6A. Power of Government or the Director of Marketing
to suspend the Chairman of the Market
Committee.
6B. Power of Government or the Director of Marketing
to withdraw the powers of Chairman.
7. Licensing of Traders, Commission Agents,
Processors, Direct Purchase Centres, Private
Markets etc., and Regulation of Trade.
7A-7B. Omitted.
8. Sub-committee and delegation of powers.
9. Meetings.
10. Appointment and salaries of officers and servants
of market committee.
11. Execution of contracts.
11-A. Contract Farming.
2 [Act No. 16 of 1966]
12. Levy of fees by the market committee.
12A. Submission of return of turnover by trader.
12B. Assessment of market fees.
12C. Payment of market fees and other dues payable
under the Act.
12D. Recovery of market fees where business of trader
is transferred.
12E. Appeals.
12F. Revision by the Director of Marketing.
12G. Appeal to High Court.
13. Levy of subscription for market reports etc.
14. Market Committee Fund.
15. Purposes for which the market committee Fund
may be expended.
16. Central Market Fund.
17. No trade allowance permissible except as
prescribed by rules or under bye-law.
17-A. Recovery of excess and unauthorized collections.
17-B. Maintenance of true and correct accounts and
records by traders, etc.
17-C. Power to order production of accounts and power
of entry, inspection and seizure.
18. Power to borrow.
19. Liability of the chairman and member for loss,
waste or misapplication of property.
20. Member not to be liable personally in respect of a
contract or agreement made by or on behalf of
the market committee.
[Act No. 16 of 1966] 3
21. Costs of suit filed against market committee, etc.,
without notice.
22. Supersession of market committees.
23. Penalties.
23-A. Compounding of Offences.
24. Power to write-off irrecoverable amounts.
25. Trial of offences.
26. Recovery of sums due to Government and market
committee.
27. Revision.
27-A. Power to remove difficulties.
28. Act not to apply to markets established by or on
behalf of Government.
29. Payment of compensation in respect of markets
in municipalities and in areas within jurisdiction of
other local authorities.
30. Act to override other laws.
31. Registration of document executed on behalf of a
market committee.
32. Power of the Government to regulate or prohibit
commission agents.
32-A. Omitted.
33. Power to make rules.
34. Bye-laws.
35. Exemption.
36. Repeal and savings.
37. Validation.
THE TELANGANA (AGRICULTURAL PRODUCE AND
LIVESTOCK) MARKETS ACT, 1966.1
ACT No. 16 OF 1966.
CHAPTER - I
PRELIMINARY.
1. (1) This Act may be called the 2Telangana (Agricultural
Produce and Livestock) Markets Act, 1966.
(2) It extends to the whole of the 2State of Telangana.
(3) It shall come into force on such date as the
Government may, by notification, appoint.
2. In this Act, unless the context otherwise requires,-
(i) „agricultural produce‟ means anything produced
from land in the course of agriculture or horticulture and
includes forest produce or any produce of like nature either
processed or unprocessed and declared by the
Government by notification to be agricultural produce for the
purposes of this Act;
3[(i)(i) „Appellate Authority‟ means the Regional Joint
Director of Marketing having jurisdiction ove r the notified
area concerned;]
1. The Andhra Pradesh (Agricultural Produce and Livestock) Markets
Act, 1966 received the assent of the President on the 18th November,
1966. The said Act in force in the combined State, as on 02.06.2014, has
been adapted to the State of Telangana, under section 101 of the
Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide .
the notification issued in G.O.Ms.No.8, Agriculture and Cooperation
(MKTG-II) Department, dated 02.08.2014.
2. Substituted by G.O.Ms.No.8, Agriculture and Cooperation (MKTG -II)
Department, dated 02.08.2014.
3. Inserted by Act No.25 of 2005.
Short title, extent
and
commencement.
Definitions.
2 [Act No.16 of 1966]
4[(ia) „assessing authority‟ shall mean the Secretary of
the Market Committee as specified in its bye-laws;]
5[(ib) „Bill‟ means bill issued by the traders as
prescribed;
(ic) „Business‟ means purchase, sale, processing,
value addition, storage, transportation and all other
connected activities of marketing of agricultural produce,
livestock and products of livestock;
(id) „Buyer‟ includes a person, a firm, a company or
co-operative so ciety or Government agency or public
undertaking, or public agency or corporation, commission
agent, who by himself or on behalf of any other person or
agent buys or agrees to buy, by any means of
communication, the agricultural produce, livestock and
products of livestock in the area notified under this Act;
(ie) „Bye-laws‟ means the Bye-laws made by a market
committee or by the Director of Marketing under this Act;
(if) „Collector‟ means the Collector of the district in
which the notified area of the market committee is situated;
(ig) „Contract Farming‟ means farming by a person or
group of persons or a registered society or a company on
his land under a written agreement with an other person o n
such terms and conditions as may be mutually agreed to;
(ih) „Contract Farming Agreement‟ means the
agreement made for contract farming between contract
farming buyer and contract farming producer;
4. Inserted by Act No.4 of 1987.
5. Clauses (ib) to (ij) inserted by Act No.25 of 2005.
[Act No.16 of 1966] 3
(ii) „Contract Farming Buyer‟ means the person
purchasing agricultural produce, produced under contract
farming;
(ij) „Contract Farming Producer‟ means the person
obtaining agricultural produce on his land by himself or
under his supervision under contract farming;]
6[(ik) “Direct Purchase Centre” means a place in the
notified area of market committee licensed as a direct
purchase centre wherein the operator of the Direct purchase
centre is permitted to buy the notified agricultural produce
from the producers;]
(ii) 'Director of Marketing' means the Director of
Marketing appointed by the Government 7[and includes the
Commissioner for Development of Marketing];
8[(iia) „e-market‟ means electronic market set up
either by Government or its agencies or a person for
conducting trading in notified a gricultural produce through
electronic media or by any means of communication in
which buying, selling, contracting and negotiating is carried
out electronically through computer network/internet;
(iib) „e-trading‟ means trading in which billing,
booking, contracting, negotiating information, Ex -change
Record Keeping and other connected activities are done
electronically on computer network/internet or by any
means of communication;]
(iii) 'Government' means the State Government;
6. Inserted by Act No.3 of 2016.
7. Added by Act No.4 of 1987.
8. Clauses (iia) and (iib) inserted by Act No.12 of 2011.
4 [Act No.16 of 1966]
(iv) 'grower' means a person, who produces by
himself or by hired labour or otherwise, or receives under
tenancy agreement, the agricultural produce, but does not
include a dealer or commission agent in such produce,
although he may be a grower of such produce.
If any question arises as to whether a person is grower
or not, the decision of the Director of Marketing thereon
shall be final;
9[(iva) „Licence‟ means a licence granted under this
Act;]
(v) 'Livestock' means cows, buffaloes, bullocks, bulls,
goats and sheep, and includes poultry, fish and such other
animals as may be declared by the Government by
notification to be livestock for the purposes of this Act;
10[(vi) 'market' means a place established or declared
under sub-section (3) of section 4 and includes market yard
and any building therein, a warehouse, a cold storage, a
processing unit, a direct purchase centre or any other place
declared as market by the market committee;]
(vii) 'market committee' means a committee
constituted or reconstituted under the provisions of this Act;
(viii) 'municipality' means any municipality governed
by the law relating to municipalities for the time being in
force in the State and includes the Municipal Corporation of
Hyderabad;
9. Clause (iv-a) inserted by Act No.25 of 2005.
10. Clause (vi) substituted by Act No.3 of 2016.
[Act No.16 of 1966] 5
(ix) 'notification' means a notification published in the
11Telangana Gazette, and the word 'notified' shall be
construed accordingly;
(x) 'notified agricultural produce, livestock or products
of livestock' , means agricultural produce, livestock or
products of livestock specified in the notification under
section 3;
(xi) 'notified area' means any area notified under
section 3;
(xii) „notified market area‟ means any area declared to
be a market area by notification under section 4;
(xiii) „person‟ means an individual or a company or an
association of individuals, whether incorporated or not, and
includes a joint Hindu family;
(xiv) „prescribed‟ means prescribed by rules made
under this Act;
12[(xiva) „Private Market‟ means a market established
in the notified area under sub -section (7) of section 7 where
infrastructure has been developed by a person for
marketing of notified agricultural produce holding a licence
for the purposes of this Act;
(xivb) „Processing‟ means any one or more of a
series of treatments relating to powdering, crushing,
decorticating, dehusking, parboiling, polishing, ginning,
pressing, curing or any other manual, mechanical, chemical
or physical treatment to which raw agricultural produce or its
product is subjected to;
11. Substituted by G.O.Ms.No.8, Agriculture and Cooperation (MKTG -II)
Department, dated 02.08.2014.
12. Clauses (xiva) to (xivc) inserted by Act No.25 of 2005.
6 [Act No.16 of 1966]
13[(xivbb) “Processing Unit” means a place in the
notified area of market committee, licensed as a Processing
unit wherein the operator of the processing unit is permitted
to process the notified agricultural produce, livest ock and
product of the Livestock;]
(xivc) „Processor‟ means a person who undertakes
processing of any agricultural produce, on his own acc ord
or on payment of a charge;]
(xv) 'products of livestock' means such products of
livestock as may be declared by the Government by
notification, to be products of livestock for the purposes of
this Act;
14[[(xva) “Registering Authority” means the Secretary
of Market Committee when all the farmers are from notified
area of such committee or officer authorized by Director of
Marketing when farmers are from notified areas of more
than one market committee for the purpose of registering
contract f arming sponsors and contract farming
agreement;]
(xvaa) „Sale‟ means a transaction as defined in the
Indian Sale of Goods Act, 1930;
(xvb) „Seller‟ means a person who sells or agrees to
sell any agricultural produce, livestock and products of
livestock by any means of communication;
(xvc) „Special Market‟ means a market established
under section 4(3) (bb) of this Act;]
13. Clause (xivbb) inserted by Act No.3 of 2016.
14. Clauses (xva) (xvb) and (xvc) inserted by Act 25 of 2005 Clause (xva)
inserted by Act No.25 of 2005 renumbered as (xvaa) by Act 3 of 2016 ,
New Clause (xva) inserted by Act 3 of 2016.
Central Act III of 1930.
[Act No.16 of 1966] 7
15[(xvd) „Spot Exchange‟ means a corporate entity for
trading of notified agricultural produce through electronic
media, by means of communication licenced under
sub-section (7) of section 7, which provides an electronic
trading platform for Spot Trading o f notified agriculture
produce;
(xve) „Spot Trading‟ means trade in notified
agricultural produce between seller and buyer, by an
exchange, using an electronic platform;]
16[(xvi) „trader‟ means the person licensed under
sub-section (1) of section 7 and includes the person in
whose management the collection of fees is placed whether
he is called a commission agent, ginner, presser,
warehouseman, importer, exporter, stocki st or by whatever
local name he is called;]
17[(xvii) 'Value Addition ' means processing, grading,
packing or other activities due to which value is added to
agricultural produce, livestock and products of livestock.]
18[(xviii) 'Warehouse' means any building or structure
or other protected enclosure including cold storage licensed
as warehouse and used for the purpose of storing
agricultural produce on behalf of the depositors.]
3. (1) The Government may publish in such manner as
may be prescribed a draft notification declaring their
intention of regulating the purchase and sale of such
agricultural produce, livestock or products of livestock in
such area as may be specified in such notification.
15. Clauses (xvd) and (xve) inserted by Act No.12 of 2011.
16. Inserted by Act No.4 of 1987.
17. Clause (xvii) added by Act No.25 of 2005.
18. Added by Act No.3 of 2016.
Declaration of
notified area.
8 [Act No.16 of 1966]
(2) Such notification shall state that any objections or
suggestions which may be receiv ed by the Government
from any person within a period to be specified therein will
be considered by them.
(3) After the expiration of the period specified in the
draft notification and after considering such objections and
suggestions as may be received b efore such expiration, the
Government may publish in such manner as may be
prescribed a final notification declaring the area specified in
the draft notification or any portion thereof to be a notified
area for the purposes of this Act in respect of any
agricultural produce live -stock and products of livestock
specified in the draft notification.
(4) Subject to the provisions of sub -sections (1), (2)
and (3), the Government may, by notification-
(a) exclude from a notified area, any area comprised
therein; or
(b) include in any notified area, any area specified in
such notification; 19[or]
19[(c) declare a new notified area by separation of
area from any notified area or by uniting two or more
notified areas or parts thereof or by uniting any area to a
part of any notified area:
Provided that where as a result of declaration of a new
notified area under this clause, the entire area comprised in
an existing notified area is united to one or more notified
areas, the said existing notified area shall stand abolished.]
19. Inserted by Act No.1 of 1971.
[Act No.16 of 1966] 9
4. (1) The Government shall constitute, by notification, a
market committee for every notified area from such date as
may be specified in the notification and the market
committee so constituted shall be a body corporate by such
name as the Government may specify in the said notification
having perpetual succession and a common seal with
power to acquire, hold and dispose of property and may, by
its corporate name, sue and be sued:
20[Provided that any market committee functioning
immediately before such constitution in respect of a notified
area abolished under the proviso to clause ( c) of
sub-section (4) of section 3 shall stand abolished.
(1-A) Any notification made under sub -section (l) for
the constitution of a new market committee in respect of any
new notified area declared under clause ( c) of sub -section
(4) of section 3, may contain suc h supplemental, incidental
and consequential provisions, including provisions as to the
composition of the new market committee or new and
existing market committee and the apportionment of the
assets and liabilities between the market committees
affected thereby.]
21[(1-B) Notwithstanding anything contained in section
3 and sub-sections (1) and (1-A) of section 4 of the Act, the
Government, may, by notification, also constitute a separate
market committee to a special market in a notified area.]
(2) It shall be the duty of the market committee to
enforce the provisions of this Act and the rules and bye -laws
made thereunder in the notified area.
20. Inserted by Act No.1 of 1971.
21. Added by Act No.25 of 2005.
Constitution of a
market committee
and declaration of
notified market
area.
10 [Act No.16 of 1966]
(3) (a) Every market committee shall establish in the
notified area 22[excluding the scheduled areas] such number
of markets as the Government may, from ti me to time, direct
for the purchase and sale of any notified agricultural
produce, livestock or products of livestock and shall provide
such facilities in the market as may be specified by the
Government, from time to time, by a general or special
order.
(b) Every market committee shall also establish in the
notified area such number of markets as the Government
may, from time to time, direct for the purchase and sale,
solely of vegetables or fruits and shall provide such facilities
in the market as may be specified by the Government from
time to time by a general or special order.
23[(bb) every market committee may also establish in
the notified area such number of special markets as the
Government may from time to time direct for the purchase
and sale of any notified agricultural produce, livestock or
products of livestock or fruits and vegetables and may
provide such facilities in the special market as may be
specified by the Government from time to time, by a general
or special order.]
24[(bbb) Every market committee may also declare in
the notified area any warehouse or cold storage or
processing unit or any other place as a market by following
the procedure as may be prescribed;]
25[(c) The market committee shall specify the limits of
every market established or declared as a market by it and
22. Inserted by Act No.16 of 2000.
23. Inserted by Act No.25 of 2005.
24. Added by Act No.3 of 2016.
25. Substituted by Act No.3 of 2016.
[Act No.16 of 1966] 11
Government may notify the market s with such limits, to be
notified market area for the purpose of this Act;]
26[(4) [xxx]]
(5) Subject to the provisions of sub-sections (1), (2), (3)
and (4) the Government may, by notification-
(a) exclude from a notified market area, any area
comprised therein; or
(b) include in any notified market area, any area
specified in such notification.
27[5. (1) Every market committee shall c onsist of 28[fourteen]
members and shall be constituted by the Government by
notification in the following manner:-
(i) 28[eight] members to be 28[nominated] by the
Government in consultation with the Director of Marketing
from among the following categories of growers of
agricultural produce, owners of livestock and products of
livestock in the notified area, namely:-
(a) growers of agricultural produce who are small
farmers;
(b) growers of agricultural produce other than small
farmers;
(c) owners of livestock and products of livestock:
26. Omitted by Act No.3 of 2016.
27. Section 5 substituted by Act No.24 of 1991. Sub -sections (1) and (2)
substituted by Act No.26 of 1995.
28. Substituted by Act No.5 of 2015.
Composition of
market
committee.
12 [Act No.16 of 1966]
Provided that there shall atleast be 29[five] members
from among persons belonging to Scheduled Castes,
Scheduled Tribes, Backward Classes, minorities and
women:
Provided further that there shall be at least 30[three]
members representing the category of small farmers;
(ii) 30[two] members to be 30[nominated] by the
Government in consultation with the Director of Marketing
from among the licensed traders in the notified area 31[xxx];
(iii) one member to be 30[nominated] by the
Government from among the Presidents or Persons -in-
charge, if any, for the time b eing performing the functions of
Primary Agricultural Co -operative Societies or the Co -
operative Marketing Societies having areas of operation
within the notified area;
(iv) the Assistant Director of Marketing having
jurisdiction over the notified area or any other officer
nominated in this behalf by the Director of Marketing;
(v) the Assistant Director of Agriculture or Assistant
Director of Horticulture or Assistant Director of Animal
Husbandry or Assistant Director of Fisheries having
jurisdiction over the notified area or any other officer
nominated in this behalf by the concerned Head of the
Department;
(vi) Chairperson of the Municipality or the Sarpanch
of the Gram Panchayat, as the case may be, in whose
jurisdiction the office of the market committee is located:
29. Substituted by Act No.25 of 2005.
30. Substituted by Act No.5 of 2015.
31. Omitted by Act No.25 of 2005.
[Act No.16 of 1966] 13
Provided that in the case of a Municipal Corporation
constituted under any law relating to Municipal Corporation
for the time being in force in the State, one person as may
be nominated by the Corporation shall represent the
Corporation in the Agricultural Market Committee concerned
where a notified area comprises the Corporation also.
EXPLANATION I
For the purpose of this sub -section, a „small farmer‟
means a farmer holding an extent not more than 4.04686
hectares ( ten acres) of dry land or 2.02343 hectares (five
acres) of wet land.
EXPLANATION II
In computing the extent of land held by the farmers for
the purpose of this sub -section 0.404686 hectares (one
acre) of wet land shall be deemed to be equal to 0.809372
hectares (two acres) of dry land.
(2) Every Market Committee shall have a Chairman
32[nominated] from among its members specified in clause
(i) of sub -section (1) and a Vice -Chairman to be
32[nominated] from among its members specified in clause
(i) or clause (ii) of sub -section (1), by the Government in
consultation with the Director of Marketing;]
33[Provided that such number of Chairmen may be
nominated to the market committees from among the
members belonging to Scheduled Castes/ Scheduled
Tribes/ Backward Classes/Women in the manner prescribe d
to the possible extent.]
32. Substituted by Act No.5 of 2015.
33. Proviso inserted by Act No.3 of 2016.
14 [Act No.16 of 1966]
34[(3) Save as otherwise provided in this Act, the term
of office of the members nominated under sub -section (1)
shall be one year from the date of nomination:
Provided that a member nominated under clause (ii) of
sub-section (1) shall cease to hold office, if he/she ceases to
be a trader.]
Provided further that a non -official member of the
market committee shall cease to hold his office if he absents
himself for three consecutive meetings of the committee,
including meetings, which for want of quorum could not be
held.
EXPLANATION:- For the purposes of the second
proviso, 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.
(4) Where a person ceases to be a member under this
second proviso to sub -section (3), 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. If
such person applies for restoration to the market committee
on or before the date of its next meeting or within fifteen
days of the receipt by him of such intimation the market
committee may at the next meeting after the receipt of such
application restore him to his office:
Provided that a member shall not be so restored more
than twice during his term of office.
(5) The Government may, by notification, remove the
Chairman or Vice -Chairman who in their opinion wilfully
omits or refuses to carry out or disobeys the provisions of
34. Substituted by Act No.5 of 2015.
[Act No.16 of 1966] 15
this Act or any rules or bye -laws o r lawful orders issued
thereunder or abuses his position or the powers vested in
him, after giving him an opportunity for expl anation, and the
said notification shall contain a statement of the reasons of
the Government for the action taken.
(6) Any person removed under sub-section (5) from the
office of Chairman or Vice -Chairman shall be ineligible for
35[nomination] to either of the said offices, until the date of
next reconstitution of the market committee under sub -
section (1) of section 6.
(7) Any other member of a market committee may, at
any time, be removed from office by the Government for
such reasons and after such inquiry, as may be prescribed.
(8) When any vacancy occurs in the office of a member
it shall be filled in the manner laid down in sub-section (1):
Provided that no such vacancy shall be filled within
three months before the expiration of the term of o ffice of
the member.
(9) The member 35[nominated] to fill a vacancy under
sub-section (8) shall hold office for the remainder of the term
of his predecessor.
(10) When any vacancy occurs in the office of a
Chairman or Vice -Chairman, it shall be filled in the manner
laid down in sub-section (2) and the person 35[nominated] to
fill in such vacancy shall hold office only for the remainder of
the term of his predecessor.
35. Substituted by Act No.5 of 2015.
16 [Act No.16 of 1966]
36[(11) Notwithstanding anything contained in any
provisions of this Act, members of the Committee including
the Chairman and Vice-chairman shall hold the office during
the pleasure of the Government.]
37[5-A. (1) Every market committee constituted for a special
market under sub-section (1-B) of section 4 of the Act, shall
consist of eighteen members in the following manner as
nominated 38[xxx] by the Government,-
(i) there shall be eight grower members;
(ii) there shall be two licensed trader members, out
of whom one shall be a representative of the processing unit
or the company or society having special interest in the
specific produce;
(iii) Chairman of the Municipality or Sarpanch of the
Gram Panchayat as the case may be in whose area the
special Market is located;
(iv) Director of Marketing or his nominee;
(v) Director of Agriculture or Horticulture or his
nominee;
(vi) District Collector concerned or his nominee;
(vii) Managing Director, 39Telangana State Co -
operative Marketing Federation Ltd, or his nominee;
36. Sub-section (11) inserted by Act No.5 of 2015.
37. Section 5 -A with marginal heading inserted by Act No.25 of 2005
(w.e.f.10.05.2005).
38. The words "and appointed" deleted by Act No.5 of 2015.
39. Substituted by G.O.Ms.No.8, Agriculture and Cooperation (MKTG -II)
Department, dated 02.08.2014.
Constitution of
market committee
for Special
Markets.
[Act No.16 of 1966] 17
(viii) Managing Director, 40Telangana State Civil
Supplies Corporation Ltd, or his nominee;
(ix) Senior Regional Manager, Food Corporation of
India or his nominee;
(x) General Manager, Cotton Corporation of India or
Jute Corporation of India or his nominee:
Provided that there shall be at least four members from
among persons belonging to Scheduled Castes, Scheduled
Tribes, Backward Classes, Minorities and Women:
Provided further that there shall be at least two
members representing the category of small farmers.
(2) Every market committee shall have a Chairman
41[nominated] from among its members specified in clause
(i) of sub -section (1) and Vice -Chairman 41[nominated] from
among its members specified in clauses (i) and (ii) of sub-
section (1) by the Government in consultation with the
Director of Marketing.
(3) Save as otherwise provided in this Act, the term of
office of the members 41[nominated] under sub -section (1)
shall be three years from the date of 41[nomination]:
Provided that a member 41[nominated] under clause (ii)
of sub-section (1) shall cease to hold office if he ceases to
be a trader:
Provided further that a non -official member of the
market committee shall cease to hold office if he absents
himself for three consecutive meetings of the committee,
40. Substituted by G.O.Ms.No.8, Agriculture and Cooperation (MKTG -II)
Department, dated 02.08.2014.
41. Substituted by Act No.5 of 2015.
18 [Act No.16 of 1966]
including meetings which for want of quorum could not be
held.
Explanation:- For the purpose of the second proviso,
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.
(4) For the purpose of this section the provisions of
sub-section (1), and sub-sections (4) to (10) of section 5 and
section 6 , section 6 -A and section 6 -B shall apply mutatis
mutandis.]
6. (1) The Government shall reconstitute the market
committee on the expiration of the term of office of the
members of the market committee or of the term as
extended under sub-section (2).
(2) The Government may extend the term of office of
the members of a market committee for a period not
exceeding one year:
Provided that no such extension shall be given for a
period exceeding six months at a time.
(3) (a) Where, for any reason, there is delay in the
constitution or reconstitution of the market committee in
accordance with the provisions of this Act, the Gove rnment
42[or the Director of Marketing] 43[may nominate] a person or
persons to manage the a ffairs of the market committee
44[until the market committee is reconstituted].
(b) The person or persons so 43[nominated] shall,
subject to the control of the Government and to such
42. Inserted by Act No. 25 of 2005.
43. Substituted by Act No.5 of 2015.
44. Substituted by Act No. 36 of 1998.
Reconstitution of
the market
committee.
[Act No.16 of 1966] 19
instructions or directions as they may issue from time to
time, exercise the powers, discharge the duties and perform
the functions of the market committee and take all such
action as may be requ ired in the interests of the market
committee.
(c) The Government may fix the remuneration
payable to the person or persons so 45[nominated]. The
amount of such remuneration and other costs, if any,
incurred in the management of the market committee shal l
be payable out of the Market Committee Fund.
(d) The Government may at any time, and shall at the
expiration of the period of 45[nomination] of person or
persons so 45[nominated], arrange for the constitution or
reconstitution of the market committee in accordance with
the provisions of this Act. The person or persons so
45[nominated] shall cease to manage the affairs of the
market committee on such constitution or reconstitution.]
46[6-A. If the Government 47[or the Director of Marketing] are
of the opinion that the Chairman of the Market Committee
wilfully omitted or refused to carry ou t the orders of the
Government 47[or the Director of Marketing] for the proper
working of the market c ommittee or abused his position or
the powers vested with him, and that the further continuance
of such person in office would be detrimental to the interests
of the market committee or the inhabitants of the market, the
Government 47[or the Director of Marketing] may, by order,
suspend the Chairman of the Market Committee from office
for a period not exceeding three months, pending
45. Substituted by Act No.5 of 2015.
46. Sections 5-A and 5-B inserted by Act 4 of 1987 and the sections 5A,
5B renumbered as Sections 6A, 6B by Act No.24 of 1991.
47. The words 'or the Director of Marketing' inserted including in
marginal heading by Act No. 25 of 2005.
Power of
Government or
the Director of
marketing to
suspend the
Chairman of the
Market
Committee.
20 [Act No.16 of 1966]
investigation into the said charges and action thereto under
the forgoing provisions of this section:
Provided that it shall be competent for the Government
48[or the Director of Marketing] to extend, from time to time,
the period of suspension for such further period not
exceeding three months, so however, that the total period of
suspension shall not exceed six months.
6-B. Notwithstanding anything in this Act or the rules made
thereunder, where in the opinion of the Government, 48[or
the Director of Marketing] the Chairman of the Market
Committee wilfully omits or refuses to carry out the orders of
the Government 48[or the Director of Marketing] for the
proper working of the market committee or abuses his
position or the powers vested in him, they may by order,
withdraw all or any of the powers vested in him by or under
this Act pending investigation into such omission, refusal or
abuse of position or power, and cause all or any of the
powers and functions of the Ch airman to be exercised and
performed by such person or authority as the Government
48[or the Director of Marketing] may appoint in that behalf.]
49[7. (1) No person shall, within a notified area, set up,
establish or use, or continue or allow to be continued, any
place for the purchase, sale, warehousing, storage,
weighment, curing, pressing or processing of any notified
agricultural produce or products of livestock or for the
purchase or sale of livestock except under and in
accordance with the conditions of a licence granted to him
under this section:
48. The words 'or the Director of Marketing' inserted including in
marginal heading by Act No. 25 of 2005.
49. Section 7 with marginal heading substituted by Act No. 3 of 2016.
Licensing of
Traders,
Commission
Agents,
Processors, Direct
Purchase Centres,
Private Markets
etc., and
Regulation of
Trade.
Power of
Government or
the Director of
Marketing to
withdraw the
Powers of
Chairman.
[Act No.16 of 1966] 21
Provided that the market committee or the Director of
Marketing may exempt from the provisions of this sub -
section any person who carries on the business of
purchasing or selling any notified agricultural produce,
livestock or products of livestock not ex ceeding such value
as may be prescribed:
Provided further that a person selling notified
agricultural produce, livestock or products of livestock
grown, reared or produced by him, shall be exempt ed from
the provisions of this sub-section, but, the Government may,
for special reasons to be recorded in writing, withdraw such
exemption in respect of any such person:
Provided also that the market committee or Director of
Marketing or the Officer authorized by him as the case may
be shall not renew the license granted under this section,
unless the licensee pays all arrears of amounts including
rental arrears due to it under provisions of this Act.
Explanation:- Nothing in the second proviso to this
sub-section shall be construed as exempting a co-operative
marketing society registered or deemed to be registered
under the 50Telangana Co -operative Societies Act, 1964,
selling notified agricultural produce, livestock or products of
livestock grown, reared or produced by any of its members.
(1-A) There shall be a state wi de single licence for the
trader to be granted/renewed by the Director of Marketing or
an officer authorized by him in the manner and in the form
as may be prescribed. The e xisting trader licenses granted
by the Agricultural Market Committee shall be converted into
state wide single trader, license by the Director, Marketing
or the officer authorized by him, within six (6) months from
50. Adapted by G.O.Ms.No.53, Agriculture & Co -operation (Coop.I I)
Department, dated 20.05.2016.
22 [Act No.16 of 1966]
the date of commencement of this Act until then the existing
trader licenses grant ed by the Agricultural Market
Committees are deemed to have been the state wide single
trader licenses.
(1-B) A Commission Agent licenc e shall be
granted/renewed by the Agricultural Market Committee in
the manner in the form as may be prescribed to operate as
a commission agent in a market.
(1-C) Warehouse licenc e shall be granted/renewed by
the Agricultural Market Committee for establishing/operating
a warehouse in the notified area of the market committee, in
the manner and in the form as may be prescribed.
(1-D) Processor licenc e shall be granted/renewed by
the Agricultural Market Committee for establishing/operating
a processing unit in the notified area of the market
committee, in the manner and in the form as may be
prescribed.
(1-E) License for all other purposes mentioned under
sub-section (1) shall be granted/renewed by the Agricultural
Market Committee to operate anywhere in the notified area,
in the manner and in the form as may be prescribed.
(2) Nothing in sub -section (1) shall apply to a person
purchasing notified agricultural produce, livestock or
products of livestock for his own domestic consumption.
(3) A licence granted under sub -section (1) shall be in
such form and subject to the payment of such fees, as may
be prescribed:
Provided that no fees shall be charged for the grant of
a licence-
[Act No.16 of 1966] 23
(i) to the Khadi and Village Industries Commission;
(ii) to a co -operative marketing society referred to in
the Explanation to sub-section (1);
(iii) to a person merely for curing, pressing or
processing any notified agricultural produce or products of
livestock.
(4) (a) A licence under sub -section (1) may be refu sed
to a person;-
(i) whose licence was cancelled and one ye ar has not
elapsed since the date of the cancellation;
(ii) who has been convicted of an offence or been guilty
of misconduct which, in the opinion of the market
committee, or the Director of Marketing or the officer
authorized by him as the case may be, affects the said
person's integrity as a man of business;
(iii) in regard to whom the market committee or the
Director of Marketing or the Officer authorized by him as the
case may be, is satisfied, after such inquiry as it considers
adequate, that he is a benamidar for, or a partner with, any
other person to whom a licence may be refused under sub -
clause (i) or sub-clause (ii),
(iv) if, in the opinion of the market committee, or the
Director of Marketing or the officer authorized by him as the
case may be, the grant of a licence is likely to affect the
transaction of purchase of sale in the market or the levy of
market fees therefor.
(b) t he market committee or Director of M arketing or
the officer authorized by him as the case may be , in
accordance with such rules as may be made by the
24 [Act No.16 of 1966]
Government and after such inquiry as it deems fit, cancel or
suspend any licence granted under sub-section (1),(1-A), (1-
B),(1-C), (1-D), (1-E):
Provided that in the case of refusal to grant a licence or
of suspension or cancellation of a licence, the ap plicant or
the licensee, as the case may be, shall be entitled to appeal
to such officer and in such manner as may be prescribed.
(5) A person to whom a licence is granted under
sub-section (1) shall comply with the provisions of this Act,
the rules and the bye-laws made thereunder and the
conditions specified in the licence.
(6) Notwithstanding anything contained in sub-section
(1), no person shall purchase or sa le or processing any
notified agricultural produce, livestock and products of
livestock outside the market established/declared by the
market committee or outside the direct purchase centres.
(7) Notwithstanding anything contained sub -sections
(1) to (6) the Director of Marketing may grant/renew license
in the manner and in the form prescri bed, to a person after
examination of the credentials, experience and proposed
plan to establish a direct purchase centre in a notified area
with such facilities as prescribed, for making purchases from
the growers of the agricultural produce, livestock, and
products of livestock for processing, grading, packing,
storing and for sale/export of the products.
Provided that the licence so granted under section (7)
shall be suspended or cancelled for violatio n of any
provisions of the Act.
(8) Notwithstanding anything contained in sub-sections
(1) to (7), Government or the competent authority as may be
declared by the Government in this behalf, may grant a
[Act No.16 of 1966] 25
licence to a person, to establish e -market in a notified area
for the purpose of this Act, for e-trading under the conditions
of licence granted to him as per the procedure prescribed.
(9) Notwithstanding anything contained in sub-section
(1) to (8) the Government may grant/ renew a licen ce to
establish and operate private market in the manner and from
as may be prescribed, after examination of the credentials,
experience and proposed plan to established a Private
Market in a notified area for the purposes of this Act, with
such facilities as prescribed for facilitating transparent and
efficient trading of notified agricultural; produce lives stock
and products of livestock;
Provided that the licenc e so granted shall be
suspended or cancelled for violation of any provisions of the
Act.
(10) (a) The Director of Marketing may from time to
time identify and notify the markets for conducting online
trade through electronic platform and direct the market
committee to provide infrastructure for conducting online
trade with in the stipulated time and the market committee
shall provide the infrastructure within the stipulated time.
(b) After satisfying himself that the necessary
infrastructure is provided in the selected markets, the
Director of Marketing shall notify the date with effect from
which online trade through electr onic platform shall take
place.]
51[7A & 7B. [xxx]]
51. Sections 7A and 7B omitted by Act No.3 of 2016.
26 [Act No.16 of 1966]
8. The market committee may appoint one or more of its
members, to be a sub -committee or special committee for
the conduct of any work or to report on any matter, and may
delegate to any one or more of its members such of its
powers or duties as it may think fit.
9. (1) The market committee may, at any time, call a
meeting of the market committee, but such meeting shall be
held at least once in every month. The market committee
shall also call a meeting of the market committee within one
month after receipt of a requisition in writing from the
Director of Marketing or from one-third of the total number of
members of the market committee.
Explanation.- In the determination of one -third of total
number of members under this sub -section, any fraction
arrived at shall be counted as one.
(2) Where a meeting not called as provided in sub -
section (1) the Director of Marketing shall call such meeting.
52[(3) It shall be the duty of the Chairman to coExcerpt shown. Open the full act in Lexace.