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The Uttarakhand Agricultural Produce Marketing (Development and Regulation) Act, 2011

Uttarakhand · state statute
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THE UTTRAKHAND AGRICULTURAL PRODUCE MARKETING         
(DEVELOPMENT AND REGULATION) ACT, 2011 
[Uttarakhand Act No. 09 of 2011] 
INDEX 
Sections                           Detail  
CHAPTER I 
Preliminary 
 
1. Short Title  Extent and  commencement  
2. Definitions  
3. Powers to Amend Schedule  
CHAPTER II 
Establishment of Markets 
 
4. Declaration of intention to regulate and to control sale and 
purchase of agricultural produces in any area 
 
5. Declaration of market area and development and regulation of 
marketing of specified agricultural produce therein 
 
6. Market Yards, Sub -Market Yards, Farmers/ Consumer / 
Farmers market and Private Market 
 
7. Notification of intention to alter limits of or to amalgamate or to 
split up market areas to de-establish a market 
 
8. Procedure subsequent to notification under-section 6  
9. Effect of alteration of limits  
10. Power of State Government to issue con -sequential order with 
respect to constitution etc. of market committees on alteration 
of limits, amalgamation or splitting up 
 
11. Declaration of Principal Market Yards, Sub -market Yards and 
Private Market Yards 
 
12. Alteration of Market Area and modification of schedule of 
Agricultural produces  
 
13. Effects of declaration of Market Area  
14. No Trade Charges permissible except as prescribed by rules and 
bye-laws 
 
15. Application of certain provisions relating to Markets Yards,  Sub 
markets Yards and Private Markets Yards, to the remaining parts 
of Market Area    
 
 
 
 
  
 
CHAPTER III 
Constitution of Market Committee 
16. Establishment of Market committees and its incorporation  
17 Constitution of the Market Committee  
18. Resignation of members and nomination in certain circumstances  
19. Removal of members, Vice-Chairman and Chairman of the 
committee 
 
20. Suspension of the Committee   
21. Consequences of suspension  
22. Dissolution of committee  
23. Consequences of dissolution  
24. Constitution of First Committee or a new Committee   
25. Filling up of Casual vacancies   
26. Functions  and Duties of Committee    
27. Powers of the Committee   
28. Appeal  
29. Annual returns and Imposition of fees   
30. Contracts on behalf of the Committee   
31. Market Committee Fund and its Utilization    
32. Priorities of Liabilities of the Committee  
33. Recovery of sums due to Committee as arrears of Land Revenue 
and power to write off Irrecoverable dues   
 
34. Surcharge  
 CHAPTER-IV 
Officer and servants of the committee 
 
35. Powers and Duties of the Chairman and the Vice-chairman    
36. Appointments of the officers and  the servants of the Market 
Committee and the conditions of their service. 
 
37. Constitution  of Centralized Service and transfer of employees  
38. Functions, Powers and Duties of the Secretary  
39. Terms and Conditions of Employment of Officers and Ser vants 
of the Committees 
 
40. Protection of persons acting under this Act 
 
 
   
  
 
CHAPTER -IV 
Classification of Market and Special Market 
41. Classification of market   
42. Special Market and Special Commodity Market  
43. Constitution of Market Committee for Special market  
44. Chairman and Vice Chairman  for Special market  
45. Executive Committee for Special Market  
46. Chief Executive of the Market Committee of Special Market, 
Functions and powers 
 
 CHAPTER-VI 
Constitution, Functions and powers of Uttarakhand 
Agricultural Produce Marketing Board 
 
47. Establishment of the Board  
48. Constitution of the Board  
49. Disqualification for being Chairman, and other Members  
50. Term of Office of Chairman and Other Members  
51. Other provisions regardin g office  the Chairman and Members 
Other than Ex-  Officio Members   
 
52. Appointment of Officers and Servants  
53. Supervision and control of the Managing Director   
54. Authentication of the Orders and other Instruments of the 
Board 
 
55. Disqualification for participation in the proceedings of the Board 
on account of Interest   
 
56. Acts not to be invalidated by informality, vacancy etc  
57 Directions on questions of Policy  
57A. Power of the State Government to direct  
58. Annual Reports, Statistics, Returns and Other Information's  
59. Execution and registration of Contracts etc.  
60. Board Fund    
61. Uttarakhand Marketing Development Fund      
61A. Revolving Fund  
62. Kendriya Mandi Fund  
63. Restriction on Unbudgeted Expenditure  
64. Power of Board to borrow  
  
 
65. Priorities of liabilities of the Board    
66. Accounts and Audit    
67. Surcharge  
68. Regulations   
69. Powers of the Board  
70. Delegation of powers  
71. Conduct of the meetings of the Board  
72. Powers of the Chairman  
73. Powers and Duties of the Managing Director  
74. Power of the Board to remove the Member of the Committee  
75. Suppression of Committee  
76. Consequences of suppression   
77. Powers of the Managing Director to Prohibit Execution or 
Further Execut ion of Resolution passed or Order made by the 
Committee  
 
78. Powers of the State Government  
 CHAPTER-VII 
Contract Farming 
 
79. Form of Contract Farming Agreement  
 CHAPTER-VIII 
Miscellaneous 
 
80. Suit against the Committee   
81. Recovery of dues as land revenue  
82. Registration and renewal  
83. Establishment of Private Yards, and Direct purchase of 
Agriculture produce from the Agriculturist (Direct purchase 
from Producer) 
 
84. Establishment of Consumer/ Farmer Market (Direct sale by the 
Producer) 
 
85. Settlement of disputes between  Market Committees  
86. Power of Entry, Search and Seizer  
87. Police Help  
88. Penalty  
89. Offences by companies  
90. Compounding of offence  
  
 
91. Trial of Offences  
92. Bye-laws  
93. Rules   
94. Removal of Difficulties  
95. Repeal and Savings    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
The Uttarakhand Agricultural Produce Marketing (Development and Regulation) Act, 2011 
[Uttarakhand Act No.  09 of 2011] 
By amend 
Uttarakhand Act no 4 of 2013 
Uttarakhand Act no 31 of 2013 
Uttarakhand Act no 14 of 2015 
Uttarakhand Act no 8 of 2016 
Uttarakhand Act no 30 of 2016 
Uttarakhand Act no 14 of 2018 
Uttarakhand Act no 3 of 2019 
Uttarakhand Act no 10 of 2020 
 Repeal of UK Act no 28 of 2020 
 Revival of UK no. 28 of 2021 
An 
Act 
to provide for the effective regulation in marketing of agricultural produce, establishment and 
development of proper and modern marketing system, promotion of agricultural processing and agricultural 
export, superintendence and control of markets in t he State of Uttarakhand and for the matters connected 
there with or incidental thereto.  
 Be it enacted by the Legislative Assembly of the Uttarakhand in the Sixty -second Year of the 
Republic of India, as follows- 
CHAPTER-I 
PRELIMINARY 
Short Title, 
Extent and 
commencement 
1. (1) This Act may be called the Uttarakhand Agricultural Produce Marketing 
(Development and Regulation) Act, 2011. 
(2) It extends to the whole of Uttarakhand. 
(3) It shall come into force on such date as the State Government may, by 
notification in the official gazette, appoint. 
Definitions 2. In   this Act, unless the context otherwise requires :- 
(i) "Agricultural Produce" means all produce and commodities, whether 
processed or unprocessed, of agriculture, horticulture, floriculture, 
viticulture, apic ulture, sericulture, pisciculture, animal husbandry, forest 
produce, as are specified in the Schedule or declared by the State 
Government, by notification, from time to time and includes admixture of 
two or more of such products, processed in form and furt her includes Gur, 
Rab, Shakkar, Khandsari and Jaggery; 
(ii) "Agriculturist" or "Producer" means a person, who, by his own labour or by 
the labour of any member of his family or by the labour of hired labour or 
otherwise, is engaged in the production and growth of agricultural produce, 
but it does not include any market functionary like a trader, broker ( dalal), 
commission agent (arhatiya) or who is otherwise ordinarily engaged in the 
business of storage of agricultural produce; 
(iii) "Bill" means bill issued by the trader, commission agent or arhatiya, as may 
be prescribed; 
(iv) "Board" means the Uttarakhand State Agricultural Marketing Board, 
established under section 47 of this Act; 
(v) "Business" means purchase, sale, processing, storage, transportation or 
connected activities of agricultural produce; 
...................................................  
 Repeal above Act by section 138 (1) of Uttarakhand Act no 28 of 2020. 
 Revival above Act by section 2 of Uttarakhand Act no 28 of 2021.  
 
  
 
  (vi) "Buyer" (Purchaser) means a  person , group of person, firm or company or 
co-operative society or Government agency, corporation, trader, 
commission agent  or arhatiya, who, himself or on behalf of any other 
person or agent, buys or agrees to buy agricultural produce in the Market 
Area, as notified under this Act; 
(vii) "Bye-laws" means the Bye -laws made by Agriculture Produce Marketing 
Committee, under the provisions of this Act; 
(viii) "Central Warehousing Corporation" means the Central Warehousing 
Corporation, established or deemed to be established  u nder the 
Warehousing Corporation Act, 1962 (Act No. 58, 1962);  
(ix) "Chief Executive Officer" means a person, appointed as such under sub -
section (2) of section 36 of the Act, by Agriculture Produce Marketing 
Committee. 
(x) "Collector" means the Collector of the D istrict, where the Principal Market 
Yard of the Market Area is located, and includes such other officer, as may 
be authorized by him in that behalf; 
(xi) "Commissioner" means, the Commissioner of  such administrative division 
of the State, where the Principal M arket Yard of the Market Area is 
located;. 
(xii) "Commission Agent, dalal or arhatiya" means a person, who, in the ordinary 
course of business, negotiates or arrange contracts for the purchase or sale 
of the agricultural produce, on behalf of his principal, on p ayment of his 
commission or remuneration, whether in cash or kind, but it does not 
include the servant of such principal, whether engaged in negotiating or 
arranging such contracts; 
(xiii) "Committee" means the  Agricultural Produce Marketing Committee, 
constituted under this Act; 
(xiv) "Contract Farming" means farming by a person, who shall be called 
"Contract Farming Producer",  on his land under a written agreement with 
another person called "Contract Farming Sponsor" to the effect that his farm 
produce shall be purchased as specified in the agreement; 
Explanation- (a) "Contract Farming Producer" means an individual agriculturists, 
or an association of agriculturists, by whatever name called, registered 
under any law for the time  being in force; 
(b) "Contract Farming Sponsor" means a person, firm, company, group of 
persons or a body, by whatever name called, registered under any law 
for  the time being in force; 
(xv) "Contract Farming Agreement" means the written agreement, made for 
contract farming between Contract Farming  Sponsor and  contract farming 
producer; 
(xvi) "Co-operative Marketing Society" means a Co -operative Society of 
producers, registered under the Uttaranchal Co -operative Societies Act, 
2003 (Uttaranchal Act No. 5 of 2003), which has, as its principal objects, 
the promotion of sale or purchase of agricultural produce; 
(xvii) "Nomination" means a person, appointed/nominated by the State 
Government in this behalf by general or special order; 
  
 
(xviii) "Export" means dispatch of agricultural produce outside India; 
(xix) "Exporter" means any  such person or firm, who exports agricultural 
produce. 
  (xx) "First Arrival"  means  such notified agricultural produce, which reaches 
Market Area for sale, storage or transaction, upon which no market fee has 
been paid, even if it has been brought to that M arket Area from any other 
Market Yard or Market Area or State or India; 
(xxi) "Import" means bringing agricultural produce from outside India; 
(xxii) "Importer" means such person or firm,who imports agricultural produce 
from  outside India; 
(xxiii) "Licence" means license granted under this Act; 
(xxiv) "Licensee" means a person, association, firm, company, public sector 
undertaking or society, to whom a license has been granted under this Act; 
(xxv) "Local Body" means a Nagar Nigam, Nagar Palika Parishad, Cantonment 
Board, Nagar Panchayat, Zila Panchayat and Gram Panchayat, constituted 
or established  under  any  enactment in force in Uttarakhand; 
(xxvi) "Managing Director" means an officer, appointed by the State Government 
as Managing Director and includes any other officer authorized by the 
Board or  Managing Director to perform all or any of his functions under 
this Act; 
(xxvii) "Marketing" means all activities involved in the flow of agricultural 
produce from the production point  till they reach the consumer viz. 
grading, processing, storage, transport, channels of distribution and all other 
functions involved in the process; 
(xxviii) "Market Area" means any area notified as such under section 10 or 
modified under section 11  of this Act; 
(xxix) "Market Charges " includes charges on account or in respect of commission, 
brokerage, weighing, measuring, hammali (loading, unloading and carrying) 
cleaning, drying, sieving, stitching, stacking, hiring, filling up of gunny 
bags, stamping, bagging, storing, warehousing, grading, surveying, 
transporting and processing and also include any charge, by whatever name 
called, which is realized or may be realized by, or may be payable to, a 
trader in respect of any transaction of sale or purchase of any specified 
agricultural produce under or purporting to be under any custom or usage  of 
trade, or otherwise; 
Explanation : - Every deduction other than a deduction made on account of 
deviation from sample, when the purchase is made by sample, or on account 
of deviation from standard when the purchase is made by reference to a 
known standar d, or on account of difference between actual and the 
standard weight or measure, shall be deemed as a trade-charge; 
(xxx) "Market Functionary" means a trader, a commission agent, processor, a 
stockist and such other person, as may be declared under this Act or the 
rules or bye-laws made there under to be a  Market Functionary; 
(xxxi)  "Member" means a member of the Marketing Committee; 
(xxxii)  "Other Backward Classes" means the scheduled citizens, mentioned in the 
schedule '1' of the Uttar Pradesh Lok Seva (Reservation for Sc heduled, 
  
 
Castes, Scheduled Tribes and Other Backward Classes) Act, 1994 (as 
applicable to the State of Uttarakhand); 
  (xxxiii)  "Palledar" means a labourer, engaged for dara -making, loading, 
unloading, filling, emptying or carrying any agricultural produce; 
(xxxiv)  "Prescribed " means prescribed by the rules made under this Act; 
(xxxv) "Principal Market Yard" means a portion of a market area, declared as such, 
under section 10 of this Act; 
(xxxvi) "Private Market Yard" means such place other than the market yard/sub 
market yard in the market area, where infrastructure has been developed 
and managed by a person, who holds a license for this purpose under this 
Act for marketing of a notified agricultural produce;  
(xxxvii) "Processing " means any one or more of a series of treatments relating to 
powdering, crushing, decorticating, husking, 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; 
(xxxviii) "Processor" means a person, who undertakes processing of any notified 
agricultural produce on his own accord or on payment of a charge; 
(xxxix) "Purchase"  includes barter or receipt of goods, by way of pledge or as 
security for the amount advanced; 
(xl) "Registration " means registration  done under this Act; 
(xli) "Regulation" means regulation made by the Board, in accordance with the 
provisions of this Act; 
(xlii) "Retail sale", in relation to any specified agricultural produce, means a sale 
of that produce, not exceeding such quantity, as a market Committee ma y 
specify in its  bye-laws to be the limit of retail sale; 
(xliii)  "Rules" means rules made under this Act by the State Government; 
(xliv) "Sale"  means  and  includes barter or deposit of goods, by way of pledge or 
as security, for the amount received as advance; 
(xlv) "Scheduled Caste" and "Scheduled Tribes" shall carry the same meaning as 
assigned to them under clause (24) and (25) respectively of Article 366 of 
the Constitution of India; 
(xlvi) "Second Arrival" means such agricultural produce, which has been brought 
to any Market Area after the first transaction or sale from any other Market 
Area; 
(xlvii) "Seller" means a person or an agent, who sells or agrees to sell any 
agricultural produce; 
(xlviii) "Specified Agricultural Produce" means agricultural produce specified in 
the notification under section 4 or as modified under section 12 of this Act; 
(xlix) "State Government" means   the State Government of Uttarakhand; 
(l) "State Warehousing Corporation" means  the State Warehousing 
Corporation of Uttarakhand; 
  
 
 
  (li) "Sub market Yard" means a portion of a Mar ket Area, declared as such 
under section 11 of this Act; 
(lii) "Trader" means a person, who, in the ordinary course of business, is 
engaged in buying or selling agricultural produce and includes a person, 
engaged in processing of agricultural produce but agricul turist is not 
included  therein; 
(liii) "Transportation" means taking agriculture produce by pushcart, bullock 
cart, tractor, truck or other vehicle in course of business for marketing from 
one place to another; 
(liv) "Transporter" means a person, who transports agricultural produce; 
(lv) "Value Addition" means processing, grading, packing, or other activities 
due to which value is added to the agricultural produce; 
(lvi)  "Village"  shall have the same meaning  as assigned in the Uttar Pradesh 
Zamindari Abolition and Land reforms Act, 1951 (Uttar Pradesh Act No. 01 
of 1951) (as applicable  in the State of Uttarakhand); 
(lvii)  "Weighing or Measuring Instrument" means a weighing instrument or 
measuring instrument, as defined in the Uttar Pradesh Weights and 
Measures, (Enforcement)  Act, 1959 (Uttar Pradesh Act No. 05 of 1959) (as 
applicable to the State of Uttarakhand); 
(lviii) "Weighman" means a person, who, in the ordinary course of business, is 
engaged in weighing of agricultural produce in connection with a 
transaction of sale or purchase thereof;   
(lix) "Weights or Measures" means commercial weights or measures or a 
standard weight or measure, as defined in the Uttar Pradesh Weights and 
Measures (Enforcement) Act, 1959 (as applicable to the Stae of 
Uttarakhand); 
(lx) "Whole-sale Transaction",  in relation to any specified agricultural produce, 
means sale and purchase of that produce exceeding such quantity, as a 
Market Committee may specify in its bye-laws, to be the limit of retail sale; 
(lxi) "Zila Panchayat" means the Zila Panchayat of the District, in whos e 
jurisdiction the Principal Market Yard is located. 
 
Power to  
amend 
Schedule       
3. The State Government may, by notification in the official gazette, add to, 
amend or omit any of the items of agricultural produce specified in the 
Schedule annexed herewith, and thereupon the Schedule shall stand amended 
accordingly. 
 
  CHAPTER-II 
ESTABLISHMENT OF MARKET 
 
Declaration of 
intention to 
regulate and to 
control sale 
and purchase 
of agricultural 
produces in 
any area  
 
4.    
 
 
 
 
Where the State Government is  of opinion that it is necessary or expedient in 
public interest to regulate the sale and purchase of agricultural produces in 
any area and for that purpose to declare that area as a market area, it may, by 
notification in official gazette and in such othe r manner, which may be 
prescribed, declare such area as a Market Area under this Act, with effect 
from such date, as may be notified. 
 
Declaration of  5. After the expiry of the period specified in the notification issued under section 
  
 
market area and  
development 
and regulation  
of marketing of  
specified 
agricultural 
produce therein 
4 and after considering such objections and suggestions as may be received 
before such expiry and making such inquiry, if any, as may be necessary, the 
State Government may, by notification, declare the area specified in the 
notification issued under section 4 or any portion thereof to be market area for 
the purpose of this Act and that marketing of all or any of the kinds of 
agricultural produce specified in the notification issued under Section 4 shall 
be developed and regulated under this Act in such market area. 
 
Market Yards, 
Sub-Market 
Yards, 
Farmers/  
Consumer / 
Farmers market 
and Private 
Market 
6. (1)   In every market area, there may  be :- 
(a) market yard managed by the Market Committee, 
(b) one or more than one sub market yards managed by the Market 
Committee, 
(c) one or more than one private market yards/ private  markets managed 
by a person other than a Market Committee, 
(d) one or more than  one farmers/consumer markets  managed by a person 
other than a Market Committee, 
(2)  The State Government shall, as soon as may be, after the issue of notification 
under Section 4, by notification, declare any specified place including any 
structure, enclosure, open place, or locality in the ma rket area to be a market 
yard or sub-market yard, as the case may be. 
 
Notification of 
intention to 
alter limits of 
or to 
amalgamate or 
to split up 
market areas to 
de-establish a 
market 
 
7. Every notification issued under section 11 shall define the limit s of the area 
which is intended to be included in or excluded from   a market area, or of the 
market area intended to be amalgamated into one, or of the area of each of the 
markets intended to be constituted after splitting up an existing market area or 
of the area of the market intended to be de -established, as the case may be, 
and shall also specify the period which shall not be less than six weeks within 
which objections, if any, shall be received by the State Government. 
 
Procedure 
subsequent to  
notification 
under section 6 
8. 
  
 (1)  Any  inhabitant of the market area  or of the areas affected by the notification 
issued under section 10 may, if he objects to anything contained therein, 
submit his objections in writing to the State Government within the p eriod 
specified for this purpose in the said notification. 
 (2)  When the period specified in the said notification has expired and the State 
Government has considered and   passed orders on such objections as may 
have been submitted to it within the said p eriod, the State Government may, 
by notification- 
(a) include the area or any part thereof in the market area or exclude it 
therefrom; 
(b) constitute a new Market Committee  for the market area amalgamated; 
or 
(c) split  up an existing market area and constitute two or   more Market 
Committees for such areas, as the case may be; or 
(d) de-establish the market; and 
(e) Publish modified list of agricultural produce to be  regulated in the 
market. 
Effect of  
alteration of  
limits 
9. Where a notification under section 11 has been i ssued excluding any area 
from the market area and including   any such area in any other market area, 
the State Government shall after consulting the Market Committee   involved  
  
 
frame a scheme to determine what portion of the assets and other properties 
vested in one Market Committee shall vest in the other Market Committee 
and in what manner the liabilities of the Market Committees shall be 
apportioned between the two Market Committees and such scheme shall   
come into force on the date of publication in the Gazette. 
 
Power of State 
Government to 
issue 
consequential 
order with 
respect to 
constitution 
etc. of market 
committees on 
alteration of 
limits, 
amalgamation 
or splitting up 
10. 
  
  
(1)   Where a notification under section 12 has been issued the State Go vernment 
may pass such consequential orders as it may deem fit in respect of- 
 (a)  Where a notification is issued under sub -section (2) of Section 12 excluding 
area from any market area and such excluded area is not declared to be 
separate market area or a notification is issued under sub -section (2), 
including any area within the market area, the Market Committee constituted 
for such market area before the date of such exclusion or inclusion shall, 
notwithstanding anything contained in this Act, continue  to be the   Market 
Committee for the said market area  until the reconstitution of such Market 
Committee  under this Act; 
 (b) In the event of amalgamation of dissolved Market Committee, the committee -
in-charge shall consist of the following members, namely :- 
(i) a Chairman to be nominated by the State Government;  
(ii) ten representatives of Agriculturists to be nominated by the State 
Government; 
(iii) one representative of Traders to be nominated by the State Government; 
(iv) one representative of the Co-operative Marketing Society functioning in 
the market area to be nominated by the State Government;  
(v) an Officer of Agriculture/Cooperation Department working in the 
district to be nominated on the recommendation of the Collector; 
(vi) one member of the Weighmen and palledars opera ting in the market 
area holding licence from the Market Committee   to be nominated by 
the registered union of Palledar and Weighmen; 
(vii) one representative Chairman of the Local authority of the headquarter 
of the committee (Chairman of Nagarpalika/ Mahanagarp alika, 
Panchayat Samiti or Zila Parishad as the case may be);  
(c)  Where in case of split up of a Market Committee each committee -in-charge 
consisting of a Chairman, Ten representative of Agriculturists and a 
representative of Traders shall be constituted : 
                   Provided that :-  
(i) Chairman of the dissolved Market Committee shall  be  nominated 
Chairman of the newly established Market Committee of which he is a 
voter and for the other Market Committee, The Sta te Government shall 
nominated a Chairman who possesses the qualifications prescribed in sub-
section (3) of section 17; 
(ii) representative of agriculturists of dissolved Market Committee shall also 
be nominated as member of newly established Market Committee  of 
which he is permanent resident and  remaining representatives of the 
agriculturists shall be nominated by the State Government who possesses 
the qualifications prescribed in sub-section (3) of section 17; 
   (iii)  representative of traders of the dissolved Market Committee shall be 
nominated as a member of the newly established Market Committee of 
which he is a permanent resident and for the other Market Committee, 
the State Government shall nominate such licensee trader as 
  
 
representative of traders who possesses the qualifications prescri bed in 
proviso of sub-section (1) of section 17; 
(iv)   one representative of the Co -operative marketing society functioning in 
the market area to be nominated by the State Government (who shall be 
elected by the managing committee of such society); 
(v)    an officer of the Agriculture Department working in the district to be 
nominated on the recommendation of the Collector; 
(vi)   one member of the Weighmen and palledars operating to be nominated 
by the registered union of palledar and Weighmen; 
(vii)  one representative of the Local authority of the places where the Market 
Committee is located   (Chairman of Nagarpalika/ Mahanagarpalika, 
Panchayat Samiti or Zilla Parishad as the case may be);  
(viii)  the committee-in-charge constituted under sub -section (1) shall subject 
to the control of the Director, exercise all the powers and perform all 
the duties of the Market Committee under this Act. 
(2) The provisions of section 16 shall apply to the constitution of a Market 
Committee under sub-section (1) as they apply to the constitution of a Market 
Committee for a market established for the first time. 
 
Declaration of  
Principal 
Market Yards, 
Sub-market 
Yards and 
Private Market 
Yards  
11.    The State Government, where it considers necessary and expedient so to do in 
public interest,  may, by notification  in official gazette,- 
(i)    include any area in or exclude any area from the area  of the Principal Market 
Yard or Sub market Yard or Private Market Yard or abolish the existing 
Principal Market Yard or Sub ma rket Yard   or Private Market Yard and 
declare a new Principal Market Yard or Sub market Yard, or Private Market 
Yard; 
(ii)  declare that the whole -sale transactions of all or any  of   the specified 
agricultural produces in respect of the Market Area shal l be carried on only at 
a  specified   place  or places within its Principal  Market Yard or Sub   market 
Yard or Private Market Yard. 
 
Alteration of 
Market Area 
and 
modification 
of schedule of 
Agricultural 
produces  
 
12. (1) The State Government, where i t considered necessary and expedient in the 
public interest so to do, may, by notification in the official gazette, and in 
such other manner as may be prescribed and with affect from the date 
specified in the notification :- 
(a) include any agricultural produce in, or exclude any agricultural produce 
from, the list of agricultural produce, specified in the notification under 
section 3; 
(b) include any area in, or exclude any area from, the Market Area, 
specified in the notification under section 4; 
(c) divide a Market Area, specified in the notification under section 4,  into 
two or more separate Market Areas; 
(d) amalgamate two or more Market Areas, specified in the notification 
under section 4, into one Market Area; 
(e) declare that Market Area, specified in the notification under section 4,  
shall cease to be such area.  
  (2)  When, during the term of a Market Committee, the limits of the Market Area, 
for  which it is established,  are altered under clause (b), (c) or clause (d) of 
sub section (1), the following consequence s shall, with effect from the date 
specified in the notification, follow :- 
(a) the Market Committee shall stand dissolved and  its members shall 
  
 
vacate their offices as such members; 
(b) a new Market Committee shall be constituted for the modified or newly 
created Market Area  according to the provisions of  section 10; 
(c) all property and assets, all rights, liabilities and  obligations of the 
dissolved Market Committee in respect of civil or criminal proceedings, 
contracts, agreements or other matter or thing arisi ng in relation to any 
part of the Market Area of a dissolved Market Committee shall be 
vested in and shall stand transferred to the new Market Committee 
having jurisdiction over that part. 
(3)  Where a Market Area ceases to be such area under clause (e) of  sub-section 
(1), the following consequences shall, with affect from the date specified in 
the notification, follow :- 
(a) the Market Committee shall stand dissolved and its members, shall vacate 
their offices as such members, 
(b) the Principal Market Yard, Sub -market Yards and Private Market Yards, 
if any, established therein shall cease to be such,   
(c) the unspent balances of the Market Committee Fund and other assets and 
liabilities of the Market Committee shall vest in the State Government : 
   Provided that the liability of the State Government shall not extend 
beyond the assets so vested. 
 
Effects of 
declaration of 
Market Area  
13.     (1)  As from the date of declaration of an area as Market Area, no Local Body or 
other person shall, within the Market Area, se t up, establish or continue, or 
allow to be set  up, established or continued, any place for the sale -purchase, 
storage, weighman or processing of the specified agricultural produce, except 
under and in accordance with the condition of a license granted by  the 
Committee concerned, notwithstanding anything to the contrary contained in 
any other law, custom, usage or agreement : 
                        Provided that the provisions of this sub section shall not apply to a 
producer in respect of agricultural pr oduce, reared, or processed by him or to 
any person, who purchases or stores any agricultural produce for his domestic 
consumption. 
(2)  No person shall, in a Principal Market Yard, or Sub market Yard or Private 
Market Yard, carry on business or work as a trader, broker, commission 
agent, ware-houseman, weighman, palledar or in such other capacity as may 
be prescribed, in respect of any specified agricultural produce except under 
and in accordance with the conditions of a license obtained there for from the  
Committee concerned. 
(3)   The provisions of the sub-section (1) and (2) shall not apply in relation to any 
specified agricultural produce, pledged or hypothecated in favour of a Bank as 
security for any amount advanced by such Bank. 
 
No Trade  
Charges 
permissible 
except as  
prescribed by  
rules and bye- 
laws  
14. (1)  As from the date to be notified by the State Government in the official gazette, 
no person shall, in a Principal Market Yard or Sub market Yard or Private 
Market Yard,  levy, charge or real ize, any trade charges other than those 
prescribed by rules or bye -laws made under this Act, in respect of any 
transaction of sale or purchase of the specified agricultural produce and no 
court shall, in any suit or proceeding arising out of any such transaction, allow 
  
 
in any claim or counter claim, any trade charges, which are  not so prescribed. 
(2)  All trade charges before the sale transaction shall be borne by selle r and those 
incurred thereafter shall be payable by the purchaser. 
 
Application of 
certain 
provisions 
relating to 
Markets Yards,  
Sub markets 
Yards and 
Private Markets 
Yards, to the 
remaining parts 
of Market Area    
 
15.        The State Government, where it considers necessary or expedient in the  
public interest so to do, may, by notificat ion in the official gazette, and in 
such other manner as may be prescribed, declare that the provisions of sub 
section (2) of  section 7 and the provisions of section 8 shall also apply to the 
whole or any part of Market Area outside the Principal Market Y ard, Sub 
market Yard and Private Market Yard, as may be specified in the notification 
and thereupon the said provisions shall, with effect from the date specified in 
the notification apply accordingly , and the remaining provisions of the Act 
relating to a  Principal Market Yards or Sub market Yards or Private Market 
Yards shall also, with effect from the same date, mutatis mutandis  apply to 
the area so specified. 
 
  CHAPTER-III 
CONSTITUTION OF MARKET COMMITTEE 
Establishment 
of Market 
Committee 
and its 
Incorporation  
16. (1)  For every Market Area there shall be a Committee to be called  the Market 
Committee which shall have jurisdiction over entire Market Area. 
(2)  Every Market Committee shall be a body corporate by such name, as the State 
Government may, by notification, specify having perpetual succession and a 
common seal and shall sue and be said in its corporate name and shall, subject 
to such restriction as are imposed by or under this Act, be competent to 
contract and acquire, lease, sell or otherw ise transfer any property and to do 
all other things necessary for the purpose for which it is established. 
 (3) Notwithstanding any thing  for the time being in force, every market 
committee shall  be deemed to be a local authority for the purposes of The  
Land Acquisition Act, 1894,(Act No . 1 of 1894) and any other law for the 
time being  in force; 
                     Provided that the Committee shall not transfer any immovable 
property except in accordance with a resolution duly passed in any of its 
meetings by a majority of not less than three - fourth of the total number of its 
members and with the previous approval  in writing of the Board. 
 
Constitution 
of the  
Committee 
 
17. (1) The Committee, referred to in Section 16 shall consist of the following 
members to be nominated by the State Government in the manner as may be 
prescribed:- 
(a)   one representative of urban local bodies, exercising jurisdiction over the 
Principal Market yard or Sub -Market Yard, or part of either and the 
market area or any of its part; 
(b)  one representative out of Zila Panchayat and one representative of 
Kshettra Panchayats exercising jurisdiction over the Principal Market 
Yard or Sub -Market Yard, or part of either and the market area or any 
of its part; 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  (c)  one representative of the Co -operative Marketing  Societies holding 
license for transacting business in the Market Area;  
(d)   one representative of commission agents carrying on business in the 
Market Area and holding license therefore under this Act; 
(e)    one representative of traders carrying on business in the Market Area 
and holding license therefore under this Act; 
{(f)    Twelve representatives of producers of Mandi Area in the specif ied 
Mandis of class “A” and  eleven representatives of producers of Mandi 
area from other Mandis;}1 
(g)   one person of the Market Area who shall represent the interest of 
consumers; 
(h)    two Government officials of whom one shall be a representative of the 
Trade Tax Department and  the other of the Food and Civil Supplies 
Department; 
(i)   Secretary of the Market Committee who shall be the member secretary. 
(2)  Out of the persons nominated under clause (f) of sub-    section (1): 
(a)    two members shall be residents of any of the Gram Panchayat exercising 
jurisdiction over any part of the Market Area; 
(b)   five members shall be  producer seller in the Market Area who have 
obtained sale Vouchers in Form No. VI of last three years from the 
Committee, out of which one member shall be  belonging to the 
Scheduled Castes or the Scheduled Tribes and the other from Other 
Backward Classes of citizen; 
(3)   2[Every committee shall have a Chairman nominated by the State Government 
from amongst the members referred to in clause (f) of sub -section (1) and two 
Vice-Chairman nominated by the State Government from amongst the 
members of the committee.] 
(4)   (a)    the term of the committee constituted under sub -section (1) shall be two 
years from the date of publication of the constitution of the c ommittee 
under sub-section (6) if not terminated earlier by the State Government; 
       3[(a 1) The Chairman, Vice Chairman and the members shall function on their 
respective posts during the pleasure of the Governor. 
        (a 2) The vacancies of the Chairman, Vice chairman and the members shall be 
filled according to the provisions of sub section (1), (3) of section 17 or 
sub section (2) of section 18 as the case may be.]  
 (b)  the term of the office of the Chairman, the Vice -Chairman and the 
members shall be co-terminus with the committee; 
(c)    a non-official member shall cease to hold his office if   he ceases to be a 
licensee of committee or otherwise ceases to work in the committee as 
trader or commission agent as the case may be. 
 
------------------------------------------------------------------  
1- Substitution of section 2 of the Uttrakhand Act no 30 of 2016.   
2- Subs. by section 3 of the UK Act no 30 of 2016. 
3-Inserted by section 2 of the Uttrakhand Act no 14 of 2018. 
 
 
 
  
 
  (5) The name of e very member nominated under sub -section (1) shall be  
registered with the Managing Director within 21 days of the nomination. 
(6)  The constitution of the committee constituted under sub -section (1) shall be 
notified in the Gazette by the Managing Director  with the prior approval of 
the State Government. 
(7)  The State Government, where it considers necessary or expedient so to do in 
public interest, may, by Notification, extend the term of the committee for a 
period not exceeding more than six months at a time but the total period of 
such extension shall not exceed one year. 
(8) No proceeding or Act done by or on behalf of the committee shall be 
questioned on the ground that there was want of any qualifications or defect in 
the nomination of any person as C hairman, Vice-Chairman or member of the 
committee or on the ground of vacancy or defect in the constitution of the 
committee. 
Resignation of 
members and 
nomination in 
certain 
circumstances 
 
18. (1)  A member of the committee may resign from his office by writing under his 
hand addressed to the Chairman. The resignation shall take effect from the 
date on which it is accepted by the Chairman with the prior approval of the 
Managing Director. 
(2)  The State Government may, by notification, nominate persons from the respective 
category of members to fill the vacancies of the members who have resigned and 
the persons so nominated shall hold office for remainder of the term of the  
committee. 
 
[***] 19.   [***]1 
 
Suspension of 
the Committee  
 
20.     Where the Managing Director, is satisfied that :-  
(a) any committee has willfully failed in the performance of its functions, 
or discharge of its duties, or has exceeded or abused the powers 
conferred on it by or under this Act or any other enactment; 
(b) continuance or the functioning of the committee is prejudicial to the 
maintenance of public order or to the maintenance of supplies and 
services of commodities essential to the community in the market area 
or its part or in the other market areas; and 
(c) it is necessary so to d o, he may, after obtaining explanation from the 
committee, by order in writing suspend the functioning of the committee for a 
period up to six months. 
 
---------------------------------------------  
 
1- Repeal by section 3 of Utrakhand Act no 14 of 2018  
 
 
 
 
 
 
 
 
   
  
 
Consequences 
of suspension 
 
21.     (1)   Where a committee is suspended under Section 20, the Chairman, the Vice-Chairman 
and the members thereof shall be deemed to have vacated their 
respective  office for the period of suspension and the powe rs, duties and 
functions of the Committee shall be exercised, discharged and performed by 
the District Magistrate, who may exercise, discharge or perform such powers, 
duties and functions either himself or through an officer, authorized by him 
who shall not be below the rank of the Deputy Collector. 
(2)  Where the circumstances so warrant the Managing Director may send its 
report for dissolution of the Committee to the State Government within three 
months from the date of its suspension. 
(3)   The Managing Director shall, forthwith report about suspension under Section 
20 to the State Government and if no adverse direction or order is received by 
the Director from the State Government within 15 days, the suspension shall 
continue for the period directed in t he first order otherwise he shall act 
according to the directions of the State Government in the matter. 
 
Dissolution of 
committee 
 
22.      If, at any time the State Government is satisfied on the report of the Managing 
Director that any committee has ma de a willful default in the performance of 
any duty imposed upon it by or under this Act, or any other enactment or has 
exceeded or abused its powers, it may, after taking into consideration the 
explanation of the committee, by order, stating the reasons t herefore, dissolve 
the committee by publication in the Official Gazette. 
Explanation-1-  'Willful default' means a failure to perform duties of the 
committee, lack of willingness or its disinclination to perform that duty 
and such failure should not be the  result of any accident or inadvertent 
error. 
Explanation 2- The purpose of stating reasons is to ensure that the reasons, which 
impelled the action, are genuine and relevant to the content and scope of 
the power vested in the State Government. 
 
Consequences 
of dissolution 
 
23.   On the dissolution of the committee - 
(1) All the members, including the Chairman and the Vice Chairman of the 
committee shall be deemed to have vacated their offices from the date of 
dissolution. 
(2) The Collector shall become the Administrator of the committee and shall either 
himself or through an officer not below the rank of Deputy Collector exercise, 
discharge and perform the powers, duties and functions of the committee till a 
new committee is constituted under Section 17. 
 
Constitution of 
First 
Committee or 
a new 
Committee  
 
24.    
 
 
(1) The State Government shall, by no

Excerpt shown. Open the full act in Lexace.

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