RAJASTHAN AGRICULTURAL PRODUCE MARKETS ACT, 1961

S.1 Short title and extent

(1) This Act may be called the Rajasthan Agricultural Produce Markets Act, 1961.

(2) It extends to the whole of the State of Rajasthan.

S.2 Definitions

(1) In this Act, unless the subject or context otherwise requires -

(i) "agricultural produce" includes all produce whether of agriculture, horticulture, animal husbandry or otherwise as specified in Schedule;

(ii) "Agriculturist" means a person who ordinarily by himself or by his tenants or hired labours or otherwise is engaged in the production or growth of agricultural produce, but does not include a trader or broker may also be engaged in the production or growth of agricultural produce;

¹(iia) "Board" means the Rajasthan State Agricultural Marketing Board established under Section 22-A

(iii) "broker" means an agent whose ordinary course of business is to negotiate and make contracts on payment of commission for the purchase or sale of agricultural produce on behalf of his principal an includes a commission agent but not include the servant of the prin

S.3 Notification of intention of exercising control over purchase and sale of agricultural produce in specified area

(1) The State Government may, by notification in the official Gazette, declare its intention of regulating the purchase and sale of such agricultural produce and in such area as may, be specified in the notification :

Provided that no area within the limits of a municipality shall be included in the area specified in such notification except after consultation with the municipal board or municipal council concerned, as the case may be.

(2) A notification under sub-section (1) shall State that any objection or suggestion which may be received by the State Government within a period of not less than one month, to be specified in the notification, shall be considered by the State Government.

S.4 Declaration of market area

¹(1) After the expiry of the period specified in the notification issued under section 3 and after considering such objections and suggestions as may be received before such expiry and after holding such enquiry as may be necessary, the State Government may, by notification in the official Gazette, declare the area specified in the notification under section 3 or any portion there of to be a market area for the purposes of this Act in respect of all or any of the kinds of agricultural produce specified in the said notification.

(2) The State Government may, at any time by notification in the Official Gazette, exclude from a market area any area or include in any market area other area.

S.5 Division of market into yards

5. ¹Division of market into yards

(1) In every market area, there may be-

(a) one principal market yard managed by the market committee;

(b) one or more than one sub-market yards managed by the market committee;

(d) one or more than one consumer farmer markets managed by a market committee or by a person other than the market committee;

(2) The State Government may, by notification in the Official Gazette, declare any specified place including any structure, enclosure, open place or locality in the market area to be a market yard or, as the case may be, sub-market yard.

5-A. ¹Establishment of private sub-market yards

The Director or any other authority empowered by the

S.6 Classification of market areas and establishment of market committees

¹Classification of market areas and establishment of market committees.

The State Government. may classify the market areas into super class, A class, B class, C class and D class market areas on the basis of the criteria as may be prescribed and shall establish a market committee for every such market area.

S.7 Constitution of market committees

Constitution of market committees -

²(1) Every market committee shall be constituted as prescribed and shall consist of the following fifteen members, namely:-

(a) Every super class and A class market committee shall be constituted as prescribed and shall consist of the following seventeen members, namely :-

(i) Eight shall be agriculturists elected in the prescribed manner by such agriculturists or institutions of the market area as the State Government. may prescribe;

(ii) Two shall be traders or brokers elected in the prescribed manner by traders and brokers Licenced by the market committee;

(iii) One shall be the person elected in the prescribed manner by weighmen, measurers, surveyors, warehouseman and other persons Licenced by th

S.8 Incorporation of market committee

Every market committee shall be a body corporate by such name as the State Government may specify by notification in the Official Gazettee. It shall have perpetual succession and a common seal, may sue and be sued in its corporate name and shall be competent to acquire and hold, lease, sell or otherwise transfer any property and to contract and to do all other things necessary for the purposes for which it is established.

S.9 Powers and duties of the market committee

¹Powers and duties of the market committee

(1) Subject to the provisions of this Act, it shall be the duty of the market committee -

(i) To implement the provisions of this Act, the rules and the bye-laws made there under, in the market area;

(ii) To provide such facilities for marketing of agricultural produce therein as the Director or the State Government may from time to time direct;

(iii) To do such other Acts as may be required in relation to the superintendence, direction and control of market or for regulating marketing of agricultural produce in any place in the market area, and for the purposes connected with the matters aforesaid, and for that purpose may exercise such powers and discharge such functions as may be provided by or under this Act; and

(iv) To do such other things as might be required for the purpose of achieving the objects and req

S.10 Appointment of sub-committees and joint-committees

The market committee may appoint one or more of its members to be a sub-committee or to be a joint committee for the conduct of any work or to report on any matter or matters and may delegate to such committee or any one or more of its members such of its powers or duties as it may think fit.

S.11 Appointment and salaries of servants of the market committee.

(1) The market committee may employ in the prescribed manner such officers and servants as may be necessary for the management of the market and may pay such officers and servants such salaries as the market committee thinks fit.

(2) The market committee shall, in the case of any officer or servant of Government, whom it employees, pay such pension contribution, gratuity or leave allowance as may be required by the conditions of his service under the State Government. for the time being in the force.

(3) The market committee may also, in the case of any of its officers and servants, provide for the payment to them of such leave allowances, pensions or gratuities as it deems proper and may contribute to any provident fund which may be established for the benefit of such officers and servants.

(4) The powers conferred by this section on the market committee shall be exercised subject to any rules, which may be made in

S.12 Members, etc, to be deemed public servants

All members, officers and servants of every market committee and of its sub-committees and joint committees appointed under section 16 shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, 1860(Central Act 45 of 1860).

S.13 Execution of contracts

(1) Every contract entered into by market committee shall be in writing and shall be signed on behalf of the market committee by its Chairman and two other members of the committee authorized by the committee in this behalf. (2) No contract, other than a contract executed, as provided in sub-section(1), shall be binding on the market committee.

S.14 Power of market committee to issue Licence

¹Power of market committee to issue Licence. (1) Where a market is established under the provisions of this Act, the market committee may issue and renew Licence, in accordance with the rules and bye-laws, to traders, brokers, weighmen, measurers, processors, surveyors, warehousemen or other persons to operate in the market on payment of the prescribed fees.

(2) The market committee may also grant Licence, -

(a) for direct purchase from the agriculturists for the following purposes, namely:-

(i) to processor for processing;

(ii) to exporters for export of agricultural produce;

(iii) for trade of agricultural produce of particular specification; and

(iv) for grading, packing and transacting in other way by value addition of agricultural produce:

²"Provided that no sale or purchase shall be permi

S.15 Suspension or cancellation of Licences under section 14

(1) The market committee issuing or renewing a Licence under section 14 may, after such enquiry as it deems fit to make and after giving , in the prescribed manner, the Licence a reasonable opportunity of being heard, suspend or cancel any such Licence on all or any of the following grounds, namely-

(a) that the Licence is found to have committed a breach of any of the terms or conditions of his Licence, or

(b) that he is found to have contravened any of the provisions of this Act or the rules or bye-laws made thereunder, or

(d) On any other prescribed ground.

(2) When a Licence has been suspended or cancelled, the holder of Licence shall forthwith produce such Licence in the office of the market committee for being endorsed in the prescribed manner and

S.16 Appeal

¹16. Appeal. - (1) any person aggrieved by an order -

(a) Of market committee refusing to grant or renew a Licence, or cancelling or suspending a Licence, may appeal to the Director;

(b) Of the Chairman or the Secretary, suspending a Licence may appeal to the director;

(2) All appeal shall be filed within thirty days from the date on which the order is communicated to the person aggrieved by such order.

(3) The Government or the director, as the case may be, may, for reasons to be recorded in writing, stay the operation of the order appealed against pending the final decision.

(4) The Government or director shall decide the appeal after giving the authority against whose order the appeal has been filed, a reasonable opportunity of showing cause why the ap

S.17 Power to collect market fees

²17. Power to collect market fees. - The market committee shall collect market fees from the Licences in the prescribed manner on agricultural produce ² (brought or) bought or sold by them in the ⁵(market area) at such rate as may be specified by the State Government, by notification in the official gazette, subject to a maximum of ³(Rs 2/-) per hundred rupees worth of agricultural produce ⁴(:)

Provided that no mandi fee shall be liviable on fruits and vegetables, instead the market committee may collect user charges in respect of these articles for the services provided by the market committee from the buyer of the produce at such rate as may be specified in the bye-laws.

²17A. Power to collect Krishak Kalyan Fee.- (1) The market committee shall collect Krishak Kalyan fee from the licensees in the prescribed manner, on agricultural produce brought or bought or

S.18 Market committee fund

18. Market committee fund. -

(1) All moneys received by the market committee shall be paid into a fund to be called the Market Committee Fund and all expenditures incurred by the market committee under or for the purposes of this Act shall be defrayed out of the said Fund.

(2) Any surplus remaining with the market committee after such expenditure has been met shall be invested as may be prescribed in this behalf.

(3) Every market committee shall pay to the State Government the cost of any additional or special staff employed by the State Government in consultation with such market committee for giving effect to the provisions of this Act in the market area for which such market committee is established.

(4) the Director shall determine the cost of such additional or special staff and shall, when the staff is employed for the purposes of more than one market committee, apportion such cost

S.19 Purposes for which the fund shall be expended

Subject to the provisions of section 18, the market committee fund shall be expended for the following purposes, namely :-

1) The acquisition of site or sites for the market;

2) The maintenance and improvement of the market;

3) The construction and repair of building necessary for the purposes of such market and for the health convenience and safety of the persons using it;

4) The provision and maintenance of standard weights and measures;

5) The pay, pensions, leave allowances, gratuities, compensation for injuries resulting from accident, compassionate allowance and contribution towards leave allowances, pensions or provident funds of the officers and servants employed by it;

6) The expenses of and incidental to elections;

7) The payment of interest on the loans that may be raised for the purposes of the market committee and th

S.20 Power to borrow

(1) A market committee may with the previous sanction of the State Government, raise money required for carrying out the purposes for which it is established on the security of any property vested in it and of any ²(xxx) fees Leviable by it under this Act.

(2) The market committee may, for the purpose of meeting the expenditure on lands, buildings and equipments required for establishing the market or for carrying out the purposes and provisions of the Act and Rules or bye-laws made thereunder, obtain a loan from the State Government.

(3) The conditions subject to which such money or loan shall be raised or obtained and the time within which the same shall be repayable, shall be subject to the previous sanction of the State Government.

S.21 Acquisition of land

Acquisition of land -

(1) If, at any time after a notification is issued under sub-section(1) of section 4, the State Government is of opinion that any land is needed for the purposes of the Act, the State Government may proceed to acquire it under the provisions of the Rajasthan Land Acquisition Act,1953 (Rajasthan Act 24 of 1953) or any other law for the time being in force. ³(Land thus acquired shall be deemed to have been acquired for a public purpose.)

(2) When such land vests in the State Government, it shall be transferred by the State Government to the market committee, on payment by the market committee of the compensation awarded under the said Act or other law and of all other charges incurred by the State Government on the account of acquisition within such period and in such manner as the State Government may, by general or special order, determine and on such transfer, the land shall vest in the market committ

S.22 No trade allowance permissible except as prescribed

CHAPTER IV

TRADE ALLOWANCE

22. No trade allowance permissible except as prescribed. ³(1) No person shall make or recover any trade allowance, other than an allowance prescribed by rules or bye-laws, in any market area for any transaction in respect of the agricultural produce concerned and no civil court shall, in any suit or proceeding arising out of any such transaction, have regard to or recognize any trade allowance not so prescribed.

Explanation Every deduction other than a deduction on account of deviation from sample when the purpose is made by sample or on account of deviation from standard when the purpose is made by reference to a prescribed standard or on account of difference between the Actual weight of the container and the standard weight or on account of the admixture of foreign matter, shall be regarded as a trade allowance for the purposes of this sec

S.23 Liability of Chairman, Vice-Chairman and members for removal from office

¹[(1) Every Chairman and Vice-Chairman shall, after an opportunity of being heard is afforded to him, be removal from his office as such Chairman and Vice-Chairman by the Government for misconduct in the discharge of his duties or for neglect of or incapacity to perform his duties on for making persistent defaults in the discharge of his duties and the Chairman and Vice-Chairman so removed who does not cease to be a member under clause(b) of sub-section(2) shall not be eligible for re-election as Chairman and ViceChairman during the remainder of his term of office as member of the market committee.

(2)(a) The Government may if it thinks fit on the recommendation of the market committee or on any complaint or for other sufficient reason and after giving him an opportunity of being hear and after such enquiry as it deems necessary, remove a member of the market committee, if such member, in the opinion of the Government has been guilty of misconduct in t

S.24 Personal liability of members for loss or mis-applications

Every member of the market committee shall be personally liable for the loss or mis-application of any portion of the fund, if he shall have been a party to such loss or mis-application or if the same shall have happened through, or been facilitated by gross neglect of his duty as such member and may be used for the recovery of the sum of money so lost or misapplied as if such sum of money had been the property of the State Government.¹

S.25 Duty of officers and members of committee to furnish information

When the affairs of a market committee are investigated for the proceedings of such committee are examined by the Director under section 39, all officers and members of such committee shall furnish such information in their possession in regard to the affairs of the committee as the director may require.

S.26 Power to enforce attendance etc

The Director while investigating the affairs of a market committee or examining the proceedings of such committee under section 25, shall have power to summon and enforce the attendance of officers or members of the market committee and to compel them to give evidence and to produce documents by the same means and as far as possible in the same manner as is provided in the case of a civil court by the code of civil procedure, 1908 (Central Act 5 of 1908)

S.27 Supersession of market committee

Supersession of market committee - (1) If, in the opinion of the State Government, a market committee is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act or abuses its powers, the State Government may by notification in the official gazette supersede such market committee.

Provided that, before issuing a notification under this sub-section ,the State Government shall give a reasonable opportunity to the market committee for showing cause why it should not be superseded and shall consider the explanation and objections, if any, of the market committee.

(2) Upon the publication of a notification under sub-section

(1) superseding a market committee, the following consequences shall ensue -

i. All the members as well as the Chairman and Vice-Chair

S.28 Penalty of contravention of certain provisions

¹Penalty of contravention of certain provisions -

(1) Whoever contravenes the provision of section 4 shall, on conviction, be punished with simple imprisonment for a term which may extend to 3 months and with fine which may extend to two thousand Rupees and in case of continuing contravention, with a further fine which may extend to five hundred rupees for every day during which the contravention is continued after the first conviction.

(2) Any person who intentionally evades the payment of any market fee payable under section 17 shall, on conviction, be punished with simple imprisonment for a term which may extend to three months and with fine which may extend to one thousand rupees. The Magistrate shall, in addition to any fine which may be imposed, recover summarily and pay to the market committee, the amount of market fees due and may, in his discretion, also recover summarily and pay to the market committee such amo

S.29 Penalty of contravention of section 22

¹Penalty of contravention of section 22 - Whoever contravenes any of the provisions of section 22 shall, on conviction, be punished with simple imprisonment for a term which may extend to one month and with fine which may extend to one thousand rupees. However, for the first offence, he shall be punished only with a fine upto one thousand rupees. The magistrate shall in addition to any fine that may be imposed, direct the person convicted to pay to the market committee the unauthorised amount so collected or deducted.

S.30 Penalty for contravening provisions of section 25

If any officer or member of the market committee, when required to furnish information regard to the affairs or proceedings of the market committee under section 25 -

(a) Willfully neglects or refuses to furnish any information, or

(b) Willfully furnishes a false information, he shall, on conviction, be punished with fine which may extend to fifty rupees.

S.31 Bar of suit in absence of notice

(1) No suit shall be instituted against any market committee or any member, officer or servant thereof or any person Acting under the direction of any such market committee member, officer or servant for anything done or purporting to be done in good faith as such member, officer or servant under this Act until the expiration of two months next after notice in writing, stating the cause of Action, the name and place of abode of the intending plaintiff and the relief which he claims, has been in the case of a market committee delivered or left his office and in the case of any such member, officer, servant or person as aforesaid, delivered to him or left his office or usual place of abode and the plaint shall contain a statement that such notice has been so delivered or left.

(2) Every such suit shall be dismissed unless it is instituted within six months from the date of the accrual of the alleged cause of action.

¹(3) xxx

S.32 Trial of offences

Trial of offences -

(1) No offence under this Act or any rule or bye-laws there under, shall be tried by a court other than that of a magistrate of the first class or of a magistrate of the second class specially empowered in this behalf.

¹(2) No court shall take cognizance of any offence under this Act, except upon the complaint in writing either by the secretary or by any other person specially authorized by the director.

¹32-A. Composition of offences - (1) A sub-committee comprising the Chairman, a Government. nominee and the secretary may compound an offence committed under this Act or the rules or bye-laws and mat accept from the offender, for the compounding of such an offence, the following sums of money, namely -

a) Where the offence consists of the failure to pay or the evasion of any fee or other amount rec

S.33 Fines recovered to be paid into market committee fund

All fines and penalties imposed in prosecutions for offences punishable under this Act or under the rules or bye-laws made there under shall, when realised, be paid into and form part of the market committee fund concerned.

S.34 Recovery of sums due to Government or market committee.

34. ¹Recovery of sums due to Government or market committee -

(1) Every sum due from a market committee to the State Government shall be recoverable as an arrear of land revenue.

(2)(a) Any sum due to a market committee on account of any charge, costs, expense, fees, rent or any other amount under the provisions of this Act or any rule or byelaw made there under, shall be recoverable from the person from whom such sum is due, in the same manner as an arrear of land revenue by the Government on behalf of the market committee.

(b) If any question arises whether any money is due or not, to the market committee within the meaning of clause(a) it shall be referred to the director or an officer authorised by him and the director or authorised off

S.35 Delegation of powers

²(1) The State Government may delegate to any officer any of the powers conferred on it by or under this Act except the powers exercisable by it under ²[xxx] section 7 or under section 36 or under section 40.

¹(2) The director may, by an order made in this behalf, direct that any of the powers conferred on him by or under this Act shall be exercisable also by such officers subordinate to him as may be specified in such order.

S.36 Rules

(1)The State Government may either generally or specially for any market area or market areas make rules for the purposes of carrying out the provisions of this Act.

(2) In particular and without prejudice to the generality of the foregoing provision, such rules may provide for or regulate -

(a) ¹[the criteria for classification of market areas ;]

(aa) the election and nomination of members of the market committee, the manner of election, the preparation and revision of lists of voters from time to time, the qualifications and disqualification of voters and candidates and the payment of all expenditure in connection with or incidental to such election;

(b) the powers to be exercised and duties to be performed by the market committee and by its Chairman and Vice-Chairman;

S.37 Bye-laws

¹Bye-laws. (1) Subject to any rules made by State Government under section 36, the market committee may, in respect of the market area under its management make bye-laws for the regulation of business and conditions of trading therein 2 and for specifying the rates of user charges leviable under the proviso to section 17.

(2) Any bye-law made under this section may provide that any contravention thereof shall on conviction be punishable with fine which may extend to fifty rupees.

(3) No bye-law made under this section shall have effect unless and until it has been sanctioned by the Director or any other officer specially empowered in this behalf by the State Government.

S.38 Power of Director to make bye-laws

(1) If a the market committee fails to make in respect of the market area under its management, the necessary bye-laws under section 37 within a period of 6 months from the date of its constitution, the Director may make such bye-laws and may also provide punishment for the contravention thereof in accordance with sub-section (2) of section 37.

(2) Such bye-laws shall remain in force until superseded by fresh bye-laws made by the market committee under section 37.

S.39 Power of Director to call for proceedings of market committee and to pass orders thereon

The Director may at any time call for and examine the proceedings of any market committee for the purpose of satisfying himself as to the legality or propriety of any decision or order passed by the market committee under the rules. If in any case, it appears to the Director that any decision or order or proceeding so-called for should be modified, annulled or reversed, the Director may pass such order thereon as he thinks fit.

S.40 Power of Government to amend the Schedule

The State Government may by notification in the official gazette add to, amend or cancel any of the items of agricultural produce specified in the Schedule.

¹40.A- "Power to grant exemption from market fee- If the State Government is satisfied that it is expedient in the public interest so to do, it may, by notification in the Official Gazette, exempt, whether prospectively or retrospectively, any Licencee or class of Licencees specified in the notification from payment to market fee payable on any agricultural produce bought or sold by him in the market area without any condition or with such condition as may be specified in the notification."

S.41 Savings

Nothing contained in any law for the time being in force relating to the establishment, maintenance or regulation of a market shall apply to any market area declared as such under section 4 or after in any way -

1) The rights of a holder of a Licence granted under the provision to subsection (2) of section 4 or of a market committee or a co-operative marketing society, required or permitted under section 9 to do so, to setup, established or continued a market in the market area for the sale and purchase of any agricultural produce notified under sub-section(1) of section 4, or

2) The rights of the holder of a Licence granted under section 14.

S.42 Power to remove difficulties

²Power to remove difficulties.

If any difficulty arises in giving effect to the provisions of this Act, the State Government may as occasion requires, by order, do anything which appears to it to be necessary for the purpose of removing the difficulty.