MAHARASHTRA AGRICULTURAL PRODUCE MARKETING (REGULATION) ACT, 1963

Preamble - THE MAHARASHTRA AGRICULTURAL PRODUCE MARKETING (REGULATION) ACT, 1963

THE MAHARASHTRA AGRICULTURAL PRODUCE MARKETING (REGULATION) ACT, 1963

[ Act No. 20 of 1964][1]

[0 5th May, 1964]

PREAMBLE

Amended by Mah. 32 of 1970

Amended by Mah. 34 of 1971[2]

Amended by Mah. 2 of 1972

Amended by Mah. 26 of 1972

Amended by Mah. 39 of 1973 (24.9.1973)[3]

Amended by Mah. 30 of 1974 (31.8.1974)[4]

Amended by Mah. 73 of 1975 (30.12.1975)[5]

Amended by Mah. 58 of 1976[6](25.11.1976)[7]

Amended by Mah. 31 of 1977[8]

Amended by Mah. 50 of 1977 [9](27.9.1977) [10]

Amended by Mah. 10 of 1984 [11](6.1.1984)[12]

Amended by Mah. 34 of 1984[13](22.10.1984)[14]

Amended by Mah. 25 of 1985 [15]

Amended by Mah. 27 of 1987 (1.10.1987)

Amended by Mah. 5 of 1989

Amended by Mah. 8 of 1994 [16](16.11.1993)[17]

Amended by Mah. 9 of 1996 [18](18.11.1995) [19]

Amended by Mah. 15 of 1999

Amended by Mah. 33 of 2000

Amended by Mah. 11 of 2003

Amended by Mah. 13 of 2003

An Act to regulate the marketing of agricultural and certain other produce in market areas and markets to be established therefore in the State; to confer powers upon Market Committees to be constituted in connection with or acting for purposes connected with such markets; to establish Market Fund for purposes of the Market Committees and to provide for purposes connected with the matters aforesaid.

WHEREAS it is expedient to regulate the marketing of agricultural and certain other produce in market areas and markets to be established therefore in the State; to confer powers upon Market Committees to be constituted in connection with or acting for purposes connected with such markets; to establish Market Fund for purposes of the Market Committees and to provide for purposes connected with the matters aforesaid; It is hereby enacted in the Fourteenth Year of the Republic of India as follows :-

NOTES

At present there are different laws in force in different parts of the State relating to the regulation of buying and selling of agricultural produce. The Bombay Agricultural Produce Markets Act, 1939 is in force in the Bombay area of the State of Maharashtra; the Central Provinces and Berar Cotton Markets Act, 1932 and the Central Provinces and Berar Agricultural Produce Markets Act, 1935 apply to the Vidarbha area of the State of Maharashtra; and the Hyderabad Agricultural Produce Markets Act, No. 2 of 1339 F. obtains in the Hyderabad area of the State of Maharashtra. The State Government had appointed in 1955 an Expert Committee under the Chairmanship of Dr. T. C. Shirname, Director of Agriculture, Bombay State, Bombay to go into the details of the systems of regulation of buying and selling of agricultural produce and advise Government. The Expert Committee after a detailed study made several suggestions for the effective implementation of the Bombay Agricultural Produce Markets Act, 1939. The recommendations of that Committee have been taken into consideration in the present Bill.

The Bill seeks to provide for securing the more efficient regulation of the marketing of agricultural as also certain other produce in market areas and markets to be established in the State. Thus, the produce of apiculture, pisciculture and forest has been brought within the purview of the law. The Bill ensures agriculturists in any part of the State the benefit of marketing their produce at any place in the market area which is convenient to them. For the purpose of providing expert advice and expert assistance to Market Committees in discharging their duties under the law properly, provision is made for appointment of secretaries, auditors and engineers and the subordinate staff who shall be Government servants.

The more important provisions of the Bill are explained in the following note on clauses :-

Clause 2.- The new definitions are of "broker", "commission agent", "Panchayat Samiti", "processor", "Surveyor", "trader" etc.

Clauses 3 and 4.- These clauses provide for a declaration by the State Government that the marketing of agricultural produce specified in the notification shall be regulated under this Act in the specified area. Such declaration is to be made after a preliminary notification of the intention of regulating marketing of agricultural produce in a specified area has been published and objections and suggestions which are to be invited are considered by the State Government.

Clause 5.- This clause empowers the Directors to establish principal and subsidiary markets

Clause 6.- This is the operative provision which prohibits the marketing of declared agricultural produce at any place in a market area except under a license.

Clause 7.- This clause provides for regulating the marketing of agricultural produce by licenses for the use of any place in the market area for operating there in as a trader, commission agent, etc.

Clauses 8 and 9.- Under these clauses, power is conferred on Market Committee and the Director, to suspend or cancel licenses. An appeal is provided against an order refusing to grant a license or cancelling or suspending a license.

Clause 10.- This is a new clause providing for settlement of disputes by a Board in matters relating to the regulation of marketing of agricultural produce. Provision is also made for referring these disputes to arbitrators appointed for the purpose.

Clauses 11 to 28.- These clauses provide for the constitution of Market Committees, election of members, Chairman and Vice-Chairman, their term of office, removal from office, filling up of casual vacancies and such other matters. Representation to agriculturists is proposed to be secured by electing them by managing committees of co-operative societies dispensing agricultural credit in the market area. Representation is also proposed to be given co-operative societies (doing the business of processing or marketing of agricultural produce) and local authorities.

Clause 29.- This clause provides for the powers and duties of Market Committees. With a view to enabling Committees to discharge the duties of supervision, discipline and control of the markets and of regulating marketing of agricultural produce they have been given wide powers to regulate entry into the market area, to supervise the behavior of those who enter the market, etc.

Clauses 35 and 36.- These clauses provide for officers and servants of Market Committees. Each Market Committee will have a Secretary. Provision is made for appointment of a common auditor and engineer and other subordinate staff for a group of Market Committees. Such Secretary, auditor, engineer and the subordinate staff are to be Government servants and their salaries, allowances etc., will be paid out of the Consolidated Fund of the State. But each Committee is required to deposit 30 per cent of daily receipts in a Government treasury every day, and out of the surplus, if any, a separate State Market Fund is being created to be utilized for the development of any market area in the State.

Clauses 37 and 38.- These clauses relate to the Market Fund, its custody and investment and the purposes for which the Fund may be expended. The scope of these purposes has been considerably widened.

Clause 41.- This is a new clause providing for inspection of accounts, inquiry, etc., by the Director or any officer authorized by him.

Clause 43.- This is a new clauses providing for seizure of the account books and other documents under an order of the Director.

Clause 45.- This clause provides for amalgamation or division of Market Committees after consulting them; and for consequential matters.

Clause 58.- This clause provides for recovery of certain sums due as arrears of land revenue. Under the new provision sums due to a Market Committee on account of any charge cost etc., shall also be recoverable as arrears of land revenue.

Clause 60.- This is a new clause providing for power to the State Government to exempt any Market Committee or any class of persons from any provision of the Act or any rules made there under. - Statement of Objects and Reasons.

The Bill seeks to make certain amendments in the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, which are considered necessary in the light of the experience gained and due to organizational changes.

The following notes on clauses explain the important provisions of the Bill:-

Clause 2- This clause seeks to change the designation of the Director of Agricultural Marketing and Rural Finance to "Director of Agricultural Marketing".

Clause 3.- This clause provide that any objections or suggestions in respect of the Government's intention of regulating the marketing of agricultural produce may be received by the State Government within the period specified in the notification declaring such intention.

Clause 4.- This clause provides that agriculturists who sell their own produce may market them in the market area without any license required under the provisions of section 6 of the principal Act.

Clause 5.- Power is taken to make provision for exempting any prescribed class of persons from payment of license fees.

Clause 6.- This clause provides for an indirect mode of election of agriculturists on market committees with a view to restricting the electorate.

Clause 8.- This clause provides for exemption from fees in relation to declared agricultural produce purchased by persons engaged in industries carried on without the aid of any machinery or labour in any market area.

Clause 11.- This clause amends section 57 with a view to providing for prompt recovery of sum due to Government or Market Committees and to take power to Government to constitute a Tribunal for deciding disputes regarding such dues.

Clause 13.- This clause, brings, 'timber and fire-wood' within the ambit of the Act- Statement of Objects and Reasons.

The Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964) is enacted to regulate the marketing of agricultural and certain other produce with a view to protect the agriculturists from the exploitation by unscrupulous elements in trade practices. The Act has been in force in this State during the last two decades and certain deficiencies and shortcomings have come to notice. Suggestions for improvement in the implementation and working of the Act have been received from all quarters. The Government of India had also appointed a Working Group to examine the legislation relating to regulation of agricultural marketing in the country. A Model Bill on the basis of the recommendations of the Working Group was circulated by the Government of India for the consideration of the State Governments. After considering the provisions of the Model Bill and the suggestions received by Government as aforesaid, the Government of Maharashtra considers it expedient to make certain amendments to the Act.

The following notes on clauses explain some of the important provisions of the Bill, namely :-

Clause 4.- By this clause, section 7 of the principal Act is proposed to be amended to provide that if the Market Committee fails to grant or renew or refuse a license within sixty days of the receipt of the application therefore it shall be deemed to have been granted or renewed.

Clause 5.- By this clause, section 8 of the principal Act is proposed to be amended to empower the Chairman and Secretary of the Market Committee acting jointly to suspend license up to 15 days for any reason for which a Market Committee may suspend the license under sub-section (1) of that section.

Clause 6.- By this clause, section 10 of the principal Act is proposed to be amended to constitute a Dispute Sub-Committee to settle the dispute relating to sales of agricultural produce and to make the decision of the Dispute Sub-Committee final.

Clause 8.- By this clause, section 13 of the principal Act is proposed to be amended to give representation to members belonging to Scheduled Castes and Scheduled Tribes on the Market Committee. Provision is also made to give representation to hamals and weight men operating in the market area on a Market Committee having a gross annual income in excess of twenty-five lakh rupees.

Clause 9.- By this clause, sub-section (4) of section 14 of the principal Act is proposed to be substituted to provide that the Collector shall publish the name or names of elected members at the general election or by-election to the Market Committee in the Official Gazette and also in a newspaper in the Marathi language circulating in the market area. It also provides that such publication in the newspaper as aforesaid shall be a sufficient publication of the name or names of the elected members and the publication of the names of members whereby the Committee shall consist of not less than twelve members it shall be sufficient to constitute a Market Committee.

Clause 11.- By this clause, section 15 A of the principal Act is proposed to be amended to provide that the period of appointment of the Administrator in the event of expiry of term of the Market Committee should not be more than six months and to empower the State Government to extend the period of existing Committee up to one year where elections could not be held before expiry of its term due to circumstances beyond the control of the Market Committee.

Clause 12.- By this clause, section 19 of the principal Act is proposed to be amended to provide that the Chairman and Vice-Chairman shall be elected from amongst agriculturist members.

Clause 13.- This clause seeks to amend section 22 of the principal Act to provide that the Collector shall hold election of Chairman and Vice-Chairman, and that an appeal shall lie to the Revenue Commissioner and not to the State Government as at present under section 22 (4) against the decision of the Collector in case of any dispute relating to such election.

Clause 15.- By this clause, section 29 of the principal Act is being amended to enlarge and enumerate the duties and functions of the Market Committee.

Clause 17.- This clause seeks to amend section 31 of the principal Act to provide that the Market Committee shall fix the rate or adapt with the prior approval of the State Government. It is also proposed to provide that the arrears of market fee, etc. shall be recovered from deposits, if any, kept with the Market Committee by the traders or from the banks which have given guarantee in favour of the traders.

Clause 18.- By this clause, it is proposed to insert new sections 32 A, 32 B, 32 C and 32 D to empower the Market Committee to order production of documents, inspection, search and seizure thereof; to write off irrecoverable fees, losses, shortages etc.; to make alternative arrangements during strikes; and to take steps to prevent purchase of agricultural produce below support price, etc. respectively.

Clause 19.- By this clause, section 35 of the principal Act is being amended to provide that the Secretary of the Market Committee should act as the Chief Executive Officer of the Committee and that the Secretary of the Market Committee having gross annual income in excess of twenty-five lakh rupees shall be a Government officer on deputation.

Clause 25.- By this clause, new section 41 A is proposed to be inserted in the principal Act to empower the Director to prohibit execution of any resolution passed by a Market Committee which is prejudicial to the public interest or the interest of the Market Committee, etc.

Clause 29.- By this clause, new sections 52A and 52B are proposed to be inserted in the principal Act to empower the Market Committee to compound certain offences and to make provisions for appeal, respectively.

Clause 31.- By this clause, new section 61A is proposed to be inserted in the principal Act to empower the Director to suggest or make amendments in the bye-laws in the interest of the Market Committee.- Statement of Objects and Reasons.

Section 1 - Short title, extent and commencement

(1)     This Act may be called the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963.

 

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

 

(3)     It shall come into force on such date [20]as the State Government may, by notification in the Official Gazette, appoint.

Section 2 - Definitions

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

 

(2)     "agricultural produce" means all produce (whether processed or not) of agriculture, horticulture, animal husbandry, apiculture, pisciculture [21][fisheries] and forest specified in the Schedule;

NOTES

(3)     Object.- To ascertain the probable volume of the agricultural commodities to be marketed in the proposed regulated market is the usual procedure for regulating a market. It is not necessary to make any distinction between the commodity that is produced in the market area and the commodity that is imported from outside. If several minor commodities are brought together the efforts involved will not be commensurate with the benefit that it is expected to produce for the purpose of regulation by a Market Committee.

 

(4)     The term "Agricultural Produce" is defined to mean all produce (whether processed or not) of (a) agriculture, (b) horticulture, (c) animal husbandry (d) apiculture, (e) pisciculture, (f) forest produce, (g) fisheries and (h) other product.The definition "fisheries" was newly added by Mah. Act No. 11 of 2003.

 

(a)      Agriculture.- In agriculture produce (i) Fibres such as cotton (ginned and unginned) and sun hemp, (ii) Cereals such as wheat, paddy (husked and unhusked), Jowar, Bajri etc. (iii) pulses such as Tur, Udid Mug etc. (iv) Oil seeds such as groundnut (shelled and unshelled) Soybean, (v) Narcotics such as tobacco, (vi) Gur, and Sugarcane are included.

 

(b)      Horticulture.- Fruits like Mango, Mosambi, Santra, Lemon etc., and vegetables like potato, onion, tomato etc., are included.

 

(c)      Animal husbandry product.- Eggs, poultry, cattle, sheep etc., are included.

 

(d)      Apiculture. - Honey is deleted from Apiculture in 1982.

 

(e)      Pisciculture. - Fish and other aquatic products is included in pisciculture.

 

(f)       Forest produce.- Forest product Hilda, Gum, lac are included.

 

(g)      Fisheries

 

(h)     Other products.- In other products flowers were included from 1982."Oil seeds has been defined as agricultural product in Item 4 (7) of Schedule which is a agricultural product even though it is removed from kapas by mechanical process". Kapas, lint and cotton seeds are agricultural products."- Chaware Oil Industries, Karanja v. State of Maharashtra, AIR 1985 Bom. 160."Tobacco will come within definition of agricultural produce".? Devendra Trading Company v. State of Maharashtra and others, 1974 Mah. L. J. 463.Item IX enumerates animal husbandry products which are covered by the Act and which includes sheep and goat. It cannot be disputed that in order that goat and sheep should be regarded as agricultural produce they must be used for a purpose connected with agriculture.? Solapur B. K. Association v. Solapur A.P.M.C., 1978 Mah. L. J. 837.

 

(5)     Nothing in any of the definitions to indicate that the normal connotation of the term "grass" is confined to "grass raised with the aid of human labour or skill. In the absence of any qualifying words, all types of grass, whether grass which grows spontaneously on the lands or grass raised with human labour or skill would be included in the expression 'grass' appearing in the Schedule of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963.? State of Maharashtra v. Shivbalak Gowri Shankar Dube, 1972 Mah. L. J. 808 : 74 Bom. L. R. 561.

 

(6)     "agriculturist" means a person who ordinarily by himself or by hired labour or otherwise is engaged in the production of growth of agricultural produce which has not been processed, but does not include a trader, commission agent, processor or [22][broker, an employee of Government or of any co-operative society or of a Market Committee, or a partner in trading firm or an industrial concern in or in relation to agricultural produce although such trader, commission agent, processor, broker, an employee of Government or of any co-operative society or of any Market Committee or a partner in trading firm or an industrial concern] may also be engaged in the production or growth of agricultural produce;

NOTES

(7)     The term "Agriculturist" so defined covers only those who are primarily engaged in the production or growth of agricultural produce and that, though engaged in the production or growth of agricultural produce the processor and the commission agent should not, like the 'trader' and the 'broker' be considered as agriculturists.? Report of the Joint Committee.

 

(8)     About 80 percent people in Maharashtra are dependent on agriculture for their livelihood. The agriculturists are not getting the price of their produces based on cost of production and they are being continuously exploited, with the result that 95 percent agriculturists and labourers engaged in this occupation are living a miserable life and are below the poverty line.

 

(9)     The prices of the agricultural equipments, insecticides, etc., required for the agricultural operations are fixed by the producers whereas the prices of agricultural produce are determined by holding auction. Since the agriculturist has no capacity to store his produce till he gets reasonable price he brings his agricultural produce to the market immediately after harvest, for meeting his daily requirements and the middleman takes advantage of this situation and offers the lowest price for his agricultural produce in the auction. Hence the agriculturist is becoming heavily indebted day-by-day. Consequently the agricultural labourers also do not get the minimum wage for their labour.

 

(10)   With a view that the agricultural occupation should be profitable, the prices of agricultural produce should be fixed on the basis of cost of production so that the agriculturists and labourers engaged in this occupation would get proper return for their investment and labour. - Statement of Objects and Reasons.

 

(11)   "broker" means an agent who contrives, makes and concludes a bargain or contracts on behalf of his principal for the purchase or sale of agricultural produce for which he receives a fee or remuneration, but does not receive, deliver, transport, or pay for the purchase, or collect payment for the sale, of the agricultural produce;

NOTES

(12)   "Broker" means. - A broker is the agent of the person for whom he acts. He is not entrusted with the custody and the apparent ownership of the goods, but he is to effect business on commission.? AIR 1917 All. 466; AIR 1954 Nag. 148.

 

(13)   A broker is required to take license from the Market Committee to operate in any place in the market area.

 

(14)   [23]["buyer" means a person, the Central Government or any State Government, who himself or itself or on behalf of any person or agent buys or agrees to buy agricultural produce in the market area;]

 

(15)   "bye-laws" means bye-laws made under section 61;

NOTES

(16)   The term "Bye-laws" means it is a standing rule of a Corporation or Society made for a regulation of its internal organization and conduct; it is distinguished from a provision of its Constitution in being more particular and more readily altered.-Century Dictionary.

 

(17)   The bye-laws are the basis of the structure of the Committee and are binding on the members and the market functionaries i. e., the licensees.

 

(18)   "The bye-laws are a matter of domestic concern and are applicable to that Committee only. They do not affect the rights and liabilities of the Committee with the outside world. A breach of the bye-laws may not entitle third parties to raise the plea that their contract is null and void, nor the at the dealing be regarded as opposed to public policy."? Hanumantrao v. C. Wasudeo, AIR 1926 Nag. 463.

 

(19)   Bye-law has force of law within the sphere of its legitimate operation. Bye-laws must be intra-vires the authority who makes it, not repugnant to the law of the country, certain in its terms, positive and reasonable.? Municipal Committee v. Kaluram Hiralal, AIR 1944 Nag. 73.

 

(20)   "commission agent" means a person who by himself or through hi:, servants buys and sells agricultural produce for another person, keeps it in his custody and controls it during the process of its sale or purchase, and collects payment therefore from the buyer and pays it to the seller, and receives by way of remuneration a commission or percentage upon the amount involved in each transaction;

NOTES

(21)   "Commission agent".? The middle man employed by a seller or a buyer to act on his behalf may be a commission agent i.e., adatya. The commission agent generally receives goods from agriculturists and others, handles them on commission basis and renders account of, and pays cash for, the sale he effects, to the seller. He is the custodian of the goods and has the equipment at his disposal for sorting them.

 

(22)   A commission agent has to take a license from the Market Committee in any place in the market area.

 

(23)   "Director" means a person appointed as the Director of Agricultural Marketing [24][* * *] for the State of Maharashtra [25][and includes any officer or officers empowered by the State Government by notification in the Official Gazette to exercise or perform such of the powers and functions of the Director under the provisions of this Act or rules or bye-laws made there under as may be specified in such notification;

 

(24)   [26][hamal " means a hamal or a coolie or a labourer, engaged for loading, unloading, filling, emptying, stacking, stitching, sorting, cleaning or carrying any agricultural produce or doing any work preparatory or incidental thereto in the Market area and who holds a valid license for the purpose from the Market Committee;]

 

(25)   "local authority" includes a Panchayat Samiti;

NOTES

(26)   "Local Authority".? Local Authority is defined in the Bom. General Clauses Act, 1904 in sec. 2 (26) as a Municipal Corporation, Municipality, Local Board etc. A Panchayat Samiti is not covered by the definition, hence it is specifically included in the definition of a Local Authority.

 

(27)   "market" means any principal market established for the purposes of this Act and also a subsidiary market;

NOTES

(28)   The term 'Market' includes the principal market established under sec. 4 as well as a 'subsidiary' market'. The Director is to issue a notification in the Official Gazette under sec. 5 establishing any place in the market area as 'principal market' and by the same notification may establish a 'subsidiary market' in the same market area.

 

(29)   "market area" means an area specified in a declaration made under section 4 [27][and includes the area deemed to be a market area under clause (a) of sub-section (1A) of section 13.]

NOTES

(30)   Market area.? In the Maharashtra State, the market area is generally the jurisdiction of the taluka. But there are markets whose jurisdiction extends to more than one taluka and there are others where more than one market is located is one taluka.

 

(31)   Market area is to be declared by issuing a notification in the Gazette by Government after calling for objections etc., under secs. 3 and 4.

 

(32)   No person is allowed to operate business in the market area without license duly obtained from the Market Committee.

 

(33)   "Market Committee" or "Committee" means a committee constituted for a market area under section 11 [28][and includes [29][the Bombay Agricultural Produce Market Committee established under clause (a) of sub-section (1 A) of section 13 and] a committee or committees constituted as a result of amalgamation of Market Committees or division of a Market Committee under section 44;]

NOTES

(34)   A Committee constituted for a market area under sec. 11 is a Market Committee. A Market Committee with a Chairman, Vice-Chairman and other members is to be established by Government. When it is constituted for the first time, it exercises all powers and discharge all functions under the provisions of sec. 11. It is a corporate body under sec. 12. Under the provisions of sec. 16, Chairman and Vice-Chairman are elected by the elected members.

 

(35)   The powers of the Market Committee are described in sec. 29. It includes power to grant, refuse, cancel or suspend license of market functionaries. It may constitute Sub-Committee under sec. 30. Market Committee may raise loan and enter into agreement. It has a power to levy fees under sec. 31. It can decide dispute regarding construction of Rules made under the Bom. Weights and Measures (Enforcement) Act. 1958 etc., under provisions of sec. 34.

 

(36)   Duties of Market Committee are described in sec. 29. Under sec. 38 Committee has to prepare budget and submit annual administration report. It has to submit its account to the auditor of the Co-op. Department for audit under sec. 38.

 

(37)   Powers, Duties and functions of Market Committee under Rules. - The Committee is empowered to grant license to commission agents and traders and brokers for marketing of agricultural produce at the specified places in the market area (rule 6). The Committee has periodically to inspect accounts books of traders and commission agents under rule 20. The Committee is to provide for weigh-bridge for weighment if funds permits (rule 23). The Committee has to maintain daily list of prices of different grades of agricultural produce (rule 27). The Committee is to levy and collect fees on declared agricultural produce marketed in the market area from the purchaser under sec. 32 and rule 32. The Committee has power to arrange for settlement of disputes under rule 98.

 

(38)   "member" means a member of a Market Committee.

NOTES

(39)   A member is defined for the purpose of this Act as a member of the Market Committee.

 

(40)   Registration, removal and casual vacancies of members on account of death, resignation or removal etc. A member is liable for penalty of fine on conviction if he contravenes the provisions of secs. 40 and 43.

 

(41)   "Panchayat Samiti" means a Panchayat Samiti established under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961;

 

(42)   "prescribed" means prescribed by rules made under this Act;

 

(43)   "processor" means a person who processes any agricultural produce [30][either of his own account, or] on payment of charge;

NOTES

(44)   License necessary.? Under sec. 6 of the Act the processor cannot operate in regulated market without a license from the Market Committee.

 

(45)   "retail sale" means, in relation to any agricultural produce, sale of that produce not exceeding quantity as a Market Committee may by bye-laws determine to be a retail sale.

NOTES

(46)   Conditions laid down in sec. 6 (1) of the Act that no persons shall without a license use any place in the market area for the marketing of declared agricultural produce and that no person shall without a license operate in the market area etc., as trader, commission agent, broker, processor, weigh man, measures, surveyor, warehouseman or in any other capacity will not apply to sales by retail.

 

(47)   "rules" means rules made under this Act;

 

(48)   "Schedule" means the Schedule to this Act;

 

(49)   "Secretary" means a Secretary of a Market Committee and includes a Joint, Deputy or Assistant Secretary;

 

(50)   [31]["State Marketing Board" means the Maharashtra State Agricultural Marketing Board established under section 39A;]

 

(51)   "Surveyor" means a person who on arrival of a consignment of agricultural produce for sale in any market area or market, surveys it for ascertaining the quality, refraction, adulteration and other like factors;

 

(52)   "trader" means a person who buys or sells agricultural produce, as a principal or as duly authorized agent of one or more persons;

NOTES

(53)   Trader.? There must be a buyer in a regulated market. Buyer is usually the trader who purchases goods in the hope of selling them elsewhere or even in the same market at a profit, he may do so either directly or through an agent. He may buy either in the market or in a subsidiary market, at a factory, village bazar or at the door of the farmer, if permitted by the Market Committee with the previous approval of Director as under rule 5(1) depending on their convenience and requirements. The trader may either be a buyer or be a commission agent or both.

 

(54)   "Trade need not fulfill the character of a seller and a purchaser at the same time; it is enough if he is one or the other at any time.? Solapur B.K. Association v. Solapur A.P.M.C, 1978 Mah. L. J. 837; AIR 1962 SC 1517 referred to.

 

(55)   "Looking to the scheme and the objects of the Mah. Agricultural Produce Marketing Act and considering the clear words of the definition of 'trader' in sec. 2 (t) the conclusion is inescapable that a trader means either purchaser or buyer of the agricultural produce as defined in the Act. He may of course fulfill both characters but it is enough if he fulfils one or the other character to be a trader under the Act." -Sholapur Bakar Khatik Association v. Sholapur Agricultural Produce Marketing Committee, 1978 Mah. L. J. 837; AIR 1962 SC 1517 referred to.

 

(56)   The Agriculturist is exempted from obtaining license or paying market fee :- Exemption applies only if applicant is agricultural society and is engaged in producing hens and eggs. There was a dispute that whether the society is Agriculturist or Trader but the Court held that it can be decided on evidence. -Gulshan Kukkut Palan Sahakari Sanstha Limited and another v. Agricultural Produce Market Committee, Bhandara, 2001 (1) All M. R. 662.

 

 

(57)   "[32]Zilla Parishad" means a Zilla Parishad established under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961.

 

(58)   If any question arises whether a person is or is not an agriculturist for the purposes of this Act, the matter shall be referred to the Director, and the decision of the Director thereon shall be final.

Section 3 - Notification of intention of regulating marketing of agricultural produce in specified area

(1)     The State Government may, by notification in the Official Gazette, declare its intention regulating the marketing of such agricultural produce, in such area as may be specified in the notification. The notification may also be published in the language of the area in any newspaper circulating therein, and shall also be published in such other manner as in the opinion of the State Government is best calculated to bring to the notice of persons in the area, the intention aforesaid.

 

(2)     The notification shall state that any objections or suggestions which may be received by the State Government within a period of not less than one month [33][to be specified in the notification] will be considered by the State Government.

NOTES

(3)     Scope. ? The State Government is required to declare its intention of regulating the marketing of specified agricultural produce in specified areas by notification in the Official Gazette. Such notification may also be published in the language of the area in any newspaper circulating therein. The Joint Committee appointed by both the Houses of Legislature on 19.12.63 thought that besides its publication in the newspaper, the notification should also be published in such other manner as the State Government may think fit, the intention being to give as wide and effective publicity as possible.

 

(4)     The declaration under the next section is to be made after a preliminary notification of the intention of regulating marketing of specified agricultural produce in a given area has been published and objections and suggestions which are to be invited are considered by Government.

 

(5)     The manner of further publication of the notification under section 3 (1) by the Director or the concerned Revenue Officer in a newspaper etc., by beat of drum, etc., and by affixing copies at the Chavadi of the village or villages concerned and also by exhibiting a copy of the notification in the Mamlatdar's office and that of the Panchayat Samiti as laid down in rule 3.

 

(6)     The procedure for holding enquiry for considering objections and suggestions through an authorized officer is described in rule 4.

 

(7)     The authorized inquiry officer may after hearing the parties concerned should submit his report to Government. The State Government should decide the question with due regard to suggestions and objections received by it.

 

(8)     "When the mandatory provisions of section 3 and rule 3 are not complied with, the notification issued under section 3 becomes inoperative and invalid and as a valid notification under section 3, which is a condition precedent for the issuing of a notification under section 4 is not fulfilled, the notification issued under section 4 also becomes invalid and inoperative".? Bhausaheb Tavanappa Mahajan v. State of Maharashtra, 1981 Bom. L. R. 586; Yadaorao and others v. Agricultural Produce Market Committee, Arvi and others, 1947 Mah. L. J. 338 followed.

Section 4 - Declaration of regulation of marketing of specified agricultural produce in market area

(1)     On the expiry of the period specified in the notification issued under section 3, the State Government shall consider the objections and suggestions, if any, received before the expiry of such period and may, if it considers necessary, hold an inquiry in the manner prescribed.

 

(2)     Thereafter, the State Government may by another notification in the Official Gazette, declare that the marketing of the agricultural produce specified in the notification shall be regulated under this Act, in the area specified in the notification. The area so specified shall be the market area. A notification under this section may also be published in [34][a newspaper in the Marathi language] circulating therein, and shall also be published in such other manner as in the opinion of the State Government is best calculated to bring to the notice of persons in the area the declaration aforesaid.

 

(3)     On any declaration being made under sub-section (1), no local authority [35][or any other person] shall thereafter, notwithstanding anything contained in any law for the time being in force, establish, authorize or continue or allow to be established, authorized or continued any place in the market area for the marketing of that agricultural produce.

 

(4)     Subject to the provisions of section 3, the State Government may, at any time by notification in the Official Gazette, exclude from a market area any area, or include therein an additional area, or may direct that the regulation of the marketing of any agricultural produce in any market area shall cease, or that the marketing of any agricultural produce (hitherto not regulated) shall be regulated in the market area.

NOTES

(5)     Object.- A regulated market can come into existence only after the Government declares, by a notification in the Gazette a particular area as a regulated market, for the specified agricultural commodities. Section 4(1) of the repealed Act, 1939 required that before issuing such a notification sufficient time must be given for inviting public opinion and that the objections and suggestions received during the period must not only be considered but an inquiry must be held 'as may be necessary'.

 

(6)     Its interpretation was challenged in the Court of Law and protracted litigation ensued.

 

(7)     In this new Act therefore, it is provided that the decision of Government should also be published in a newspaper published in the regional languages of the area and circulated in that area and not in such manner as in the opinion of Government is best circulated to bring to the notice of persons in the area. Besides the publication of the notification in the newspaper, it should also be published in such other manner as the State Government may think fit. The intention is to give as wide and effective publicity as possible.? Report of Joint Committee.

 

(8)     The declaration by Government that the marketing of agricultural produce specified in the notification shall be regulated under this Act in the specified area, is to be made after a preliminary notification of the intention of regulating marketing of agricultural produce in the specified area has been published and the objections and suggestions invited under sec. 3 are considered by the Government.? Bhausaheb Tavanappa Mahajan v. State of Maharashtra, 1981 Bom. L. R. 586.

 

(9)     The immediate effect of the declaration under sub-sec. (1) that no place in the said area except the regulated market shall be used for the purchase or sale of any agricultural produce mentioned in the notification.

 

(10)   Secondly no local authority including a municipality can establish or allow to be established any place in the said area for the purchase or sale of notified commodities.

 

(11)   "Holding enquiry is contemplated in only those cases where it is expedient.-Personal hearing to the objector is not required in every case.? Zilla Parishad, Bhandara v. A.P.M.C. Tiroda and others, 1974 Mah. L. J. 378.

Section 5 - Establishment of markets

(1)     For every market area, there shall be established a principal market, and there may be established one or more subsidiary markets.

 

(2)     The Director shall, as soon as possible after the issue of a notification under sub-section (1) of section 4, by a notification in the Official Gazette, establish any place (including any structure, enclosure, open place or locality in any market area) to be the principal market for the marketing of the agricultural produce specified in that notification; and may by the same notification, or by like notification, establish in any other like places in the market area, subsidiary markets for the marketing of such agricultural produce.

NOTES

(3)     Market area.- Within the market area there can be several kinds of markets, which are but part and parcel of the regulated market. The control over the proper market i.e. the 'principal market' (previously called 'market yard') and the place around it will have to be direct. This is really primary whole sale market to which goods are received from the agriculturists directly and from the merchants who might have purchased them elsewhere for being marketed. There is no doubt that small producers in villages will be required to take the trouble of carrying the produce to the 'market' even though they would like to sell it at their doors or the village itself. But the facilities afforded by the market are far superior to those that are available to the producers in the village where the strength of the trader is pitched up against the weakness of the agriculturist without any direct control from the Market Committee or any other authority. For these reasons the sale of any produce outside the market is not allowed.

 

(4)     As a matter of convenience and in order to avoid the delay for the establishment of a regulated market it is customary to declare the locality in which trading is conducted as a market for the purpose of the Act.

 

(5)     "The Director is empowered to close an existing market and establish it elsewhere, State Government may declare any enclosure, building or locality in any market area to be principal market yard. No hearing to affected person is required".? Rameshchcndra Kacharadas Porwal v. State of Maharashtra, 1981 Mah. L. J. 238 (SC).

Section 5A - Establishment of National Integrated Produce Market

[36][CHAPTER I-A

ESTABLISHMENT OF NATIONAL INTEGRATED PRODUCE MARKET

(1)     Notwithstanding anything contained in this Act or any other law for the time being in force, the State Government may, by notification in the Official Gazette, declare that with effect from such date as may be specified in such notification, there shall be, established, for marketing fruits and vegetables in respect of Mumbai and its surrounding area of 75 kilometers radius or for any area or areas in the State, a National Integrated Produce Market owned and managed as an autonomous entity by the National Dairy Development Board incorporated under the National Dairy Development Board Act, 1987 (37 of 1987) or any other recognized body corporate under the State Act, Government Corporation, Company registered under the Companies Act, 1956 (1 of 1956), directly or through any organization set up by it or in conjunction with farmers' association and thereupon the National Dairy Development Board or any other organization as the case may be, may,-

 

(a)      establish a National Integrated Produce Market of fruits and vegetables in any area or areas as may be specified in the notification;

 

(b)      set up by itself or finance, assist or support farmers and farmers association to set up collection centers by whatever name called at various places in the State whether within or outside the area aforesaid to collect, assemble, sort, grade, process, pack, store or transport fruits and vegetables and to provide market information and to carry out such other activities as may enable them to market the produce using the National Integrated Produce Market to do anything facilitators or incidental thereto;

 

(c)      set up or support otherwise the marketing by setting up distribution channels as branches at various places in the State whether within or outside the area aforesaid;

 

(d)      register users of the National Integrated Produce Market and may also levy and collect registration fee, security deposit and advanced and levy and collect other charges for the services rendered and utilities provided to the farmers, farmers association, farmers co-operative societies, buyers and all other functionaries registered with or using the National Integrated Produce Market.

 

(2)     Notwithstanding anything contained in sub-section (1) the State Government may by notification in the Official Gazette, direct that from such date as may be specified therein, marketing of flowers in the National Integrated Produce Market shall also be governed by the provisions of this Chapter and thereupon all the provisions of this Chapter shall be applicable also to the marketing of flowers and other related activities in the National Integrated Produce Market.

Section 5B - Power to make regulations

The National Dairy Development Board or any other association which is duly recognized by the State Government may, with the previous approval of the State Government make regulations under this Chapter for the purposes of ownership, management, marketing, trading and other related activities in relation to the National Integrated Produce Market and for the enforcement thereof.

Section 5C - Other provisions of Act not to apply to National Integrated Produce Market

Nothing contained in this Act or the rules, regulations or bye-laws made there under except the provisions of this Chapter shall apply, to-

(i)       anything done or any action taken in relation to the Establishment and Management of the National Integrated Produce Market under this Chapter or anything done in pursuance thereof; or

(ii)      any person, agency or organization interacting in relation to the National Integrated Produce Market by way of business dealings or otherwise.

Section 6 - Regulation of marketing of agricultural produce

(1)     Subject to the provisions of this section and of the rules providing for regulating the marketing of agricultural produce in any place in the market area, no person shall, on and after the date on which the declaration is made under sub-section (1) of section 4, without, or otherwise than in conformity with the terms and conditions of, a license (granted by the Director when a Market Committee has not yet started functioning; and in any other case, by the Market Committee) in this behalf,-

 

(a)      use any place in the market area of the marketing of the declared agricultural produce, or

 

(b)      operate in the market area or in any market therein as a trader, commission agent, broker, processor, weigh man, measurer, surveyor, warehouseman or in any other capacity in relation to the marketing of the declared agricultural produce.

 

(2)     Nothing in sub-section (1) shall apply to sales by retail [37][sales by an agriculturist who sells his own produce;] nor to sales by a person where he himself sells to another who buys for his personal consumption or the consumption of any member of his family.

 

(3)     [38][Every Market Committee shall reserve sufficient space in the market area of its principal and subsidiary markets for the agriculturists to enable them to sell their own agricultural produce directly to the consumers without the help of intermediaries and shall also look after the maintenance of such space.]

NOTES

(4)     Methods of sale adopted by traders and commission agents.? In various markets in the Bombay State there were not less than 8 types of methods of sales, viz-, (1) sales under cover, (2) sales, (3) moghum sales, (4) nominal sales, (5) sales by sample, (6) sales by open agreement, (7) sales by open auction, and (8) sales by jalap system.

 

(5)     Role of Market functionaries.? A market can successfully function only when there are sellers to sell the commodity and buyers to buy it and when these are assisted by a personnel which is required for completing the process of buying and selling. A transaction can be said to have been completed only when the buyer agrees to buy a commodity and the seller agrees to sell it at a particular price; the commodity is weighed; the sale-note showing the description of the commodity, its weight, price and the market charges deductable there from is delivered to the seller and the cash due to the seller is paid against the delivery of goods. Delivery of agricultural produce except poultry etc., shall be deemed to have been effected as soon as the produce is weighed.? Rule 16.

 

(6)     Market functionaries are defined to mean a broker, a commission agent, a processor, a surveyor, a trader (broker, commission agent, processor, surveyor, trader) and includes (1) weigh men, (2) measurer, (3) warehousemen, carting and clearing agent, (Hundekaries) hamal, assistant to trader, commission agent and carting and clearing agent (Hundekaries) and such other persons who might facilitate or assist in facilitating market operations etc.? Rule 2(xii).

 

(7)     "Persons bringing two traders together for consideration for sale and purchase of agricultural produce must have license to do so".? Ramnath Laxminarayan v. W. N.

 

(8)     Masodkar, Inspector, Amravati Agricultural Produce Market Committee and another, 1974 Mah. L. J. 583.

 

(9)     "Accused obtained license to trade in grass in the year 1967-68. It does not follow that in the subsequent year he continued to follow that avocation."? State of Maharashtra v. Shivbalak Gowri Shankar Dube, 1972 Mah. L. J. 808 : 74 Bom. L. R. 561.

Section 7 - Grant of licenses

(1)     Subject to rules made in that behalf, a Market Committee may, after making such inquiries as it deems fit, grant or renew a license for the use of any place in the market area for marketing of the agricultural produce or for operating therein as a trader, commission agent, broker, processor, weigh man, measurer, surveyor, warehouseman or in any other capacity in relation to the marketing of agricultural produce; or may, after recording its reasons in writing therefore, refuse to grant or renew any such license :

[39][Provided that, if the Market Committee fails to grant or renew or refuse a license within a period of sixty days from the date of receipt of the application therefore, the license shall be deemed to have been granted or renewed, as the case may be.]

(2)     Licenses may be granted under sub-section (1) in such forms, for such periods, on such terms and conditions and restrictions (including any provisions for prohibiting brokers and commission agents from acting in any transaction both as buyer or seller, or on behalf of both the buyer and seller, and also provision for prohibiting brokers from acting in any transaction, except between a trader and trader, in respect of agricultural produce other than poultry, cattle, sheep and goats and such other agricultural produce as may be prescribed, and for prescribing the manner in which and the places at which auctions of agricultural produce shall be conducted and the bids made and accepted and places at which weighment and delivery of agricultural produce shall be made in any market or market area) and on payment of fees, not being in excess of such maxima as may be prescribed. [40][Provision may also be made for exempting any class of persons from payment of such fees on such terms and conditions as may be prescribed.]

NOTES

(3)     Scope.- Section 7 is very comprehensive and provides for regulating the marketing of agricultural produce by licenses for the use of any place in the market area, for operating therein as traders, commission agent, etc.- Statement of Objects and Reasons.

 

(4)     It will thus be seen that every person who desires to function as trader, commission agent, broker etc., in a market (including subsidiary market or any place in the market area for marketing of declared agricultural produce under sec. 6 (1) (a) will have to obtain license.

 

(5)     A written application in the form prescribed in the bye-laws shall be made to the Market Committee, where it has started functioning and to the Director where the Committee has not started functioning. Along with the application the applicant shall pay such fee as is specified in the bye-laws, but it shall not exceed the sum of Rs. 100 for the marketing year. The license is to be issued by the Market Committee. It appears that license fees are not necessary under section 7 (2) if the license is issued by the Director under section 6(1).

 

(6)     In the case of renewal the following additional information should be obtained? (1) Where the applicant has traded or not in the past year in the market area, (2) Whether the applicant has over-traded.? Rule 6.

 

(7)     Refusing to grant or renew the license.- On making such inquiry as the Market Committee may deem proper if the conduct of the applicant is found to be detrimental to the efficient functioning of the market, the Committee may refuse to grant him the license. The Committee has to state the reasons in writing for refusing a license.

Section 8 - Power to cancel or suspend licenses

Subject to the provisions of sub-section (3), a Market Committee may, for reasons to be recorded in writing, suspend or cancel a license -

(a)      if the license has been obtained through willful misrepresentation, or fraud;

 

(b)      if the holder thereof or any servant or any one acting on his behalf with his express or implied permission, commits a breach of any of the terms or conditions of the license;

 

(c)      if the holder of the license in combination with other holders of licenses commits any act or abstains from carrying out his normal business in the market with the intention of willfully obstructing, suspending or stopping the marketing of agricultural produce in the market area in consequence whereof the marketing of any produce has been obstructed, suspended or stopped;

 

(d)      if the holder of the license has been adjudged an insolvent, and has not obtained his discharge; or

 

(e)      if the holder is convicted of any offence under this Act.

 

(f)       [41][Notwithstanding anything contained in sub-section (1), but subject to the provisions of sub-section (3), the Chairman and the Secretary of a Market Committee acting jointly may, for reasons to be recorded by them in writing, by order suspended a license for a period not exceeding 15 days for any reason for which a Market Committee may suspend the license under sub-section (1).]

 

(g)      Notwithstanding anything obtained in sub-section (1), but subject to the provisions (3), the Director may, for reasons to be recorded in writing, by order suspend or cancel any license granted or renewed under this Chapter.

 

(h)     No license shall be suspended or cancelled under this section, unless the holder thereof has been given a reasonable opportunity to show cause against such suspension or cancellation.

NOTES

(i)       Power to suspend or cancel a license is given to the Market Committee in this Act only on grounds mentioned in cls. (a), (b). (c), (d) and (e) of sec. 8. The grounds are,

 

1.        Misrepresentation or fraud.

 

2.        Commits breach of the terms or conditions of the license himself or allows with his express or implied permission his servant to do so.

 

3.        Abstain from carrying out his normal business in the market.

 

4.        The holder of license if adjudged insolvent.

 

5.        If the holder of license has been convicted of an offence under this Market (Regulation) Act, 1963 his license will be liable to be suspended or cancelled.

Section 9 - Appeal

Any person aggrieved by an order -

(a)      of the Market Committee refusing to grant or renew a license, or cancelling a license or suspending any license may, within thirty days from the date on which the order is communicated to him, appeal to the Director;

 

(b)      of the Director refusing to grant or cancelling or suspending a license may within the like number of days, appeal to the State Government.The Director or, as the case may be, the Government shall, on such appeal, make such order as is deemed just and proper :

Provided that, before dismissing an appeal, the Director, or. as the case may be, the State Government, shall give such person a reasonable opportunity of being heard and record in writing the reasons for such dismissal.

NOTES

(c)      Object .- An order refusing to grant, or renew or suspending or cancelling a license is a serious matter and provision for an appeal is essential.

 

(d)      Against an order by the Market Committee refusing to grant a license etc., an appeal can be order made to the Director within thirty days from the date of the communication of the order under sec. 9 (a).

 

(e)      Against an order by the Director refusing to grant a license etc., when the Market Committee has not started functioning an appeal can be made to Government. The appeal has to be filed within thirty days from the date of the communication of the order under sec. 9 (b).

 

(f)       An appeal cannot be summarily dismissed :- The appellant must be given an opportunity to be heard. Besides, reasons for passing an order of dismissal will have to be recorded in writing.

Section 10 - Provision for settlement of disputes

(1)     For the purpose of settling dispute between buyers and sellers, or their agents, including any disputes regarding the quality or weight or payment of any agricultural produce, or any matter in relation to the regulation of marketing of agricultural produce in the market areas, the Market Committee of that area shall constitute [42][* * *] [43][Dispute Sub-committee]

 

(2)     [44][The Dispute Sub-Committee shall consist of ?

 

(a)      the Vice-Chairman of the Market Committee, who shall be the Chairman of the Dispute Sub-Committee ;

 

(b)      two members of a committee representing agriculturists whether elected or nominated ;

 

(c)      one member of a committee representing the traders whether elected or nominated ; and

 

(d)      one member from amongst persons who, in the opinion of the Director, re experts in marketing of agricultural produce.The members referred to in clauses (b) and (c) shall be designated by the Market Committee and the member referred to in clause (d) shall be nominated by the Director. Where a dispute is in respect of cotton, then in the place of the member representing the traders, the Maharashtra State Co-operative Cotton Growers Federation Limited shall appoint a member on the Dispute Sub-Committee one of its officers [45][other than the grader] who shall not be lower in rank than that of a Sub-Zonal Manager of the said Federation, where the State Government appoints any persons or authority other than the said Federation as its agent for sale or purchase of cotton, then such member shall be appointed by that agent.]

 

(3)     [46][The Secretary of the Market Committee shall act as the Member Secretary of the Dispute Sub-Committee who shall have no right of vote. Three members shall form the quorum. The Dispute Sub-Committee shall record its decision in writing. Any person aggrieved by the decision of the Dispute Sub-Committee may,-

 

(a)      in case of perishable agricultural produce, such as fruits, vegetables and fishes, within six hours from the communication of the decision to him, appeal to the Secretary of the concerned Market Committee who shall dispose of the such appeal in further six hours; and

 

(b)      in case of any other perishable agricultural produce, within twenty-four hours from the communication of the decision to him and in case of other agricultural produce, within three days from the date on which the decision is communicated to him, appeal to the concerned District Deputy Registrar of Co-operative Societies who shall dispose of the appeal in case of perishable agricultural produce within twenty-four hours and in case of any other agricultural produce, within seven days from the date of receipt of the appeal.]

 

(4)     The Dispute Sub-Committee may make rules for the conduct of its business including the rules regarding payment of the amount of deposit (anamat), if any, to be made to it.]

 

(5)     [47][The Secretary of the Market Committee or the District Deputy Registrar, as the case may be, shall record his decision in appeal under sub-section (3), in writing and it shall be final.]

 

(6)     [48][In each market area, considering the scope and requirement of the business in the market, the Director shall, fix the number of hamals, weigh men and measurers.]

NOTES

(7)     An appeal to the dispute Sub-Committee is competent; the decision of Sub-Committee on appeal shall be final.

 

(8)     The panel of arbitrators is to be constituted annually from amongst the agriculturists and traders (who are not members of the Market Committee) residing in the vicinity of the market or doing business in the area.- [(Rule 98(6)].

 

(9)     Dispute Sub-Committee for hearing appeals against the decision of arbitrators.- The constitution of Dispute Sub-Committee shall be as follows .?

 

(10)   ?The Vice-Chairman, (2) two representatives of agriculturists on the Market Committee, (3) one representatives of Commission Agents and traders on the Market Committee, if the Vice-Chairman is not elected from that constituency and one member if the Vice-Chairman is elected from that constituency.- [Rule 97 (1) 1].

 

(11)   Sub-rules (2), (3) and (4) describe the procedure. The decision of the Board shall be binding on the parties to the dispute.- [Rule 97 (5)].

 

(12)   Duty of Director.- Considering the scope and requirement of the business of the Market Committee, it is the duty of the Director to fix the number of hamals, weigh men and measurers.- See sub-sec. (6).

Section 11 - Establishment of Market Committees

For every market area, there shall be established by the State Government a Market Committee consisting of a Chairman, a Vice-Chairman and other members and different Market Committees may be established for regulating the marketing of different kinds of agricultural produce for the same market area or any part thereof. The Market Committee shall have all such powers and discharge all such functions as are vested in it by or under this Act.

NOTES

Regulating of marketing of different kinds of agricultural produce.- The major function of the Market Committee is to facilitate orderly marketing of the agricultural produce. For this purpose the Committee must arrange for a place or places for trading. Secondly, the basis on which dealings are to be entered, must be fair both to the buyer and the seller and therefore, there must be elaborate rules governing the method of settling the transactions and completing them. Thirdly, there must be a machinery for deciding disputes that may arise out of the interpretation of particular regulation or difference over the judgment on a particular aspect of the transaction. Fourthly, there must be uniform practices and facilities for making the bargains and completing them. Finally, there must be an arrangement for payment to the seller against the sale of his produce. Evidently over all these matters the 'Market Committee' must have control if it were to function efficiently and give the best expected of it both to the agriculturist producer and the trader.

Powers of Market Committee.- In the course of working of the Marketing Act of 1939 certain defects were disclosed. To remedy those defects and to ensure that the object of the Act is duly achieved, adequate powers have been given to the Committee to enable them to discharge their functions efficiently and carry out their duties expeditiously and impartially. Administrative control over the working of the Committee by Director of Agricultural Marketing has been provided so as to ensure that the powers vested in the Committees by or under the Act are used judiciously and not arbitrarily or capriciously.

Section 12 - Incorporation of Market Committees

(1)     [49][Every Market Committee shall be a body corporate by the name of "the ..............................................Agricultural Produce Market Committee" and shall have perpetual succession and a common seal, and may in its corporate name sue and be sued, and shall be competent to contract, acquire and hold property, both movable and immovable, and to do all other things necessary for the purposes for which it is established.

[50][Provided that no immoveable or movable property the value of which exceeds the prescribed limits shall be acquired or disposed of by the Market Committee without the prior permission of the Director.]

(2)     [51][Notwithstanding anything contained in any for the time being in force, every Market Committee shall, for all purposes, be deemed to be a local authority.]

 

(3)     [52][The Market Committees shall be classified by the Director, subject to the guidelines prescribed, considering the volume and nature of the turnover for the purpose of laying down the norms for staff schedule, establishment expenditure, other expenses and allowances.]

NOTES

(4)     Market Committee shall be a body corporate as soon as it is established by Government. The incidents of incorporation such as perpetual succession etc., are described below :

 

(5)     Perpetual succession.- A body corporate has a stable and continued existence though the membership may fluctuate by resignation or death of some and admission of others.

 

(6)     Common seal means a seal bearing the name of the Market Committee which is used to indicate that the act, transaction or document to which it is duly affixed is the act of that Market Committee. This seal is set upon to make a contract binding on the Market Committee, in the same way as an individual affixes his signature to a document.

 

(7)     Power to enter into contracts.- After its establishment by Government the Market Committee becomes a body corporate and has power to enter into contracts. The procedure for executing of contracts is described in sec. 33. The contract shall be in writing and shall be signed on behalf of the Market Committee by the Chairman or in his absence by the Vice-Chairman and two other members of the Committee. A contract executed in such a manner alone will be binding on the Market Committee. The contracts should be in the name of the Market Committee.- See section 33.

 

(8)     Power to acquire, hold and dispose of property.- The market duly established has the attributes of a person and just as a person can act and move so is the corporation capable of holding property, its name and of acting and doing everything, which an individual is capable of doing.

 

(9)     Application of Employees' State Insurance Act :- It was held by the Court that A.P.M.C. is a statutory body carrying on systematic economical activities as all transactions in market are carried out through it and services are rendered on retail basis is also a shop covered by the E.S.I. Act. The petitioner-Market Committee is held to be covered under the notification dated 3rd October, 1981, which extended the provisions of the E.S.I. Act to the shops, amongst others, in the local area and actions taken by the respondent E.S.I. for recovery of the amount are, therefore, valid and proper. Under the E.S.I. Act, there is no provision excluding local authorities from its application. Thus, even if the petitioner-Market Committee is considered as a local authority for the purpose of the A. P. M. (Reg.) Act, it cannot be taken out of the application of E.S.I. Act ipso facto.- Dhule Agricultural Produce Marketing Committee v. Employees State Insurance Corporation and others, 2003 (4) Bom. C. R. 683 : 2003 (3) Mah. L. J. 916.

Section 13 - Constitution of Market Committees

Subject to the provisions of sub-section (2), every Market Committee shall consist of the following [53][[54][* * * * *] members], namely :-

(1)     [55][thirteen agriculturists residing in the market area (not being less than twenty-one years of age on the date specified from time to time by the Collector in this behalf), as specified below,-

 

(2)     nine (of which two shall be women members), shall be elected by members of the managing committees of the agricultural credit societies and multi-purpose co-operative societies (within the meaning of the Maharashtra Co-operative Societies Act, 1960, and the rules made there under), functioning in the market area; and

 

(3)     four (of which one shall be a person belonging to the Scheduled Castes or Scheduled Tribes and one shall be a person belonging to economically weaker section), shall be elected by members of the village panchayats functioning therein;]

 

(4)     [56][two shall be elected by traders and commission agents, holding licenses for not less than two years to operate as such in the market area;]

 

(5)     [57][one member shall be elected by hamals and weigh men operating as such in the market area;]

 

(6)     one shall be the Chairman of the co-operative society doing business of processing or marketing of agricultural produce in the market area [58][having its registered office situated in the same market area;] or in his absence a representative of the co-operative society elected by its managing committee :

Provided that, if there be more than one such co-operative societies in the market area, then the Chairman of any one of such co-operative societies or in his absence a representative, elected by the managing committees of such societies;

(7)     one shall be the Chairman of Panchayat Samiti within the jurisdiction of which the market area or major portion thereof is situated or the representative elected by such Panchayat Samiti;

 

(8)     one shall be the President or Sarpanch of the local authority (other than a Panchayat Samiti) within the jurisdiction of which the principal market is situated or the representative elected by such local authority;

 

(9)     [59][the Deputy Registrar of Co-operative Societies of the district or his representative, who shall have no right to vote;]

NOTES

(10)   In view of the recommendations of the Evaluation Committee on Panchayati Raj (Bongirwar Committee) and of the Administrative Reorganization Commission, the posts of Extension officers, Co-operation, under the Zilla Parishads, have been abolished. It is therefore, proposed that in place of the Extension Officer, Co-operation, the Deputy Registrar of Co-operative Societies of the district or his representative shall be the member of Market Committee under clause (f) of sub-section (1) of section 13 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963.- Statement of Objects and Reasons.

 

(11)   [60][the Secretary of the Market Committee, who shall have no right to vote;]

 

(12)   [61][A person who is a member of the Market Committee under clauses (c), (d) and (e) shall have a right to take part in the discussions of the Committee, but shall have no right to vote a meeting thereof.]

 

(13)   [62][Notwithstanding anything contained in sub-section (1) of this section or in section 4 or other provisions of this Act, the area comprising Greater Bombay and Turbhe Village in Thane Taluka of Thane district [63][and such other area as may be specified by the State Government by notification in the Official Gazette from time to time;] (hereinafter referred to as "the Bombay market area"), shall be deemed to be a market area for the purposes of this Act, and the Market Committee for that area to be called by the name of the Bombay Agricultural Produce Market Committee shall, subject to the provisions of sub-section (2), consist of the following [64][[65][* * *] members,] namely :

 

(14)   ?twelve representatives of agriculturists elected by the agriculturist members of the other Agricultural Produce Market Committees in the State, [66][two such members] to be elected from each Revenue Division;

 

(15)   [67][five representatives, elected by the traders and commission agents, holding licenses to operate as such in the Bombay market area, as specified below .-

 

(16)   one representative dealing in onion, potato and garlic, elected by and from amongst themselves;

 

(17)   one representative dealing in fruits, elected by and from amongst themselves;

 

(18)   one representative dealing in vegetables, elected by and from amongst themselves;

 

(19)   one representative dealing in food grains, pulses, edible and non-edible oils, elected by and from amongst themselves;

 

(20)   one representative dealing in all other commodities, elected by and from amongst themselves;

 

(21)   one nominated representative of the Navi Mumbai Municipal Corporation;

 

(22)   one nominated representative of the Mumbai Municipal Corporation;

 

(23)   one nominated representative of the Mumbai Metropolitan Region Development Authority constituted under the Mumbai Metropolitan Region Development Authority Act, 1974 (Mah. IV of 1975);

 

(24)   ?three representatives from the State, two of such to be nominated from women and one from Scheduled Castes or Scheduled Tribes, by the State Government;

 

(25)   the Director of Agricultural Marketing, Maharashtra State Pune.];

 

(26)   [68][* * * * *]

 

(27)   [69][ * * * * *]

 

(28)   [70][a person who is a member of the Market Committee under sub-clauses (iii), (iv), (v) or (vii) of clause (a) shall have a right to take part in the discussions of the Committee but shall not have a right to vote at a meeting thereof.]

 

(29)   When a Market Committee is constituted for the first time, [71][whether under sub-section (1) or (1-A),] all the members thereof and the Chairman and Vice-Chairman shall be nominated by the State Government:

[72][Provided that, the Chairman and Vice-Chairman shall be so nominated from amongst the agriculturists members.]

NOTES

(30)   Objects and Reasons.- The marketing of agricultural produce in Greater Bombay and Turbhe Village in Thane Taluka of Thane District was not regulated under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963. The Government of Maharashtra, therefore, decided, that the area comprising Greater Bombay and Turbhe Village should be treated as one market area and the marketing of certain agricultural produce in the markets in that area should be governed by the provisions of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, with immediate effect.

 

(31)   Considering the peculiar position of that area as one of the largest markets in the country, it was felt that the existing constitution of a Market Committee given in section 13 (1) of the said Marketing Act was not suitable for the Market Committee to be constituted for that area, as it would be advisable to give representation to the consumers, the Bombay Municipal Corporation and other concerned interests also. It was, therefore, necessary to have a special and different type of Market Committee for that area.

 

(32)   To achieve these objects, it was necessary to amend the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, suitably. In view of the importance of this matter, Government considered it necessary to take action to apply the Act to the markets in that area without any delay.

 

(33)   As both Houses of the State Legislature were not in session and immediate action was required to amend the Act for the above purposes, the Governor of Maharashtra promulgated the Maharashtra Agricultural Produce Marketing (Regulation) (Amendment) Ordinance, 1976, on the 25th November, 1976.?

 

(34)   Statement of Objects and Reasons. [Mah. Act No. 58 of 1976].

 

(35)   Under section 13 (1A) (a) of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, a Market Committee is constituted for the area comprising Greater Bombay and Turbhe Village in Thane Taluka of Thane District. The principal market for this area is set-up in Turbhe Village by the said Market Committee according to Government's policy of de-congestion of Bombay vis-a-vis development of New Bombay. As per its development programme, the Committee is setting-up the principal market in the revenue boundaries of the village. The existing provisions of section 13 (1A) (a), however, are not sufficient to accommodate the growing needs of the Bombay Agricultural Produce Market Committee, and each time when the market area requires extension, the provisions of the Act require to be amended.

 

(36)   Under these circumstances, in order to ensure effective implementation of the provisions of the Act and to meet growth-oriented regulation of agricultural marketing, it is necessary to amend the said section 13 (1A) (a) to provide flexibility to the Government for accommodating the needs of the market forces with reference to the area of operation and setting-up of a principal market. Hence, power is proposed to be taken to the State Government to declare such area as may be specified by the State Government by notification in the Official Gazette from time to time, to be a market area for the purposes of this Act.

 

(37)   The definitions of the expressions "market area" and "Market Committee" appearing in clauses (i) and (j) of section 2 (1) of the principal Act are also proposed to be modified in order to include the area of the Bombay market area and also the Market Committee established for that area within the purview of those definitions.-

 

(38)   Statement of Objects and Reasons. [Mah. Act No. 5 of 1989].

 

(39)   Constitution of Market Committee.- The first question to be decided relates to the size of the Market Committee. The number of members of the Market Committee which is the administrative body should not be unwieldy nor should it be low enough to deny reasonable representation to any sector participating in the market. Both these objectives could be ensured under the Act by restricting the number of members of the Market Committee to eighteen only. It may, however, be that the functions of such a Market Committee might be extended to a market with which it is not conversant. For instance, a Market Committee mainly or almost wholly concerned with farm products may not be very competent to deal with the marketing of cattle in its market area when the cattle trade is regulated. The question then arises as to how a Market Committee which is a stranger to the technique of cattle trade can control the market. But the provision for such contingencies can be made by making appropriate changes in the bye-laws of the Market Committee relating to different constituencies. There is, therefore, no need for raising the number of members of a Market Committee which is kept uniform at fifteen throughout the State. They shall be as follows :?

 

(a)    Ten agriculturists elected from amongst agriculturists residing in the market area.

 

(b)    Three representatives of traders and commission agents.- So far as private traders are concerned, it need to be emphasized that they are more powerful and better organized than the agriculturists and though they belong to different sections amongst traders themselves, their interests are by and large common vis-a-vis the agriculturists. The traders are, therefore, given three seats on the Market Committee.

 

(c)    Chairman, Co-operative Processing Society or Co-operative Marketing Society etc.? There is a very close relation and a link in the concept of Co-operative Marketing and regulated markets. The regulated markets are mainly entrusted with the duties of regulating the purchase and sale of agricultural produce in a place specified for the purpose. They maintain the law and order of sales and purchases by elimination of all malpractices and establish a system of honest and fair dealing in the business transactions done by the market functionaries.

 

(40)   The functions of the Chairman of the Panchayat Samiti are mainly to convene, preside and conduct meeting of the Panchayat Samiti. The Chairman may exercise supervision and control over the acts of officers and servants or under Zilla Parishads, and working in the Block in the matter of extension or administration and accounts of the Samiti. Samiti may also exercise powers in relation to works and development scheme to be undertaken from the Block Grants. The Gram Panchayats also are required to function in the same manner to develop the Gram in all sides and see that the villages are well developed from all sides, including the economic problems.

 

(41)   President or Sarpanch of the local authority within the jurisdiction of which the principal market is situated shall be a member of the Committee. This provision is made because local authorities like municipalities have important function to perform within the market. These include the maintenance of sanitation, health and water supply and construction and maintenance of roads in the market. Again being civic authority, it is expected to approach any question affecting the well-being of the town in a detached manner.

 

(42)   Assistant Cotton Extension Officer.? The Joint Director of Agriculture (III) is in charge of cotton development work in Maharashtra.

 

(43)   All members, Chairman, Vice-Chairman are to be nominated by Government when a Market Committee is constituted for the first time. Such a contingency will occur only when a market area is declared and a market is established for the first time.

 

(44)   The words "general election" in section 14(4) of the Mah. Agri. Pro. Marketing (Reg.) Act, 1963 appears to be used in contra-distinction with a by-election and whenever after the terms of office of the members of a Market Committee has expired and steps have to be taken to elect afresh the members of the Market Committee as contemplated by sections 13 and 14 of the Act. Such an election will be a general election.? Raghavendra Vasantrao Deshpande and others v. Agricultural Produce Market Committee, Solapur, 1980 Mah. L. J. 423.

 

(45)   "Co-operative Society must be one, doing business of processing or marketing of agricultural produce".? Radhakishan Bhaggulal Jaiswal v. Asstt. Collector and Returning Officer, 1983 Mah. L. J. 126.

 

(46)   Eligibility to contest elections :- The petitioner is a trader and he holds a trader's license which has been issued in his favour by the Marketing Committee. Rule 41 (2) (ii) of the Maharashtra Agricultural Produce Marketing (Regulation) Rules, 1967, provides that for a member to be eligible for being elected from an agriculturists' constituency his main source of income will be from agriculture. It also further provides that if he possesses a trader's or commission agent's or broker's license he will not be eligible to contest from the agriculturists' constituency. It is clear from the provision that rule 46 of the Rules can permit members who may be agriculturists, hamals and weigh men, to contest from the agriculturists' constituency at one and at the same time. The same will not permit traders to contest from the agriculturists' constituency. The High Court held that the petitioner is not eligible to contest and get elected from the agriculturists' constituency.- Jalandhar Jayaram Patil v. Collector, Thane and others, 1999 (1) Bom. C. R. 530 : 1998 (3) Mah. L. J. 577.

 

(47)   Sale/Purchase Co-operative Society is not an Agricultural Produce Market Committee :- The petitioner was the Chairman of a Sahakari Kharedi Vikri Samiti which was a marketing society. The order of the Sub-Divisional Officer rejecting his objection to the inclusion of the name of the Chairman of a multi-purpose co-operative society in the voters' list for the purpose of election is provided under section 13 (1) (c) of the A.P.M. (Reg.) Act, on the ground that it was not a marketing society within the meaning of section 13 (1) (c) of the A.P.M. (Reg.) Act. The High Court held that, merely because a respondent-society was not granted Trader's license presumably because it purchased certain agricultural products in the market area of the Agricultural Produce Market Committee, would not mean that it was doing the business of marketing within the meaning of section 13 (1) (c) of the A.P.M. (Reg.) Act. It could not be stated that the said society was covered by section 13 (1) (c) for representation upon the Marketing Committee from the constituency was carved out by the said section 13 (1) (c). The name of the Chairman and/or representatives of the said society in the voters' list prepared for the constituency under section 13 (1) (c) for the election of the A.P.M. (Reg.) could not be allowed to be retained and was liable to be removed. - Devendra Kashirao Deshmukh v. Sub-Divisional Officer, Katol, 1995 (1) Mah. L. J. 716.

Section 14 - Election and term of office of members

(1)     Subject to the provisions of sub-section (2), the members shall be elected in the manner prescribed by rules. Such rules may provide also for the determination of constituencies, the preparation and maintenance of the list of voters, persons of qualified to be elected, disqualifications for being chosen as, and for being a member, the right to vote, the payment of deposit and its forfeiture, the determination of election disputes and all matters ancillary thereto including provision regarding election expenses.

 

(2)     If for any reason any persons, co-operative society or its managing committee or a Panchayat Samiti or local authority fails to elect any members, the Director shall give notice in writing to them requiring them to elect members within one month from the date of the notice; and on the failure again to elect members within the aforesaid period, the Director shall appoint on behalf of such persons, co-operative society, committee, Panchayat Samiti or the local authority the required number of persons who are qualified to be elected under sub-section (1) [73][or (1A)] of section 13.

 

(3)     Except as otherwise provided in this Act, the members of a Market Committee (not being a Committee constituted for the first time) shall hold office for a period of [74][five years], and the members of a Committee constituted for the first time shall hold office for a period of two years :

 

(4)     [75][***]

[76][Provided that, the Market Committee constituted for the first time may be replaced by the Government and the new Committee so replaced shall hold office for the remainder of the period.]

[77][[78][Provided further that,] where the general election of members of a Committee could not be held for reasons beyond the control of the Committee before expiry of the term of office of its members as aforesaid, the State Government may, be order in the Official Gazette extend from time to time, the term of office of any such Committee so however, that the period for which the term of office is so extended shall not exceed the period of one year in the aggregate.]

(5)     [79][Where due to scarcity, draught, flood, fire or any other natural calamity or rainy season or any election programme of the State Legislature or the Parliament or a local authority, coinciding with the election programme of any Market Committee or such other special reason, in the opinion of the State Government, it is not in the public interest to hold elections to any Market Committee, the State Government may, notwithstanding anything contained in this Act or in any rules, or bye-law made there under, or any other law for the time being in force, for reasons to be recorded in writing, by general or special order, postpone the election of any Market Committee for a period not exceeding six months at a time which period may further be extended, so, however, that the total period shall not exceed one year in the aggregate.]

 

(6)     [80][As soon as possible, after the result of any by-election or, subject to the provisions of sub-clause (b), all the results of the general election, are available, the Collector shall publish or caused to be published the name or names of elected member or members of a Committee in the Official Gazette and also in a newspaper in the Marathi language circulating in the market area. The publication of the name or names in a newspaper as aforesaid shall, for the purposes of this section, be deemed to be sufficient publication of the name or names of the elected member or member of the Market Committee.

 

(7)     If at a general election the names of any persons to be elected under sub-section (1) or (1 A) of section 13 cannot for any reason be published as aforesaid, and if with the available election results, the Committee will consist of not less than twelve members, then the Collector shall publish the names of these members in the Official Gazette and also in a newspaper as aforesaid.

 

(8)     As regards the remaining elections, the Collector shall subsequently publish the names of members in the like manner as and when the results of such elections are available, or as the case may be, on failure to elect, the names of persons duly appointed under sub-section (2), if any.

 

(9)     After every general election, upon the publication of the names of all the members of the Committee under clause (a), or as the case may be, the publication of such names as would render the Committee to consist of not less than twelve members as aforesaid, in a newspaper under this sub-section, the Market Committee shall be deemed to be duly constituted.]

NOTES

(10)   The Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964) is in force since the 25th May, 1967. According to sub-section (3) of section 14 of this Act, the members of a Market Committee (not being a Committee constituted for the first time) hold office for a period of three years. From the experience of the last fourteen years, it is considered that this period of three years is too short for the elected members of the Marketing Committees to show substantial development in their areas. Besides, considerable expenditure is involved in conduct of elections at short intervals. To overcome these handicaps, it is proposed to extend the term of office of members of these handicaps, it is proposed to extend the term of office of members of these Market Committees from three years to five years. The benefit of this revised term of five years will also be available to all existing members, but in the case of those members who were in office on the 6th September, 1975 in computing this period of five years extensions already enjoyed will be taken into account.

 

(11)   The Maharashtra Agricultural Produce Marketing (Regulation) (postponement of elections during the Emergency) Act, 1975 (Mah. LXVII of 1975) was enacted with effect from the 6th September, 1975, to provide for the postponement of elections during the period of the Internal Emergency. As the Emergency has been lifted and the Act is no more required, it is proposed to repeal it formally.- Statement of Objects and Reasons. [Mah. Act No. 31 of 1977.]

 

(12)   Scope.- Section 14 provides that election of members shall be held by following the procedure prescribed in the Rules.

 

(13)   Rules are made providing for - (1) the division of market area into constituencies (rule 35), (2) the preparation of the list of voters (rule 36), (3) persons qualified to be elected (rule 38), (4) disqualification for being chosen as, and for being a member (rule 41), (5) the right to vote (rule 39), (6) the payment of deposit and its forfeiture rules 48 and 84), (7) the determination of validity of election (rule 88), and (8) provision regarding election expenses (rule 90).

 

(14)   Determination of constituencies.- There shall be two constituencies namely, (1) Agriculturists' constituency, and (2) Traders' constituency.

 

(15)   As seven members are to be elected from the Agriculturists' constituency the market area shall be divided in seven single member constituencies by the Collector. Only one member from each constituency is to be elected.- (Rule 35).

 

(16)   Preparation and maintenance of list of voters.- The list of voters in Agriculturists' constituency is prepared by the Collector and list of voters in Traders' constituency is directed to be prepared and furnished to the Collector by Market Committee.? (Rule 36).

 

(17)   Persons qualified to vote for Agriculturists' constituencies are all Agriculturists as defined under sec. 2 (1) (b) residing at least 180 days or has a dwelling etc., in the market area and who have attained the age of 21.- (Rule 36).

 

(18)   Persons qualified to vote in traders' constituency are (a) all traders and commission agents licensed in the market area before the date fixed in that behalf, (b) all firms and corporate bodies (including co-operative societies which have been licensed as traders or commission agents in the market area before the date fixed in that behalf. Under rule 6 there is a provision to issue license to a broker along with trader and commission agent but only licensed traders and commission agents are entitled to vote under Traders' constituency as per section 13 (1) (b).

 

(19)   The right to vote.- In order that a person may have the right to vote he must first be qualified to vote. The person who are qualified to vote in the Agriculturists' constituencies are specified in rule 36. The persons who are qualified to vote in Traders' constituency are described in rule 36.

 

(20)   It is stated that the Collector etc. is to prepare separate lists of persons qualified to vote in Agriculturists' constituency and Traders' constituency. Then objections are called for and after considering them a final list is prepared and published. The final list so prepared and published shall be conclusive evidence showing that the persons included in the list are entitled to vote. - (Rule 39).

(21)   Declaration of disqualification incurred before election but noticed after election of the member as well as disqualification incurred after election are to dealt with under rule 89. The aggrieved party may appeal to the Director under rule 89 (2).

 

(22)   Names of members of Market Committee are to be published in the Gazette as provided in sec. 14 (4) and upon such publication by the State Government shall be deemed to be constituted.

 

(23)   Valid Committee.- If 12 members are elected under sees. 13 and 14 of the Act it is called general election even if members are not elected from traders' constituency and the names of the elected members are declared in the Official Gazette under sec. 14 (4), the Committee which is formed is a valid Committee.? Raghavendra V. Deshpande and others v. Agricultural Produce Market Committee, Solapur, AIR 1980 Bom. 423 (D.B.); N. Ponnuswami v. Returning Officer Namakkal Constituency, AIR 1952 SC 64.

 

(24)   Authorised person appointed by the Registrar is not responsible to intimate co-op. society to inform the names of Managing Committee.- Zandala Seva Sahakari Mandali Ltd. and others v. B. Narsinhan and others, AIR 1982 Guj. 54.

 

(25)   Extension can only be for the reasons as stated in the proviso :- The power to grant extension of one year in aggregate can be exercised only if general election of members cannot be held for reasons beyond the control of the Committee. It is not permissible to the State Government to extend the term of the Market Committee.-Vave Potge Shenvai Vividh Vikas Karyakari Society Limited v. State of Maharashtra and others, 1999 (1) Mah. L. J. 95 : 1999 (1) Bom. C. R. 451.

 

(26)   The Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964) has been enacted inter alia to regulate the marketing of agricultural and certain other produce in market areas and markets established therefore in the State, and to constitute Market Committees in connection with or acting for purposes connected with such markets. The term of office of a Committee when constituted for the first time is of two years and thereafter when elections are held the term of office of the members is of five years. Prior to the promulgation of the Maharashtra Agricultural Produce Marketing (Regulation) (Amendment) Ordinance, 1984 (Mah. Ord. I of 1984), the State Government had a power to extend any such term of office for a period not exceeding one year. The Act also provided that the term of office of out-going members shall be deemed to extend to, and expire with, the date immediately preceding the date of the first meeting of the Market Committee at which business is transacted after the election of the members thereof. As a result of such provision in the Act, some members of some Committees took undue advantage and by initiating litigations some-how or other contrived to postpone holding of elections to the Committee on due date and thus continued in office for an indefinite period. Unless and until elections to the Committee were held, the members thereof didn't vacate office. There was no provision in the Act for bringing to an end the term of office of the Committee after expiry of its term and appoint an Administrator. There was also no provision in the Act for removal of Chairman or Vice-Chairman on a motion of no confidence. For want of such provisions in the Act, there were difficulties in implementing the provision of the Act effectively. Under the circumstances, it was necessary to amend immediately section 14 of the Act suitably and also to make provisions for appointment of an Administrator on such Committee who had been overstaying in office far beyond their term and to hold elections to such Committees within a period of one year.

 

(27)   The Government of India extends financial assistance under the central scheme for development of regulated markets and that Government had suggested that a statutory board should be established under the Act immediately to ensure proper planning and development of agricultural produce markets all over the State in a balanced manner and to provide technical, legal and financial assistance to the Market Committees.

 

(28)   Therefore, in order to ensure effective implementation of the provisions, of the Act and with a view to establish a State Agricultural Marketing Board, it was expedient to amend the Act suitably with immediate effect.

 

(29)   Besides the more important amendments noticed above, a few other amendments included in this Bill were also were required to be made in the Act without delay.

 

(30)   As both Houses of the State Legislature were not in session and the Governor of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immediate action to amend the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, for the purposes aforesaid, the Governor of Maharashtra promulgated the Maharashtra Agricultural Produce Marketing (Regulation) (Amendment) Ordinance, 1984 (Mah. Ord. I of 1984), on the 6th day of January, 1984.- Statement of Objects and Reasons.

 

(31)   At present there is no representation to hamals and mapadies working in the market yard on the Market Committee constituted under section 13 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963. Since all other interests involved in agricultural produce marketing activities have been represented on the Market Committee it is felt necessary to give proper representation to hamals and mapadies working in area of the market. In order to give them representation, it is also necessary to increase strength of the Market Committee from eighteen to twenty.- Statement of Objects and Reasons.

Section 14A - Election Fund

(1)     [81][The superintendence, direction and control of the preparation of the list of voters for, and conduct of, all elections to Market Committees shall be vested in the Collector; and for the purpose of preparing the list of voters and conduct of elections, every Market Committee shall constitute an Election Fund consisting of an amount equal to [82][two per cent.] of all monies received by it by way of fees under this Act during any year or [83][ten thousand] rupees per annum, whichever is less.

[84][Provided that, if for want of Election Fund it is not possible for any Market Committee to hold that elections of such Market Committee the Maharashtra State Agricultural Marketing Board shall provide such fund to the Collector, to enable him to conduct the election of such Market Committee. After such elections are held, the Market Committee shall reimburse the Collector the expenditure incurred by him for holding of such elections and if it fails to so reimburse the Collector, within one year from the date of the election, such Market Committee shall on the expiry of the said period stand dissolved :

Provided that the period of one year for reimbursing the election expenditure to the Collector may be extended by the Director, for sufficient reasons, to be recorded in writing, for a further period not exceeding one year.]

(2)     The Election Fund shall be invested in such manner as the Director may direct, regard being had to the elections to be held during the year, and the necessity to have the monies available from the fund for the preparation of the list of voters or for the conduct of such elections or for both.

 

(3)     Every Market Committee shall inform the Collector of the amount standing to the credit of the Election Fund every year not later than the 31st day of October, and also at any other times when required by the Collector so to do.

 

(4)     Whenever the list of voters is to be prepared or revised or any elections to the Market Committee are to be held, the Collector shall in writing inform the Market Committee of the same, and require the Market Committee to deposit with him such amount and before such date as may be specified in writing for meeting expenses for preparing or revising the list, or as the case may be, for conducting the elections or of both.

 

(5)     The Collector shall after the preparation or revision of list of voters, or after the declaration of the result of the elections, draw up statement of expenditure incurred in preparing or revising such list, or in conducting the elections, and shall, within a period of three months from such preparation or revision or result, forward the same to the Market Committee for information. The balance remaining unspent, if any, shall be refunded to the Market Committee. If the expenditure incurred exceeds the amount of deposit, the Collector shall call upon the Market Committee to pay the excess amount as specified by him within one month from the date of receipt of the direction from him, and the Market Committee shall comply with such direction.]

 

(6)     [85][In the case of the Bombay Agricultural Produce Market Committee for the Bombay market area, the powers and duties of the Collector for the purposes of this section shall be exercised and performed by the Collector of Bombay.]

Section 15 - Commencement of term of office of members

(1)     The term of office of members of a Market Committee shall be deemed to commence on the date of the first meeting of the Market Committee at which business is transacted :

[86][Provided that, a person who is a member by virtue of his being a representative, or holding office, or holding license belonging to any of the categories of members referred to in sub-section (1) or (1 A) of section 13, shall hold office as such member so long only as he continues to be such representative or to hold such office or such license and on his ceasing to be such representative or holding such office or license he shall cease to be such member and he shall be deemed to have vacated his office.

Explanation.--For the purposes of this section, the date of the first meeting of the Market Committee at which business is transacted shall be the date of the meeting called by the Collector or the authorized officer under sub-section (1) of section 22 for the election of the Chairman and Vice-Chairman.]

(2)     [87][* * *]

 

(3)     The term of office of outgoing members shall be deemed to extend to, and expire with, the date immediately preceding the date of such first meeting.

NOTES

(4)     Date of the first meeting of the Market Committee at which business is transacted shall be the date on which term of office of the members shall be deemed to commence.

 

(5)     In the case of licensees such as traders and commission agents the principle of representation adopted in the case of co-operative societies and local authorities should equally apply to licensees also.? Report of Joint Committee.

 

(6)     The first meeting of the Committee, after the elections will be held on the date fixed by the Director. But that date shall be within thirty days from the date when the names of the members of the Committee are published in the Gazette as laid down in sec. 14 (4).

 

(7)     "The petitioner cannot be allowed to take advantage of his own wrong in not giving the due intimation of the occurrence of the vacancy to the Director".? Mir Islam Ali v. Panchayat Samiti, Telhara, 1973 Mah. L. J. 867.

Section 15A - Provision for appointment of administrator after normal or extended term of office of members expires

(1)     [88][Notwithstanding anything contained in sub-section (3) of section 15 or any other provisions of this Act, where the term of office of two years, five years, or as the case may be, the extended term of office, if any, under the proviso to sub-section (3) of section 14 [89][* * *] of the members of any Market Committee, has expired, the Director or any Officer, not below the rank of the District Deputy Registrar of Co-operative Societies, authorized by him shall, by order in writing direct that ?

 

(a)      all members of the Committee shall, as from the date specified in the order, cease to hold and vacate their offices as members or otherwise; and

 

(b)      the person appointed by the Director or such authorized officer, from time to time, shall be the Administrator to manage the affairs of the Committee, during the period from the date specified in the order up to the day on which the first meeting of the reconstituted Committee after the election is held, where there is a quorum (hereinafter in this section referred to as "the were deleted by Mah. 27 of 1987, s. 11 (a). said period"). Such election shall be held within a period of [90][six months] from the date the Administrator assumes office :

[91][Provided that, this period of [92][six months] may be extended, from time to time by the State Government, in exceptional circumstances, to a period not exceeding [93][one year] in the aggregate, by notification in the Official Gazette, for reasons, which shall he stated in the notification].

(2)     [94][Notwithstanding anything contained in clause (b) of sub-section (1), as it stood before the commencement of the Maharashtra Agricultural Produce Marketing (Regulation) (Amendment and Validation) Act, 1985, where the Administrator has been appointed to manage the affairs of any Committee but election to such Committee has not been held within a period of one year as required under clause (b) of sub-section (1), the period of holding election to such Committee shall be extended and shall be deemed always to have been extended up to, and inclusive of, the 31st day of March, 1986.]

 

(3)     During the said period, all the powers and duties of the Committee and its various authorities under this Act and the rules and bye-laws made there under or any other law for the time being in force shall be exercised and performed by the Administrator.

 

(4)     The Administrator may delegate any of his powers and duties to any officer for the time being serving under him or under the Committee.

 

(5)     The Administrator shall receive such remuneration from the Market Fund as the Director or authorized officer may, from time to time, by general or special order, determine.]

NOTES

(6)     On account of the special features of the Bombay Agricultural Produce Market Committee established under sub-section (1 A) of section 13 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, a special mode of its constitution had been provided under the said sub-section (1 A) according to which the Committee consisted of 28 members. From the experience gained, it was felt that the Committee had become unwieldy and it was necessary not only to reduce the total number of members of the Committee but also to change the pattern of representation given to the various interests on the said Committee. It was, therefore, proposed to reduce the total number of members of the Committee to nineteen by suitably reducing the number of representations of certain interests and by giving representation only to certain essential interests As the term of office of the said Market Committee had expired, the affairs of the said Committee are being managed by the Administrator appointed under section 15 A (1) (b) of the said Act with effect from the 18th January. 1984 and as provided in that section, it is necessary to hold the election of the said Committee within a period of one year from the date the Administrator assumed, office, that is to say, before the 17th January, 1985. As the time left for starting the election process was very short and for the purpose of giving effect to the aforesaid proposals for the constitution of the said Market Committee for the Bombay Market area, it was expedient to amend the principal Act suitably with immediate effect so that a new Committee could be constituted within the remaining period of one year as aforesaid.

 

(7)     As both the Houses of the State Legislature were not in session and the Governor of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immediate action to amend the Act for the purpose aforesaid, the Governor of Maharashtra promulgated the Maharashtra Agricultural Produce Marketing (Regulation) (Second Amendment) Ordinance, J984 (Mah. Ord. X of 1984) on the 22nd October, 1984.- Statement of Objects and Reasons.

 

(8)     Section 15 A of the Maharashtra Agricultural Produce Marketing (Regulation) Act. 1963 provides for appointment of Administrator after the term of office of the members of the Market Committee expires. The Administrator is appointed under clause (b) of sub-section (1) of section 15A to manage the affairs of the Committee during the period from the date specified in the order of his appointment up to the date on which the first meeting of the reconstituted Committee after the election is held, where there is a quorum and such election is to be held within a period of one year from the date the Administrator assumes office. On expiry of the term of office of certain Market Committees Administrators have been accordingly appointed. However, on account of the general elections to the Lok Sabha, State Legislative Assembly and certain Municipal Corporations and all the Municipal Councils in the State during the year 1984-85, elections to the Market Committees could no be held by the Administrators within a period of one year as required under section 15 A (1) (b) and the Market Committees could not, therefore, be reconstituted. In the case of some Market Committees the period of one year within which election should be held is due to expire during the months of August, September and October, 1985 and it is not possible to hold election to such Committees before expiry of that period.

 

(9)     It is. therefore, expedient to take power to the State Government to extend the period of one year for holding election up to two and half years in the aggregate and also to extend the period of holding election to such Market Committees to which elections have not been held within the period of one year and to make necessary validating provisions in respect of all the acts and things done by the Administrators appointed to manage the affairs of such Committees, by amending section 15A suitably- Statement of Objects and Reasons. [Mah. Act 10 of 1984].

Section 16 - Resignation of members and nomination in certain circumstances

(1)     Any member of the Market Committee may resign his office by writing under his hand addressed to the Chairman, and the Chairman may resign his office of member by writing under his hand addressed to the Director. The resignation shall take effect from the date it is accepted by the Chairman, or as the case may be, the Director.

 

(2)     If at any time it appears to the State Government that any Market Committee by reason of the resignation of all or a majority of the members thereof, is unable to discharge the functions conferred or imposed upon it by or under this Act, the State Government may, by order published in the Official Gazette, nominate persons to fill the vacancies of the members who have resigned; but the persons so nominated shall hold office only for the residue of the term of the members in whose place they are nominated or until the vacancies are duly filled in by election whichever is earlier.

NOTES

(3)     The Chairman may resign his office as a member by writing to the Director. Here also it is made clear that the resignation shall take effect from the date of its acceptance.

Section 17 - Removal of member for misconduct

The State Government may on the recommendation of the Market Committee supported by not less than [95][ten members] present and voting at a meeting remove any member if he has been 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 is adjudged an insolvent:

Provided that, no such member shall be removed from office unless he has been given reasonable opportunity of being heard by the State Government.

NOTES

A member may be removed by Government if he has been found (1) guilty of neglect, or (2) guilty of misconduct in the discharge of his duties, or (3) guilty of any disgraceful conduct, or (4) has become incapable of performing his duties as a member, or (5) is adjudged insolvent.

"Of late it is observed that because of resignation of members or their removal or members, incurring disqualification, the number of members of a Market Committee is reduced to less than one half of the total number of elected member of the Committee. As a result, functions of the Committee are required to be carried out by members who are less than requisite majority. It does not appear to be desirable that the affairs of such a Market Committee should be carried on by the reduced number of members. It is, therefore, considered necessary to provide that in such an eventuality the existing Market Committee is superseded and fresh elections are held within six months of the supersession of the said Committee.- Statement of Objects and Reasons.

Section 18 - Casual vacancies

[96][In the event of a vacancy occurring on account of death, resignation or removal of a member, or on account of a member becoming incapable of acting as a member, or otherwise, the Market Committee shall fill up the vacancy by co-opting a person eligible for being elected as a member :

Provided that, the number of such co-opted members shall not exceed two at any time in Market Committee and any vacancy thereafter shall be filled by the election :

Provided further that, if the vacancy occurs within six months preceding the date on which the term of office of the member expires, the vacancy shall, unless the State Government directs otherwise, not be filled.]

NOTES

Vacancy occurring on account of (1) death, (2) resignation, (3) removal, or (4) being incapable of acting. The Chairman has to communicate the occurrence to the Director and the vacancy shall be filled by the election, appointment or nomination as the case may be.

The person so elected, appointed etc., shall hold office for the remaining term of the previous holder of the said office.

If only six months have remained for the expiry of the original term, the vacancy shall not be filled unless Government otherwise directs.

Section 19 - Election of Chairman and Vice-Chairman

(1)     [97][Subject to the provisions of sub-section (2) of section 13, every Market Committee shall be presided over by a Chairman, who shall be elected by the Committee from among its [98][elected agriculturist members].

 

(2)     The Committee shall also elect one of its [elected agriculturist members] to be the Vice-Chairman.

 

(3)     [99][Notwithstanding anything containing in sub-section (1), the Chairman or, as the case may be, Vice-Chairman holding office as such on the date of commencement of the Maharashtra Agricultural Produce Marketing (Regulation) (Amendment) Act, 1987, shall continue to hold office as such Chairman or Vice-Chairman irrespective of the category of member to which he belongs until expiry of his term of office unless he resigns, or is disqualified or removed earlier.

 

(4)     Notwithstanding anything contained in sub-section (2), a member, Chairman or Vice-Chairman shall, not continue to hold office as such member, Chairman or Vice-Chairman of more than one Agricultural Produce Market Committees on the date of commencement of the Maharashtra Agricultural Produce Marketing (Regulating) (Amendment) Act, 1987.]

NOTES

(5)     Chairman and Vice-Chairman :? The procedure for electing the Chairman is laid down in sec. 22.

 

(6)     Powers and functions of the Chairman and the Vice-Chairman are laid down in rule 92.

 

(7)     Every contract of the Market Committee shall be signed by the Chairman or the Vice-Chairman in the absence of the Chairman.- (See sec. 33).

 

(8)     The outgoing Chairman or Vice-Chairman is bound to hand over charge of his office to the new Chairman (sec. 26). Failure to do so even after the Director's order will make him liable for penalty under sec. 47.

Section 20 - Term of office of Chairman and Vice-Chairman

The Chairman and Vice-Chairman shall hold office for such period as may be prescribed.]

NOTES

The Chairman and Vice-Chairman shall hold office for the full term. The election will not take place every year. He shall continue to carry on the duties of the Chairman or the Vice-Chairman as the case may be, till a new Chairman or Vice-Chairman is elected and has entered upon their office.- (See sec. 21).

Section 21 - Chairman and Vice-Chairman to hold office until their successors enter upon office

The Chairman and Vice-Chairman shall, notwithstanding the expiration of their term of office, continue to hold office, until their successors enter upon their office [100][or the Administrator appointed under section 15A assumes office.]

NOTES

The term of office of outgoing members shall be deemed to extend and expire with the date immediately preceding the date of the first meeting at which business is transacted, when the term of office of the new members of the Market Committee shall be deemed to commence.? (See sec. 15). But as stated above the old Chairman etc., will continue till the new Chairman enters upon his office.

Section 21A - Honorarium to Chairman and Vice-Chairman

[101][There shall be paid to the Chairman and Vice-Chairman an honorarium of such amount as the Director may, having regard to the finances of the Market Committee specify; so however that the total amount of honorarium to be paid to both [102][does not exceed the limit as may be prescribed].

Section 22 - Procedure for election of Chairman and Vice-Chairman

(1)     [103][On the constitution of the Market Committee after a general election or otherwise, the Collector or the officer not lower in rank than that of a Deputy Collector as the Collector may authorize in this behalf (hereinafter in this section referred to as "the authorized officer") shall, within 30 days from the publication of the result of the general election under clause (a) or as the case may be, under clause (b) of sub-section (4) of section 14, call a meeting for the election of the Chairman and the Vice-Chairman.]

 

(2)     Such meeting shall be presided over by the [104][Collector or the authorized officer. The Collector or such authorized officer] shall, when presiding over the meeting, have the same powers as the Chairman when presiding over a meeting of the Market Committee has, but shall not have the right to vote.

 

(3)     If, in the election of a Chairman or Vice-Chairman, there is an equality of votes, the result of the election shall be decided by lots to be drawn in the presence of the officer presiding in such manner as he may determine.

 

(4)     In the event of a dispute arising as to the validity of the election of a Chairman or Vice-Chairman, the [105][Collector], if he is the presiding officer, shall decide the dispute himself; and in any other case the officer presiding shall refer the dispute to the [106][Collector] for decision. The decision of the [107][Collector], subject to an appeal to the [108][Commissioner appointed under section 6 of the Maharashtra Land Revenue Code, 1966] shall be final; and no suit or other proceeding shall lie in any Court in respect of any such decision.

NOTES

(5)     The Market Committee shall be deemed to be duly constituted when the names of the members of the Committee are duly published in the Gazette by Government (sec. 14 (4)). This is done after a general election is held etc.

 

(6)     A meeting is to be called by the Director, presumably for the election of Chairman and Vice-Chairman on the date fixed by him.? (See sec. 22 (1)).

 

(7)     The Director or the person authorized by him shall preside over the meeting. He exercises all the powers of a Chairman except the right to vote.- (See sec. 22 (2)).

Section 23 - Resignation of Chairman and Vice-Chairman

(1)     The Chairman may resign his office by writing under his hand addressed to the Director; and the resignation shall take effect from the date it is accepted.

 

(2)     The Vice-Chairman may resign his office by writing under his hand addressed to the Chairman; and the resignation shall take effect from the date it is accepted.

NOTES

(3)     Scope .- The Chairman is allowed to resign his office by writing under his own hand i.e. under his signature to the Director to that effect. But the resignation will take effect when it is accepted by the Director. The Chairman after sending his resignation may not attend to his duties. He may not be held responsible for anything done by the Vice-Chairman or the other members of the Committee during the period of sending of his resignation and its acceptance by the Director.

 

(4)     The Vice-Chairman may also resign to the Chairman under his own hand i.e., under his signature to that effect. The resignation will be deemed to be effective from the date it is accepted by the Chairman. The Chairman may intentionally put off the matter of accepting the resignation to cause him harassment.

Section 23A - Motion of no-confidence against Chairman or Vice-Chairman

(1)     [109][A Chairman or a Vice-Chairman shall cease forthwith to be Chairman or Vice-Chairman, as the case may be, if the Market Committee by a resolution passed by a majority of not less than two-thirds of the total number of members (excluding the members who have no right to vote) at a special meeting so decides.

 

(2)     The requisition for such special meeting shall be signed by not less than one-half of the total number of members (excluding the members who have no right to vote) and shall be sent to the Collector under intimation to the Director.

 

(3)     The Collector shall, within fifteen days from the date of receipt of the requisition under sub-section (2), convene a special meeting of the Committee :

Provided that, when the Collector convenes such special meeting of the Committee, he shall give intimation thereof to the Chairman, or as the case may be, Vice-Chairman and also to the Director.

(4)     A special meeting to consider a resolution under sub-section (1) shall be presided over by the Collector or the officer authorized by him in this behalf, but the Collector or such officer or the Director (if present) shall have no right to vote at such meeting.

 

(5)     The members of the Committee who have no right to vote may take part in the discussions, but shall not vote.]

 

(6)     [110][If the motion of no confidence is not earned as aforesaid or if the meeting could not be held for want of quorum, no such requisition for considering a fresh such motion expressing want of confidence in the same Chairman or Vice-Chairman shall be made until after the expiry of six months from the date of such meeting.]

Section 24 - Consequences of absence of Chairman, Vice-Chairman or member without leave

[111][Subject to rules made by the State Government in this behalf a Chairman, Vice-Chairman or a member of the Market Committee who absents himself from three consecutive meetings of the Market Committee without leave of the Market Committee shall cease to be the Chairman, Vice-Chairman or member of the Market Committee.]

NOTES

Chairman absenting himself for three consecutive meetings of the Committee without leave of the Committee shall cease to be the Chairman.

Procedure for obtaining leave from the Market Committee is laid down in rule 93.

Section 25 - Vacancies in office of Chairman and Vice-Chairman to be filled up

(1)     In the event of a vacancy in the office of the Chairman or Vice-Chairman by reason of death, resignation, removal or otherwise, the vacancy shall subject to the provisions of section 19, be filled as soon as possible by election if elected or by nomination if nominated of a Chairman or Vice-Chairman.

 

(2)     Every Chairman or Vice-Chairman elected or nominated under this section to fill a casual vacancy shall hold office so long only as the Chairman or Vice-Chairman in whose place he is elected, or as the case may be, nominated would have held it if the vacancy had not occurred.

NOTES

(3)     The Chairman so elected was to hold office only for the remaining period of the original term of office of the ex-Chairman.

 

(4)     In the case of the Vice-Chairman, the Chairman was to call a meeting and follow the procedure indicated above.

 

(5)     Death, resignation, removal etc.? If a vacancy occurs in the office of the Chairman or the Vice-Chairman on account of death etc. it shall be filled by election if the ex-Chairman has elected or by nomination if he was nominated.

Section 26 - Refusal to hand over charges to new Chairman or Vice-Chairman

(1)     On the election or nomination of a new Chairman or Vice-Chairman, the outgoing Chairman or Vice-Chairman in whose place the new Chairman or Vice-Chairman has been elected or nominated shall forthwith hand over charge of his office to such new Chairman or Vice-Chairman, as the case may be.

 

(2)     If the outgoing Chairman or Vice-Chairman fails or refuses to hand over charge of his office as required under sub-section (1), the Director or any officer empowered by the Director in this behalf may, by order in writing, direct the Chairman or the Vice-Chairman, as the case may be, to forthwith hand over charge of his office and all papers and property of the Market Committee, if any, in his possession as such Chairman or Vice-Chairman, to the new Chairman or Vice-Chairman.

 

(3)     If the outgoing Chairman or Vice-Chairman to whom a direction has been issued under sub-section (2) does not comply with such direction, the Director or any person authorized by him in that behalf may apply to the Executive Magistrate within whose jurisdiction the Committee is functioning for seizing and taking possession of papers, funds and property of the Committee in the possession of such Chairman or Vice-Chairman.

 

(4)     On receipt of an application under sub-section (3), the Magistrate may authorize any police officer, not below the rank of a Sub-Inspector, to enter and search any place where the records and property are kept or likely to be kept and to seize them and hand over possession thereof to the new Chairman or Vice-Chairman, as the case may be.

NOTES

(5)     If the outgoing Chairman etc., fails to obey the order, as the next step, the Director should apply to the Executive Magistrate having jurisdiction in that area for seizing and taking possession the papers, funds and property of the Committee in the possession of the Chairman etc.

 

(6)     The Magistrate then will empower a Police Officer such as a Sub-Inspector to carry out the order and after seizing the papers, funds and the property of the Committee from the possession of the Chairman etc., handover possession of the same to the new Chairman etc.

Section 27 - Meeting etc., of Market Committee

The meetings, quorum and procedure of the Market Committee shall be regulated in accordance with the bye-laws made for the purpose.

Section 27A - Annual General Meeting of Market Committee

(1)     [112][Notwithstanding anything contained in section 27, every Market Committee other than the Bombay Agricultural Produce Market Committee shall, within a period of six months next after the close of every financial year call an annual general meeting of its members and invitees specified below,-

 

(a)      the Chairman of all the Primary Agricultural Credit Societies and the Sarpanchas of all the Village Panchayats, or their representatives, in the market area;

 

(b)      five office-bearers to be nominated by each of the registered association of the licensed commission agents and traders, in the market area. In the absence of registered association, five representatives of the licensed commission agents and traders to be nominated by the Chairman of the Market Committee;

 

(c)      five office-bearers to be nominated by each of the registered association of hamals and weigh men, in the market area;

 

(2)     The Secretary of the Market Committee shall convene the annual general meeting. The notice of the annual general meeting specifying the date, time and place of the meeting and the agenda shall be sent to all the members of the Market Committee and the invitees specified in sub-section (1) not less than fifteen days prior to the date of the meeting.

 

(3)     The Chairman of the Market Committee, shall preside over the meeting of the Committee and, in his absence the Vice-Chairman of the Market Committee and in the Absence of both, the person elected by the members present at the meeting shall preside over the meeting.

 

(4)     At every annual general meeting, the balance sheet, income and expenditure accounts, audit memorandum audited by the statutory auditor and the Market Committee's annual report shall be placed for discussion and such other business as may be prescribed on the working of the Market Committee may also be transacted.

 

(5)     If, in the annual general meeting any invitee has made any suggestion or raised any objection, the Market Committee shall send its explanation on such suggestion or objection to the invitee, within three months from the date of such annual general meeting.]

Section 28 - Members to act during vacancy; acts of Committee, etc., not to be invalidated by infirmities

(1)     During any vacancy in a Market Committee the continuing members may act as if no vacancy had occurred.

 

(2)     A Market Committee shall have power to act, notwithstanding any vacancy in the membership or any defect in the Constitution thereof; and such proceedings of the Committee shall be valid notwithstanding that it is discovered subsequently that some person who was not entitled to do so sat or voted or otherwise took part in the proceedings.

NOTES

(3)     If any vacancy occurs in the Market Committee on account of death, resignation, removal, etc., it is to be filled by following the procedure laid down in sec. 18. That is bound to take some time. Moreover, if the unexpired term of office of the Committee is less than six months, the vacancy may not be filled. For these reasons it is laid down in this section that the remaining members may carry on their duties as if no vacancy had occurred.

Section 29 - Powers and duties of Market Committee

(1)     It shall be the duty of a Market Committee to implement the provisions of this Act, the rules and bye-laws made there under in the market area; to provide such facilities for marketing of agricultural produce therein as the Director [113][the State Marketing Board or the State Government, as the case may be,] may, from time to time, direct; do such other acts as may be required in relation to the superintendence, direction and control of markets or for regulating marketing of agricultural produce in any place in the market area, and for purposes connected with the matters aforesaid, and for that purpose may exercise such powers and perform such duties and discharge such functions as may be provided by or under this Act.

 

(2)     [114][Without prejudice to the generality of the foregoing provisions, a Market Committee may ?

 

(i)       regulate the entry of persons and of vehicular traffic into the market;

 

(ii)      supervise the behavior of those who enter the market for transacting business;

 

(iii)     grant, renew, refuse, suspend or cancel license;

 

(iv)    maintain and manage the market including admissions to, and conditions for use of, markets within the market area;

 

(v)      provide for necessary facilities for the marketing of agricultural produce within the market in the market area;

 

(vi)    regulate and supervise the auctions of notified agricultural produce in accordance with the provisions and procedure laid down under the rules made under this Act or the bye-laws of the Market Committee;

 

(vii)   regulate the making, carrying out and enforcement or cancellation of sales, weighment, delivery, payment to be made in respect thereof and all other matters relating to the marketing of notified agricultural produce in the prescribed manner;

 

(viii)  take all possible steps to prevent adulteration and to promote and organize grading and standardization of the agricultural produce;

 

(ix)    take measures for the prevention of purchases and sales below the minimum support prices as fixed by the Government from time to time;

 

(x)      collect, maintain, disseminate and supply information in respect of production, sale, storage, processing, prices and movement of notified agricultural produce including information relating to crops, statistics and marketing intelligence as may be required by the Director;

 

(xi)    arrange to obtain fitness (health) certificate from Veterinary Doctor in respect of animals, cattle, birds, etc., which are brought or sold in the Market area;

 

(xii)   carry out publicity about the benefits of regulation, system of transactions, facilities provided in the market area, through such media as, in the opinion of the Market Committee, may be effective or necessary;

 

(xiii)  provide for settling disputes arising out of any kind of transactions connected with the marketing of agricultural produce and all matters ancillary thereto;

 

(xiv)  subject to the provisions of section 12, acquire, hold or dispose of any moveable or immovable property for the purpose of efficiently carrying out its duties;

 

(xv)   institute or defend any suit, prosecution, action, proceeding, application or arbitration and compromise such suit, action, proceeding, application or arbitration;

 

(xvi)  make arrangement for holding of elections of the Market Committee in the prescribed manner;

 

(xvii) levy, take, recover and receive charges, fees, rates and other sums or money to which the Market Committee is entitled ;

 

(xviii)   subject to approval of the Director, obtain loans, subsidies, subventions from the State and Central Government or any financing agency, for providing warehousing and marketing facilities in the market;

 

(xix)  subject to the approval of the State Marketing Board, prepare budgets, supplementary budgets, make re appropriations in the budget and incur expenditure accordingly;

 

(xx)   keep a set of standard weights and measures in the market against which weighment and measurement may be checked;

 

(xxi)  inspect and verify scales, weights and measures in use in a market area and also the books of accounts and other documents maintained by the licensees in such manner as may be prescribed;

 

(xxii) employ the necessary number of officers and servants for the efficient implementation of the provisions of this Act, rules and bye-laws of the Market Committee;

 

(xxiii)   pay salaries and other emoluments, pension, leave allowance, gratuities, compassionate allowance, contributions towards leave allowance, pension or provident fund of the officers and servants employed by the Market Committee in the manner prescribed;

 

(xxiv)   administer Market Fund referred to in section 36 of this Act and maintain the account thereof and get the same audited in the prescribed manner;

 

(xxv)prosecute persons for violating the provisions of this Act, the rules and the bye-laws and compound offences as provided under section 52A;

 

(xxvi)   provide storage and warehousing facilities in the market area;

 

(xxvii)  with the prior sanction of the State Government or the State Marketing Board or the Director undertake any other activity conducive to the promotion of regulation of agricultural marketing;

 

(xxviii) arrange for the collection of-

 

(xxix)   such agricultural produce in the market area in which all trade therein is to be carried on exclusively by the State Government by or under any law in force for that purpose, or

 

(xxx)such other agricultural produce in the market area, as the State Government may, from time to time notify in the Official Gazette (hereinafter referred to as the "notified produce")-]

NOTES

(3)     Duties of Market Committee.- (1) To implement the provisions of this Act, the Rules and the Bye-laws in the market area. (2) To provide such facilities for marketing of agricultural produce in the market area as may be directed by the Director from time to time. (3) Supervise, give directions and control the markets. The Committee is authorized to do all such acts as may be necessary. (4) For regulating the marketing of agricultural produce in any place in the area to do such other acts as may be necessary.

 

(4)     To regulate the entry of persons and of vehicular traffic into the market. Supervise the behavior of those who enter the market for transacting business. To grant, renew, refuse, suspend, or cancel licenses.

 

(5)     Settling disputes about transactions in respect of marketing of agricultural produce etc.

 

(6)     Prosecute persons for violating provisions of the Act, Rules and the Bye-laws. Maintain and manage the market including (i) admission to the market, and (ii) conditions for use of the market.

 

(7)     Regulate marketing of agricultural produce in the market areas or the market.

 

(8)     Acquire, hold and dispose of immovable as well as movable property etc.? The Market Committee is a body corporate and as such it is competent to acquire and hold property both moveable as well as immovable.- (See sec. 12).

 

(9)     Market information :? The efficient conduct of a market depends on the full knowledge of the conditions bearing on demand and supply of the market - local, wholesale, terminal, national and also world.

 

(10)   Preventing adulteration and promoting grading and standardization of agricultural produce :? This is one of the duties of the Market Committee.

 

(11)   To enforce the provisions of the Act, Rules and By-laws is one of the duties of the Market Committee which is established by Government. It is through the Committee and the Director that Government is expected to discharge its duties towards safeguarding the interests of the producers and the traders alike.

 

(12)   Perform such other duties as may be prescribed :? Certain duties are prescribed under Rules. The Market Committee is expected to perform these duties in the interest of regulation of the market.

Section 30 - Appointment of sub-committees; delegation of power

A Market Committee may appoint one or more sub-committees consisting of one or more of its members (including any persons co-opted by the Committee with the approval of the Director or of any officer authorized by the Director in this behalf) and may delegate to sub-committee such of its powers or duties as it may think fit. [115][The sub-committee so appointed shall function under the superintendence, guidance, direction and control of the Market Committee.]

Section 30A - Power of the Market Committee to open collection centre for marketing of notified produce; provisions for receipt and payment by purchaser

(1)     [116][A Market Committee duly authorized by the State Government for the purpose may by an order in writing, open collection centers for collecting thereat the notified produce specified in such order. The Market Committee shall publish such order for the information of the public in such manner as it deems fit.

 

(2)     Where any person wishes to sell any notified produce in a market area, he shall tender all such produce only at the collection centre established for the purpose under sub-section (1):

Provided that, agricultural produce notified under sub-clause (ii) of clause (g 1) of sub-section (2) of section 29 may be tendered through a commission agent.

(3)     The Market Committee shall, on the sale of such produce, get it weighed, measured, or as the case may be, counted forthwith, and arrange for issuing a receipt therefore to the person who has tendered the produce at the collection centre for sale or, as the case may be, through the commission agent or any agency fixed by the State Government where tender through an agent is allowed, and shall also arrange to give a copy of the receipt to the purchaser, the co-operative society, if any, and where a receipt is given through such agent or agency, if any, also to the Market Committee.

 

(4)     Such receipt shall contain the following particulars, that is to say-

 

(i)       the name of the collection centre,

 

(ii)      the name of the tenderer,

 

(iii)     the name of the purchaser,

 

(iv)    the name of the commission agent, if any,

 

(v)      the name and quantity of notified produce, the weight, measure or number there of and charges therefore,

 

(vi)    grade of the notified produce, if any, and the rate,

 

(vii)   the amount of dues of the Market Committee to be paid by the purchaser,

 

(viii)  the amount of dues to be paid by the tenderer, to the commission agent by way of his commission, if any, and such other market charges, as are duly authorized by the Market Committee.

 

(ix)    the amount of dues to be paid by the tenderer to a co-operative society, under section 48A of the Maharashtra Co-operative Societies Act, 1960,

 

(x)      the amount of advance price received by the tenderer, if any, in respect of agricultural produce notified under sub-clause (i) of clause (g 1) of sub-section (2) of section 29,

 

(xi)    the amount to be actually paid to the tenderer after deducting the amounts, if any, falling under entries (vii), (viii), (ix) and (x), and

 

(xii)   the total amount to be paid by the purchaser in respect of the notified produce purchased by him.

 

(5)     The dues to a Market Committee shall consist of fees to be levied and collected from a purchaser by or under this Act.

 

(6)     The purchaser shall, on receiving a copy of the receipt, pay forthwith the total amount to be paid by him as recorded in the receipt by drawing two cheques, one in favour of the Market Committee and another in favour of the tenderer. Both the cheques shall be payable on presentation. The cheque drawn in favour of the Market Committee shall be for an amount equal to the amounts referred to in, clauses (vii), (viii), (ix) and (x) under sub-section (4) ; and the cheque drawn in favour of the tenderer shall be for an amount equal to the amount referred to in clause (xi) of sub-section (4). The Market Committee, on receipt of the cheque, shall arrange to pay to the commission agent and the co-operative society, if any, the amount of money recorded against each of them in the receipt and credit the balance due to it to the market fund :]

[117][Provided that, where the purchaser is the State Government or an agent appointed by it to make purchases of any notified produce on its behalf under any law for the time being in force, then the amount payable to the tenderer may be paid either in cash or by crediting the amount into the account of the tenderer in a co-operative bank.]

[118][Explanation :- For the purposes of this section, section 31 and section 34-A, 'purchaser' shall include any person who pays the purchase price of any notified produce or agricultural produce, as the case may be, tendered for sale, or by whom payment of such price is made, whether on his own account, or as an agent or on behalf of another person.]

NOTES

(7)     Under the provisions of sub-section (6) of section 30A of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, it is incumbent on the purchaser to make payment of the purchase price of the notified agricultural produce to the tenderer by way of cheques. The Agricultural Produce Market Committees are required to open collection centers at places other than the principal market yards or the sub-market yards for collection and purchase of food grains and pulses under the levy-cum-monopoly procurement schemes of the State Government. There are no banking facilities available at such collection centers and it has become necessary to make the payment of the purchase price of the notified produce payable to the tenderer either by cash or by crediting the amount to the bank account of the tenderer in a co-operative bank. It is, therefore, necessary to suitably amend the provisions of sub-section (6) of section 30A of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963.- Statement of Objects and Reasons. [Man. Act 30 of 1974.]

 

(8)     Explanation :- Under the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 markets are established at various places for marketing of agricultural produce. It is expected that a purchaser should purchase the notified produce or agricultural produce as the case may be brought at the collection centers at a price not lower than the support price fixed by the Government.

 

(9)     However, it is experienced that the produce is purchased at prices far below the support price fixed by Government by taking undue advantage of the immediate need and unawareness of the farmers which results in depriving them of the benefit of support price fixed by Government from time to time.

 

(10)   It is proposed to check these malpractice so that the poor farmer is not put to loss because of this imminent need and helplessness.- Statement of Objects and Reasons.

Section 31 - Power of Market Committee to levy fees and rates of commission (adat)

Power of Market Committee to levy fees [119][and rates of commission (adat)]

(1)     [120][It shall be competent to a Market Committee to levy and collect fees in the prescribed manner at such rates as may be decided by it (but subject to the minimum and maximum rates which may be fixed by the State Government by notification in the Official Gazette in that behalf), from every purchaser of agricultural produce marketed in the market area :

Provided that, when any agricultural produce brought in any market area for the purposes of processing only [121][* * *] is not processed [122][* * *] within thirty days from the date of its arrival therein, it shall, until the contrary is proved, be presumed to have been marketed in the market area, and shall be liable for the levy of fees under this section, as if it had been so marketed :

[123][Provided further that, -

(2)     any agricultural produce brought in any market area for the exclusive purpose of export shall be exempted for the payment of fees and supervision cost, if such exporter or his duly authorized agent presents the letter of credit or confirmed order of export or confirmed export order consignment, whichever is relevant or applicable, at the time of entry of such produce in the market area, to the officer authorized in this behalf by the market committee concerned along with a declaration in that behalf by the market committee concerned along with a declaration in that behalf, in such form as the State Government may by order from time to time, direct;

 

(3)     if such exporter fails to submit a certified copy of the bill of lading or the air freight bill or any other documents as may be specified by the State Government as a proof of such export, within ninety days from the date of entry of the agricultural produce in the market area, such agricultural produce shall be deemed to have been marketed within the market area and he shall forthwith pay the market fees under this section and shall also pay the supervision cost under section 34-A on such agricultural produce, along with eighteen per cent interest on the total amount due and payable as the market fees and supervision cost, from the date of bringing of such produce in the market area:]

Provided [124][also] that, no such fees shall be levied and collected in the same market area in relation to agricultural produce in respect of which fees under this section have already been levied and collected therein [125][or in relation to declared agricultural produce purchased by person engaged in industries carried on without the aid of any machinery or labour in any market area.]

(4)     [126][It shall be competent to a Market Committee to fix, with the prior approval of the State Government, the rate of commission (adat) to be charged by the commission agents in respect of an agricultural produce or class of agricultural produce marketed in the market area.

 

(5)     It shall be the duty of the buyer, commission agent, processor or trader who fails to pay the market fee as fixed immediately after weighment or measurement of the agricultural produce is done. The buyer, the commission agent, processor and trader to pay the market fee fixed immediately after weighment or measurement of the agricultural produce is done. The buyer the commission agent, processor or trader who fails to pay the market fee as fixed above shall be liable to pay a penalty as prescribed in addition to such fees,

 

(6)     Notwithstanding anything contained in this Act or any other law for the time being in force or in any agreement, it shall be competent to a Market Committee to recover the amount of fees along with the amount of penalty which is due to a Market Committee from a buyer, commission agent, processor or trader ?

 

(a)      from the amount of deposit kept with the Market Committee by the buyer, Commission agent, processor or trader, as the case may be;

 

(b)      from the Bank which gives the guarantee to such buyer, commission agent, processor or trader, and the Bank shall, on demand by the Market Committee, pay the amount so demanded.]

NOTES

(7)     Fees should be levied and collected from the purchasers of agricultural produce only. - Report of Joint Committee.

 

(8)     Maximum and minimum rates of fees to be recovered will be fixed by Government by a notification published in the Gazette.

 

(9)     Agricultural produce brought for processing or export when not processed or exported within thirty days from the date when it was so brought in the market area, in such a case the burden to show that such produce was not marketed will be on the person who brought the same in the market area. If it is not shown to the satisfaction of the Market Committee that it was not marketed it will be liable to the levy of fees under sec. 31.

 

(10)   A complaint was lodged against the petitioner under Indian Penal Code but the High Court held that as complaint relates to alleged misappropriation of Maharashtra Agricultural Produce and Marketing Committee funds, it is covered by I.P.C. and not by the A.P.M. (Reg.) Act or Rules. Allegations in F.I.R. cannot be interfered with under section 482 of the Cr. P.C. or Article 227 of the Constitution of India as High Court cannot embark upon the enquiry whether the allegations made in F.I.R. are correct or not. In this connection reference was made on the decision of the Apex Court in the matter of State of Haryana v. Bhajanlal, AIR 1992 SC 604 and in the matter of Pepsi Foods Limited v. Sub-Judicial Magistrate, 1988 (5) SCC 749. In the case of State of Haryana v. Bhajanlal, it was held by the Apex Court therein that where a criminal proceeding is manifestly attended with mala fide and/or where the proceedings is maliciously instituted with an ulterior motive for wreaking vengeance on the accused and with a view to spite him due to private and personal grudge, the F.I.R. can be quashed. In the case of Pepsi Foods Limited, the Apex Court held that it is well settled that the High Court can exercise its power of judicial revenue in criminal matters. The exercise of such power would depend upon the facts and circumstances of each case, but with the sole purpose to prevent abuse of process of any Court or otherwise to secure the ends of justice and one of such guidelines is where the allegations made in F.I.R. of the complaint, even if they are taken at their face value and explained in their entirety do not prima facie constitute any offence or make out a case against the accused. In the circumstances there is no case made out for interference as the impugned F.I.R., on the face of it, discloses cognizable offence which can be investigated by the police authorities.- Jaisingh Daulatsingh Rawal and others v. State of Maharashtra and another, 2001 (Suppl. 2) Bom. C. R. 620 : 2002 (2) Mah. L. J. 177.

NOTIFICATIONS

(11)   [127]No. APM. 1093/4739/230/11-C, dated 2nd June, 1995.--Whereas the regulation of pulses in the area of Bombay Agricultural Produce Market Committee, has become effective in the principal market at New Bombay, Vashi with effect from 1st March, 1993 vide Director of Marketing's Order No. CMR. R/2/12/Bombay APMC / 93, dated the 25th January, 1993;

 

(12)   And whereas, Imported Pulses Importers' Associations have been representing time and again to the Government and the various authorities for modified application of the provisions of the Maharashtra Agricultural Produce Marketing (Regulations) Act for which discussions at various/different levels through the number of meetings have been carried out;

 

(13)   And whereas during the discussions, the Government has come to a conclusion that it would not be justifiable to levy cess on goods which are imported for the purpose of sale to other States and Union Territories, since Bombay Port is utilized for the purpose of transit of goods to various destination points all over the country;

 

(14)   And whereas it is found necessary to take a practical view and exempt imported agricultural produce from the livability of cess;

 

(15)   Now therefore, in exercise of the powers conferred by section 59 of the Agricultural Produce Marketing (Regulation) Act, 1963 and all other powers enabling it in this behalf, the Government of Maharashtra hereby exempts from the provisions of section 31(1) of the said Act, the following category of persons i.e. ?

 

(16)   The member of the Imported Pulses Organization, as well as Traders, who are genuinely and actually engaged in the Trade of imported pulses through the Bombay Port and Nhava Sheva Port. This exemption will be applicable only in respect of those goods which are dispatched to places outside the market area of Bombay Agricultural Produce Market Committee.

 

(17)   [128]No. APM. 1088/48852/405/11-C, dated 28th March, 1989.-In exercise of the powers conferred by section 31 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964), and in supersession of Government Notification, Agriculture and Co-operation Department, No. APM. 1086/ 44492/452/11-C, dated the 7th October, 1986, the Government of Maharashtra hereby fixes the ?

 

(a)      minimum and maximum rates of fees in respect of agricultural produce other than cotton between seventy-five paise and hundred paise respectively, and

 

(b)      [129][minimum and maximum rate of fees in respect of cotton between 55 paise to 75 paise respectively.]

Section 32 - Power to borrow

(1)     A Market Committee may, with the previous sanction of the Director, 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 fees livable by it under this Act.

 

(2)     The Market Committee may, for the purpose of meeting the expenditure on lands, buildings and equipment required for establishing the market, obtain a loan from the State Government on such terms and conditions as the State Government may determine.

Section 32A - Power to order production and power of entry, inspection, search and seizure

(1)     [130][[131][Any such officer or servant of the Market Committee, as the Market Committee may specify in this behalf (hereinafter referred to as "the specified officer or servant"), for the purposes of this Act, require any person carrying on business in the market area in any agricultural produce to produce before him the accounts and other documents and to furnish any information relating to the stocks of such agricultural produce, or purchases, sales and deliveries of such agricultural produce by such person and also other information relating to payment of the market fees and payment to the seller by such person.

 

(2)     All accounts and registers maintained by any person in the ordinary course of business in the market area in any agricultural produce and documents relating to the stock of such agricultural produce or purchases, sales and deliveries of such agricultural produce in his possession and the office establishment, go-downs, vessels or vehicles of such person shall be opened to inspection at all reasonable times by such specified officer or servant.

 

(3)     [132][The Registrar appointed under the Maharashtra Co-operative Societies Act, 1960 (Mah. XXIV of 1961) or any subordinate officer not below the rank of the Assistant Registrar; and the Secretary, Joint Secretary or Deputy Secretary of the Market Committee (hereinafter referred to as "the authorized officer"), has reason to believe.]

 

(a)      that any person carrying on business in any agricultural produce in the market area within the jurisdiction of the said Market Committee,-

 

(b)      is attempting to evade or has evaded the payment of fees or charges payable by him under this Act, rules or bye-laws; or

 

(c)      has committed any act contrary to the provisions of this Act, rules or bye-laws; or

 

(d)      on having been served with a notice to produce or cause to be produced any books of accounts or other documents or articles or registers or things relating to the business in any agricultural produce, has failed to do so; or

 

(e)      that any person has purchased any agricultural produce in contravention of the provisions of this Act or the rules or the bye-laws,

 

(f)       enter and search any place, building, warehouse, go-down, vessel, cart or vehicle where he has reason to suspect that such person has kept or keeps any such books of accounts, documents, articles, registers of things;

 

(g)      break open the lock of any door, box, locker, safe, almarih or other receptacle for exercising the powers conferred by sub-clause (i), where the keys thereof are not available;

 

(h)     search any person who has got out of, or is about to get into, or is in any place or premises, if the authorized officer has reason to suspect that such person has secreted about his person any such books of accounts, other documents, articles, registers or things;

 

(i)       seize any such books of accounts, other documents, articles, registers or things found as a result of any such search;

 

(j)       place marks of identification on any books of accounts or other documents, articles, registers or things and make or cause to be made, extracts or copies there from;

 

(k)      make a note or an inventory of any such books of accounts, other documents, articles, registers or things seized.

 

(4)     The authorized officer may requisition the services of any police officer to assist him for all or any of the purposes specified in sub-section (3) and it shall be the duty of every police officer to comply with such requisition.

 

(5)     The authorized officer may, where it is not practicable to seize any such books of accounts, other documents, articles, registers or things or vehicles under sub-section (3), serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of such officer and such officer may take such steps as may be necessary for ensuring compliance with such order.

 

(6)     where any books of accounts, other documents, articles, registers or things are found in the possession or control of any person in the course of a search, it may be presumed, -

 

(i)       that such books of accounts, other documents, articles, registers or things found in the possession or control of any person in the course of search, belong to such person;

 

(ii)      that the contents of such books of accounts and other documents are true; and

 

(iii)     that the signature and every other part of such books of accounts and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person's handwriting and in the case of a document stamped, executed or attested by the person by whom it purports to have been so executed or attested.

 

(7)     The person from whose custody any books of accounts, other documents, articles, registers or things are seized under the foregoing sub-sections, may make copies thereof or take extracts there form, in the presence of the authorized officer or any other person empowered by him in this behalf, at such place and time as the authorized officer may appoint in this behalf.

 

(8)     The books of accounts, documents, articles, registers or things or vehicle so seized shall not be retained by the authorized officer for a period exceeding ninety days from the date of seizure :

Provided that, in computing such period, any period, during which any proceeding under this Act is stayed by an order or injunction of any Court, shall be excluded :

Provided further that, if any articles or things so seized are of perishable nature, they shall not be retained by the authorized officer for more than twelve hours from the time of seizure.

(9)     Notwithstanding anything contained in sub-section (8),-

 

(a)      where such articles or things comprise agricultural produce and are transported within the market area in such vehicles which are so seized; and market fees or any other dues in respect of such agricultural produce are not paid, such vehicle and such agricultural produce may be retained until the market fees and supervision charges along with penalty equal to three times the amount of such fees and charges and the actual cost of such seizure, are paid and if the amount of such fees, charges, penalty and cost are not paid even after demand thereof in writing, then the same may be recovered by sale of such agricultural produce by auction and the balance of amount, if any, left thereafter, may be returned to the person from whom they are seized;

 

(b)      where such books of accounts, documents, articles, registers or things or vehicles and the agricultural produce so seized are required for the purpose of prosecution launched for an offence of contravention of the provisions of this Act or the rules or the bye-laws, they may be retained until they are ordered to be released by the Court trying such offence;

 

(c)      where such articles or things which comprise agricultural produce which are of perishable nature and the market fees and supervision charges along with penalty equal to three times the amount of such fees and charges and the actual cost of such seizure are not paid, then instead of returning the same to the person from whom they are seized, such market fees, charges, penalty and cost in respect thereof may be recovered by sale of such agricultural produce by auction and the balance of amount, if any, left thereafter, may be returned to such person.

 

(10)   The authorized officer shall carry out the search and seizure under this section with due regard to the honor and dignity of any inmates in the building, place or vehicle, and exercise the minimum force in obtaining ingress into the building, place or vehicle to be searched where free ingress thereto is not available, and ensure safe custody of any books of accounts, documents, articles, registers or things or vehicle so seized.

 

(11)   Without prejudice to the foregoing provisions, the provisions of the Code of Criminal Procedure, 1973 (II of 1974), relating to search and seizure shall, so far as may be, apply to the searches and seizures under this section.]

NOTIFICATIONS

(12)   [133]No. KRUBASA. 1093/30355/CR-396/11-C, dated 15th January, 1994.--In exercise of the powers conferred by sub-section (3) of section 32 A of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964), the Government of Maharashtra hereby authorizes the following officers of the Bombay Agricultural Produce Market Committee as "authorized officers" for the purposes of that section, namely :-

 

(i)       the Secretary,

 

(ii)      the Joint Secretary,

 

(iii)     the Chief Accounts officers,

 

(iv)    the Deputy Secretaries and,

 

(v)      the Assistant Secretaries.

 

(vi)    [134]No. APM. 10-2000/(CR-35)/II-C, dated 28th April, 2000.--In exercise of the powers conferred by sub-section (3) of section 32-A of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964), the Government of Maharashtra hereby authorizes the Secretary of the Agricultural Produce Market Committee, Pune, District Pune as "authorized officers" for the purposes of the said section 32-A.

 

(vii)   [135]No. APM. 10-2000/(CR-270)/II-C, dated 23rd October, 2000.--In exercise of the powers conferred by sub-section (3) of section 32-A of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964). the Government of Maharashtra hereby authorizes the Secretary of the Agricultural Produce Market Committee, Koregaon, District Satara as "authorized officers" for the purposes of the said section 32-A.

Section 32B - Power to write off loss, shortage or fee, etc. which is irrecoverable

[136][A Market Committee may write off any fee or other amount whatsoever due to it or whenever any loss of the Committee in money or store or other property occurs through any fraud or negligence of any person or for any other cause and, in the opinion of the Market Committee, the fee, amount, property or money is found to be irrecoverable or should be remitted, the Market Committee may order to write off or remit such fee, amount, property or money as lost or irrecoverable, as the case may be :

Provided that, where the amount due or the value of store or other property exceeds five hundred rupees, the Market Committee shall, before making any order to write off or remit as aforesaid obtain the sanction of the Director.

Section 32C - Power to make alternative arrangements during strikes

If any licensee or class of licensees dealing in any agricultural produce, whether perishable or not, go on strike or join any strike and the functioning of the market is disrupted, it shall be competent to the Market Committee to make such arrangements as are necessary in its opinion for running the market. Such arrangements may include the purchasing, storage or transport of the agricultural produce by the Market Committee itself with the approval of the Director.

Section 32D - Power to take steps to prevent purchases of agricultural produce below support price

It shall be the duty of the Market Committee to make such arrangements and to take such steps as may be prescribed to prevent purchase of agricultural produce in the market area below the support price fixed by the Government.

Section 32E - Power of Market Committee to evict from shop, gala, shed plot, or other premises and to remove encroachment

[137][A Market Committee, if convinced that any shop, gala, shed, plot or any other premises allotted or leased for purposes of sale and purchase of agricultural produce or such other purposes directly or indirectly connected with the sale and purchase of agricultural produce, is not used for the purpose for which the allotment was made or misused or where encroachment is made on the land of the Market Committee, after giving a reasonable opportunity of being heard to the person concerned, issue an order for eviction of the shop, gala, shed, plot or carry other premises or for removing the encroachment and the concerned local authority or the area shall provide all possible help for such eviction or removal of encroachment to the Market Committee.]

NOTES

For carrying out the purposes for which the Market Committee is established i.e. for regulating the marketing of agricultural produce in the market area it is authorized to raise money on the security of the property vested in it and also on the security of fees which the Committee might levy and collect under sec. 31.

Section 33 - Execution of contracts

(1)     Every contract entered into by the Market Committee shall be in writing and shall be signed on behalf of the Market Committee by its Chairman, or in the absence of the Chairman by the Vice-Chairman, and two other members of the Committee.

 

(2)     No contract other than a contract executed as provided in sub-section (1) shall be binding on the Market Committee.

Section 34 - Certain disputes regarding construction of rules, etc., about weights and measures to be decided by Market Committee

(1)     Notwithstanding anything contained in the Bombay Weights and Measures (Enforcement) Act, 1958, if any dispute arises between an Inspector appointed under that Act and any person interested as to the meaning or construction of any rule made under that Act or as to the method of verifying, re-verifying, adjusting or stamping any weight or measure or weighing or measuring instrument, in any market area, such dispute may, at the request of the party interested or by the Inspector of his own accord, be referred to the Market Committee; and the decision of the Market Committee shall, subject to the provisions of sub-section (2), be final and shall be deemed to have been given under section 20 of the Bombay Weights and Measures (Enforcement) Act, 1958.

 

(2)     An appeal shall lie within the time prescribed from the decision under sub-section (1) to the State Government or such officer as the State Government may appoint in this behalf. The decision of the State Government, or such officer, shall be final.

NOTES

(3)     Disputes about Weights and Measures between Inspector of Weights and Measures and a person interested.? Adequate supervision is necessary over the system of weighing the agricultural produce in the market and also for ensuring that correct weights are used. This can be done firstly by ensuring the use of the correct weights in the market and secondly, by providing supervision of the persons who are engaged in weighing.

Section 34A - Supervision over purchase of agricultural produce in any market or market area and payment of cost of supervision by purchaser

[138][CHAPTER IV-A

COST OF SUPERVISION

(1)     The State Government may, by general or special order, direct that the purchase of agricultural produce, the marketing of which is regulated in any market or market area under this Act, shall be under the supervision of such staff appointed by the State Government as it may deem to be necessary; and subject to the provisions of this Chapter, the cost of such supervision shall be paid to the State Government by the person purchasing such produce in such market or market area.

 

(2)     The cost to be paid by a purchaser shall be determined from time to time by the State Government and notified in the market or market area (in such manner as the State Government may deem fit), so however that the amount of the cost does not exceed five paise per hundred rupees of the purchase price of the agricultural produce which is purchased by such purchaser.

NOTES

(3)     The Maharashtra Government has been implementing the Cotton Monopoly Procurement Scheme under the Maharashtra Raw Cotton (Procurement, Processing and Marketing) Act, 1971, since 1972-73. An important aspect of the Scheme was the linking of the recovery of dues of the co-operative societies with the payment to be made to the growers for cotton tendered by them under the Scheme. During 1977-78 season, however, for want of adequate institutional financial support, the operation of certain sections of the Raw Cotton Procurement Act, which impart a monopoly character, had to be suspended. As a result, with the State Marketing Federation, the private traders also would now purchase cotton directly from the growers. In order to ensure effectively, in the changed circumstances, the continued linkage of the recovery of co-operative dues with the payment to be made for cotton tendered for sale, it was necessary to make certain amendments in the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 and the Maharashtra Co-operative Societies Act, 1960, immediately.

 

(4)     Under section 30A of the Agricultural Produce Marketing Act and section 48A of the Co-operative Societies Act, the responsibility of making deductions towards the dues of the societies is that of the purchaser. It was noticed that in the case of private traders most of the purchasing transactions on the market-yards were effected through their commission agents. It was necessary to make a specific provision to cast the responsibility of making deductions for co-operative dues on the commission agents and other persons also, who make payments of the price on behalf of other persons. It was, therefore, proposed to extend the scope of the expression "purchaser" used in section 30 A and in sections 31 and 34 A of the Marketing Act and section 48A of the Co-operative Societies Act, to a commission agent or other person, who pays the purchase price to the seller on behalf of the purchaser, so that he should while purchasing any agricultural produce make deductions for co-operative dues at specified rates and pay the amount deducted to the Market Committee, along with the dues of the Market Committee.

 

(5)     Under section 48 A of the Co-operative Societies Act, the amount of the deduction on account of loans advanced by the societies shall not exceed 60 per cent of the total amount to be paid by the purchaser, if the produce tendered for sale is kapas and certain other percentages in the case of other articles. However, the actual percentage rate of recovery under the monopoly scheme has been lower. It was necessary to amend section 48 A to take power to Government to notify within the existing maximum limits a specific rate at which purchasers should make deductions on account of co-operative dues. Since it was necessary to make such recovery from the price of cotton, whether ginned or unginned, the word "kapas" in section 48 A was required to be replaced by the word "cotton".

 

(6)     Since the cotton season had already commenced in Western Maharashtra and immediate action was required to be taken to amend the two Acts for the reasons stated above, and as both Houses of the State Legislature were not in session, the Governor of Maharashtra promulgated the Maharashtra Agricultural Produce Marketing (Regulation) and Maharashtra Co-operative Societies (Amendment) Ordinance, 1977, on the 27th September, 1977.- Statement of Objects and Reasons.

Section 34B - Supervision

(1)     The cost of supervision shall be collected by the Market Committee in the same manner in which the fee levied by it under section 31 is collected.

 

(2)     The cost of supervision collected by a Market Committee shall be paid to the State Government in the prescribed manner within a period of fifteen days from the close of the month in which such cost is collected.

Section 34C - Default of Market Committee in collecting or paying cost of supervision

If a Market Committee makes default in the collection or payment to the State Government of any sum or part thereof due in respect of the cost of supervision, the Director may direct that the said sum or part thereof, as the case may be, together with a penalty equal to one per cent. of such sum or part, shall be recovered from the Market Committee as an arrear of land revenue under section 57.

Section 35 - Power of Market Committee to employ staff

(1)     [139][A Market Committee may employ a Secretary and such other officers and servants as may be necessary for the management of the market, for the collection, maintenance, dissemination and supply of information relating to crops statistics and marketing intelligence and for carrying out its duties under this Act; and shall pay such officers and servants such salaries and allowances, pension or gratuity and shall contribute to any provident fund and pension fund which may be established for the benefit of such employees :

Provided that, all posts other than that of a Secretary shall, subject to such general or special directions which the Director may issue in this behalf, be created only with the prior approval of the Director.

(2)     The Secretary of the Market Committee shall be the Chief Executive Officer and the custodian of the records and properties of the Market Committee and shall exercise such powers as are conferred and perform such duties as are imposed upon him by or under this Act.]

 

(3)     The powers conferred by this section on the Market Committee shall be exercised subject to any rules which may be made in that behalf by the State Government.

Section 36 - Market Fund; its custody and investment

(1)     All monies received by a Market Committee [140][x x x] under this Act [141][(except the amount of such fees credited to the Election Fund under section 14 A)], all sums realized by way of penalty (otherwise than by way of a fine in a criminal case), all loans raised by the Committee, and all grants, loans or contributions made by the State Government to the Committee shall form part of a fund to be called the Market Fund.

 

(2)     The amount to the credit of a Market Fund shall be kept or invested in such manner as may be prescribed.

NOTES

(3)     The Market Committee drives income from the fees levied on (1) purchase of agricultural produce, (2) licensing fees levied in respect of licenses issued to Market functionaries such as traders, Commission Agents, brokers etc. and (3) Miscellaneous item such as rent from plots and stalls and sale price received on sales of plots under certain conditions, sale of certain types of agricultural requisites such as manure, fees received on issue of badges and gate passes, amounts received by way of penalty, subscription, fees for the market reviews and market information, the sale of copies of its by-laws and the fees for the supply of copies of its proceedings or authenticated documents, charges for sale of printed forms etc.

Section 37 - Purposes for which Market Fund may be expended

(1)     [142][The Market Fund may be expended for all or any of the following purposes, namely :-

 

(a)      the acquisition of a site or sites for the market;

 

(b)      maintenance, development and improvement of the market;

 

(c)      construction of, and repairs to, buildings necessary for the purposes of such market and for the health, convenience and safety of persons using it;

 

(d)      the provision and maintenance of standard weights and measures;

 

(e)      pay, pension, leave allowances, gratuities, compensations for injuries resulting from accidents, compassionate allowances and contributions towards leave allowances, pensions or provident fund of the officers and servants employed by the Market Committee;

 

(f)       [143][* * *]

 

(g)      the payment of interest on loan, if any, raised by the Market Committee and the provision of sinking fund in respect of such loan;

 

(h)     the collection and dissemination of information regarding matters relating to crop statistics and marketing in respect of the agricultural produce notified under section 4;

 

(i)       propaganda in favor of agricultural improvement and orderly marketing;

 

(j)       payment of allowances and travelling expenses to the members of the Market Committee and sub-committees; and of the Board constituted, if any, under section 10;

[144][(j 1) the payment of an honorarium to the Chairman and Vice-Chairman under section 21 A;

(j 2) giving grant or donation to any institution or body conducting any educational or welfare activities for the benefit of agriculturists in the market area, subject to the condition that the amount of such grant or donation does not exceed in the aggregate ten per cent. of the net amount remaining after deducting the expenditure from the revenues of the year immediately preceding the year in which such grant or donation is made;]

(k)      expenses of any Tribunal constituted under section 57;

 

(l)       [145][the payment of expenses incurred in auditing the accounts of Market Committee;

 

(m)    the payment of such contribution to State Marketing Board as may be notified under sub-section (2);

 

(n)     the making of any contribution to any scheme for development of agricultural marketing;

 

(o)      ?the provision of facilities, like grading services and communication of market information to agriculturists in the market area;

 

(p)      ?the payment of expenses on elections under this Act;

 

(q)      the incurring of expenses for research, extension and training in marketing of agricultural produce;

 

(r)      the prevention in conjunction with other agencies, State and Central Government, of distress sale of agricultural produce;

 

(s)      ?the promotion of co-operative marketing of agricultural produce;

 

(t)       ?the promotion of warehousing finance for benefit of small and marginal farmers;

 

(u)     towards expenses of any Tribunal constituted under section 57;

[146][(u 1) the expenses for prevention of distress sale of agricultural produce as well as to prevent purchases of agricultural produce in the market area below the minimum support price fixed by the Government or making purchases and sale of the agricultural produce during the strike of market functionaries or otherwise in the market area to the extent of fifty per cent. of the average of surplus earned during the last three years

(u 2) the expenses for opening temporary shops and retail outlets for carrying out the retail marketing;

(u 3) the expenses for creation of infrastructure for exporting agricultural produce and carrying out extension work in improved technology in agriculture production, within the ceiling mentioned in clause (u 1);

(u 4) the expenses for creating facilities in the market area for grinding, cleaning, packing processing, storage; warehousing (including cold storage) and transport from farms to the market area and from market area to the rail head "sea-port or airport;]

(v)      for any other purpose, with the previous approval of the State Government.]

 

(2)     [147][Every Market Committee shall, out of the Market Fund, pay, within two months from the date of expiry of the previous market year, to the State Agricultural Marketing Board an annual contribution at such rate, not exceeding ten per cent. of its gross annual income for the previous market year, and in such manner as the State Government may, by notification in the Official Gazette, specify from time to time, and having regard to the finances of a Market Committee or class or classes of Market Committees, different rates may be specified for different Market Committees or class or classes of Market Committees.]

NOTES

(3)     Scope. ? This section relates to the Market Fund, its custody and the purposes for which the Fund may be expended. The scope of these purposes has been considerably widened.? Statement of Objects and Reasons.

 

(4)     Acquisition of site or sites for the Market is a legitimate purpose towards which the Market Fund may be expended. For the following purposes the market fund can be expended-

 

(5)     Maintenance, development and improvement of the Market

 

(6)     Construction of and repairs to, buildings necessary for the purposes of such Market and for the health, convenience and safety of persons using it.

 

(7)     Provision and maintenance of standard weights and measures.

 

(8)     Pay, (2) Pension, (3) Leave allowances, (4) Gratuities, (5) Compensations for injuries resulting from accidents, (6) Compassionate allowances and contributions towards (i) leave allowances (ii) pensions of officer or, (iii) provident fund of officers and the servants of the Committee.

 

(9)     Expenses of, and incidental to, elections.

 

(10)   Payment of interest on loans, if any raised by the Market Committee and the provision of sinking fund in respect of such loan.

 

(11)   Collection and dissemination of information about crop statistics and marketing of agricultural produce etc.

 

(12)   Propaganda in favor of agricultural improvement and orderly marketing.

 

(13)   ?Payment of allowance and travelling expenses to the members of the Market Committees and Sub-Committees; and of the Board constituted if any, under sec. 10.

Section 38 - Manner of preparing budget, etc.

(i)       [148][The manner in which any payment from the Market Fund shall be made, its accounts shall be kept and audited or re-audited (including powers to be exercised by the auditor in that behalf), its annual, revised or supplementary budget estimates of income and expenditure shall be made (including provision for modifying, annulling or rescinding such budgets) and its annual administration report shall be prepared, shall be prescribed by rules made in that behalf,

 

(ii)      [149][Every Market Committee shall submit the budget to the State Marketing Board for sanction before the prescribed date every year. The State Marketing Board shall sanction the budget with or without modification, as the case may be, within one month from the date of receipt thereof. If the approval or otherwise of the budget is not communicated by the Board within one month of its receipt by it, the budget shall be deemed to have been sanctioned without any modifications.

 

(iii)     No expenditure shall be incurred by a Market Committee on any item if there is no provision in the sanctioned budget therefore unless it can be met by re appropriation from saving under any other budget head. The sanction for re appropriation may be obtained from the State Marketing Board :

Provided that, in case of re appropriation from one minor budget head to the other under one major budget head, such sanction for re appropriation shall not be required.

(iv)    A Market Committee may at any time during the year for which any budget has been sanctioned, cause a revised or supplementary budget to be passed and sanctioned in the same manner as if it were an original budget.]

Section 38A - Funds not to be utilized for certain proceedings filed or taken by or against officers in personal capacities

(i)       [150][No expenditure from the funds of a Market Committee shall be incurred for the purpose of defraying the cost of any proceeding filed or taken by or against any member, Chairman or Vice-Chairman of the Market Committee in his personal capacity. If any question arises whether any expenditure can be so incurred or not, such question shall be referred to and decided by the Director, and his decision shall be final.

 

(ii)      If any person incurs expenditure in violation of sub-section (1), the Director shall direct the person to repay the amount to the Market Committee within one month and where such person fails to repay the amount as directed, such amount shall, on the certificate issued by the Director, be recoverable as arrear of land revenue.

 

(iii)     The person against whom action is taken by the Director under sub-section (2) shall be disqualified to continue to be a member of the Market Committee for remainder of his term of office and shall also be disqualified for contesting for the next election including any next by-election of the Market Committee held immediately after the expiration of a period of one month during which such person has failed to pay the amount referred to in sub-section (2).]

NOTES

(iv)    Funds should be utilized for the following purposes.-payment from the Market Fund shall be made; (2) accounts of Market Fund shall be kept; (3) accounts of Market Fund shall be audited; (4) accounts of Market Fund shall be re-audited; (5) annual, revised or supplementary budget-estimate of income and expenditure shall be made, (6) Annual Administration Report shall be prepared.

 

(v)      Misuse of funds of Market Committee :- It cannot be held that disqualification under section 38 A (3) would operate only when the Director issues a certificate under sub-section (2) of section 38A. Mere recovery of funds of Market Committee illegally spent from the member may not be enough. The only effective method would be to disqualify him for the remainder of the term in case of failure to pay the amount referred to in sub-section (2) within one month to prevent him from contesting next election. It is for this purpose that section 38A was introduced to prevent misuse of the funds of the Market Committee. - Vilas Sahebrao Gadakh v. Additional Joint Registrar, 2004 (2) All M. R. 128 : 2004 (1) Mah. L. J. 824.

 

Section 39 - Making or recovery of trade allowance prohibited

No person shall make or recover any trade allowance in any market or market area in any transaction in respect of any agricultural produce.

[151][Explanation- For the purposes of this section, trade allowance means any deduction in cash or kind in price or rate of agricultural produce on account of any variation in the quality, weight, grade, container, sample or admixture.]

NOTES

Trade allowance in any form are not permitted.- It is found that trade allowance if permitted, gives an opportunity to the traders etc., to raise disputes on one pretext or another. Moreover it gives scope to the traders to adopt questionable practices. On these grounds it is considered proper to prohibit trade allowances in the market area.

Section 39A - Establishment of State Agricultural Marketing Board

[152][CHAPTER VII-A

STATE AGRICULTURAL MARKETING BOARD

(1)     The State Government may, for co-ordinating the activities of Market Committees and for exercising such other powers and performing such functions as are conferred or entrusted under this Act, by notification in the Official Gazette, establish, with effect from such date as may be specified in such notification, a State Agricultural Marketing Board to be called "The Maharashtra State Agricultural Marketing Board" [153][* * *]

 

(2)     The State Marketing Board shall be a body corporate by the name aforesaid and shall have perpetual succession and a common seal, and may in its corporate name sue and be sued and shall be competent to contract, acquire and hold property, both movable and immovable and, to do all other things necessary for the purposes for which it is established.

 

(3)     Notwithstanding anything contained in any law for the time being in force, the State Marketing Board shall, for all purposes, be deemed to be a local authority.

Section 39B - Constitution of State Marketing Board

The State Marketing Board shall consist of the following members, that is to say-

Explanation :- For the purposes of Chapter VIIA, the expression "member" means a member of the State Marketing Board.

NOTES

Establishment of State Marketing Board.- The status of the Bombay Agricultural Produce Market Committee constituted by incorporating a new sub-section (1 A) in section 13 of the Maharashtra Agricultural Produce Market (Regulation) Act, 1963 is different from the other Agricultural Produce Market Committees because of its area of operation, volume of trade, etc. The State Government has received number of representations from trader organizations to increase representatives of traders on the Market Committee. Considering such representations the Government has decided to increase the representatives of traders on the said Market Committee from two to five. As the said Market Committee is situated in Navi Mumbai, the Government considers it necessary to take nominee of the Navi Mumbai Municipal Corporation on the Market Committee. The existing provisions of section 13 (1 A) do not provide for representation of women and persons belonging to Scheduled Castes or Scheduled Tribes on the said Market Committee. It is therefore, also considered necessary to take two women and one representative of Scheduled Castes or Scheduled Tribes on the said Market Committee.

Section 39 B of the said Act provides that the Minister for Co-operation and the State Minister for Co-operation shall be the ex-officio Chairman and ex-officio Vice-Chairman, respectively, of the State Marketing Board. Now, as the Marketing Division has been separated from co-operation and allotted to the Cabinet Minister and the Minister of State (other than the Minister for Co-operation and the Minister of State for Co-operation), as an independent portfolio, the Government considers it necessary, for effective functioning, to amend the said section 39 B, so as to provide that the Minister and Minister of State having the portfolio of Marketing shall be as the Chairman and Vice-Chairman, respectively, on the State Marketing Board.-Statement of Objects and Reasons. [Mah. Act 33 of 2000. ]

Section 39C - Officers and servants of State Marketing Board

(1)     Subject to the superintendence of the State Marketing Board, the Managing Director shall function as the Chief Executive Officer of the State Marketing Board.

 

(2)     The State Marketing Board shall appoint such other officers and servants under the supervision and control of the Managing Director as it may consider necessary for the efficient discharge of its duties and functions under this Act.

Section 39D - Member not disqualified from contesting elections or as members of State Legislature or local authorities

Notwithstanding anything contained in any law for the time being in force, a member of the State Marketing Board referred to in clause (vi) or (viii) of section 39-B shall not be disqualified for being chosen as, and for being, a member of the State Legislature or Councilor of any local authority, merely by reason of the fact that he is a member of the State Marketing Board.

Section 39E - Term of office of members

(1)     The term of office of the member referred to in clause (vii) of section 39-B shall ordinarily be three years from the date of his nomination as such member.

 

(2)     Notwithstanding anything contained in sub-section (1), the term of office of a member of the State Marketing Board shall, unless the State Government terminates his membership earlier or he resigns his membership, come to an end as soon as he ceases to hold any office, or the office under Government, the Market Committee, the National Bank of Agricultural and Rural Development (NABARD), or as the case may be, the Maharashtra State Market Committees' Co-operative Federation, by virtue of which he holds the membership of the State Marketing Board under section 39 B :

Provided that, the membership of the Agricultural Marketing Adviser to the Government of India or his representative shall not be terminated under this section without the concurrence of that Government.

Section 39F - Casual vacancies

Where a vacancy occurs on account of resignation, death or otherwise in the office of a member of the State Marketing Board, the vacancy shall be filled as soon as possible by nomination by the State Government of other person belonging to the category from which the former member was nominated, and the member so nominated shall hold office so long only as the member in whose place he is nominated would have held it if the vacancy had not occurred.

Section 39G - Members to act during vacancy; acts, etc., of State Marketing Board, etc., not to be invalidated by informalities

(1)     During any vacancy in the State Marketing Board the continuing members may act as if no vacancy had occurred.

 

(2)     The State Marketing Board shall have power to act, notwithstanding any vacancy in the membership or any defect in the constitution thereof; and such proceedings thereof shall be valid notwithstanding that it is discovered subsequently that some person who was not entitled to do so sat and voted or otherwise took part in the proceedings.

Section 39H - Resignation of members

A member of the State Marketing Board may resign his office by writing under his hand addressed to the Managing Director; and the resignation shall take effect from the date it is accepted.

Section 39I - Allowances of members

The members of the State Marketing Board, holding membership under clauses (v) to (viii) of section 39-B shall be paid from the Agricultural Marketing Development Fund, such fees and allowances as may be fixed by the State Government, from time to time, for attending its meeting and for attending to any other work, assigned to them by the State Marketing Board.

Section 39J - Functions and powers of State Marketing Board

Subject to the provisions of this Act, the Board shall perform the following functions and shall have power to do such things as may be necessary or expedient for carrying out these functions, namely :-

(i)       to co-ordinate the functioning of the Market Committees including programmes undertaken by such Market Committees for the development of markets and market areas;

 

(ii)      to undertake State-level planning of the development of agricultural produce markets;

 

(iii)     to maintain and administer the Agricultural Marketing Development Fund;

 

(iv)    to give advice to Market Committees in general or any Market Committee in particular with a view to ensuring improvement in the functioning thereof;

 

(v)      to supervise and guide the Market Committee in the preparation of plans and estimates of construction programme undertaken by the Market Committee;

 

(vi)    to make necessary arrangements for propaganda and publicity on matters relating to marketing of agricultural produce;

 

(vii)   to grant subventions or loans to Market Committees for the purposes of this Act on such terms and conditions as it may determine;

 

(viii)  to arrange or organize seminars, workshops or exhibitions on subjects relating to agricultural marketing;

 

(ix)    [159][to arrange for training to the members as well as to the employees of the Market Committee.]

 

(x)      to do such other things as may be of general interest relating to marketing of agricultural produce;

 

(xi)    to carry out any other function specifically entrusted to it by this Act;

 

(xii)   to carry out such other functions of like nature as may be entrusted to it by the State Government.

Section 39K - Regulations

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

 

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

 

(a)      the summoning and holding of the meetings of the State Marketing Board, the time and date when such meetings are to be held, the conduct of business at such meetings and the number of persons necessary to form a quorum thereat;

 

(b)      the powers and duties, the salaries and other conditions of service of officers and other employees of the State Marketing Board;

 

(c)      the management of the properties of the State Marketing Board;

 

(d)      the maintenance of accounts and the preparation of balance sheet and other financial statements;

 

(e)      any other matter for which provision is to be or may be required to be made in the regulations for carrying out the functions of the State Marketing Board under this Act.

Section 39L - Establishment and administration of Agricultural Marketing Development Fund

(1)     A fund to be called "the Agricultural Marketing Development Fund" is hereby established, which shall be maintained and administered by the State Marketing Board.

(2)     The following shall form part of, or be paid into, the Agricultural Marketing Development Fund (hereinafter called "the Development Fund") namely :-

 

(a)      all contributions received by the State Marketing Board from the Market Committees under sub-section (2) of section 37;

 

(b)      all contributions, grants or loans made or sanctioned to the State Marketing Board by the State Government;

 

(c)      any sums borrowed by the State Marketing Board, with the permission of the State Government;

 

(d)      all income or moneys received by the State Marketing Board from any other source whatsoever, including income from fees or charges levied by it or donations or grants received from any local authorities, market committees or other institutions and individuals;

 

(e)      such other sums as the State Government may, from time to time, specify.

 

(3)     All expenditure incurred by the State Marketing Board shall from time to time, be met out of the Development Fund, and the surplus, if any, shall be invested by the State Marketing Board in public securities or shall be deposited in any scheduled bank as defined in the Reserve Bank of India Act, 1934, or in a co-operative bank approved by the State Government for this purpose.

Section 39M - Power of State Marketing Board to borrow

Subject to such conditions as may be prescribed, the State Marketing Board may, for the purpose of providing itself with adequate resources, borrow money in the open market by issue of guaranteed or unguaranteed bonds, debentures, stocks or otherwise, or borrow money from any scheduled banks, or from such other banks or financial institutions as are approved, from time to time, by the State Government.

Section 39N - Utilization of the Development Fund

(1)     The State Marketing Board may utilize the Development Fund for discharge of its functions under this Act.

 

(2)     Without prejudice to the generality of the foregoing provision, the State Marketing Board may utilize the Development Fund for the following purposes, namely :-

 

(i)       payment of administrative expenditure of the State Marketing Board;

 

(ii)      payment of travelling and other allowances to its members;

 

(iii)     payment of legal expenses incurred;

 

(iv)    financial assistance to Market Committees in the form of loan or grant for acquisition of land for establishment of market yard or for constructing infrastructure facilities in the market area;

 

(v)      propaganda and publicity on matters relating to marketing of agricultural produce;

 

(vi)    training of officers and staff of the Market Committee and the State Marketing Board;

 

(vii)   imparting education in marketing of agricultural produce;

 

(viii)  organizing or arranging workshops, seminars or exhibitions on development of marketing of agricultural produce;

 

(ix)    general improvement of the regulation of marketing in the State;

 

(x)      providing technical and legal assistance to the Market Committees;

 

(xi)    any other purposes necessary for execution of the functions assigned to the State Marketing Board under this Act or as directed by the State Government.

Section 39O - Audit of accounts

(1)     The accounts of the State Marketing Board shall be audited annually by auditors of the Co-operation Department of the State Government on payment of such audit fees as may be fixed, from time to time, by the Registrar of Co-operative Societies.

 

(2)     The State Marketing Board may make arrangements for internal audit of its accounts, as if may deem fit.

Section 40 - Inspection, inquiry, submission of statements, etc.

The Director or any officer authorized by him by general or special order in this behalf, may -

(a)      inspect or cause to be inspected the accounts and offices of a Market Committee;

 

(b)      hold inquiry into the affairs of a Market Committee;

 

(c)      call for any return, statement, accounts or report which he may think fit to require such Committee to furnish;

 

(d)      require a Committee to take into consideration ?

 

(e)      any objection which appears to him to exist to the doing of anything which is about to be done or is being done by or on behalf of such Committee, or

 

(f)       any information he is able to furnish and which appears to him to necessitate the doing of a certain thing by such Committee, and to make a written reply to him within a reasonable time stating its reasons for doing, or not doing such thing;

 

(g)      direct that anything which is about to be done or is being done should not be done, pending consideration of the reply and anything which should be done but is not being done within such time as he may direct.

NOTES

(h)     Deletion of names from voters' list :- Agricultural Produce Market Act and Rules are a complete Code. Dispute about inclusion of wrong names or exclusion of names may be agitated after the election results are declared by way of petition and not earlier. Provisions of Representation of People Act, are different and cannot be applied to these proceedings. The High Court referred the case of Mehsana District Co-operative Sales and Purchase Union v. State of Gujarat, 1988 Guj. L. R. 1060. In the judgment rendered for the Division Bench in that matter, Ahmadi. J. held that rule 28 of the Gujarat Agricultural Produce Marketing Committee Rules. 1965 empowered the Competent Authority to decide about the validity or invalidity of election on the grounds that names of some persons have been wrongly omitted from the voters' list can be made under rule 28 after the result of the election is declared in an election petition and not earlier. In another case of S.S.S.J. S.S.D.U. Sanstha v. State of Maharashtra, 2002 (2) Bom. C. R. 149 (SC) : 2002 (1) Mah. L. J. 659 the Apex Court has noted that there is a distinction between the scheme of provisions of the Representation of People Act, 1951. They are two separate Acts to deal with two different stages of election process. The interpretation of the provisions are almost identical provisions in the A.P.M. (Reg.) Act. The same provision was observed in the case of Jyoti Basu v. Devi Ghosal, AIR 1982 SC 983 that the right of election, fundamental though it is to democracy, is anomalously enough neither a fundamental right nor common law right. It is a pure and simple, a statutory right. So is the right to be elected. So is the right to dispute an election. The provisions of the Representation of People Act are different and cannot be applied to the proceedings of the present case.- Digambar Sadashiv Ghorpade and others v. Election Registration Officer, Agricultural Produce Marketing Committee and others, 2003 (2) Bom. C. R. 532.

Section 41 - Duty of officers and members to furnish information to Director, authorized officers and State Government

(1)     When the affairs of a Market Committee are investigated under section 40 or the proceedings of such Committee are examined under section 43, all officers, servants and members of such Committee shall furnish such information in their possession in regard to the affairs or proceedings of the Committee as the Director, officer authorized or, as the case may be, State Government may require.

 

(2)     An officer investigating the affairs of Market Committee under section 40 or the State Government examining the proceedings of such Committee under section 43 shall have the 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.

Section 41A - Powers of the Directors to prohibit execution of resolution passed or order made by Committee, etc.

(i)       [160][The Director may, on his own motion, or on report or complaint received by him, by order, prohibit the execution of a resolution passed or order made by the Committee or its Chairman or Vice-Chairman or any of its officer or servants of the Market Committee, if he 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 provision of this Act or the rules or bye-laws made there under.

 

(ii)      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 Director, to take any action which the Market Committee would have been entitled to take, if the resolution or order had never been passed or made and which is necessary for preventing the Chairman or Vice-Chairman or any of its officers or servants from doing or continuing to do anything under such resolution or order.]

Section 42 - Seizure of account books and other documents

Where the Director has reason to believe that the books and records of a Market Committee are likely to be tampered with or destroyed or the funds or property of a Market Committee are likely to be misappropriated or misapplied, the Director may issue an order directing a person duly authorized by him in writing to seize and take possession of such books and records, funds and property of the Market Committee, and the officer or officers of the Market Committee responsible for the custody of such books, records, funds and property, shall give delivery thereof to the person so authorized.

NOTES

Obstructing any person who has been duly authorized in writing to seize and take possession of books, records, funds and property of the Market Committee is an offence punishable with fine up to Rs. 200 under sec. 51.

Section 43 - Powers of State Government or Director to call for proceedings of Market Committee, etc. and to pass orders thereon

[161][The State Government may at any time call for and examine the proceedings of any Market Committee or of the Director, and the Director may at any time call for and examine the proceedings of any Market Committee or any officer empowered to exercise the powers of the Market Committee or of the Director for the purpose of satisfying itself or himself, as the case may be, as to the legality or propriety of any decision or order passed by the Market Committee, Director or the officer, as the case may be, under this Act. If in any case, it appears to the State Government or the Director that any decision or order or, proceedings so called for should be modified, annulled or reversed, the State Government or the Director may pass such order thereon as it or he may think fit.]

NOTES

Exercising powers arbitrarily or capriciously or in the absence of good faith. - Wide are the powers of Government as it cannot exercise these powers arbitrarily or capriciously or in the absence of good faith.? Per Chagla, C. J. in State of Bombay v. Chhaganlal, 56 Bom. L. R. 1094.

Object of amalgamation.- With a view to securing efficient regulation of marketing of any agricultural produce in any market area, it becomes necessary sometimes to amalgamate two or more Market Committee in the area to divide a single Market Committee into two or three Market Committees.

Object of division.- If it is found that a Market Committee which are undertaking of regulation of purchase and sale of various agricultural commodities may not be able to concentrate on the orderly marketing of agricultural produce, separate Market Committees are required to be established for regulating purchase and sale of certain agricultural commodities and thus both the Market Committees would be in a better position to serve cultivators and trading community as required in the marketing legislation.

Section 44 - Amalgamation or division of Market Committees

(1)     Where the State Government is satisfied that for securing efficient regulation of marketing of any agricultural produce in any market area, [162][and for ensuring the economic viability of the Market Committee] it is necessary that two or more Market Committees therein should be amalgamated or any Market Committee therein should be divided into two or more Market Committees, then the State Government may, after consulting the Market Committees or Committee, as the case may be, [163][and the [164][State Marketing Board]] by notification in the Official Gazette, provide for the amalgamation or division of such Market Committees into a single Market Committee or into two or more Market Committees, for the market area in respect of the agricultural produce specified in the notifications with such constitution, property, rights, interests and authorities and such liabilities, duties and obligations (including provision in respect of contracts, assets, employees, proceedings, and such incidental, consequential and supplementary matters as may be necessary to give effect to such amalgamation or as the case may be, the division) as may be specified in the notification.

 

(2)     Where more Market Committees than one are established in any market area under sub-section (1), the State Government may, notwithstanding anything contained in this Act, issue general or special directions as to which of the Market Committees shall exercise the powers, perform the duties and discharge the functions of the Market Committee under this Act, in which they are jointly interested or which are of a common nature.

 

(3)     Where any directions are issued under sub-section (2), the cost incurred by a Market Committee in pursuance of the directions shall be shared by the other Market Committees concerned in such proportion as may be agreed upon or in default of agreement, as may be determined by the State Government or such officer as that Government may direct in this behalf. The decision of the State Government or such officer shall be final.

NOTES

(4)     The consequence of the removal of the Committee by a notification in the Gazette will be that, (1) all the members of the Committee shall be deemed to have vacated their office; (2) the property of the Market Committee shall 'vest' in Government. But the liabilities will remain unaffected and they will have to be met.

(5)     Vest :? As held in F.I.V. Merchants Union v. Improvement Trust, Delhi, AIR 1957 SC 344, the word 'vest' has no fixed connotation. It does not mean in all cases that the property is owned by the person or authority in whom it vests.

 

(6)     Division of Market Committee by Sub-Registrar under section 44 : Whether valid :- Wherever consultation with concerned bodies is provided under the Act, provision is mandatory and has to be complied with. Even if a resolution was passed in a Committee the matter was not on the agenda and it could not be effective consultation. Consultation has to be real, effective, meaningful in accordance with law. The High Court relied upon the decision passed in Appasaheb Sheshrao Chavan v. State of Maharashtra, 2000 (1) Bom. C. R. 657. - Kalwan Agricultural Produce Marketing Committee and others v. State of Maharashtra and others, 2003 (5) Bom. C. R. 656 : 2003 (3) Mah. L. J. 442.

Section 45 - Supersession of Market Committee etc.

(1)     If, in the opinion of the State Government, a Market Committee or any member thereof, is not competent to perform or persistently makes default in performing the duties imposed on it or him by or under this Act, or abuses its or his powers or willfully disregards any instructions issued by the State Government or any officer duly authorized by it in this behalf arising out of audit of accounts of the Market Committee or inspection of the office and work thereof, the State Government may, after giving the Committee or member, as the case may be, an opportunity of rendering an explanation, by notification in the Official Gazette, with reasons therefore, superseded such Market Committee, or remove the member, as the case may be; and where a member is removed, the State Government shall appoint any person as a member of such Committee in his place for the remainder of his term of office :

[165][Provided that, no Market Committee shall be superseded without the [166][State Marketing Board] referred to in section 44 being previously consulted.]

(2)     Upon the publication of a notification under sub-section (1) superseding a Market Committee, the following consequences shall ensue, that is to say ?

 

(a)      all members of the Market Committee shall as from the date of such publication be deemed to have vacated their office;

 

(b)      all the property vesting in the Market Committee shall, subject to all its liabilities, vest in the State Government;

 

(c)      the State Government may by order, either constitute a new Market Committee in accordance with the provisions of Chapter III or make such arrangements for the carrying out of the functions of the Market Committee as it thinks fit.

[167][Provided that, the person appointed as an Administrator under clause (c) for carrying out of the functions of the Market Committee shall, within the period of six months from assuming the charge ensure that the elections to the Market Committee are held within that period. If such person fails to hold the elections within the said period, the Director may, after satisfying himself about proper justification for not holding elections, grant extension of not more than six months, for enabling the Administrator to hold such election.]

(3)     If the State Government makes an order under clause (c) of sub-section (2), it shall transfer the assets and liabilities of the Market Committee, as on the date of such transfer, to the new Market Committee constituted as aforesaid or to the person or persons, if any, appointed for the carrying out of the functions of the Market Committee, as the case may be.

 

(4)     If the State Government does not make such an order, it shall transfer all the assets of the Market Committee which remain after the satisfaction of all its liabilities, to a local authority within whose jurisdiction the Market Committee is situated and if there are more than one such local authorities, to each of such local authorities, such portion of the property as the State Government may decide.

 

(5)     The local authority to which the assets of a Market Committee are transferred under sub-section (4) shall utilize such assets for such objects in the area within its jurisdiction as the State Government considers to be for the benefit of the agriculturists in that area.

NOTES

(6)     Procedure that supersession prescribed under section 45 (1) is not violative of Article 14 of the Constitution :- Section 45 (1) of the Act contemplates taking action for supersession only when the Market Committee or its members are not competent to perform or persistently make default in performing the duties imposed upon them under the Act or abuse their powers or willfully disregard any instructions given by the State Government in that behalf. There are guidelines indicating as to when and on what grounds the power has to be exercised. The compliance with the rule of audi alterem partem has been ensured in the scheme of sub-section (1) of section 45 in as much as written notice is given to the members of the Market Committee which is sought to be superseded. The notice as to set out the charges in extension to give details thereof. The replies are elicited from the members of Market Committee. Sufficient opportunity to represent the case is to be given. The procedure laid down by section 45(1) of the Act cannot be said to be arbitrary or violative of Art. 14 of the Constitution of India. - Pandurang Eknath Khose and others v. State of Maharashtra, 1998 (2) Mah. L. J. 873 : 1998 (3) All M. R. 495.

Section 46 - Penalties for contravention of section 6

Whoever in contravention of the provisions of sub-section (1) of section 6 uses any place in the market area for marketing of any agricultural produce, or operates as a trader, commission agent, broker, processor, weigh man, measurer, surveyor, warehouseman or in any other capacity, without a valid license, shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to [168][five thousand rupees,] or with both; and in the case of a continuing contravention, with a further fine which may in the case of contravention of clause (a) of sub-section (1) of section 6 extend to one hundred rupees; and in any other case, to fifty rupees per day, during which the contravention is continued after the first conviction.

NOTES

Penalty.- Contravention of the provisions of sec. 6(1) by any person would make him liable to punishment of imprisonment up to six months or fine up to five thousand rupees or both.

In the case of continuing contravention of sec. 6(a) the punishment of fine is up to Rs. 100 per day and in any other case to fifty rupees per day so long as the contravention continues."Suit for injunction instituted restricting commission agent not holding license -maintainable".? Taj Mohammed and others v. Agricultural Produce Market Committee, Nagpur, 1981 Mah. L. J. 453.

Section 47 - Penalty for not complying with directions under section 26 (2)

If the outgoing Chairman or Vice-Chairman to whom a direction has been issued under sub-section (2) of section 26 does not, except for reasons beyond his control, comply with such direction, he shall, on conviction, be punished with simple imprisonment for a term which may extend to one month or with fine which may extend to five hundred rupees, or with both.

NOTES

If the outgoing Chairman or the Vice-Chairman refuses to comply with the order of the Director etc., to immediately handover charge of his office and all the papers and property of the Market Committee if any, in his possession to the new office-bearer i.e., the Chairman or Vice-Chairman as laid down in sec. 26 (2) he shall be liable to punishment of simple imprisonment up to one month or fine up to Rs. 500/- or with both.

Section 48 - Penalty for making or recovering trade allowance

Whoever in contravention of the provisions of section 39 makes or recovers any trade allowance shall, on conviction, be punished with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees or with both.

NOTES

Making or recovery of trade allowance in the 'Market' or 'Market area' in any transaction in respect of declared agricultural produce is looked upon with disfavor by the Legislature as it gives rise to undesirable practices; See Notes to sec. 39.

Section 49 - Penalty for failure to obey order under section 40

Whoever obstructs any officer in carrying out the inspection of accounts or holding an inquiry into the offices of a Committee or fails to obey any order made under clause (a), (c), (d) or (e) of section 40 shall, on conviction, be punished with fine which may extend to two hundred rupees for every day during which the offence continues.

NOTES

Obstructing any officer in carrying out his duties of inspection of accounts or in respect of holding an inquiry into the affairs of the Market Committee under sec. 40 (a) or (b) by any person is a grave offence and requires adequate punishment.

Section 50 - Penalty for contravening provisions of section 40 or 43

If any officer, servant or member of a Market Committee, when required to furnish information in regard to the affairs or proceedings of a Market Committee under section 40 or section 43 -

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

 

(b)      willfully furnishes false information, he shall, on conviction, be punished with fine which may extend to five hundred rupees.

Section 51 - Penalty for contravention of section 42

Whoever in contravention of the provisions of section 42 obstructs any person in seizing or taking possession of any books, records, funds and property of the Market Committee or fails to give delivery thereof to such person shall, on conviction, be punished with fine which may extend to [169][five thousand] rupees.

Section 52 - General provision for punishment of offences

Whoever contravenes any provision of this Act or any rule or bye-law, there under shall, if no other penalty is provided for the offence, be punished with fine which may extend to two hundred rupees.

Section 52A - Compounding of offence

(i)       [170][The Market Committee may accept from any person who has committed or is reasonably suspected of having committed an offence (other than contravention of sections 6 and 7) against this Act or the rules or bye-laws made there under by way of compounding of such offence ?

 

(ii)      where the offence consist of the failure to pay or the evasion of any fee or other amount recoverable under this Act or the rules or the bye-laws made there under, in addition to the fee or other amount so recoverable, a sum of money being not less than the amount of such fee or other amount and not more than five times such amount of fee or other amount with a minimum of two hundred and fifty rupees; and

 

(iii)     in any other case, a sum of money not exceeding one thousand rupees.

 

(iv)    [171][The Director may accept from any person who has committed or is reasonably suspected of having committed an offence in contravention of section 6 or the rules or bye-laws made there under a sum of money not exceeding rupees ten thousand by way of compounding such offence. The amount so accepted shall be credited with the Government Treasury. When an offence has been compounded, the offender, if in the custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence compounded.]

 

(v)      On the compounding of any offence under sub-section (1), no proceeding shall be taken or continued against the person concerned in respect of such offence, and if any proceedings in respect of that offence have already been instituted against him in any Court, the compounding shall have the effect of his acquittal.

Section 52B - Appeal

(1)     Save as otherwise provided elsewhere in this Act, any person aggrieved by a decision taken or order passed under any of the provisions of this Act may prefer an appeal ?

 

(a)      to the Director where such decision is taken or order is passed by the Market Committee, its Chairman, Vice-Chairman, Secretary or any other officer empowered to exercise the powers of the Director.

 

(b)      to the State Government, where such decision is taken or order is passed by the Director.

 

(2)     An appeal under sub-section (1) shall be made within a period of thirty days from the date of the decision or order appealed against.

 

(3)     The order passed in the appeal by the Director or the State Government, as the case may be, shall be final.]

NOTES

(4)     Sub-sec. (1-A).- The Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964) has been enacted with a view to regulate the marketing of agricultural and certain other produce in market areas and markets to be established therefore in the State and the matters connected therewith. The Act inter alia provides for penalties against the person who commit breach of the provisions of the Act but as the same are not followed strictly the very purpose of the Act is being defeated and it has therefore, become necessary to treat offences under the Act as cognizable offence- Statement of Objects and Reasons. [Mah. Act 11 of 2003.]

 

(5)     The various provisions of the Amending Act 27 of 1987 have been enacted only to further safeguard the interests of growers and for efficient functioning of the Market Committee. It cannot be said that there is no nexus between the amendments enacted by the Act 27 of 1987 and object sought to be achieved. Certainly each and everyone of the amendments enacted under the Amending Act 27 of 1987 would help to achieve the object as well as for more efficient functioning of the Market Committee. The power to suspend or cancel license of trader, given to President and Secretary under amended provisions of the Act is limited to short period and has to be scrutinized by the Committee of 18/20 persons. The affected party has also right to appeal under section 52 (B) of the Amending Act cannot be said to be arbitrary. -Sukhraj Bhikchand Jain v. State of Maharashtra and another, 1996 (3) Bom. C. R. 463 : 1996 (2) Mah. L.J. 511.

Section 53 - Members to be held responsible for misapplied funds

Every member of a Market Committee shall be personally liable for the willful misapplication of any funds to which he had been a party or which has happened through, or has been facilitated by, gross neglect of his duty as a member, and may be sued for the recovery of the monies so misapplied as if such monies had been the property of the State Government:

Provided that, no member shall be personally liable in respect of any contract or agreement made, or for any expenses incurred by or on behalf of the Market Committee, if the contract or agreement is made, or the expenses are incurred in good faith and in the due discharge of his duties; and the Market Fund shall be liable for, and be charged with, all costs in respect of any contract or agreement and all such expenses.

Section 54 - Chairman, Vice-Chairman, members, Secretary and servants of Market Committee to be public servants

The Chairman, the Vice-Chairman, the members, the Secretary and other officers and servants of a Market Committee shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

NOTES

The Chairman, the Vice-Chairman and other members constitute a Market Committee (sec. 11). The Chairman, the Vice-Chairman and other members as laid down in sec. 33 are authorized to sign the contracts entered into by the Market Committee. It will be binding on the Committee (sec. 33). The Chairman and Vice-Chairman have to perform various duties and exercise certain powers specified in the rules.

Section 55 - 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 purported 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 Market Committee, delivered or left at its office, and in case of any such member, officer, servant or person as aforesaid, delivered to him or left at his office or usual place of residence, 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.

 

(3)     Nothing in this section shall be deemed to apply to any suit instituted under section 54 of the Specific Relief Act, 1877.

NOTES

(4)     The notice for proper service in the case of the Market Committee must be delivered or left at its office. Tender of the notice to the Secretary would be proper service.

 

(5)     In the case of a member, officer, servant of the Committee etc., for proper service the notice should be delivered to him or left at his office or usual place of residence. There should be a specified statement to that effect in the plaint.

Section 56 - Trial of offences

(1)     No offence under this Act, or any rule or bye-law made there under shall be tried by a Court other than that of a Presidency Magistrate or a Magistrate of the First Class or a Magistrate of the Second Class specially empowered in this behalf.

 

(2)     No prosecution under this Act shall be instituted except by the Director or any officer authorized by him in that behalf or by the Secretary or any other person duly authorized by the Market Committee in that behalf.

 

(3)     No Court shall take cognizance of any offence under this Act or any rule or order made there under, unless complaint thereof is made within six months from the date on which the alleged commission of the offence came to the knowledge of the officer or person referred to in sub-section (2).

NOTES

(4)     Scope :? Under the new provision sums due to a Market Committee on account of any charge, cost, etc., shall also be recoverable as arrears of land revenue.?

 

(5)     Statement of Objects and Reasons.

 

(6)     Under sub-sec. (2) the Director or any person authorized by him may start prosecution; so also the Secretary or any person authorized by the Market Committee may do so. Sub-section (3) states that complaint must be made within six months from the date on which alleged offence came to the knowledge of the Director or the Secretary.

Section 57 - Recovery 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)     Any sum due to a Market Committee or account of any charge, costs, expenses, fees, rent, or on any other account under the provisions of this Act or any rule or bye-law made there under [172][or any sum due to an agriculturist for [173][any agricultural produce] sold by him in the market area which is not paid to him [174][as provided by or under this Act] shall be recoverable from the person from whom such sum is due, in the same manner as an arrear of land revenue.

 

(3)     If any question arises whether a sum is due to the Market Committee [175][or any agriculturist within the meaning of sub-section (2),] it shall be referred to a Tribunal constituted for the purpose which shall after making such enquiry as it may deem fit, and after giving to the person from whom it is alleged to be due an opportunity of being heard, decide the question; and the decision of the Tribunal shall be final and shall not be called in question in any Court or other authority.

 

(4)     [176][The State Government may constitute one or more Tribunals consisting of the Collector who has jurisdiction over the market area :

Provided that, the State Government may, if in its opinion it is necessary so to do in any case constitute a Tribunal consisting of one person other than the Collector (possessing the prescribed qualifications) who is not connected with the Market Committee or with the person from whom the sum is alleged to be due.]

(5)     [177][Except as otherwise directed by the Tribunal in the circumstances of any case, the expenses of the Tribunal shall ordinarily be borne by the party against whom a decision is given.]

NOTES

(6)     Disputes may arise about the amount due from any person. The Market Committee may fix any amount as due to it from any person arbitrarily and try to recover the same in a summary manner. This cannot be considered proper.

 

(7)     It is therefore, provided that if a person is dissatisfied with the order of the Market Committee that a particular sum is due from him the question should be referred to a one man Tribunal having the prescribed qualifications. The person constituting the Tribunal should not be connected with the Market Committee or the other party. The decision of the Tribunal shall be final and it is not to be questioned in any Court or authority. The High Court, of course, will have the power of superintendence under Articles 226 and 227 of the Constitution of India.

 

(8)     Recovery of market fees, service charges, etc. :- There is no provision under which the petitioner can be directed to deposit the expenses along with references made under sec. 57 of the A.P.M. (Reg.) Act. What the section 57 (5) of the Act explicitly provides is that the expenses of the Tribunal shall be ordinarily borne by the party against whom the decision is given. Therefore, the question of calculation of the expenses and payment of the same by the petitioner along with references under section 57 of the A.P.M. (Reg.) Act does not arise and these expenses will have to be determined when the references are decided and the same are to be ordinarily borne by the party against whom the decision is given. Therefore, the insistence on the part of the respondents to deposit the expenses prescribed under section 91 of the Maharashtra Co-operative Societies Act, at the time of filing of the references is clearly not sustainable.- Agricultural Produce Market Committee v. Asstt. Registrar Co-op. Societies and others, 2004 Vol. 106 (1) Bom. L. R. 509.

 

(9)     Recovery of dues from agriculturist by the commission agent is valid or not:- It will be seen from section 57, that all sums due from a Market Committee to the State Government can be recovered as land revenue. Similar provision is made in sub-section (2) in relation to any sum due to the Market Committee from any one, as also any sum due to agriculturist for any agricultural produce sold by him in the market area, which is not paid to him may also be recovered as land revenue. It is, therefore, obvious that sum must be payable to an agriculturist for it being recoverable as land revenue. A sum payable to a commission agent cannot, by very plain reading of the provisions of section 57 (2), be recovered via a Tribunal. The High Court, held that from the provisions of sec. 57 of the Act, that when a dispute arises as to what is the sum due when the matter shall be referred to the Tribunal, it is without jurisdiction and therefore, void for the reason that it was dispute between the commission agent and the petitioner-agriculturist who is not covered by the provisions of sec. 57 (2) of the Act. The Tribunal, therefore, had no jurisdiction whatsoever, to adjudicate upon the claim made by the commission agent. The Tribunal also has no jurisdiction to entertain the claim by the commission agent/broker, individual, under the provisions of the Act and the proceedings, therefore, were entirely without jurisdiction. The High Court quashed the order.- K. S. Agarwal v. Tribunal and Assistant Registrar and others, 2002 (4) Bom. C. R. 730 : 2002 (2) Mah. L. J. 522.

 

(10)   Broker cannot be a commission agent and vice versa :- Under the A.P.M. (Reg.) Act, a broker cannot be a commission agent while a commission agent cannot be a broker. The two are different and the responsibility is also different. The broker as per definition in section 2 (c) of the Act is an agent between the seller and the purchaser. The broker is a "dalal" and he gets brokerage/dalali while commission agent is a person who by himself or through his servants buys and sells the agricultural produce for any person, keeps it in his custody and controls it and makes arrangement to sell the product and collects payments therefore from the buyer, gives it to the seller and receives by way of remuneration a commission or percentage upon the amount involved in each transaction. In the case where the commission agent has sold the goods of the agriculturist but does not pay the price to the agriculturist and on proceedings taken under section 57 of the A.P.M. (Reg.) Act, an award is made calling upon him to the amount to the agriculturist, he cannot be heard to say that he is not liable to pay the amount on account of failure of the purchaser when paying the amount. Merely because a businessman purchasing the produce did not pay the amount to commission agent is no reason to get away from the liability to pay.-Namdeorao Krishnaji Gajabhaye v. A.P.M.C, Narkhed and another, 1992 (1) Mah. L. J. 49 : 1992 (2) Mah. L. R. 775.

 

(11)   Jurisdiction of Civil Court :- Since there is no specific provisions in the Maharashtra Raw Cotton (Procurement, Processing and Marketing) Act, 1971, ousting the jurisdiction of the Civil Court, High Court is of the considered view that the suit for recovery of the price of the sold cotton was perfectly maintainable in the Civil Court. - State of Maharashtra v. Madhavdas Jankidasji Molita, 2005 Vol. 107 (1) Bom. L. R. 410 : 2004 (4) Mah. L. J. 853 : 2004 (3) All M. R. 614.

 

(12)   Commission agent has right to recover dues of an agriculturist from trader under section 57 of the Act :- Section 57(2) of the A.P.M. (Reg.) Act inter alia provides for recovery of any sum due to an agriculturist for any agricultural produce sold by him in the market area which is not paid to him. The purpose of making the said provision is that a sum due to an agriculturist in respect of the agricultural produce sold by him in the market area and which is not paid be recovered in the manner as arrears of land revenue and in case if any question arises when a sum is due to any agriculturist, it may be referred to a Tribunal constituted for the purpose which shall after making such inquiry and after giving him an opportunity to be heard, decided the question; and decision of the Tribunal shall be final and shall not be questioned in any other Court or other authority. The High Court referred the judgment of M/s. K. S. Agarwal and others v. Tribunal and Assistant Registrar Co-operative Societies, Yawatmal, 2002 (4) Bom. C. R. 730 : AIR 2002 Bom. 324 where the following observations were made : "What is recoverable as land revenue under section 57 is any sum due to an agriculturist for any agricultural product sold by him in the market area, which is not paid to him. It is, therefore, obvious that the sum must be payable to an agriculturist for it being recovered as land revenue. A sum payable to a commission agent, cannot, from plain reading of the provisions of section 57 (2) be recovered via a Tribunal. Therefore, reference of dispute between commission agent and a partnership firm regarding sum payable to said agent to a Tribunal would be void and proceedings before a Tribunal would be without jurisdiction and void ab initio. The High Court quashed the order passed by the Tribunal under section 57 (2). - Shyamlal Narayan Asati and others v. Agricultural Produce Marketing Committee, Tiroda and others, 2003 (2) Bom. C. R. 172 : 2003 (1) Mah. L. J. 337.

 

(13)   Sum due must be to Market Committee or Agriculturist:- In the instant case an adatya (Commission Agent) purchased cotton from agriculturists for his principal. He also made payment of whole amount to the agriculturist on behalf of the Principal. However, the Principal failed to pay the amount to the adatya. He therefore, lodged a complaint before the Tribunal and urged therein his principal as also his guarantor as parties to the complaint.

 

(14)   It was held by the High Court that the amount claimed by the adatya was neither a sum due to the Market Committee nor to the agriculturist within the terms of sec. 57 (3). The fact that the plaintiff (adatya) has been described as an agriculturist is of no avail because he claimed the amount specifically in his capacity as a commission agent and not as an Agriculturist.- Hastimal Mishrimal Katari v. State of Maharashtra, 1997 (4) All M. R. 2.

Section 58 - Power of State Government to delegate powers

The State Government may, by notification in the Official Gazette, and subject to such conditions, if any, as it may think fit to impose, delegate all or any of the powers conferred [178][upon it to the Director or any other officer or person; and delegate any powers of the Director, to any other officer or person, specified in the notification.]

NOTES

Delegation of powers .- The Director has been delegated all powers exercisable by the Government under sections 3 (1) and (2), 4 (1) and (3), 17, 44 (1), (2) and (3) and 45.

"Notification delegating powers of State Government to the Director of Agricultural Marketing and Rural Finance not ultra vires.? Yadaorao and others v. Agricultural Produce Market Committee, Ann, 1974 Mah. L. J. 338.

NOTIFICATION

[179]No. APM. 1089/43455/379/11-C, dated 17th May, 1990.--In exercise of the powers conferred by section 58 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964), and of all other powers enabling it in that behalf, the Government of Maharashtra hereby delegates to the officers specified in column (1) of the Schedule hereto the powers exercisable by the State Government, or as the case may be, by the Director under the said Act, respectively specified against them in column 2 of the said Schedule.

SCHEDULE

Section 59 - Power to exempt Market Committees, etc., from provisions of Act

The State Government may, by a general or special order, in the Official Gazette, exempt any Market Committee or any class of persons from any of the provisions of this Act or any rules made there under, or may direct that such provision shall apply to such Market Committee or to such class of persons with such modifications not affecting the substance thereof as may be specified in that order :

Provided that, no order to the prejudice of any Market Committee shall be passed without an opportunity being given to such Market Committee to represent its case.

ORDERS

[180]No. Krubas. 1091/14233/49/11-C, dated 18th June, 1991.--In exercise of the powers conferred by section 59 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964), the Government of Maharashtra hereby exempts, the traders of commission agents who, for the purpose of export outside the country purchase agricultural produce outside the area of the Bombay Agricultural Produce Market Committee, Bombay, and enter the transactions in respect of such purchases in their books of accounts in the area of the said Market Committee, from the provisions of section 31 of the said Act, subject to the following conditions that -

(i)       they shall make a declaration in FORM 8 as prescribed under the Maharashtra Agricultural Produce Marketing (Regulation) Rules, 1967.

 

(ii)      they shall deposit with the Market Committee an amount equal to the market fee payable on such agricultural produces as prescribed;

 

(iii)     the Market Committee shall refund the amount of deposit to them immediately on production of the proof of export of the agricultural produce within thirty days from the date of declaration;

 

(iv)    if it is found that the goods brought in the market area are not exported within thirty days from the date of declaration, the said fee shall become leviable.

 

(v)      [181]No. APM. 1097/19110/57/11-C, dated 8th September, 1997.--In exercise of the powers conferred by section 59 of the Maharashtra Agricultural Produce Marketing (Regulation) Act. 1963 (Mah. XX of 1964) and of all other powers enabling it in this behalf (hereinafter referred to as "the said Act") the Government of Maharashtra hereby exempts from the date of publication of this Order in the Official Gazette, the traders who are engaged in the trade of Condiments and Spices in the principal market yard of Mumbai Agricultural Produce Market Committee, Vashi, Navi Mumbai from the provisions of sub-section (1) of sections 31, 34A and 34B of the said Act on the following conditions, namely :-

 

(vi)    that the transaction shall have taken place within the area of principal market yard, Vashi, Navi Mumbai.

 

(vii)   that the trader shall hold a valid license of Agricultural Produce Market Committee issued under section 7 of the said Act.

 

(viii)  The Condiments and Spices shall be marketed in the principal market yard at Vashi but shall be meant for consumption outside the market area of Mumbai Agricultural Produce Market Committee.

 

(ix)    that the trader shall submit the information as may be required by the Agricultural Produce Market Committee in the prescribed form, within a period of seven days as regards the Condiments and Spices sent outside the market yard along with adequate proof.

 

(x)      [182]No. APM. 1097/19110/57/11-C, dated 9th September, 1997.--In exercise of the powers conferred by section 59 of the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 (Mah. XX of 1964) and of all other powers enabling it in this behalf (hereinafter referred to as "the said Act") the Government of Maharashtra hereby exempts from the date of publication of this Order in the Official Gazette the traders who are engaged in the trade of importing of dry-fruits from outside country from the provisions of sub-section (1) of sections 31, 34 A and 34 B of the said Act on the following conditions namely :-

 

(xi)    that the transaction shall have taken place within the area of Principal Market Yard, Vashi, Navi Mumbai.

 

(xii)   that the importer shall hold a valid license of Agricultural Produce Market Committee issued under section 7 of the said Act.

 

(xiii)  the imported dry-fruits shall be marketed in the Principal Market Yard at Vashi but shall be meant for consumption outside the Market Area of Mumbai Agricultural Produce Market Committee.

 

(xiv)  that the importer shall submit the information as may be required by the Agricultural Produce Market Committee, in the prescribed form, within a period of seven days as regards the dry-fruits, imported and sent outside the Mumbai Market Area, along with the requisite profit.

Section 59A - Duty of local authorities to give information and assistance to Market Committee

[183][It shall be the duty of every local authority to give all the necessary information in the possession of or under the control of its officers to the Market Committee or to any officers of the Market Committee authorized by it in this behalf, relating to the import and export of agricultural produce into and out of the area of the local authority, free of any charges.It shall also be the duty of every local authority and its officers and staff, concerned with the collection of octroi, to give all the possible assistance to any officer of the Market Committee in exercising his powers and discharging his duties under this Act.

Section 59B - Duty of Police officer

It shall be the duty of every police officer to communicate, as soon as may be, to the Market Committee, any information which he receives regarding any attempt to commit or the commission of any offence against this Act or any rules or bye-laws made there under and to assist the Secretary or any officer or servant of the Market Committee demanding his aid in the exercise of his lawful authority.]

Section 60 - Rules

(1)     The State Government may, by notification in the Official Gazette, make rules for carrying into effect the purposes of this Act.

 

(2)     In particular, but without prejudice to the generality of the foregoing provision, the State Government may make rules, -

 

(a)      under section 4, for prescribing the manner of holding an inquiry;

 

(b)      under section 7, subject to which licenses may be granted, renewed or refused, and for prescribing the form, period and the terms, conditions and restriction (including provision for prohibiting brokers and commission agents from acting in any transaction both as a buyer or seller or on behalf of both the buyer and seller, and for prescribing the manner in which and the places at which auction of agricultural produce shall be conducted and the bids made and accepted and the places at which weighment and delivery of agricultural produce shall be made in any market or market area) and the maximum fees for licenses;

 

(c)      under section 10, for [184][prescribing the number and qualifications of persons] of the Board, the manner in which it shall be constituted and shall conduct the business for settling disputes (including provision for appointment of arbitrators, payment of fees and appeal, [185][for consulting technical persons, for laboratory analysis] as provided by that section);

 

(d)      [186][under section 12, for prescribing the guidelines for classification of the Market Committees;]

 

(e)      under section 14, for prescribing the manner in which members may be elected including all matters referred to in that section;

 

(f)       under section 20, prescribing the period for which a Chairman or a Vice-Chairman shall hold office;

 

(g)      [187][under section 21A, for prescribing the limit of the total amount of honorarium to be paid to the Chairman and Vice-Chairman of the Market Committee;]

 

(h)     [188][under section 27-A, for prescribing the other business which may be transacted in the general meeting of the Market Committee;]

 

(i)       under section 29, sub-section (2), under clause (j), for prescribing grading and standardization of agricultural produce and under clause (1) for prescribing other duties to be performed by Market Committees;

 

(j)       under section 34, prescribing the time within which an appeal shall be made;

 

(k)      under sub-section (3) of section 35, subject to which the powers conferred by that section on a Market Committee shall be exercised;

 

(l)       under section 36, for prescribing the manner in which the amount to the credit of a Market Fund shall be kept or invested;

 

(m)    under section 37, prescribing other functions of a Market Committee;

 

(n)     under section 38, for matters referred to in that section;

 

(o)      [189][under section 39M, for prescribing the conditions subject to which the State Marketing Board shall have power to borrow;]

 

(p)      under section 57, under sub-section (4), prescribing the qualifications of a person who shall constitute a Tribunal under that section;

 

(q)      for the periodical inspection of all weights and measures and weighing and measuring instruments in use in a market area;

 

(r)      prescribing the manner of control and supervision to be exercised by the Market Committee over Inspectors appointed under the Bombay Weights and Measures (Enforcement) Act, 1958;

 

(s)      for storing any agricultural produce brought to the market area;

 

(t)       for preparing plans and estimates for works proposed to be constructed partly or wholly at the expense of the Market Committee, and the grant of sanction to such plans and estimates;

 

(u)     for the manner in which the enquiry and inspection of the Market Committee shall be held;

 

(v)      prescribing the persons by whom and the form in which copies of documents or entries in the books of the Market Committee, may be certified and the fees to be charged for the supply of such copies;

 

(w)     ?for the keeping of a list of prices of agricultural produce in respect of which the Market Committee is established;

 

(x)      ?prescribing the matters in respect of which a Market Committee may make or the Director may direct the Market Committee to make bye-laws and the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such making, alteration or abrogation;

 

(y)      [190][for any other matter which is to be or may be prescribed].

 

(3)     The rules to be made under this section shall be subject to the condition of previous publication.

 

(4)     [191][Any rule made under this section may provide that if any purchaser fails to make the payment forthwith as required by sub-section (6) of section 30A, he shall be liable to pay interest from the date of sale to the date of payment at such rate as may be provided in such rule, such rate not being in excess of the maximum rate of interest fixed for unsecured loans under the Bombay Money-lenders Act, 1946. If no payment is made within 30 days from the date on which the agricultural produce is sold, it shall be recoverable by the Market Committee from the purchaser under section 57.]

 

(5)     Every rule made under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making modification in the rule or both Houses agree that the rule should not be made, the rule shall from the date of publication of a notification in the Official Gazette of such decision have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done under that rule.

NOTES

(6)     The rule making powers under the Act are of a normal character providing only the details of procedure for facilitating the working of Marketing Committees.

Section 61 - Bye-laws

(1)     Subject to any rules made by the State Government under section 60 and with the previous sanction of the Director or any other officer specially empowered in this behalf by the State Government, the Market Committee may in respect of the market area under its management make bye-laws for determining the quantity of agricultural produce for the purpose of its retail sale, for the regulation of the business (including meeting, quorum and procedure of the Market Committee) and the conditions of trading in the market area, including provision for refund of any fees levied under this Act.

 

(2)     Any bye-law made under his section may provide that any contravention thereof shall, on conviction, be punished with fine which may extend to one hundred rupees.

NOTES

(3)     The Market Committee is authorized to make bye-laws for the market area under its management with the prior sanction of the Director, or an Officer empowered by Government. Bye-laws should be in respect of ?

 

(4)     determining the quantity of agricultural produce for retail sale, (2) regulating business (including meeting, quorum and procedure of the Committee) and (3) conditions of trading in the market area and provisions for refund of any fees levied under the Act.

Section 61A - Powers of Director to direct making or amending bye-laws

(1)     [192] [If it appears to the Director that it is necessary or expedient in the interest of a market or Market Committee to make any bye-law or to amend any bye-law, he may, by order, require the Market Committee concerned to make the bye-law or to amend the bye-law within such time as he may specify in such order.

 

(2)     If the Market Committee fails to make such bye-law or such amendment of the bye-law within the time specified, the Director may, after giving the Market Committee a reasonable opportunity of being heard, by an order, make such bye-law or such amendment of the bye-law and thereupon subject to any order under sub-section (3), such bye-law or such amendment of the bye-law shall be deemed to have been made or amended by the Market Committee in accordance with the provisions of this Act or the rules made there under and thereupon such bye-law or amendment of bye-law shall be binding on the Market Committee and all concerned.

 

(3)     An appeal shall lie to the State Government from any order of the Director under sub-section (2) within thirty days from the date of such order and the decision of the State Government on such appeal shall be final.]

Section 62 - Powers of State Government to amend Schedule

The State Government may, after consulting the Market Committees concerned by notification in the Official Gazette, add to, amend or cancel any of the items of agricultural produce specified in the Schedule.

NOTES

Government is empowered to add, to amend or cancel any of the items of agricultural produce specified in the Schedule. But before exercising this power Government should consult the Market Committee concerned.? Report of Joint Committee.

Section 63 - Savings

Nothing contained in the Markets and Fairs Act, 1862, or 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 or any market therein or affect in any way the powers of a Market Committee or the rights of a holder of a license granted under this Act.

Section 64 - Repeal and Savings

(1)     On the commencement of this Act, the Bombay Agricultural Produce Markets Act, 1939, the Central Provinces and Berar Cotton Market Act, 1932, the Central Provinces and Berar Agricultural Produce Market Act, 1935 and the Hyderabad Agricultural Market Act, 1339 Fasli, shall stand repealed :

Provided that, the repeal shall not affect the previous operation of any enactment so repealed and anything done or action taken (including any appointment, delegation or declaration made, notification, order, rule, directions or notice issued, bye-law framed, Market Committees established, licenses granted, fees levied and collected, instruments executed, any fund established or constituted) by or under the provisions of any such enactment shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act, and shall continue in force unless and until superseded by anything done or any action taken under this Act.

(2)     Accordingly, any area or place declared to be a market area or any place or market declared to be a market under any enactment so repealed shall, on the commencement of this Act, be deemed to be the market area or market declared under this Act, the Market Committee established or constituted for the said market area or market and functioning immediately prior to such commencement shall be deemed, notwithstanding anything contained in this Act, to be the Market Committee constituted under this Act, or such market area, and where it is so declared or notified also for the agricultural produce specified in the declaration or notification; and all the members of such Committees shall be deemed to be members nominated by the State Government under sub-section (2) of section 13.

 

(3)     Any reference to any enactment repealed as aforesaid or to any provisions thereof or to any officer, authority or person entrusted with any functions there under, in any law for the time being in force or in any instrument or document, shall be construed, where necessary, as a reference to this Act or its relevant provisions or person functioning under this Act, and the corresponding officer, authority or person as the case may be, shall have and exercise the functions under such law, instrument or document.

 

(4)     The mention of particular matters in this section shall not affect the general application to this Act of section 7 of the Bombay General Clauses Act, 1904 (which relates to the effect of repeals).

Section 65 - Power to State Government to transfer assets, etc., in cases of Market Committees constituted for excluded areas under Bom. Act XXII of 1939

Where before the commencement of this Act, any area comprised in any market area was excluded from such market area under section 4 of the Bombay Agricultural Produce Market Act, 1939 and the area so excluded was declared as a separate market area under the said section 4 and a separate Market Committee was constituted therefore, and both the Market Committees continue to function immediately after such commencement and the assets, rights and liabilities of the separate Market Committee are not yet determined, then the State Government may, by notification in the Official Gazette, after consulting the Market Committees concerned, provide for the transfer of the assets, rights and liabilities of the Market Committee in relation to the area so excluded (including the rights and liabilities under any contract made by it) to the separate Market Committee on such terms and conditions as may be specified in such notification.

Section 66 - Removal of 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 purpose of removing the difficulty.

Schedule - SCHEDULE

SCHEDULE

(See section 2 (1) (a) and section 62)

(i)       Fibres ?

 

(ii)      Cotton (ginned and unginned)

 

(iii)     Sanhemp

 

(iv)    Cereals ?

 

(v)      Wheat (husked and unhusked)

 

(vi)    Paddy (husked and unhusked)

 

(vii)   Jowar.

 

(viii)  Bajri.

 

(ix)    Nagli.

 

(x)      Vari.

 

(xi)    Kodra.

 

(xii)   Maize.

 

(xiii)  Sarsav.

 

(xiv)  Bavto.

 

(xv)   Bailey.

 

(xvi)  Banti.

 

(xvii) China

 

(xviii)   Navani.

 

(xix)  Savi.

 

(xx)   [193][Tamarind seed.]

 

(xxi)  [194][Sago]

 

(xxii) [Rajgira]

 

(xxiii)   Pulses ?

 

(xxiv)   Tur.

 

(xxv)Gram.

 

(xxvi)   Udid.

 

(xxvii)  Mung.

 

(xxviii) ?Val.

 

(xxix)   Chola.

 

(xxx) Lang.

 

(xxxi)   Math.

 

(xxxii)  Peas.

 

(xxxiii) Kulthi.

 

(xxxiv) [195][......]

 

(xxxv)  Masur.

 

(xxxvi) Ghevda Beans.

 

(xxxvii)               [196][Splits (Dal) of pulses.]

 

(xxxviii)              Oilseeds ?

 

(xxxix) Groundnut (shelled and unshelled).

 

(xl)    Linseed.

 

(xli)   Sesamum.

 

(xlii)  Safflower.

 

(xliii) Ambadi.

 

(xliv) Coconut.

 

(xlv)  Cotton seed.

 

(xlvi) [197] [Sunflower seed]

 

(xlvii)   Castor seed.

 

(xlviii)  Khusrani.

 

(xlix) Niger-seed.

 

(l)       (Thymol (Ajwan seeds).

 

(li)      (Dilseeds(Shepa).

 

(lii)     [198][Neem and Neem-seed.]

 

(liii)   [199][Soyabean]

 

(liv)   [200][Dry Coconut (Copra)]

 

(lv)    Narcotics ?

 

(lvi)   Tobacco.

 

(lvii)  Gul, [201][[202](Sugar)] and Sugarcane

 

(lviii) ?Fruits ?

 

(lix)   Mango.

 

(lx)    Mosambi.

 

(lxi)   Santra.

 

(lxii)  Lemon.

 

(lxiii) [203][......]

 

(lxiv) Grapes.

 

(lxv)  Pomegranate.

 

(lxvi) ?Fig. "

 

(lxvii)   Chickoo.

 

(lxviii)  ?Strawberry.

 

(lxix) Melons.

 

(lxx)  Water-Melon.

 

(lxxi) Papaya.

 

(lxxii)   Guava.

 

(lxxiii)  Bor.

 

(lxxiv)  Falsa.

 

(lxxv)   Custard Apple.

 

(lxxvi)  [204][Grape Fruits.

 

(lxxvii) ?Apple.

 

(lxxviii)                Pineapple.

 

(lxxix)  Jam.

 

(lxxx)   Plum.

 

(lxxxi)  Peach.

 

(lxxxii) Pears.

 

(lxxxiii)                Leechi.

 

(lxxxiv)               Almond.

 

(lxxxv) Jack fruit.

 

(lxxxvi)               Nasptai.

 

(lxxxvii)              Cherry.]

 

(lxxxviii)             [205][wet dates. ]

 

(lxxxix)               Vegetables ?

 

(xc)   Potato.

 

(xci)  Onion.

 

(xcii) Tomato.

 

(xciii)    Suran.

 

(xciv)    [206][Leafy and other vegetables.]

 

(xcv) Yam potatoes.

 

(xcvi)    Sweet potatoes.

 

(xcvii)  Kochara.

 

(xcviii) Animal Husbandry Products ?

 

(xcix)    ?Eggs.

 

(c)      Poultry.

 

(ci)     Cattle.

 

(cii)    Sheep.

 

(ciii)  Goat.

 

(civ)  Wool.

 

(cv)   [207][......]

 

(cvi)  [......]

 

(cvii) [......]

 

(cviii)    Hides ad skins.

 

(cix)  [208][Ghee.]

 

(cx)   Condiments, spices and others ?

 

(cxi)  Turmeric.

 

(cxii) Ginger.

 

(cxiii)    Garlic.

 

(cxiv)    Coriander.

 

(cxv) Chilies.

 

(cxvi)    Cardamom and Pepper.

 

(cxvii)  Variali.

 

(cxviii) Betel nuts.

 

(cxix)    Betel leaves.

 

(cxx) Cashew nuts.

 

(cxxi)    ?Cummin (Jiru).

 

(cxxii)  ?Rai (Mustard).

 

(cxxiii) Methi.

 

(cxxiv) [209][......]

 

(cxxv)  [......]

 

(cxxvi) [......].

 

(cxxvii)                Gum.

 

(cxxviii)              Tamarind.

 

(cxxix) [210][Clove.

 

(cxxx)  Cinamon/Cussia.

 

(cxxxi) Nagkeshar.

 

(cxxxii)                ?Mango Chips.

 

(cxxxiii)              ?Kokam.

 

(cxxxiv)              Poppy seeds.

 

(cxxxv)               Nutmeg.

 

(cxxxvi)              Stone Moss.

 

(cxxxvii)             Star Ani seed.

 

(cxxxviii)            Cassia Indian.

 

(cxxxix)              Clove Leaves.

 

(cxl)  Caraway.

 

(cxli) Coriander seed.

 

(cxlii)    Coriander powder.

 

(cxliii)  Chilly powder.

 

(cxliv)  [Turmeric powder.]

 

(cxlv)    Grass and fodder-

 

(cxlvi)  Cattle feeds-

 

(cxlvii) Guwar.

 

(cxlviii)                Punvad.

 

(cxlix)  Agriculture ?

 

(cl)     [211][......]]

 

(cli)    Pisciculture.

 

(clii)  [212][Fish and other aquatic products.]

 

(cliii) Forest product ?

 

(cliv) Hilda.

 

(clv)  ?Gum.

 

(clvi) [213][......].

 

(clvii)    Lac.

 

(clviii)  [214][Bamboo.]

 

(clix) [Fire wood.]

 

(clx)  [215][Others -]

 

(clxi) [216][Flowers]

 

(clxii)    [217][Tea]

 

(clxiii)  [218][Wheat flour.]

 

(clxiv)  Dry fruits

 

(clxv)    [Edible oils.]