MADHYA PRADESH KRISHI UPAJ MANDI (SPECIAL LICENCE FOR MORE THAN ONE MARKET AREAS) RULES, 2003

MADHYA PRADESH KRISHI UPAJ MANDI (SPECIAL LICENCE FOR MORE THAN ONE MARKET AREAS) RULES, 2003[1]

PREAMBLE

In exercise of powers conferred by sub-section (1) and clause (vi) of sub-section (2) of Section 79 of the Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972 (No. 24 of 1973), the State Government hereby makes the following rules the draft of which having been previously published as required in sub-section (1) of the said section, namely :

CHAPTER I PRELIMINARY

Rule - 1. Short title.

(1)     These rules may be called the Madhya Pradesh Krishi Upaj Mandi (Special Licence for More Than One Market Areas) Rules, 2003.

(2)     They shall come into force on such date as the State Government may by notification appoint.

Rule - 2. Definitions.

In these rules, unless the context otherwise requires,

(1)     "Act" means Madhya Pradesh Krishi Upaj Mandi Adhiniyam, 1972 (No. 24 year 1973);

(2)     "Section" means a Section of the Act;

(3)     "Director" means the Director and includes the "Managing Director" of the Madhya Pradesh State Agricultural Marketing Board appointed under the Act;

(4)     "Additional Director" means Additional Director of the Madhya Pradesh State Agricultural Marketing Board appointed under the Act;

(5)     "Deputy Director" means Deputy Director of the Madhya Pradesh State Agricultural Marketing Board appointed under the Act;

(6)     "Notified authority or Officer" means such authority or officer as may be notified by the State Government to grant or renew the special licence under these rules;

(7)     "Primary transaction" means the bringing of the notified agricultural produce by any farmer or trader in the market area for the first time for sale-purchase, storage, or processing on which due market fees has not been recovered in any market area. The transaction made between producer of the agricultural produce and the trader for the first time will be deemed to be the primary transaction and the responsibility to make the payment of market fees on that agricultural produce shall lie on the purchaser trader;

(8)     "Secondary transaction" means transaction made in connection with commercial transactions by traders or agency for sale to consumers, after sale or purchase of any notified agricultural produce in market yard or any market area by auction or bargain and the payment of fee on such notified agricultural produce has already been made to Market Committee of other market area and the information of it has been given to the concerned Market Committee of the area in such form as prescribed in the bye-laws;

(9)     "Commercial transaction" means any transaction made by traders for sale, purchase, processing for ancillary sale, purchase, storage or sale to consumers of agricultural produce within the market yard or out of market yard, within the market area or out of market area, within the State or out of the State, in which the payment of market fees has already been made to any Market Committee of the State and information pertaining to payment of market fees has been submitted to concerned Market Committee in prescribed form;

(10)   "Form" means a form appended to these rules;

(11)   "Misconduct" means wilfully not to receive or refuse to receive, information sent by State Government, Managing Director, Collector or Authorised Officer, Deputy Director, Market Committee or disobey, the order/direction issued by Board, Managing Director or the authorised Officer, Market Committee or non-submission of required information in the time limit or submission of incomplete or incorrect information;

(12)   "Specified market area" means such area of Market Committee which has been declared for business of notified agricultural produce for the licence holder under Section 32-A;

(13)   "Specified purchase centre" means the purchase centre established by the licence holder in the specified market area for the business of the notified agricultural produce;

(14)   "Special Licence" means the licence issued by notified authority or officer under sub-section (2) of Section 32-A for the business of notified agricultural produce;

(15)   "Centre Incharge" means the Secretary of the Administrative Market Committee or the Officer/Employee posted by the Deputy Director, for proper regulation and control of notified agricultural produce at the purchase centre of specified market area;

(16)   "Administrative Market Committee" means the Market Committee constituted under Section 11 which has been vested full power to control the marketing of notified agricultural produce in the declared specified market area for special licence holder market functionary under Section 32-A;

(17)   The words and expressions used in these rules but not defined shall have the same meaning as assigned to them in the Act.

CHAPTER II

Rule - 3. Notified authority.

(1)     The State Government shall notify the Authority or Officer for the purpose of granting, renewing or refusing to grant the special licence.

(2)     The person, who intends to do business of notified agricultural produce in more than one market areas under Section 32-A, will have to obtain special licence from the notified authority/officer:

Provided that the special licence will be granted only to the person for doing the business of notified agricultural produce in more than one market areas under the conditions, that he will purchase atleast 100000 (one lac) tonnes of notified agricultural produce from the producers in a financial year.

CHAPTER III ISSUE OF SPECIAL LICENCE

Rule - 4. Licence Fees.

The licence fee as under shall be payable by the applicant for the concerned function along with the prescribed application,

Rule - 5. Application for Licence.

(1)     Even person specified in Section 31 of the Act who wishes to operate in more than one market areas shall apply in the prescribed Form I to the notified authority/officer under Rule 3 for licence. Application Form will be provided by Store section of the Board Head Quarter on payment of prescribed fee.

(2)     The crossed Bank Draft of prescribed licence fee which is payable to Madhya Pradesh Agricultural Marketing Board, Bhopal shall be enclosed with the application form.

(3)     The Applicant will necessarily enclose the following documents with the application,

(i)       Bank Guarantee, which is signed/committed by applicant in favour of notified authority/officer.

(ii)      The list of the market areas for purchase of notified agricultural produce in more than one market areas and their separate layout, storage site, capacity of the godown, address of the office and the name/father's name of all the workers posted in every market area along with their official capacity.

(iii)     Name of the applicant trader/processor/commission agent and their partners, particulars of immovable property available in the market areas and the attested photo copy of the documents relating thereto.

(iv)    Certificate of the competent authority regarding payment of income tax/commercial tax of last year. The photo copies of the return, balance sheet and audit reports of the accounts of Chartered Accountant for the last year.

(v)      List of the Bank Accounts in the specified market areas along with verified photo copy of the Bank Accounts.

(vi)    Particulars of up-to-date available working capital/permanent fund/share capital for doing business of notified agricultural produce.

(vii)   No dues/No objection certificate of the Secretary of the concerned Market Committees of the specified market areas.

(viii)  Declaration on Form II.

(ix)    Money Receipt of security deposited in the accounts section of the Board in the form of cash/bank guarantee.

Rule - 6. Procedure regarding special licence.

(1)     Incomplete application will not be accepted and the shortcomings/defects will be informed to the applicant in writing within the period of seven days. If the short-comings/defects shown in the application are not removed within 15 days by the applicant, then such application will automatically be rejected and no further action will be taken by the notified authority/officer.

(2)     After scrutiny of the application received, for special licence by the notified authority/officer, such enquiry may be made as is deemed necessary regarding mentioned market areas and purchase centers from Secretary of concerned Market Committees and Divisional Deputy Director. The notified authority or officer shall have power to delete or amend any market area or purchase centre from the application for special licence.

(3)     The notified authority/officer may grant or renew the special licence within the period of 60 days of receipt of application or may refuse to grant or renew the licence for the reasons to be recorded in writing.

(4)     In case of non-acceptance of application received for special Licence, the licence fees and amount of other security deposit, will be refunded to the applicant within 15 days.

(5)     Special Licence granted will be effective only in the market areas and on purchase centres specified in the licence. Sale-purchase of notified agricultural produce in other market area and on other purchase centre, will be treated as contravention of rules :

Provided that the purchase of notified agricultural produce in the market/sub-market yards of the specified market area by the special Licence holder/trader and the purchase-sale of notified agricultural produce under commercial-transaction may be made, like other licence holder/trader of the market, under the provisions of the Act, rules and bye-laws. The provisions prescribed in the bye-laws will be equally applicable on the holder of special licence for all such purchase, sale, processing.

Rule - 7. Security.

The notified authority/officer will always examine that the applicant does not purchase notified agricultural produce beyond the value of the daily purchase capacity as mentioned in his declaration form and if the licence holder purchases more than the limit declared by him, then the licence holder for the excess of purchases over and above the daily purchase capacity, will produce the amount of additional security immediately. The notified authority/officer will have the power to prohibit the purchase and despatch of such produce in the concerned specified market areas and direct the Secretary of the concerned market area to prohibit immediately the purchase and despatch of the notified agricultural produce of the such licence holder:

Provided that it will not be necessary, for the undertaking of the State Government, to deposit amount of security with the application for special licence to do business of notified agricultural produce, in more than one market areas:

Provided further that it will be necessary for such undertaking to make payment of notified agriculture produce to sellers of their agricultural produce under the provisions of Section 37.

Rule - 8. Disposal of the Security.

(1)     The amount of security deposit in the form of FDR or Bank Guarantee by the licence holder will remain deposited in the Board account. If the payment of the due market fees and Nirashrit Shulk is not made by the licence holder, then due payment from balance amount of the FDR/Bank Guarantee and Security given under Rule 7, will be recovered along with the interest by the notified authority/officer. The remaining amount of security deposit in the board as Cash, FDR or Bank Guarantee will be refunded to the applicant on demand on receipt of No Dues/No Objection Certificate, from the Secretaries of the specified market area.

(2)     If the licence holder desires to surrender his special licence, then the notified authority/officer after proper inquiry may take decision to refund or not to refund or to refund partly, the security amount deposited. The decision of the notified authority/officer will be final be binding on the licence holder.

Rule - 9. Period of Licence.

Originally the period of special licence will be five years from the date of its grant. If the licence holder

(i)       contravenes the provisions of the Act, rules and bye-laws framed thereunder, or

(ii)      disobey the directions of the board, Managing Director and the notified authority/officer or the Secretary of Market Committee of the specified area, the licence may be suspended or cancelled at any time before its expiry after giving the opportunity of being heard.

Rule - 10. Issuance of Licence.

The licence holder will display the original copy of the licence at the establishment of head quarter of the business and attested photocopy thereof on the associated establishment and purchase center of the specified market area. The attested photocopy of it will also be submitted to the Market Committee concerned of the specified market area.

Rule - 11. Suspension or cancellation of special licence.

(a)      The special licence may be suspended or cancelled by the notified authority or officer, if the licence holder :

(1)     has obtained licence through wilful mis-representation or fraud; or any person acting on his behalf, commits a breach or contravenes any of the terms or conditions of the licence; or

(2)     in combination with other licence holders commits any act by which the marketing of any produce has been abstained, suspended or stopped; or

(3)     has become insolvent; or

(4)     has been proved guilty by the Court, Managing Director or the Mandi Committee under the rules and bye-laws; or

(5)     behaves against the interest of any Market Committee, farmers, Board; or

(6)     has been proved guilty for misconduct under this Act, rules and bye-laws; or

(7)     has not made payment of due market fees, Nirashrit Shulk within the maximum period of 30 days along with the interest; or

(8)     has not made payment to the farmers/sellers, of the specified market area of the agricultural produce purchased from them within the prescribed period; or

(9)     has made default in payment by not depositing due amount with the Board or the administrative Market Committee within the period mentioned in the notice/demand note; or

(10)   has not submitted prescribed periodical returns in the Board or office of the Market Committee, as the case may be within the prescribed time limit; or

(11)   has acted against the interest of Board or the Market Committee; or

(12)   has engaged unauthorized persons for weighment or Hammal of notified agricultural produce; or

(13)   has been found involved in getting more weighed in the weighment of the agricultural produce of the seller putting him to loss; or

(14)   has not purchased minimum prescribed quantity of notified agricultural produce as required :

Provided that before suspending or cancelling any licence, reasonable opportunity (atleast 15 days) of being heard will be given to licence holder by the notified authority/officer. If within the prescribed time limit the reply of the show-cause notice is not given by the licence holder, it will be deemed that the licence holder has agreed with the charges shown in the show-cause notice and the notified authority/officer will have the power to take ex-parte decision.

(b)      On receipt of the reply of show-cause notice, it will be scrutinized by the notified authority/officer. After scrutiny and personal hearing, if licence is suspended/rejected then the order to suspend/reject the licence will be passed by mentioning clear reasons. The copy of the order passed will be sent to the secretaries of all specified market areas and also to the divisional Deputy Director for compliance.

Rule - 12. Information of refusal, rejection or suspension of licence.

Information of order to refuse to grant/renew the special licence or suspend or cancel the licence by the notified authority/officer will be given to concerned person by

(a)      delivering a copy of such order to him personally; or

(b)      sending to him a copy of order by registered post.

CHAPTER IV APPEAL

Rule - 13.

Any person aggrieved by order of refusal to grant special licence or suspension/cancellation of special licence, may prefer an appeal, to the State Government, within 30 days from the date of receipt of order, and the order passed by the State Government, after giving reasonable opportunity of being heard, will be final.

CHAPTER V CONDITIONS OF SALE-PURCHASES OF NOTIFIED AGRICULTURAL PRODUCE UNDER SPECIAL LICENCE

Rule - 14. Place of Sale-Purchase.

Sale, Purchase of notified agricultural produce may be made in more than one market areas by the holder of special licence only in the market areas specified in the licence and in the market/sub-market yards, and at the purchase centres specified in the licence:

Provided that the provisions of proviso of sub-rule (5) of Rule 6 will be applicable on the holder of special licence also as well.

Rule - 15. Execution of Agreement

(1)     The licence holder will execute, by signing an agreement in Form V in triplicate in favour of the seller for the purchase of notified agricultural produce at the purchase centre in the specified market area. One copy of the agreement will be retained by the purchaser, one copy will be given to seller and remaining one copy will be submitted to the Secretary of Market Committee or the centre in charge posted by him.

(2)     After execution of agreement the purchaser trade will get the agricultural produce of the seller weighed on the electronic weigh bridge, certified and verified by the Weights and Measures Department.

(3)     The sale-voucher in triplicate will be prepared by the purchaser in Form VIII in favour of the seller and by making due payment of value of the produce to the seller, his signatures will be obtained as per agreement.

Rule - 16. Disposal of complaints of seller regarding payment

If any dispute arises between the holder of the special licence and the seller regarding rates, weight, value and/or payment of purchased notified agriculture produce, then a complaint will be submitted to the Secretary of the Market Committee of the concerned market areas and its copy will be given to the Divisional Deputy Director. After proper inquiry of the case, the secretary will dispose off the complaint within the period of seven days, but in case the complaint pertains to the payment of seller, the secretary will immediately take action and inform forthwith to the Managing Director and the notified authority/ officer in writing.

Rule - 17. Duty of Licence holder.

The purchaser trader, holding special licence, at the purchase centres of the specified market area, shall,

(a)      establish proper and correct electronic weigh bridge as per requirement for the weighment of notified agricultural produce. The operator of the weigh bridge should be licence holder of the Market Committee;

(b)      make available necessary facilities such as light, shed, drinking water and proper place for sitting/rest for the sellers;

(c)      establish proper payment counter for seller;

(d)      fix atleast 3' x 3' size sign board in which the name of purchase centre, name of the licence holder firm, licence number and business shall be mentioned.

Rule - 18. Recovery of market fees and its payment.

The payment of the due market fees, and will be deposited in the office of the Market Committee and receipt shall be obtained by the holder of the special licence, on the purchase of every notified agricultural produce in the specified market areas.

Rule - 19. Despatch, Sale, Processing of notified agricultural produce.

Only after making full payment of the value of notified agricultural produce purchased at every purchase centre in the specified market areas, to the seller and making payment of market fees and Nirashrit Shulk to the Market Committee, the sale, processing or desptach of notified agricultural produce will be made by the licence holder. For despatch of the agricultural produce the holder of the special licence will have to obtain permit issued by the Market Committee as per provisions of sub-section (6) of Section 19 and the bye-laws.

Rule - 20. Submission of returns by the holder of special licence.

(1)     Periodical returns pertaining to business of notified agricultural produce, purchased in the specified market areas, will be submitted by the licence holder in the office of Market Committee, Divisional Deputy Director and the Board. The licence holder shall submit all records and information, required by the Managing Director and notified authority/officer from time to time.

(2)     The fortnightly returns, regarding business of notified agricultural produce will be submitted by the licence holder to the Secretary of the administrative Market Committee in Form VI. Return for the period from first to fifteenth upto 25th and from sixteen to the end of the month will be submitted upto tenth day of the next month. If fortnightly return is not submitted in the prescribed time limit, then the permits will not be issued by the centre incharge, posted by the Secretary of the Market Committee/Deputy Director. Without making payment of due market fees on purchase of all notified agricultural produce, the sale, despatch and the processing of agricultural produce will be prohibited.

(3)     On the end of every financial year, complete details of business from first April to thirty first March will be submitted by the licence holder to the Secretary of Market Committee upto 30th day of April, every year.

(4)     The particulars of daily purchases of the notified agricultural produce at purchase centre of the specified market area will be maintained by the licence holder in a register in Form VII. The licence holder shall get the register inspected by the centre incharge posted at the purchase centre by the Market Committee. The purchase of agricultural produce in the specified market area, other market areas and from outside the State and details thereof shall be according to Annexure I and the fortnightly return regarding sale/despatch as indicated in Annexure II shall be signed by the Officer or representative of the firm as the case may be.