The Krishi Utpadan Mandi Adhiniyam, 1964

THE UTTAR PRADESH KRISHI UTPADAN MANDI ADHINIYAM, 1964

U. P. ACT No. XXV of 1964

October 28, 1964

Passed in Hindi by the Uttar Pradesh Legislative Assembly on August 7, 1964 and by the Uttar Pradesh Legislative Council on September 8, 1964. Received the assent of the President on October 28, 1964, under Article 201 of the Constitution of India and was published in the Uttar Pradesh Gazette, Extraordinary dated November 10, 1964. AN ACT to provide for the regulation of sale and purchase of agricultural produce and for the establishment, superintendence and control of markets therefor in Uttar Pradesh. It is hereby enacted in the Fifteenth Year of the republic of India as follows :— 1. For Statement of Objects and Reasons see Uttar Pradesh Gazette Extraordinary, dated December 10, 1963.

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S.2A Marketing Freedom to Agriculturist /Producer

¹[2-A. The agriculturist/producer may sell his produce according to his choice anywhere in or outside this State ;
Provided that no market fee shall be collected for wholesale transition from agriculturist – seller ;
Provided further that no market fee shall be levied or collected on the retail sale of any specified agricultural produce, where such sale is made by an agriculturist or a producer directly to the consumer for his domestic consumption.]

S.3 Omitted

¹[ X X X X ]

S.4A Power to amend Schedule

¹[4-A. The State Government may by notification in the Gazette, add to, amend or omit any of the items of agricultural produce specified in the Schedule, and thereupon the Schedule shall stand amended accordingly.]

S.7A Declaring warehouse/sito/cold storage/or other such structure or places as market sub-yard.

¹[7-A. (1) Save as otherwise provided in this Act, the State Government may, by notification declare such warehouse/silo/cold storage/or other such structure or place with infrastructure and facilities as may be prescribed, to function as market sub-yard ;

Provided that a place of retail trade shall not be declared as market sub-yard.

Explanation : The expression place mentioned in this subsection shall include any structure, enclosure, open space, locality, street including warehouse/silo/cold storage/pack house/cleaning, grading & processing unit etc.

(2) The owner of a warehouse/silo/cold storage, or other such structure or place, as the case may be, desirous of declaration of such place as market sub-yard under sub-section (1), shall apply to the Director Agr

S.7B Direct marketing (wholesale direct purchase from farmers outside the market yard, sub-market yard, private market yard)

¹[ 7-B. (1) Subject to such reasonable conditions and such fee as may be prescribed, the Director, Agricultural Marketing may grant a license to a person to establish Collection aggregation centers in the proximity of the production area with infrastructure, as may be prescribed in accordance with the provisions of this Act and the rules made thereunder for marketing of notified agricultural produce ;

Provided that the direct wholesale purchase may be carried out outside the principal market yard, sub-market yards, market sub-yards, private market yards by declaring the place of such purchase, without establishment of any permanent collection/aggregation center, as may be prescribed.

(2) The direct marketing licensee shall maintain records and all accounts relating to daily trade transactions and submit monthly report, as may be prescribed, to the licensing authority.

(3) The l

S.7C Establishment and notification of Special Commodity Market Yard

¹[ 7-C. (1) The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification declare existing market yard established under clause (b) of sub-section (2) of section 7 as Special yard as Special Commodity Market Yard of all or any of the specified agricultural produce in respect of a market area.

(2) Provisions for and in relation to the Market Committee of this Act shall mutatis mutandis apply to the Market Committee established for Special Commodity Market Yard. ]

S.7D Establishment of private market yard

¹[ 7-D. (1) Subject to such reasonable conditions and such fee as may be prescribed, the Director, Agricultural Marketing may grant a license to a person to establish a private market yard, for trading of notified agricultural produce.

(2) the private market yard licensee, or its management committee, may collect user charge on notified agricultural produce transacted in the private market yard, at the rate ad valorem not exceeding as notified by the State Government ;

Provided that no user charge shall be collected from agriculturistseller.

S.7E Establishment of Producer Consumer market yard (Sale of agriculture produce within retail limit by producer to the consumer)

¹[7-E. Establishment of Producer Consumer market yard (Sale of agriculture produce within retain limit by producer to the consumer)–

(1) Subject to prescribed fee, conditions and restrictions, the officer authorized by the Government may issue license to the concerned person who establish producer consumer makes in which retail trade of specified agriculture produce can take place.

(2) The license may establish and develop the infrastructure in the producer consumer market, within the reach of producer and consumers, as may be prescribed:

Provided that the consumer shall purchase within the retail limit.]

S.9A Unified License for certain purpose

¹[9-A. (1) Any Market which shall be main Mandi Samiti, may grant unified license to purchase specified agriculture produce from the farmers and traders in such a manner as may be prescribed in the bye laws, in the pre-communicated places in the whole State, for one or more of the following purposes :–
(a) processing of specified agricultural produce ;
(b) trading of specified agricultural produce ;
(c) grading, packing and transaction in other way by value addition of specified agricultural produce.]

²[(2) Market fee and development cess as provided in this Act, shall be payable on sale and purchase of specified agricultural produce to that market committee, where the specified agricultural produce is

S.13A Resignation of members and nomination in certain circumstances

¹[13-A. (a) 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 Director ;
(b) 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.]

S.13B Removal of members, Vice Chairman and Chairman of the Committee

¹[13-B. The State Government may, on the recommendation of the Director, remove any member including the Chairman or the ViceChairman if he has been found guilty of neglect or misconduct in the discharge of his duties or of any disgraceful conduct or has become incapable of performing his duties as a member or has been adjudged insolvent and the vacancy of such members shall be filled in accordance with the provisions of sub-section (3) of section 13 or clause (b) of section 13-A as the case may be ;
Provided that no such member shall be removed from office unless he has been given a reasonable opportunity of being heard.]

S.13C Suspension of the Committee

¹[13-C. Where the 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 maintenance of public order ro 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 do, 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. ]

S.13D Consequences of Suspension

¹[13-D. (1) Where a Committee is suspended under section 13-C 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 powers, duties and functions of the Committee shall be exercised, discharged and performed by the District Magistrate who may exercise, discharge or perform such power, duties and functions either himself or through an officer authorized by him not below the rank of the Deputy Collector.

(2) Where the circumstances so warrant the Director may sent its report for dissolution of the Committee to the State Government within three months from the date of its suspension.

(3) The director shall forthwith report about suspension under section 13-C to the State Government and if no adverse direction or order is received t

S.13E Dissolution of Committee

¹[13-E. If at any time the State Government, on the report of the Director is satisfied that nay Committee has made 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, after taking into consideration the explanation of the Committee, it may, by order stating the reasons therefor dissolve the Committee by publication thereof in the official Gazette.

Explanation— 1. Willful default means a failure to perform duties of the committee, lack of willingness or it 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

S.13F Consequences of dissolution

¹[13-F. On the dissolution of the Committee ;

(a) all the members, including the Chairman and the ViceChairman, of the Committee shall, be deemed to have vacated their offices from the date of dissolution.

(b) 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 Chairman, Vice-Chairman and the Committee, until the new Committee is constituted under section 13.]

S.14A Corrupt practices

¹[14-A. The provisions of section 123 of Chapter I of part VII of the Representation of the People Act, 1951 shall mutatis mutandis apply in the election to a Mandi Samiti.]

S.14B Electoral offences

¹[14-B. The provisions of sections 125, 126, 127, 127-A, 128, 129, 130, 131, 132, 132-A, 134, 134-A, 135, 135-A and 136 of Chapter III of Part VII of the Representation of the People Act, 1951 shall have effect as if, —

(a) the reference therein to an election were a reference to an election held under this Act ;

(b) in section 127-A, in sub-section (2), in clause (b), in subclause (i) for the words “Chief Electoral Officer” the words “Director of Election” had been substituted ;

(c) in sections 134 and 136, for the words “by or under this Act” the words “by or under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964” had been substituted ;

(d) in section 135-A, —

2(a-1) "Board" means the State Agricultural Produce Markets Board constituted under section 26-A ; 3

(b) "Broker" or "Dalal" means a person who, in the ordinary course of business, negotiates or arranges contracts for the purchase or sale of agricultural produce, on behalf of his, principal on payment of commission or remuneration, whether in cash or kind, but does not include the servant of such principal whether engaged in negotiating or arranging such contracts ;

S.2-A Marketing Freedom to Agriculturist/Producer

The agriculturist/producer may sell his produce according to his choice anywhere in or outside this State :

Provided that no market fee shall be collected for wholesale transition from agriculturist – seller :

Provided further that no market fee shall be levied or collected on the retail sale of any specified agricultural produce, where such sale is made by an agriculturist or a producer directly to the consumer for his domestic consumption.

S.4 Repugnancy with other law

(1) Subject to the provisions of sub-section (2), the provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law, custom, usage or agreement.

(2) The provisions of section 3 of the Essential Commodities Act, 1955, and the orders made thereunder shall have effect notwithstanding anything inconsistent therewith contained in this Act or in any rule, by law or order made thereunder.

S.4-A Power to amend Schedule

The State Government may by notification in the Gazette, add to, amend or omit any of the items of agricultural produce specified in the Schedule, and thereupon the Schedule shall stand amended accordingly.

S.Chapter II Market Area and Market Yards

S.5 Declaration of intention to regulate and control sale and purchase of agricultural produce in any area

(1) Where the State Government is of opinion that it is necessary or expedient in the public interest to regulate the sale and purchase of any agricultural produce in any area and for that purpose to declare that area as a Market Area, it may, by notification in the Gazette, and in such other manner as may be prescribed, declare its intention so to do and invite objections against the proposed declaration.

(2) Any objection under sub-section (1) may be preferred within such period as may be prescribed and shall be addressed to the Director who shall forward the same, with his comments thereon, to the State Government.

S.6 Declaration of Market Area

On the expiry of the period referred to in section 5, the State Government shall consider the objections received within the said period and may thereupon declare, by notification in the Gazette, and in such other manner as may be prescribed, that the whole or any specified portion of the area mentioned in the notification under section 5 shall be the Market Area in respect of such agricultural produce, and with effect from such date as may be specified in the declaration.

S.7 Declaration of Principal Market yard and sub market yard

(1) As soon as may be after the publication of the notification under section 6 the State Government may by notification in the Gazette, declare such portion of the market area as may be specified as the principal market yard and such other portions as may be specified as sub-market yard :

Provided that the whole of the Principal Market Yard shall be located within the limits of one district only.

(2) The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification —

(a) include any area in or exclude any area from the area of a principal market yard or sub-market yard or abolish the existing principal market yard or sub-market yards and declare a new principal market yard or sub-market yards ;
(b) declare that the whole-sale transactions of all or any of the specified agricultural produce in respect of a market area shall be carried on only at a specified place or places within its principal m

S.7-A Declaring warehouse/silo/cold storage/or other such structure or places as market sub yard

(1) Save as otherwise provided in this Act, the State Government may, by notification declare such warehouse/silo/cold storage/or other such structure or place with infrastructure and facilities as may be prescribed, to function as market sub-yard :

Provided that a place of retail trade shall not be declared as market sub-yard.

Explanation :— The expression "place" mentioned in this sub-section shall include any structure, enclosure, open space, locality, street including warehouse/silo/cold storage/pack house/cleaning, grading & processing unit etc.

(2) The owner of a warehouse/silo/cold storage, or other such structure or 'place', as the case may be, desirous of declaration of such place as market sub-yard under sub-section (1), shall apply to the Director Agricultural Marketing or an officer authorized by him, in such form, in such manner with such fee and for such period but not less than three years, as may be prescribed.

(3) The person transacting

S.7-B Direct marketing (wholesale direct purchase from farmers outside the market yard, sub-market yard, private market yard)

(1) Subject to such reasonable conditions and such fee as may be prescribed, the Director, Agricultural Marketing may grant a license to a person to establish Collection aggregation centers in the proximity of the production area with infrastructure, as may be prescribed in accordance with the provisions of this Act and the rules made thereunder for marketing of notified agricultural produce :

(2) The direct marketing licensee shall maintain records and all accounts relating to daily trade transactions and submit monthly report, as may be prescribed, to the licensing authority.

(3) The licensing authority licensee shall maintain records and all accounts relating to daily trade t

S.7-C Establishment and notification of "Special Commodity Market Yard"

(1) The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification declare existing market yard established under clause (b) of sub-section (2) of section 7 as Special yard as Special Commodity Market Yard of all or any of the specified agricultural produce in respect of a market area.

(2) Provisions for and in relation to the Market Committee of this Act shall mutatis mutandis apply to the Market Committee established for Special Commodity Market Yard.

S.7-D Establishment of private market yard

(1) Subject to such reasonable conditions and such fee as may be prescribed, the Director, Agricultural Marketing may grant a license to a person to establish a private market yard, for trading of notified agricultural produce.

Provided that no user charge shall be collected from agriculturist seller.

(3) The private market yard licensee shall contribute license fee and one-fourth of the user charge collection, to a separate fund maintained and operated by the Director, Agricultural Marketing. The Director, Agricultural Marketing shall utilize the fund, in skill development, training, research and such other activities, as will aid in creating an efficient marketing system in the State.

S.7-E Establishment of Producer Consumer market yard (Sale of agriculture produce within retain limit by producer to the consumer)

(2) The license may establish and develop the infrastructure in the producer consumer market, within the reach of producer and consumers, as may be prescribed:

Provided that the consumer shall purchase within the retail limit.

S.8 Alteration of Market Area and modification of the list of agricultural produce

(1) The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification in the Gazette and in such other manner as may be prescribed and with effect 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 6 ;
(b) include any area in, or exclude any area from, the Market Area specified in the notification under section 6 ;
(c) divide a market Area specified in the notification under section 6 into two or more separate Market Areas ;
(d) amalgamate two or more market Areas specified in the notification under section 6 into one Market Area ; or
(e) declare that Market Area specified in the notification under section 6 shall cease to be such area :

Provided that before action under this sub-section is taken the State Government

S.9 Effects of declaration of Market Area

(1) As from the date of declaration of an area as Market Area no Local Body or other person shall, within the Market Area, set up, establish or continue, or allow to be set up, established or continued, any place for the sale, purchase, storage, weighment or processing of the specified agricultural produce, except under and in accordance with the conditions of a license granted by the Committee concerned, anything to the contrary contained in any other law, custom, usage or agreement notwithstanding :

Provided that the provisions of this sub-section shall not apply to a producer in respect of agricultural produce produced, reared, caught or processed by him or to any person who purchases or stores any agricultural produce for his domestic consumption.

Provided further that in case of direct purchase from farmers, to set up collection/ aggregation centers in the proximity of the production area and for the private market yard, Director, Agricultural Marketing shall be

S.9-A Unified License for certain purpose

(1) Any Market which shall be main Mandi Samiti, may grant unified license to purchase specified agriculture produce from the farmers and traders in such a manner as may be prescribed in the bye laws, in the pre-communicated places in the whole State, for one or more of the following purposes :–

(a) processing of specified agricultural produce ;
(b) trading of specified agricultural produce ;
(c) grading, packing and transaction in other way by value addition of specified agricultural produce.

(2) Market fee and development cess as provided in this Act, shall be payable on sale and purchase of specified agricultural produce to that market committee, where the specified agricultural produce is actually transacted.

(3) Notwithstanding anything contained in sub-section (1) licence issued to a wholesale trader by any Mandi Samiti, in the manner as maybe prescribed, shall be treated as Unified Licence. The Unified Licencee shall be aut

S.10 No trade charges permissible except as prescribed by rules or bye-laws

(1) As from the date to be notified by the State Government in the Gazette, no person shall, in a Principal Market Yard or Sub Market Yard, levy, charge or realize, 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 not so prescribed.

(2) all trade charges shall be payable by the purchaser.

S.11 Application of certain provisions relating to Market Yards to the remaining part of Market Area

The State Government, where it considers necessary or expedient in the public interest so to do, may, by notification in the Gazette and in such other manner as may be prescribed, declare that the provisions of sub-section (2) of section 9 and the provisions of section 10 shall also apply to the whole or any part of the Market Area outside the Principal Market Yard and Sub-Market Yards 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 this Act relating to a Principal Market Yard or Sub-Market Yards shall also, with effect from the same date, mutatis mutandis, apply to the area so specified.

S.Chapter III Market Committee

S.12 Establishment and incorporation of Committee

(1) For every Market Area there shall be a Committee to be called the Mandi Samiti of that Market Area, which shall be a body corporate having perpetual succession and an official seal and, subject to such restrictions or qualifications, if any, may be imposed by this or any other enactment, may sue or be sued in its corporate name and acquire, hold and dispose of property and enter into contracts :

Provided that the Committee shall not transfer any movable property except in accordance with a resolution duly passed at any of its meetings by a majority of not less than three-fourths of the total number of its members and with the previous approval in writing of the Board.

(2) The Committee shall be deemed to be a local authority for the purposes of Land Acquisition Act, 1894 and any other law for the time being in force.

S.13 Constitution of the Committee

(1) The Committee referred to in section 12 shall consist of the following members to be nominated by the State Government in such manner as may be prescribed :—

(a) nine representative of producers of the Market Area ;
(b) two representative of traders carrying on business in the Market Area and holding license therefor under this Act ;
(c) two representative of commission agents carrying on business in the Market Area and holding license therefor under this Act ;
(d) two representative of palledar and measurer carrying on business in the Market Area and holding license therefor under this Act;
(e) Secretary of the Market Committee who shall be the member secretary.

(2) The members referred to in clause (a) of sub-section (1), who have sold notified agricultural produce in the market yards and obtained sale vouchers in Form VI of last three years from the committee, cumulatively highest in value, shall be eligible for

S.13-A Resignation of members and nomination in certain circumstances

(a) 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 Director ;

(b) 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.

S.13-B Removal of members, Vice Chairman and Chairman of the Committee

The State Government may, on the recommendation of the Director, remove any member including the Chairman or the Vice Chairman if he has been found guilty of neglect or misconduct in the discharge of his duties or of any disgraceful conduct or has become incapable of performing his duties as a member or has been adjudged insolvent and the vacancy of such members shall be filled in accordance with the provisions of sub-section (3) of section 13 or clause (b) of section 13-A as the case may be :

Provided that no such member shall be removed from office unless he has been given a reasonable opportunity of being heard.

S.13-C Suspension of the Committee

Where the 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 maintenance of public order ro 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 do, 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.

S.13-D Consequences of suspension

(1) Where a Committee is suspended under section 13-C 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 powers, duties and functions of the Committee shall be exercised, discharged and performed by the District Magistrate who may exercise, discharge or perform such power, duties and functions either himself or through an officer authorized by him not below the rank of the Deputy Collector.

(2) Where the circumstances so warrant the Director may sent its report for dissolution of the Committee to the State Government within three months from the date of its suspension.

(3) The director shall forthwith report about suspension under section 13-C to the State Government and if no adverse direction or order is received to the Director from the State Government within 15 days the suspension shall continue, for the period directed in the first order otherwise he shall act accor

S.13-E Dissolution of Committee

If at any time the State Government, on the report of the Director is satisfied that nay Committee has made 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, after taking into consideration the explanation of the Committee, it may, by order stating the reasons therefor dissolve the Committee by publication thereof in the official Gazette.

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 ;

S.13-F Consequences of dissolution

On the dissolution of the Committee,—

(a) 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;
(b) 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 Chairman, Vice-Chairman and the Committee, until the new Committee is constituted under section 13.

S.14 Constitution of First Committee or new Committee

(1) The State Government shall, by notification in the Gazette, appoint all the members of the First Committee, or of a new Committee mentioned in clause (b) of sub-section (2) of section 8, including the Chairman and the Vice-Chairman, from amongst the persons who, in the opinion of the State Government, are suitable to represent the different interests referred to in sub-section (1) of section 13.

(2) The term of the First Committee shall be one year from the date of its constitution under sub-section (1), but the State Government may, in the public interest, extend or further extend its term, so however that the extended or further extended term shall come to an end on the date of the constitution of the Committee under section 13.

(3) The term of office of the members of the First Committee including the Chairman and the Vice-Chairman, shall be for such period, not exceeding the term of the First Committee, as may be fixed by the State Government in this behalf.

S.14-A Corrupt practices

The provisions of section 123 of Chapter I of part VII of the Representation of the People Act, 1951 shall mutatis mutandis apply in the election to a Mandi Samiti.

S.14-B Electoral offences

The provisions of sections 125, 126, 127, 127-A, 128, 129, 130, 131, 132, 132-A, 134, 134-A, 135, 135-A and 136 of Chapter III of Part VII of the Representation of the People Act, 1951 shall have effect as if, —

(a) the reference therein to an election were a reference to an election held under this Act ;
(b) in section 127-A, in sub-section (2), in clause (b), in sub clause (i) for the words "Chief Electoral Officer" the words "Director of Election" had been substituted ;
(c) in sections 134 and 136, for the words "by or under this Act" the words "by or under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964" had been substituted ;
(d) in section 135-A, —
(i) for the word "government" the words "Government, the Board or a Mandi Samiti" had been substituted.
(ii) in the explanation for the words "this sub-section and section 20-B" the words, "this section" had been substituted.

S.15 Filling or casual vacancies

Where a vacancy occurs by reason of death, resignation or removal of a member, or for any other reason, it shall be filled in by a person belonging to the class to which the person ceasing to be member belonged, and the person so nominated or appointed by the State Government shall be a member for the unexpired portion of the term of the member in whole vacancy he has become a member :

Provided that a vacancy for a period not exceeding six months may not be filled, if so ordered by the Director :

Provided further that in respect of vacancies to be filled by nomination by the State Government, the first proviso shall be so construed as if for the words "the Director" the words "the State Government" were substituted.

S.16 Function and duties of the Committee

(1) A Committee shall enforce the provisions of this Act, the rules and bye-laws made thereunder in the Market Area, provide such facilities for sale and purchase of specified agricultural produce therein, as may be specified in any directions given by the Board to the Committee from time to time or considered necessary by the Committee and do such other acts as may be necessary for regulating sale and purchase of specified agricultural produce in that Market Area, and for that purpose may exercise such powers and perform such duties, and is charge such functions as may be provided by or under this Act.

(2) Without prejudice to the generality of the provisions contained in sub-section (1) a Committee shall —

(i) ensure fair dealings between the producers and persons engaged in the sale or purchase of specified agricultural produce ;
(ii) ensure prompt payment to sellers in respect of specified agricultural produce sold by them in the Principal Market Ya

S.17 Powers of the Committee

A Committee shall, for the purposes of this Act, have the power to —

(i) issue or renew licenses under this Act on such terms and conditions and subject to such restrictions as may be prescribed, or, after recording reasons therefor, refuse to issues or renew any such license ;
(ii) suspend or cancel licenses issued or renewed under this Act : Provided that before cancelling a license except on the ground of conduct which has led to the conviction of the licensee under section 37, the Committee shall afford reasonable opportunity to him to show cause against the action proposed ;
(iii) levy and collect, —
(a) such fees as may be prescribed for the issue or renewal of licenses ; and
(b) market fee which shall be payable on transactions of sale of specified agricultural produce in the market area at such rates, being not less than one percentum and not more than two percentum of the price of the agricultural produce so sold as the Stat

S.17-A Exemption from mandi fee

(a) Where the State Government or an authority as may be prescribed, is of the opinion that it is necessary and expedient in the public interest so to do in encourage the establishment of Industrial or Agro Processing Units in the State and to promote the marketing of the specified agricultural produces to be used as raw material by the said units, it may on an application in such for as may be prescribed, by notification exempt mandi fee (excluding development cess) on such specified agricultural produce or produces as may be used by such newly established agro processing units as fulfill the condition that the cost of plant and machinery shall not be less than five crore rupees, for such period as may be specified in the notification no exceeding five years subject to such conditions as may be specified in the notification. Provided that the State Government may be exempt market fee (excluding development cess) on a finished product of Industria or Agro Processing Units which is

S.18 Contract, etc. on behalf of the Committee

(1) Every contract by or on behalf of the Committee shall be made in the prescribed manner.

(2) No contract made by or on behalf of the Committee in contravention of the provisions of sub-section (1) shall be binding on it.

(3) Every order of the Committee shall be authenticated by its official seal and the signature of the Chairman, or during his absence or incapacity, of the Vice-Chairman or, where so authorized by it, of the Secretary.

S.19 Market Committee Fund and its utilizations

(1) There shall be established for each Committee, a fund to be called "Market Committee Fund" to which shall be credited all moneys received by it including all loans raised by it and advances and grants made to it.

(2) all expenditure incurred by the Committee in carrying out the purposes of this Act shall be defrayed out of the said fund, and the surplus, if any, shall be invested in such manner as may be prescribed.

(3) Without prejudice to the generality of the provisions contained in section 16, the Committee may utilize its funds for payment of all or any of the following —

(i) expenses incurred in auditing the account of the Committee ;
(ii) salaries, pensions and allowances including allowances for leave, gratuities, compassionate allowance, medical aid and contributions towards provident fund and pensions of the officers and servants employed by or for it ;
(iii) expenses of and incidental to elections under this Act ;

S.19-A Priorities of liabilities of the Committees

The revenues of a Committee, shall, after meeting its operating, maintenance and management expenses, be applied as far as they are available in the following order, namely :—

(i) the repayment of principal amount of, and interest on, loans not guaranteed by the State Government ;
(ii) the repayment of principal amount of, and interest on, loans guaranteed by the State Government ;
(iii) the repayment of principal amount of, and interest on, sums paid by the State Government under guarantees, if any, by that Government ;
(iv) the repayment of principal amount of, and interest on loans taken from the State Government ;
(v) the balance remaining to be utilized for the education of fees payable to the Committee under this Act or for expenses incurred in the discharge of any of the functions of the Committee, as the Committee may think fit or the Board may direct.

S.19-B Market development fund

(1) There shall be established for each committee, a fund to be called Market Development Fund to which the following amounts shall be credited —

(a) sixty five per cent of the amount standing to the credit of the Market Committee Fund immediately before the commencement of the Uttar Pradesh Krishi Utpadan Mandi Laws (Amendment) Act, 1978 ;
(b) such other amounts as may from time to time be directed by the Board to be credited to this fund.

(2) The Market Development Fund shall be applied for the purposes of the development of the market area, and no amount shall either be spent from the fund or be invested except in accordance with the directions issued by the Board from time to time.

(3) Without prejudice to the generality of the provisions of sub-section (2), the Market Development Fund shall be utilized for the following purposes, namely —

(i) facilities to the agriculturists, other producers and payers of market fees in t

S.20 Recovery of sums due to Committee as arrears of land revenue and power to write off irrecoverable dues

(1) Any amount due to the Committee, if not paid within the prescribed period, may be recovered as arrears of land revenue.

(2) A Committee may write off any amount due to it, if it is certified by the Collector to be irrecoverable :

Provided that no amount exceeding Rs. 200 shall be written off without the prior approval of the Director.

S.21 Surcharge

(1) The Chairman, Vice-Chairman and every member, officer and servant of the Committee shall be liable to surcharge for the loss, waste or misapplication of any money or property of the Committee, if such a loss, waste or misapplication is a direct consequence of his neglect or misconduct while acting as Chairman, Vice-Chairman, member, officer or servant.

(2) The procedure of surcharge and the manner of the recovery of the amount involved in loss, waste or misapplication shall be such as may be prescribed.

(3) No suit shall lie in any court for the recovery of any sum recoverable in the manner prescribed under sub-section (2).

S.Chapter IV Officers and Servants of the Committee

S.22 Powers and duties of the Chairman and the Vice-Chairman

(1) The Chairman, and in his absence the Vice-Chairman, shall, subject to the provisions of this Act and the rules and bye-laws made thereunder and the resolutions, if any, of the Committee, exercise superintendence and control over the officers and servants of the Committee and shall exercise such other powers and perform such duties as may be prescribed or delegated to him by the Committee by a resolution passed by it in this behalf.

(2) The Chairman, and in his absence the Vice-Chairman, shall preside over the meetings of the Committee. In the absence of both, any member chosen by the members present in a meeting shall preside at that meeting.

S.23 Appointment of officers and servants of the Market Committee and their conditions of service

(1) Subject to the provisions of this Act and the rules made in this behalf, the Committee, its Chairman or Secretary to the extent empowered under the bye-laws or resolutions passed by the Committee, may appoint such officers and servants as may be necessary for carrying out the purposes of this Act on such terms and conditions of service as may be provided for in the bye-laws of the Committee.

(2) Every Committee shall have such number of Secretaries and such other offices as may be considered necessary by the Board for the efficient discharge of the functions of the Committee, appointed by the Board on such terms and conditions as may be provided for in the regulations made by it ;

S.23-A Constitution of Centralized service and transfer of employees

(1) Notwithstanding anything contained in any other provisions of this Act, the Board may constitute cadres of secretaries and such other officers common to all committee as it may deem fit to appoint under sub-section (2) of section 23.

(2) Subject to the provisions of sub-section (2-B) —

(a) every person, other than a Government servant, serving in any committee on deputation, who holds a post comprised in the cadre referred to in sub-section (1), and
(b) every Government servant, serving in any committee on deputation on a post in the said cadre, who is not found to be unsuitable, suitability being determined in such manner as may be laid down in regulations.

Shall on and from the date of the constitution of the said cadre (hereafter in this section to be referred to as the said date) become member of the cadre on the terms and conditions mentioned in sub section (2-A).

(2-A) Every person, who becomes a member of the cadre under

S.24 Functions, powers and duties of the Secretaries

(1) The Secretary of a Committee shall be its chief executive officer, and shall, subject to the provisions of this Act, perform such functions, exercise such powers and discharge such duties, as may be prescribed, or provided for in the bye-laws or as the Board or the Director, may, by order in writing direct :

Provided that when more than one Secretaries are posted in a Committee, the Director shall nominate one of the Secretaries to be its Chief executive officer and shall determine the functions to be performed, powers to be exercised and duties to be discharged by each of them.

(2) Without prejudice to the generality of the foregoing provisions, but subject to the provisions of this Act and the rules and bye-laws made thereunder the Secretary shall —

(a) exercise all powers of superintendence and control over —
(i) all officers and servants of the Committee so as to ensure proper and efficient discharge of the duties assigned to them by or u

S.25 Appeals

Subject to rules made in this behalf under this Act, any person aggrieved by an order passed by a Committee under clause (i) or clause (ii) of section 17 may, within 30 days of such order, prefer an appeal to the Board in such manner as may be prescribed, and the Board shall decide it after giving an opportunity of hearing both to the appellant and to the committee.

S.25-A Terms and conditions of employment of officers and servants of Committees

Subject to rules made in this behalf under this Act, the terms and conditions of employment of the members of a cadre constituted under section 23-A and matters relating to discipline control and punishment including dismissal and removal of such officers shall be governed by such regulations as may be made by the Board.

S.26 Protection of person acting under this Act

Every officer or servant of the Board or a Committee shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

S.Chapter V Establishment of the Board

S.26-A Establishment of the Board

(1) The State Government shall by notification in the Gazette, and with effect from a date to be specified therein, constitute a Board by the name of the State Agricultural Produce Markets Board with its head office at Lucknow.

(2) The Board shall be a body corporated by the said name having perpetual succession and a common seal and may sue or be sued by the said name and acquire, hold and dispose of property and enter into contracts.

(3) The Board shall for all purposes be deemed to be a local authority.

S.26-B Constitution of the Board

(1) The Board shall consist of The Principal Secretary/Secretary to the Government of Uttar Pradesh in Agriculture Marketing and Foregien Trade Department as the ex-official Chairman and three Vice-Chairman who shall be non-official members appointed by the State Government besides the following other members namely:—

(a) the Agriculture Production Commissioner, Uttar Pradesh or his services not below the rank of Secretary ;
(b) the Principal Secretary/Secretary to the State Government in the Finance Department ;
(c) the Principal Secretary/Secretary to the State Government in the Food and Civil Supplies Department ;
(d) the Principal Secretary/Secretary to the State Government in the Agriculture Department.
(e) the Registrar, Co-operative Societies, Uttar Pradesh ;
(f) the Director of Agriculture, Uttar Pradesh ;
(f-1) the Agricultural Marketing Adviser to the Government of India ;
(f-2) the Director, Hort

S.26-C Disqualification for being Vice-Chairman or other member

A person shall be disqualified for being chosen as and for being the Vice-Chairman or other member of the Board if he —

(a) has been convicted of an offence involving moral turpitude ;
(b) is an undischarged insolvent ;
(c) is of unsound mind and stands so declared by a competent Court ;
(d) holds, except as provided in section 26-D and section 26-E any office of profit under the Board ;
(e) has, directly or indirectly by himself or by any partner, employer or employee, any share or interest, whether pecuniary or of any other nature, in any contract or employment, with, by, or on behalf of the Board ; or
(f) is a director or secretary, manager or other officer of any company which has nay share or interest in any contract or employment with, by, or on behalf of, the Board :

Provided that a person shall not be disqualified under clause (e) or clause (f) by reason only of his or the company of which he is a direc

S.26-D Terms of Office of Vice Chairman and other members

(1) Subject to the provisions of sub-section (2) the Vice-Chairman and other members of the Board not being ex-officio members thereof shall hold office for two years unless the term of the Vice-Chairman or such other member is determined earlier by the Government by notification in the Gazette, and shall be eligible for reappointment.

(2) A member appointed under clause (f-4) or clause (g) or clause (h) of sub-section (i) of section 26-B shall cease to be a member of the Board as soon as he ceases to be such Vice-Chancellor or elected member of the Market Committee, as the case may be.

(3) The Vice-Chairman or any other member not being an ex-officio member may at any time by writing under his hand addressed to the State Government resign his office, and on such resignation being accepted he shall be deemed to have vacated his office.

S.26-E Other provisions regarding office of the chairman and members other than ex-officio

(1) The Vice-Chairman and other members not being ex-officio members be paid from the Board's fund such remuneration, if any, as may be fixed by the State Government.

(2) If the Vice-Chairman or any other member as aforesaid is by infirmity or otherwise rendered temporarily incapable of discharging his functions or is absent on leave otherwise in circumstances not involving the vacation of his appointment, the State Government may appoint another person to discharge his functions under this Act.

S.26-F Appointment of officers and servants

(1) The Board may appoint such officers and servants as it considers necessary for efficient performance of its functions on such terms and conditions as may be provided for in regulations made by the Board.

(2) The Board may, with the previous approval of the State Government, appoint a servant of the Central Government or the State Government as an officer or servant of the Board or of a Committee on such terms and conditions as it thinks fit.

S.26-G Supervision and control of the Director

Subject to the superintendence of the Board, the general control and direction over all the officers and servants of the Board shall be vested in the Director.

S.26-H Authentication of orders and other instruments of the Board

All proceedings of the Board shall be authenticated by the signature of Chairman or the Member-Secretary and all order and other instruments issued by the Board shall be authenticated by the signature of the Member-Secretary ro such other Officer of the Board as may be authorized in this behalf by regulations.

S.26-I Delegation of powers

Subject to the provisions of this Act, the Board may, by general or special order delegate, either unconditionally or subject to such conditions as may be specified in the order, to any sub-committee appointed by it or to the Director or the Member-Secretary or any other officer of the Board such of its powers and duties under this Act, as it may deem fit.

S.26-J Disqualification for participation in proceedings of the Board on account of interest

(1) a Vice-Chairman or any other member of the Board or of sub-committee appointed by the Board who —

(a) has any share or interest of the nature described in clause (e) or clause (f) of section 26-C, in respect of any matter ; or
(b) has acted professionally, in relation to any matter, on behalf of any person having therein any such share on interest as aforesaid.

shall not, notwithstanding anything contained in the proviso to section 26-C, vote or take part in any proceeding of the Board or Committee relating to such matter.

(2) If any member of the Board or of a Committee appointed by the Board has, directly or indirectly, any interest in any area in which it is proposed to acquire land for any of the purposes of this Act, he shall not take part in any meeting of the Board or sub-committee in which any matter relating to such land is considered.

(3) Nothing in sub-section (1) or sub-section (2) shall prevent any member of the Boa

S.26-K Acts not to be invalidated by informality, vacancy etc.

No act done or proceedings taken under this Act by the Board or a sub-committee appointed by the Board shall be invalidated merely on the ground of —

(a) any vacancy or defect in the constitution of the Board or sub-committee ; or
(b) any defect or irregularity in the appointment of a person acting as a member thereof ; or
(c) any defect or irregularity in such act or proceedings, not affecting the substance.

S.26-L Powers and functions and Board

(1) The Board, shall, subject to the provisions of this Act, have the following functions and shall have power to do anything which may be necessary or expedient for carrying out those functions—

(i) Superintendence and control over the working of the Market Committees and other affairs thereof including programmes undertaking by such Committees for the construction of new market yards and development of existing markets and market areas.
(ii) giving such direction to Committee in general or any Committee in particular with a view to ensure efficiency thereof ;
(iii) any other functions entrusted to it by this Act ;
(iv) such other functions as may be entrusted to the Board by the State Government by notification in the Gazette.

(2) Without prejudice to the generality of the foregoing provision, such power shall include the power —

(i) to approve proposals of the new sites selected by the Committee for the developme

S.26-M Directions on questions of policy

(1) In the discharge of its functions, the Board shall be guided by such directions on questions of policy as may be given to it by the State Government.

(2) If any question arises whether any matter is or is not a matter as respects which the State Government may issue a direction under sub-section (1), the decision of the State Government shall be final.

S.26-N Annual reports, statistics, returns and other information

(1) The Board, shall as soon as may be after the end of each financial year, prepare and submit to the State Government before such date and in such form as the State Government may direct, a report giving an account of its activities during the previous financial year, and the report shall also give an account of the activities, if any, which are likely to be undertaken by the Board in the next financial year, and the State Government shall cause every such report to be laid before the State Legislature as soon as may be after it is received by the State Government.

(2) The Board shall furnish to the State Government at such times and in such form and manner as the State Government may direct, such statistics and returns and such particulars in regard to any proposed ro existing activities fo the Board or any other matter under the control of the Board as the State Government may from time to time require.

S.26-O Execution and registration of contracts, etc.

Every contract or assurance of property on behalf of the Board shall be in writing and executed by such authority and in such manner as may be provided by regulations.

S.26-P Board's Fund

(1) The Board shall have its own fund, which shall be deemed to be a local fund and to which shall be credited all moneys received by or on behalf of the Board, except the moneys required to be credited in the Uttar Pradesh State Marketing Development Fund under section 26-PP.

(2) In particular and without prejudice to the generality fo the provisions of this Act relating to the purpose and the manner of investment and disposal, the fund referred to in sub-section (1) shall be utilized by the Board for the following purposes, namely —

(i) payment of salary, leave allowance, gratuity, other allowances, loans and advances and provident fund to the officers and servants employed by the Board and pension and other contribution to the Government servants on deputation ;
(ii) payment of travelling and other allowances to the Vice-Chairman and member of the Board ;
(iii) other purposes relating to the establishment of the Board or for carrying out the

S.26-PP Uttar Pradesh State Marketing Development Fund

(1) There shall be established for the Board, a Fund, to be called the Uttar Pradesh State Marketing Development Fund to the which following amounts shall be credited, namely —

(a) all contributions received from the Committees under sub-section (5) of section 19 except such percentage thereof as the State Government may direct to be credited to the Board's Fund ;
(b) such other amounts as the State Government or the Board may direct.

(2) The fund established under sub-section (1) shall, subject to the provisions of this Act, be utilized by the Board for the following purposes, namely :—

(i) facilities to the agriculturists, other producers and payers of market fee in the market area ;
(ii) development of principal market yards, sub-market yards, hats and painths and construction of New Market Yards in the market area ;
(iii) construction, maintenance and repairs of link roads, market lanes and other development wor

S.26-PPP Central Mandi Fund

(1) There shall be established a Fund to be called the "Central Mandi Fund" to which the following amount shall be credited, namely : —

(a) all moneys paid to the Board under sub-section (6) of section 19 ;
(b) such other amount as the State Government or the Board may direct.

(2) The Central Mandi Fund shall be utilized by the Board for the following purposes namely :—

(a) assistance to financially weak and under developed Committees in the form of loans or grants ;
(b) construction, maintenance and repairs of market yards, links roads, culverts and other development works in the market area ;
(c) grants or loans to the committees for development works ;
(d) such other purposes as may be directed by the State Government or the Board in such manner as may be prescribed.

S.26-Q Restriction on unbudgeted expenditure

(1) Save where in the opinion of the Board circumstances of extreme urgency have arisen, no sum exceeding such amount as the State Government may from time to time fix in that behalf on account of recurring or non-recurring expenditure shall be spent by the Board in any financial year unless such sum has been included in a statement submitted under sub-section (1) of section 26-V.

(2) Where any such sum is spent in circumstances of extreme urgency a report thereon, indicating the expenditure, shall be made as soon as practicable to the State Government.

S.26-R Subvention to the Board

The State Government may, after due appropriation by law of the State Legislature, from time to time make subventions to the Board for the purpose of this Act, on such terms and conditions as the State Government may determine.

S.26-S Loans to the Board

The State Government may from time to time advance loans to the Board on such terms and conditions, not inconsistent with the provisions of this Act, as the State Government may determine.

S.26-T Power of Board to borrow

(1) The Board may from time to time, with the previous sanction of the State Government and subject to the provisions of this Act and to such conditions as the State Government may by general or special order determine, borrow any sum required for the purposes of this Act, whether by the issue of bonds or stock or otherwise or by making arrangement with bankers.

(2) The Board may not at any time have on loan under sub-section (1), apart from the amount of loans from the State Government, an amount exceeding such amount as the State Government may, from time to time, fix in that behalf.

(3) Stock issued by the Board under this section shall be issued, transferred, dealt with and redeemed in such manner as the State Government may by general or special order direct.

S.26-U Priorities of Liabilities of the Board

The revenues of the Board shall, after meeting its expenses, be applied, as far as they are available, in the following order, namely —

(i) the repayment of principal amount of and interest on bonds not guaranteed by the State Government ;
(ii) the repayment of principal amount of and interest on stock not guaranteed by the State Government ;
(iii) the repayment of principal amount of and interest on bonds guaranteed by the State Government ;
(iv) the repayment of principal amount of and interest on stock so guaranteed ;
(v) the repayment of principal amount of and interest on sums paid by the State Government under guarantees, if any ;
(vi) the repayment of principal amount of and interest on loans advanced to the Board by the State Government including arrears of such interest.

S.26-V Accounts and Audit

(1) The Board shall before the commencement of and may at any time during a financial year, prepare a statement or a supplementary statement, as the case may be, of programmes of its activities during that year as well as financial estimates in respect thereof and submit them to the State Government, in such manner and by such dates as it may by general or special order direct, for its previous approval.

(2) The Board shall cause to be maintained proper books of account and other books in relation to its accounts and prepare the annual balance-sheet.

(3) The accounts of the Board shall be audited by such auditor as the State Government may by general or special order direct, and the auditor so appointed shall have power of requiring the production of documents and the furnishing of information respecting all matters.

(4) The accounts of the Board as certified by the auditor, together with the audit report thereon shall be forwarded annually to the State Governm

S.26-W Surcharge

(1) The Chairman, Vice-Chairman and other members, officers and servants of the Board shall be liable to surcharge for the less, waste or misapplication of any money or property of the Board, if such less, waste or misapplication is direct consequence of his neglect or misconduct while acting as such "Chairman, Vice-Chairman" or other member, officer or servant.

(2) The procedure of surcharge shall be such as may be prescribed.

(3) Any amount found to be involved in such loss, waste or misapplication as a result of proceedings for surcharge shall be recoverable as arrears of land revenue, and no suit may be instituted in any civil court for the recovery of any such amount.

(4) Nothing in sub-section (3) shall prevent the Board from deducting any amount referred to therein from any sum payable by the Board on account of remuneration or otherwise to such Chairman or other member, officer or servant.

S.26-X Regulations

(1) The Board may, with the previous approval of the State Government, make regulations, not inconsistent with this Act and rules made thereunder, for the administration of the affairs of the Board.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matter, namely —

(a) The summoning and holding of meetings of the Board, the time and place where such meetings are to be held, the conduct of business at such meetings and the member of persons necessary to form a quorum thereat ;
(b) the powers and duties of the officers and other employees of the Board ;
(c) the salaries and allowances and other conditions of service of officers and other employees of the Board and of officers referred to in sub-section (2) of section 23 ;
(d) the management of the property of the Board ;
(e) the execution of contracts and assurances of property on behal

S.27 External Control

(1) Subject to the provisions of this act, the general superintendence, direction and control over the Committee, its Chairman, Vice-Chairman and other members, its Secretary and other officers referred to in sub-section (2) of section 23, shall be vested in the Board.

(2) The Board or the Director may inspect, or cause to be inspected, all documents or records relating to the affairs of the Committee and require the Committee, its Chairman, Vice-Chairman, members, officers or servants to furnish such information or materials may consider necessary.

(3) On receipt of a complaint in respect of an act relating to the affairs of the Committee, the State Government may require the Director to conduct enquiry or institute proceeding against the Committee, its Chairman, Vice-Chairman, member, Secretary, or officer, and the Director shall act accordingly.

(4) The Director shall, for the purpose of holding any enquiry under this Act, have the same powers as are vested

S.31 Powers of the Board to prohibit execution or further execution of resolution passed or order made by the Committee

(1) The Board may, of its own motion, or on report or complaint received, by order, prohibit the execution or further execution of a resolution passed, or order made, by the Committee or its Chairman or any of its officers or servants, if it is of the opinion that such resolution or order is prejudicial to the public interest, or is likely to hinder efficient running of the business in any Market Area, Principal Market Yard or Sub-Market Yard or is against the provisions of this Act, or the rules or bye-laws made thereunder.

(2) Where the execution or further execution of a resolution or order is prohibited by an order made under sub-section (1) and continuing in force, it shall be the duty of the Committee, if so required by the Board, to take any action which the Committee would have been entitled to take if the resolution or order had never been made or passed, and which is necessary for preventing the Chairman or any of its officers or servants from doing or continuing t

S.32 Power of the Board to call for the proceedings of a Committee and pass order thereon

The Board may, for the purpose fo satisfying itself as to the legality or propriety of any decision of, or order passed by, a Committee, at any time call and examine the proceedings of the Committee, and where it is of the opinion that the decision or order of the Committee should be modified, annulled or reversed, pass such orders thereon as it may deem fit.

S.33 Delegation of Powers

The Board may, by regulations, delegate subject to such conditions and restrictions and in such manner, as may be specified therein, any of its powers to the Director.

S.33-A Powers of Director to ensure performance of duties of market committees

(1) Where the Director, on a complaint made to him or otherwise is satisfied that a committee has not performed any duty imposed on it by or under this Act, he may require the committee to perform such duty within the period specified by him.

(2) If such duty is not performed within the specified period the Director may appoint a person to perform it any may direct that the expenses incurred in its performance including the reasonable remuneration of such person, shall be paid by the Committee forthwith.

(3) If such expenses are not so paid, the Director may require the Board to pay the same and the amount so paid by the Board shall be recoverable by the Board from the Committee.

S.33-B Powers of the State Government

(1) The State Government with a view to satisfying itself that the powers, functions and duties of the Board or a Committee by or under this act are exercised or performed by it properly, may require the Commissioner or the Collector or any other person or persons to inspect or cause to be inspected any property, office, document or any work, of the Board or the Committee or to make inquiries into all or nay of the activities of the Board or the Committee in such manner as may be prescribed and to report to it the result of such inquiry within such period as may be specified.

(2) The Board or the Committee, as the case may be, shall give to the Commissioner or the Collector, or other person or persons, all facilities during inspection and for the proper conduct of the inquiry and shall produce any document or information in its possession when so demanded for the purpose of such inspections or inquiry, as the case may be.

S.33-C Grant/Renewal of license for private market yard

(1) Any person who, desires to establish private market yard under section 7-D shall apply to the Director, Agricultural Marketing or the Officer authorized by him for grant or renewal of license, as the case may be, in such form and in such manner and also for such period but not less than three years, as may be prescribed.

(2) An application for grant or renewal of license, as the case may be, for private market yard, shall be accompanied with such reasonable license fee and security/bank guarantee, as may be prescribed.

(3) An Application received under sub-section (1) for grant or renewal of license may be accepted or rejected for the reasons recorded in writing by the Licensing Authority :

Provided that the application received under this section shall be liable to be rejected on the condition(s), —

(a) that, the applicant is a minor not under custodian or not bona fide ;
(b) that, the applicant has been declared defaulter under the A

S.33-D Suspension or Cancellation of license granted/renewed under section 33-C

(1) Subject to the provisions of section 33-C, the Licensing Authority, as the case may be, may suspend or for the reasons to be communicated to the license holder in writing and giving reasonable opportunity of hearing cancel the license, if ;

(a) the license has been obtained through willful misrepresentation or fraud ; and/or
(b) the holder of license or its representative or anyone acting on his behalf with his expressed or implied permission, commits a breach of any of the Rules, regulations and terms or conditions of license ; and/or
(c) the holder of license himself or in combination with other license holder commits any act or abstains from carrying on his normal business in the market area with the intention of willfully obstructing, suspending or stopping the marketing of notified agricultural produce ; and/or
(d) the holder of the license has become insolvent ; and/or
(e) the holder of the license incurs any disqualificati

S.33-E Grant/Renewal of license for direct marketing

(1) Any person, including a Farmer's Cooperative, Farmers Producer Organisation (FPO) and Processor/ Exporter, under Section 7-B, desires to purchase agricultural produce directly from farmers outside the principal market yard sub-market yard, market sub-yard, private market yard, shall apply to the Director, Agricultural Marketing for grant or renewal of license, as the case may be, in such form and in such manner ; and also for such period, as may be prescribed.

(2) An application for direct marketing shall accompany such reasonable license fee and security/ bank guarantee, as may be prescribed.

(3) The application received under Section 33-E for grant or renewal of license may be accepted or rejected in the cause and manner mutatis mutandis to Section 33-C (3).

(4) A direct marketing license granted or renewed under this Section shall be subject to such terms and conditions, as may be prescribed ; and the licensee shall be bound to follow the terms and condi

S.33-F Suspension or Cancellation of direct marketing license

Subject to the provisions of section 7-B, the Licensing Authority, who has issued the license, may suspend or cancel the license granted/renewed under section 33-E in the cause and manner mutatis mutandis to Section 33-D :

Provided that any person aggrieved by an order of the licensing authority may prefer an appeal to the State Government in such manner as may be prescribed.

S.Chapter VI Miscellaneous

S.34 Suit against the Committee

(1) No suit shall be instituted against any Committee, its Chairman, Vice-Chairman or any member, officer or servant thereof, for anything done, or purporting to be done, in its or his official capacity until the expiration of two months from the date of service of a notice in writing stating the cause of action, the name and place of abode of the plaintiff and the relief claimed.

(2) The notice under sub-section (1) shall ,—

(i) where it is a notice to the Committee, be delivered at its office on any working day or handed to its Chairman, Vice-Chairman or Secretary or shall be sent by registered post ; and
(ii) in every other case, be delivered to the person concerned or sent by registered post.

(3) No suit referred to in sub-section (1) shall, unless it is a suit for recovery of immovable property or for a declaration of title thereto, be instituted otherwise than within six months next after the accrual of the cause of action.

S.35 Recovery of dues as Land Revenue

Any sum due to the State Government from the Board or a Committee, or to the Board from a Committee, or to a Committee from another Committee may be recovered as arrears of land revenue.

S.36 Powers of entry, search and seizure

(1) The Secretary of the market Committee or any officer authorized by the State Government or the Board in this behalf, may,—

(a) for carrying out any of the duties imposed on the Market Committee under this Act, inspect at all reasonable time, all accounts, registers and other documents pertaining to the purchase and sale of agricultural produce and enter any shop, godown, factory or other place where such account books or registers or other documents or such goods are kept and take or cause to be taken such copies or extracts from such account books, registers and other documents as may be considered necessary ;
(b) seize any account books, registers or other documents for reasons to be recorded in writing and prepare an inventory of such account books, registers and other documents, provided that a copy of such inventory shall be furnished to the person in charge of such accounts books, registers or other documents ;
(c) seize any agricultural pro

S.37