The Arunachal Pradesh Horticultural Produce Marketing and Processing Board Act, 2014

THE ARUNACHAL PRADESH (HORTICULTURAL PRODUCE, I]lARKETING AND PBOCESSING) BOARD ACT, 2014 (ACT NO. I OF 2014) (Received the assent ol the Governor on 30th May,2014 and published in lhe Arunacal Pradesh E.O. Gazette No 100, Vol. XXI dated 5th June, 2014) An Act to provide for improved regulation in marketing of horticultural produce, development ol eflicient marketing system by constituting State Marketing and Processing Board for promotion of horti-processing and horticultural exports, establishment and proper administration of markets for horticultural produce in the State of Arunachal Pradesh and to ensure level playing field lor competitlve markets to operate through setting up of minimum standards for facilities, procedures and system, thereby promoting the establishment of well administered and efficient infrastructure for marketing ol horticultural produce in and from the Sate ofArunachal Pradesh and matters connected therewith and incidental thereto. BE it enacted by the Government of Arunachal Pradesh in the SixtyJifth Year of the Republic of lndia, as follows : CHAPTER-I PRELIMINARY 1. (1) This Act may be called the Arunachal Pradesh Horticultural Produce Marketing and Processing Board Act, 2014. (2) lt shall extend to whole ofArunachal Pradesh. (3) lt shall come into force on such date as the Sate Government may by notilication in the Official Gazette appoint. 2. ln this Act unless the context othen /ise requires - (i) "Horticultural Produce" means all produce and commodities whether processed or unprocessed, ol Horticulture produce as are specified in the Schedule to this Acl or declared by the Government of Arunachal Pradesh by notilication under section 19 ol this Act and also includes a mixture of two or more than two products. Short title, Extent and commence- ment. Definition

1. (ii) "Horticulture grower/Producer" means a person who is bonafide Arunachalee and possesses land in Arunachal Pradesh who is engaged in production of horticultural produce by himself/ herself or by hired labour or otherwise, but not include any market funclionary (iii) "Board" means Arunachal Pradesh Horticultural Produce l/arketing and Processing Board established under section 3 of this Act.
2. (iv) "Business" means purchase, sale, processing, value addition, storage, transportation and connected to activities of Horticultural produce. (v) "Buyer" means a firm, a company or a Cooperative Society or Government agency, Public Undertaking/Public Agency or on behall of any other person or agent who buys or agrees to buy horticultural produce in the markel areas. (vi) "Bye-Laws" means the bye-laws made by the Board for the Committee under section of 78 of this Act.
3. (vii) "Chairman" means Chairman of the Board. (viii) "Commission agent" means a person who on behalf of his principal trader and in consideration ol a commission or percentage on the amount involved in such transaction buys horticultural produces and makes payment, keeps it in his custody and delivers it to the principal trader in due course or who receives and lakes in his custody horticultural produce lor sale within the market areas or from oulside the market area and sells the same in the market area and collect payment thereof from the buyer and remits the sale proceeds to his principal trader. (ix) "Committee" means horticultural produce market committee established under section ;
4. (x) "Contract farming" means farming by a person called "contract farming producei'under a written agreement with another person called "contract farming sponsol,'to the effect that his larm produce shall be purchased as specified in the agreement; Explanation : "Contract Farming Producef' means an individual horticultural growers or an association of growers by whatever name called registered under any law for the time being enforce.
5. (xi) "Cooperative Society" means a Cooperative Society of producers registered under the provisions of the Arunachal Pradesh Cooperative SocietyAct 1979 which deals in the purchase, sale, processing, or storage of Horticultural produce or is otheMise engaged in the business of disposal of horticultural produce.
6. (xii) "Export" means dispatch ol horticultural produce outside lndia.
7. (xiii) "Exporter" means a person who exports horticultural produce. (xiv) "E-trading" means trading in which billing, booking, contracting, negotiating, informa- tion exchange, record keeping, and other connected activities are done electronically on computeri lnternet.
8. (xv) "Labour" means, a person engaged in loading, unloading, lilling, stitch ing, emptying, carrying, cleaning, drying, grading, storing,stacking,bagging,stamping etc of any horticultural produce in the notified market area.
9. (xvi) "lmport" means bringing horticultural produce from outside lndia.
10. (xvii) "lmporters" means a person who imports horticultural produce from outside lndia. (xviii) "License" means license granted under section 25 ol the Act. (xix) 'Licensee" means a person or association, firm, company, public sector undertaking or soclety holding a license issued under this Act. (xx) "Market" means a market established under section 19 of this Act which includes market area, market yard/sub-yards and principal market. (xxi) (xxii) (xxiii) (xxiv) (xxv) (xxvi) (xxvii) (xxviii) (xxix) (xxx) "Market area" means area notified under section 19 of this Act. "Market charges" includes on account ol or in respect of commission, brokerage, weighing, measuring, loading, unloading, or carrying, cleaning, drying, sieving, stitching, slacking. hiring. gunny bags. stamping. bagging, storing, warehousing, grading, surveying, transporting and processing. "l\rlarket functionaries" means a trader. a commission agent. buyer, processor, a stockiest, and any other person as may be declared by the State Government. "Market Yards" in relation to a market area means a specified place and includes any enclosures, buildings or locality declared as such in any market by the State Government by notification. "Member" means Member of the Board and including the Chairman ot the Board. "Marketing" means all activities involved in the flow of Horticul-tural produce tromthe production points commencing lrom the stage of harvest till they reach the ultimate consumers. viz, grading, p rocessing. storage, transport, channels ol distribution and all other tunctions involved in the process. "Notification" means notification issued under this Act and published in the official gazette. "Notilied horticultural produce" means any horticultural produce notified under section ol this Act. "Person" means includes any individual, any company, or association whether corporate or not. "Producef'means a person who in his normal course ol avocation, grows, manufactures, rears or produces, as the case may be, (xxxi) (xxxii) (xxxiii) (xxxiv) (xxxv) (xxxvi) (xxxvii) (xxxviii) (xxxix) horticultural produce personally, through or otherwise but not doesn't includes a person who work as trader or a brokers or who is partner of the company or firm of traders or brokers otherwise engaged in the business of disposal or storage of horticultural produce other than grown, manufactured, reared or by himself through tenants or othenvise. "Prescribed" means prescribed by rule made under this Act. "Processing" means any one or more of a series of treatments relating to powdering, crushing, decorticating, dehusking,parboi- ling. polishing. Ginning. pressing. curing. cleaning, or any other manual, lvlechani cal, chemical or physical treatments to the raw horticultural produce or its products is subjected to. "Processor" means a person who undertakes processing of any notified holticultural produce on his own accord or on payment of a charge. "Private market yard" means such place other than the market yard/sub-market yard in the notified market area where infrastruc- ture has been developed and managed by a person for making of notified horti- cultural produce holding a license for this purpose under this Act. "Registration" means registration done under this Act. "Regulation" means regulations made by the Board under section-7o of this Act. "Retail rate" means sale of horticultural produce not exceeding such amount as may be prescribed. "State Government" means the Govern- ment of Arunachal Pradesh. "Seller" a person who sells or agrees to sell any horticultural produce. (xxxx) (xxxxi) (xxxxii) (xxxxiii) (xxxxiv) (xxxxv) "Tradef'means a person who in his course of business buys or sells any notified horti- cultural produce and includes a person engaged in processing of horticultural produce but doesn't includes growers. "Transportation" means taking horticul- tural produce by push cart, bullock cart, truck other vehicle etc. in course of business for marketing from one place to another. "Transportea' means a person who trans port horticulturai produce. "Value addition" means processing, grad- ing, packaging or other activities due to which value is added to horticultural pro- duce. "Managing Directof' means any person appointed by the State Government for the purpose of this Act. "Secretary" means the Secretary otthe mar- ket committee and includes any other offic- ers empowered to exercise such powers and functions of the secretary. Establishment of the Board. CHAPTER-II ESTABLISHMENT, CONSTITUTION, POWERS AND FUNCTIONS OF THE BOARD (1) The State Government may, by notification, for coordinating the activities of market and for developmenl, promotions, and regulation of horticultural produce marketing, establish the Arunachal Pradesh Horticu ltu ral Produce marketing and Processing Board. (2) The Board shall be a body corporate having perpetual succession and acommon sealand may sue and be sued in its corporate name and shall be competent to acquire and hold property both movable and immovable and to lease, sale or otherwise transfer any such property aimed to contract and to do all other things necessary for the purpose which it is established.

non-official Chairman, seven other Ex- Otficio members and trvo non-otficial members to be nominated/ appointed by the State Government in the following manner, namely :- (A) Ex-Ot icio Members i (i) TheCommissioner/Secretary(Horticulture)to the Governmenl ofArunachal Pradesh 'Vice- Chairman. (ii) The Commissioner/Secretary (Agriculture)to the Government of Arunachal Pradesh. (iii) The Secretary (Finance) or his representative to the Government of Arunachal Pradesh. (iv) The Registrar Cooperative Society or his Representative, Arunachal Pradesh. (v) The Director ol Horticulture, Arunachal Pradesh. (vi) The Director of Agriculture, Arunachal Pradesh. (vii) The Managing Director, of the Horticultural l\rlarketing Board who shall be the l\ilember Secretary. (viii) One representative of NABAFID, ltanagar. (B) Non-oflicial members :- (i) The President of Arunachal Chamber ol Commerce and lndustry. (ii) One of the horticultural progressive farmer. (1) The term and tenure of the Board shall be for (five) years. (a) "The term of the otfice of Chairman of the Board shall be for five years and the Chairman of the Board shall be appointed or nominated by the Governmenl from such non-official members of prominent public Ieaders or elecled Constitution ol the Board Term of office of the Chair- man and the non-otlicial members of the Board.

Disqualif ication of l\.4ember of the Board. Resignation of Members of Board. representative and shall not be removed from the post before the expiry oftenure as specified under the Act, unless, his removal is extremely warranted under law on ground of his/her involvement in the corrupt practice. lf State Government feel appropriate, the Chairman of the Board may be re-appointed for another term as deem fit. (b) The Chairman of the Board shall exercise such powers and functions as may be delegated to him by the Board or as may be prescribed." (2) The tenure of the Non-Official members of the Board shall hold office during the pleasure ol the State Government and shall come to an end as soon as he ceases to hold the office by virtue of which he was nominated. (3) Whenever there is a temporary vacancy in the office of the Chairman, the Vice-Chairman shall act as the Chairman during the period.

person shall be eligible to become a member of the Board who :- (a) Does not ordinarily reside within Arunachal Pradesh; (b) ls below years oi age ; (c) Has been removed under section 8 or Section 33 of this Act ; (d) ls of unsound mind;or (e) Has been declared insolvent or sentenced by a criminal court, whether within or outside Arunachal Pradesh for an offence involving immoral turpitude. Provided that the disqualification under clause (e) on the ground of a sentence by a criminal court shall not apply after the expiry of tenure lrom the date on which the sentence of such person has expired. The Chairman of the Board may resign by tendering his resignation to the State Government and a member other than the Chairman of the Board may resign from

membership by tendering his resignation to the State Government through the Chairman of the Board, and the seat of such Chairman or the member. as the case may be, shall become vacant on the date of acceptance of his resignation.

any non-otficial member of the Board who has become subject to any of the disqualilicatlon specified in section 6 or who is, in its opinion, is unlit to act, as a member or remiss in the discharge of his duties. Provided that before removing a member, the reasons for the proposed action to be taken shall be conveyed to him/her and his/her reply invited within a specified period and duly considered : Provided further that any vacancy of the ndn- official member shall be filled in as early as practicable. I (1) The Board shall have a Managing Director who shall be appointed by the State Government and consist of the following other otficers (i) One General Manager (ii) Two Assistant General Manager (Personnel, Accounting & Packaging) (Redesignated lrom the existing Deputy Manager) (iii) Seventeen Marketing Manager and Seventeen Assistant Marketing Managers (iv) One Accountant cum Cashier and such other office bearer as may be appointed by the State Government. (2) The l\,lanaging Director appointed under sub- section (l) shall also function as the Member Secretary of the Board and shallbe appointed from amongst the officers of Department of Horticulture or Department of Marketing or from the serving General l\,tanager of the Board. (3) The General Manager shall function as Chief Executive Ofticer of the Board and shail be nominated/appointed from the Deputy Managers of the Board on seniority basis by the State Government. (4) For the efficient discharge of dutles and functions o{ the Board and the Committees, the State Government, may appoint such other officers and employees including Civil Engineer on deputation as may be necessary. Removal of t\.,lembers ol Board. Appointment of Officers and Servants of the Board.

Allowances to Chairman and Non-Official members of the Board. (5) The Superintendence and control over all the officers and employees of the Board and Committees shall vest in the Managing Director of the Board. The Chairman and Non-Officialmembers of the Board shall be paid from the Marketing Development Fund for such sitting fees and allowances as may be prescribed. Powers and functions of Board. 11 . (1) The Board shall, subject to the provisions of this Act perform the following functions and shall have power to do such thing as may be necessary or expedient for carrying out the following functions. (l) Exercise superintendence and controlover all the Committees established and constituted under this Act. (ll) Coordinate the working of the Committees and other affairs thereof including progra- mmes undertaken by such Committees for the development of markets and market areas; (lll) Undertake the State Level Planning of the Development of Horticu ltu re produce markets; (lV) Administration of the lvlarketing Development Fund; (V) To give directions to the Committees in general or any Committees in particular with a view to ensure improvement thereof ; (Vl) Any other functions specifically entrusted to it by this Act ; and (Vll) Such other functions as may be entrusted to the Board by the State Government. (2) Without prejudice to the generality of the foregoing provisions, such functions of the Board shall also include-

(l) To approve proposals for selection ol new siles by the Committees for establishment of principal or sub-market yard; (ll) To approve proposallor constructing infrastruc- ture facilities in the market area such as grading, pack houses, storages. processing. other post harvest management facilities etc ; (lll) To supervise and guide the Committees in the preparation of plans and estimates of construction programme undertaken by the Committee : (lV) To execute all works chargeable to the Board' fund: (v) To maintain accounts and get the same audited in such form and in such manner as may be prescribed. (Vl)To publish annually at the close ol the financial year its progress report, balance sheet and statement of assets and liabilities and send copies thereof to each member of the Board and the Slate Government. (Vll) To undertake marketing extension activities in the Board for the lransfer of marketing technology and extension services. lt may also make necessary arrangement for propaganda and publicity on matters related to regulate marketing of an Horticulture produce and development of marketing ; (Vlll)To provide lacilities for the trajning of otficers and slaff ot committees and lhe Board after assessing the demand for trained personnel in Horticulture at all levels ; I To prepare and adopt budget for the ensuing rinancial year ; 1'ange or organize seminars/workshop/ . rtions, etc; on subjects related to rre mafteting ;

Powers and functions of the Managing Director of the Board. (Xl)To do such other things as may be of general interest to Committees or considered necessary for the efficient functioning of the Board : (Xll) To organize and promote grading and standardization of notified Horticu lture produce and e-trading ; and (Xlll) To set up Horticulture Produce Marketing Standards Bureau to perform such functions and duties as may be prescribed for the purpose of promotion of grading, standardiza- tion and quality certification of Horticulture produce in the State; The Managing Director of the Board shall :- (l) Exercise supervision and control over officers and staff of the Board in matters of executive administration, concerning accounts and records and disposal of all questions relating to the service of the employees in accordance with the procedure as may be prescribed ; (ll) lncur expenditure from the Marketing Development /corpus fund on the sanctioned items ol work i (lll) Havethe same powers as are conferred under the financial rules of the Slate Government on the Head of the Department and declared as head of the Department and exercise such other powers and discharge such other duties as may be prescribed; (lV) To sanction all type of leave, draw salaries, lA. Bills etc of all categories of employees under the Board ; (V) To be the appointing authority of group C and D employees including contingency staff. (Vl) Have the power to transfer employees Committee o{ the Board and vice-\, administrative grounds ; (Vll) ln case of emergency, directt or stoppage of any work and ( which requires the sanction

(Vlll) Prepare annual budget of the Board; (lX) Anange for internal audit of the Board and maintain records of the proceedings of the meeting of the Board in accordance with the procedure as may be prescribed ; (X) Take such steps as deemed necessary for execution of the decision of the Board ; (Xl) lnspect the construction work undertaken by the Committees either from their own tunds or loans and or grants provided by the Board or any other agencies and take corrective measures; (Xll) Report such acts either of the Committees or ol the Board which are contrary to the provisions laid down under this Act or rules and bye-laws made thereunder to the State Government ; and (Xlll) Take such steps as deemed necessary for etfective discharge of the tunctions of the

(1) The Board shall meet lor the transaction of its business at least once in every three months at such place and at such time as the Chairman may determine. (2) All proceeding of the Board shall be authenticated by the Chairman and the l\/lanaging Director ol the Board. (3) The Board shall conduct the business in such manner as may be prescribed by regulation.

All questions that may come up before a meeting of the Board shall be determined by a majority of votes of the members present and voting; and in case ol equality ol votes, the Chairman shall have a casting vote or the Chairman may overrule any decision of the Board as may be deemed necessary. Provided that if a meeting is adjourned for want 'rorum, no quorum shall be necessary at the next rg called for transacting the same business. Meetings of the Board. Quorum.

Act of the Board not be invalidated. Appointment of Sub- Committee. Delegation of Powers, Notification of intention of developing and regulating Marketino ol Notified Forti- cultural

No act or proceeding of the board shall be invalid by reason only on of the existence of any vacancy among its members or any defect in the constitution thereof.

Committees consisting of three or more members which shall include Chairman or Vice Chairman for the performance of any of its duties or functions or for giving advice on any matter incidental thereof and may delegate to such Sub-Committee any of its duties or functions as it may deem necessary. 1 7. The State Government shall exercise superintendence and control over the Board and its officers and may call for such information as it may deem necessary and, in the event of its being satisfied that the Board is not functioning properly, or is abusing its powers or is guilty of corruption or mis-management, it may suspend the Board and, tili such time as a new Board is constituted, make such arrangement forthe exercise of the functions ol the Board, as it may think lit : Provided that the Board shall be constituted within six months from the date of its suspension. 18. (1)The State Government may confened any power to the Board under this Act except power to make rules. (2) Subject to the provisions of this Act, the Board may by general or special order delegate to the l\,lanaging Director of the Board or Sub-Committee appointed by it or to any ofiicer of the Board any of powers and duties conferred on it by or under this Act as it may deem fit. CHAPTER - III REGULATION OF TRADING AND CONTRACT FARi'lING 19. (1) The State Government on its own or on the representation made by the growers or on the recommendation otthe Board may, by notification, declare its intention of exercising control over th. purchase, slorage, processing and sale of' Horticultural produce, in such area as ma'' specified in the notification, by inviting o' or suggestions from the general pul" period of thirty days from the date c ol notilication which shall be cons

(2) 20. (1) After the expiry of the period specified in the notilication issued under Sub-section (1), and afler considering objections and suggestions, if any, received before the expiry of the specified period, and alter making such inquiry, as may be necessary, the State Government may by notification, declare the area specified in the notification, or any portion thereof to be a market area forthe purpose of this Act and that marketing of all or any of the kinds of Horticultural produce specilied in the notification shallbe developed and regulated in such market area in accordance wath the provisions ol this Act. The State Government may, by notification ; (a) Alterthe limits of a market area by including, within it any other area in the vicinity thereof orby excluding therefrom any area comprised therein ; or (b) Amalgamate two or more market areas and constitute one committee thereof ; or (c) Split up a market area and constitute two or more committees thereol I or (d) De-Establish a market. (2) Every notification issued under sub-section ('l) shall define lhe limits of the area to be included in or excluded from a market area, or of the market area to be amalgamated into one, or of the area ol each of the markets to be de-established. as the case may, be and shallalso specify the period which shall not be less than six weeks from the date ot publication ol the notification within which objeclions or suggestions, if any, may be received by the State Government. Any person likely to be affected by the notification rbjections issued under Sub-section (1) may, hmit his objections or suggestions in writing to 'ltate Government. Notification of intention to alter Limits of or to split up market area to De- stablish a market .

l\ilarket yards, Sub-l\,4arket Yards, farmer's Consumer and private [,4arket Yards. (4) Objections and suggestions received under sub- section (3) within the stipulated period shall be considered and decided by the State Government and lhereafter the State Government may. by notification: (a) lnclude the area or any part thereof in the market area or exclude it therefrom : (b) Constitute a new Committee for the market area amalgamated ;or (c) Split up an existing market area and constitute two or more Committees for such areas, as the case may be : or (d) De-Establish a market. (5) Where a notification under sub-section (4) has been issued excluding such area in other market area, the State Government shall, after consulting the Board and the Committee concerned frame a scheme to determine what portion of the assets and other properties vested in one Committee shall vest in the Committees and in what manner the Iiabilities ol the Committees shall be apportioned between the two Committees and such scheme shall come into force on the date ol publication of the scheme in the Oflicial Gazette. (1) ln every market area, there may be- (l) Market yard managed by the Committee ; (ll) One or more than one sub-market yards managed by the Committee ; and (lll) Private market yards, private markets farmers and consumer markets managed by a person other than a Committee. (2) The Board may with the prior approval of' Government, by notification, declare an, place including any structure, encl, place, or locality in the market area yard or sub-market yards for th. area.

(1)The State Government may confened any power to the Board under this Act except power to make rules. (2) Subject to the provisions of this Act, the Board may by general or special order delegate to the l\,lanaging Director of the Board or Sub-Committee appointed by it or to any ofiicer of the Board any of powers and duties conferred on it by or under this Act as it may deem fit. CHAPTER - III REGULATION OF TRADING AND CONTRACT FARi'lING

(1) The State Government on its own or on the representation made by the growers or on the recommendation otthe Board may, by notification, declare its intention of exercising control over th. purchase, slorage, processing and sale of' Horticultural produce, in such area as ma'' specified in the notification, by inviting o' or suggestions from the general pul" period of thirty days from the date c ol notilication which shall be cons 79 (2)

(1) After the expiry of the period specified in the notilication issued under Sub-section (1), and afler considering objections and suggestions, if any, received before the expiry of the specified period, and alter making such inquiry, as may be necessary, the State Government may by notification, declare the area specified in the notification, or any portion thereof to be a market area forthe purpose of this Act and that marketing of all or any of the kinds of Horticultural produce specilied in the notification shallbe developed and regulated in such market area in accordance wath the provisions ol this Act. The State Government may, by notification ; (a) Alterthe limits of a market area by including, within it any other area in the vicinity thereof orby excluding therefrom any area comprised therein ; or (b) Amalgamate two or more market areas and constitute one committee thereof ; or (c) Split up a market area and constitute two or more committees thereol I or (d) De-Establish a market. (2) Every notification issued under sub-section ('l) shall define lhe limits of the area to be included in or excluded from a market area, or of the market area to be amalgamated into one, or of the area ol each of the markets to be de-established. as the case may, be and shallalso specify the period which shall not be less than six weeks from the date ot publication ol the notification within which objeclions or suggestions, if any, may be received by the State Government. Any person likely to be affected by the notification rbjections issued under Sub-section (1) may, hmit his objections or suggestions in writing to 'ltate Government. Notification of intention to alter Limits of or to split up market area to De- stablish a market . l\ilarket yards, 21 Sub-l\,4arket Yards, farmer's Consumer and private [,4arket Yards. 80 (4) Objections and suggestions received under sub- section (3) within the stipulated period shall be considered and decided by the State Government and lhereafter the State Government may. by notification: (a) lnclude the area or any part thereof in the market area or exclude it therefrom : (b) Constitute a new Committee for the market area amalgamated ;or (c) Split up an existing market area and constitute two or more Committees for such areas, as the case may be : or (d) De-Establish a market. (5) Where a notification under sub-section (4) has been issued excluding such area in other market area, the State Government shall, after consulting the Board and the Committee concerned frame a scheme to determine what portion of the assets and other properties vested in one Committee shall vest in the Committees and in what manner the Iiabilities ol the Committees shall be apportioned between the two Committees and such scheme shall come into force on the date ol publication of the scheme in the Oflicial Gazette. (1) ln every market area, there may be- (l) Market yard managed by the Committee ; (ll) One or more than one sub-market yards managed by the Committee ; and (lll) Private market yards, private markets farmers and consumer markets managed by a person other than a Committee. (2) The Board may with the prior approval of' Government, by notification, declare an, place including any structure, encl, place, or locality in the market area yard or sub-market yards for th. area. 81

person who desires to establish private yard for the purchase ol Horticulture produce direct lrom Horticulture, or for providing infrastructure lacilities, in any market area for :- (a) The process of the nolified Horticultural produce. (b) The Trade of notified Horticultural produce of particular specification ; (c) The export of notified Horticulture produce ; and Establishment of private yards, and direct purchase of Horticulture Produce from Horticultural producers. Establishment of consumer's or farmers markets and creation of post harvest management Facilities by the Farmers/ Horticulturist 0r

(1) (21 (3) (4) (d) The grading, packing and transaction in other way by value addition of notified Horticultural produce, shall make an application for obtaining license in accordance with the provisions of section of this Act. Consumer's orfarmeas market may be established by developing infraskucture as may be prescribed, by any person in any market area, and producer may, himself sell his Horticulture produce direct to the consumer in such market area. in the manner as may be prescribed. lr,larket service charge shall be collected on sale of Horticulture produce by the seller and shall be remitted to the proprietor of the consumer market. Save as otherwise provided in this Act, no market fee shall be leviable on the transactions undertaken in the consumer's or farmer's market. Notwithstanding anything contained in thisAct, any farmers and Horticulturist may, for his bonafide use, create post harvest management infrastructure facilities at the farm level such as grading standardization pack houses, storages (including cold storages), primary processing for Horticultural produce and other post harvest management facilities forwhich the Central or State Government may provide different scheme and the scheme under Horticulture Technology lvlission being .xecuted by the Department of Horticulture through .ectorate of Marketing under the lnspection of Governmenl of lndia.

Contract Farming Grant and renewal of license of Private yard. Power to cancel or suspend license oa 24. No person shall undertake contract larming unless registered under Section 37 of this Act, and shall have to enter into an agreement with contract farming producer on such form and in such manner as may be prescribed. 25. (1) Any person who under section desires to purchase notified Horticulture produce direct from the Horticulturer or the producer or wishes to establish a private market yard or under sub- section (1) of section 23 desires to establish consumer or ,armer markel in one or more than one market area, shall apply to the lvlanaging Director of the Board lor grant or renewal of license, as the case may be, lor such period, in such form, on such conditions and on payment of such lees as may be prescribed. (2) Application received under sub sectlon (1)for grant or renewalof license may be accepted or rejected for the reason to be accorded in writing, provided that license shall not be granted or renewed il :- (i) The Committee dues are outstanding against the applicants. (ii) The applicants are minor or bonalide ; (iii) The applicant has been declared defaulter under the Act and the rules and bye-laws made thereunder ; (iv) The applicant having been declared guilty in any criminal case and convicted with imprisonment; (v) The State Government is satisfied that granting or renewalof license to the applicant is not going to promote the interest of the producers; (vi) There ls any other reasons which the Managing Director of Board may consider to be against the interest of producers or consumers.

No person shall undertake contract larming unless registered under Section 37 of this Act, and shall have to enter into an agreement with contract farming producer on such form and in such manner as may be prescribed.

(1) Any person who under section 22 desires to purchase notified Horticulture produce direct from the Horticulturer or the producer or wishes to establish a private market yard or under sub- section (1) of section 23 desires to establish consumer or ,armer markel in one or more than one market area, shall apply to the lvlanaging Director of the Board lor grant or renewal of license, as the case may be, lor such period, in such form, on such conditions and on payment of such lees as may be prescribed. (2) Application received under sub sectlon (1)for grant or renewalof license may be accepted or rejected for the reason to be accorded in writing, provided that license shall not be granted or renewed il :- (i) The Committee dues are outstanding against the applicants. (ii) The applicants are minor or bonalide ; (iii) The applicant has been declared defaulter under the Act and the rules and bye-laws made thereunder ; (iv) The applicant having been declared guilty in any criminal case and convicted with imprisonment; (v) The State Government is satisfied that granting or renewalof license to the applicant is not going to promote the interest of the producers; (vi) There ls any other reasons which the Managing Director of Board may consider to be against the interest of producers or consumers.

provisions of this Act, any license issued or renewed under section 25, may be suspended ' cancelled by the Managing Director olthe Board affording the holder of such license the opn' being heard, on lhe lollowing grounds :- (a) Il the license has been obtained mis-represenlation or lraud ; or

(b) lf the holder of the license or any of his/her servant or any person acting on his/her behalf, commits a breach of any of the terms or conditions of license ;or (c) ll the holder of the license in combination with other license commits any act or abstains lrom carrying on his/her normalbusiness in lhe market area with the intention of willfully obstructing, suspending or stopping the marketing of notified horticultural produce in the market yard/sub-market yard and in consequences whereol the marketing of the nolified horticultural produce has been obstructed, suspended; (d) lf the holder ol the license has become an insolvent : or (e) lf the holder of the license incurs any disqualifica- tion as may be prescribed ; or (l) ll the holder of the license has committed of any offence under this Act, for the first time and committed the same offence within three years tor subsequent convictions. 27, (11 No person shall, except in accordance with the provisions of this Act and the rules and bye-laws made thereunder :- (i) Use any place in the markel area for the marketing of nolified horticultural produce and (ii) Operate in the market area as a market functionaries. (2) Nothing in sub-section (l) shall apply to the following sale or purchase ol such horticultural produce:- (i) Where the sale is made by the producer himsell to any person lor his/her domestic consumption in the quantity up to prescribed . limit ; purchase or sale ol which is made by a petty rder as may be prescribed; Begulation of marketing of Notilied horticultural produce.

Sale of notified horticultural Produce in the market. Establishment of the

(1) All notified horticultural produce shall ordinarily be sold in the marketyards, sub-marketyard orin the private yards ot the license holder, subject to the provision of sub-section (2) ; Provided that notified horticultural produce may be sold at other places to a license holder especially permitted in his behalf under section 22 and 23 of this Act : Provided further that it may not be necessary to bring Horticulture produce covered under contract farming to the market yard, sub-market yard or private yard and such Horticulture produce may be directly sold to contract farming sponsor from farmers fields. (2) The price of the notified Horticulture produce, brought for sale into the market yard, shall be settled by open auction or by any other transparent system as may be prescribed and no deduction shall be made kom the agreed price on any account whatsoever from the seller : Provided that the price of notified Horticulture produce in the private yards shall be settled in the manner as may be prescribed. (3) Weighment or measurement or counting of all the notified Horticulture produce so purchased shall be done by such person and in such manner as may be provided in the bye-laws. CHAPTEB - IV ESTABLISHMENT, CONSTITUTION, POWERS AND FUNCTIONS OF THE COMMITTEE IN DISTRICTS 29. (1) The State Government shall nolify, establish a Horticulture produce market Committee for every notified market area and shall specify itc headquarter. (2) Euery Committee established under . (1) shall be a body corporate, h.

succession and a common sea'

and be sued in its corporate n' the provisions ol section

acquire and hold property both movable and immovable and to lease, sell or otherwise transler any such property which may have become vested in, or been acquired by it, and to contract and to do all other things necessary for the purposes for which it is established : Provided that no Committee shall permanently lransfer any immovable properly excepl in pursuance of a resolution passed at a meeting convened specify for the purpose by a majority ol not less than threejorth of the members of the Committee and with the prior approvalof the

(1) The State Government shall nolify, establish a Horticulture produce market Committee for every notified market area and shall specify itc headquarter. (2) Euery Committee established under . (1) shall be a body corporate, h.

succession and a common sea'

and be sued in its corporate n' the provisions ol section 7 85 acquire and hold property both movable and immovable and to lease, sell or otherwise transler any such property which may have become vested in, or been acquired by it, and to contract and to do all other things necessary for the purposes for which it is established : Provided that no Committee shall permanently lransfer any immovable properly excepl in pursuance of a resolution passed at a meeting convened specify for the purpose by a majority ol not less than threejorth of the members of the Committee and with the prior approvalof the Board.

(1) The District Committee shallconsist of the following members of whom 8 (eight) shall be ex-officio members and two non-official members. (2) Ex-officiomembers :- (l) Deputy Commissioner/ADc - Chairman ; (ll) DHO/Districl Marketing Officer-Vice- Chairman (il r) DAO (rv) DVo (v) ABCS (vr) DFDO. (Vll) SDHOs shall function as Marketing Manager-cum-SecretaryiH DO Headqua(er. (Vlll) Assistant Nlarketing Managers or HMOS (3) The two non-official member shall be appointed by the State Government out ol a panel of names duly recommended by the Deputy Commissioner concerned to be filled in the manner provided hereunder:- '' One non-official member from the producers .f the notified market area; and r non-otficial member lrom lhe traders led under section from the notilied area. Constitution ot the Committee in Districts.

Term of office 31 of the member of the Committee. DiEualification of member of the Committee. Removal of members of the Committee. lvleeting ol the Committee (1 ) Subject to the provisions ol section 33 every non- official member ol the Committee shall hold otfice at the pleasure of the State Government. (2) The term of an ex-officio member of the Committee shall come to an end as soon as he cease to hold the office by virtue of which he was nominated. No person shall be eligible to become a member of the Committee if heincurs any of the disqualification specified under section 6 of lhis Act.

Government may, at any time during the period ol his office remove by notification. any member, if such member has, in its opinion,been guilty of misconduct or neglect of duty or has lost the qualification on the strength of which he was nominated: Provided that before the Board notilies the removal ol a member under this section, the reasons for his proposed removal shall be communicated to the member concerned and he shall be given an opportunity of tendering an explanation in writing : Provided lurther that any vacancy of the non- otlicial members arising as a result of death, resignation, retirement, transfer or removal shall be filled in as early as practicable. 34. (1) Committee shall meet for the transaction of its business at least once in three months provided that the Committee may in specialcircumstances meet at any time and at any place in the market atea. (2) The Chairman shall preside over meetings ol the Commitlee and if he/she is absent, the Vice- Chairman shall preside over the meeting of i' committee and if both are absent one members present in the meeting as chosen by the members present Chairman. (3) SubJect to the provisions oI this A shall conduct its business as r

35. No act of Committee or ol any Sub-Committee thereof or of any person acting as a member, Chairman, Vice Chairman, presiding Authority or Secretary of the Committee shall be deemed to be invalid by reason only of some defect in the constitution or appointment of such Committee, Sub-Committee, Members, Chairman, Vice-Chairman, presiding authority or Secretary of the Committee or on the ground that they or any of them were disqualified for such office, or that forrnal notice of the intention to hold meeting of the Committee orof the Sub-Committee was not given duly or by reason of such act having been done during the period of any vacancy in the olfice of the Chairman, Vice Chairman, or Secretary of the Committee or member of such Committee or Sub-Committee or for any other inlirmity not affecting the merits of the case. 36. (1) Subjecttothe provisions of this Act, the Committee may :- (a) enforce the provisions of this Act, and the rules and bye-laws made thereunder in the notified markets. (b) establish a market in the market area and provide such facilities for persons visiting in connection with the purchase, sale, storage, weighment and processing of horticultural produce concerned as the Board may, from time to time direct. (c) do such other act as may be required in the relation to the superintendence, direction and control of market or for regulating marketing ol horticultural produce in any place in the market area and Ior the purposes connected with the matters aloresaid, and for that purpose may exercise such powers provided under this Act ; and (d) do all such other acts which may bring complete transparency in the pricing system and transaction taking place in the market area. (2) Wilhout prejudice to the generality of the foregoing provisions, the Committee may :- (i) Maintain and manage the market yards and sub-yard market yards within the market area. Act of Committee not to be invalidated Powers and functions of the Committee.

8B (ii) Provide necessary facilities for the marketing and tacilities for the transportation of horticultural produce within the market yards and sub-market yards and outside the yards and within the sub-market yards and outside sub- market yards in the market area. (iii) Regulate, conduct or supervise the auction of notilied Horticultural produce in accordance with the provision and procedure laid down under the rules made under lhis Act or bye-laws of the Committee. (iv) Regulate the making. carrying out and enforcement or cancellation of agreements of sales weighment, delivery, payment and all other matters relating to the market of notilied Horticultural produce in the manner prescribed. (v) Provide for the settlement ol all disputes betyveen the seller and the buyer arising out on any kind of transaction Horticullural produce and all matters ancillary thereof. (vi) Take all possible steps to prevent adulteration of notilied Horticulture produce. (vii) Make registration for weighmen and labour for weighing and transporting of goods in respect of transactions held in the market yard or sub-yards (viii) Set up and promote public-private partnership in management of the markets. (ix) Promote public -private partnership for carrying out extension activities in its area viz, collection, maintenance and dissemination of information in respect of production. sale. storage. processing. prices and movement of notified Horticulture produce. (x) Levy, take, recover and receive rates, charges, fees and other sums of money to which the Committee is entitled. (xi) Regulate the entry of persons and vehicles, trattic into the market yard and sub-market yard visiting the market.

(xii) Compound otlences committed under this Acl (except section 27) or rules and bye-laws made thereunder. (xiii) Acquire land and dispose off any movable or immovable property for the purpose of efliciently carrying out its duties. (xiv) lnstitute or defend any suit, prosecution, action, proceeding, application or arbitration and compromise such suit, action, proceeding, application or arbitration. (xv) Keep a set of standard weights and measures in each principal market yard and sub-market yard against which weighment and measurement may be checked. (xvi) lnspect and venfy scales, weight and measures in use in a market area and also the books of accounts and other documents maintained by the market functionaries in such form and in such manner as may be prescribed. (xvii) Arrange to obtain fitness (health) certificates from which are bought or sold in the market yard or market area. (xviii) Cany out publicity about the benetits of regulation, the system of transaction, facilities provided in the market yard etc; through various means such as poster, pamphlets, hoardings, cinema slides, film shows, group meetings, electronic media etc; or through any other means considered more etleclive 0r necessary. (xix) Ensure payment in respect of transaction which take place in the market yard to be made on same day to the sellel, and in default to seize the Horticultural produce in question alongwith other property of the person concerned and to arrange tor re-sale thereof and in the event of loss, to recover with charges lor recovery of the losses, if any, lrom the original buyer and effect payment of the price of the Horticulture produce to the seller.

Registration of market functionaries (xx) Recover the charges in respect of weighmen and distribute the same totheweighmen and iabour if not paid by the purchaser or seller, as the case may be. (xxi) Collect and maintain information in respect of production. sale, storage. processing prices and movement of notified Horticulture produce and disseminate such information as may be directed by the Board. (xxii) With a view to maintain stability in the market, take suitable measures to ensure that traders do not buy Horticultural produce beyond their capacity and avoid risk to the sellers in disposing otf the produce, and grant llcenses only after obtaining necessary security in cash as bank guarantee according to the capacity of the buyers ; and (xxiii)Promote and undertake Horticu ltu re processing including activity for value addition in Horticultural produce. (3) With the prior sanction of the Board, lhe Committee may undertake the lollowing functions:- (l) Construction of roads, godowns, ropeways and other inlrastructure in the market area to facilitate marketing of Horticultural produce and for the purpose give funds by the Board. (ll) To provide on rent storage facilities for stocking of Horticulture produce to Horticultural producers. (lll) To promote and encourage e-trading, system, create inlrastructure and undertake other activities and steps needed thereof. (lV) To maintain and circulate lrom time to time the data ol arrivals and rates of Horticulture produces standard-wise brought into the market area for sale as may be prescribed. ('1) Every person who, in respect of notified Horticulture produce, desires to operate in the market area as lrader, commission agent, weighmen, labour, surveyor, ware housemen, contract farming buyer, owner or occupier of

(21 (3) (4) 38. (1) (2) processing factory or any other market functionaries, shall apply to the Secretary ol registration in such manner and within such period as may be prescribed. The Secretary of the Committee shall be the authority to grant registration certificate with lhe prior approval of the Committee. Provided that any person may buy Horticultural produce in the market yard/sib-market yard on day to day basis even without getting registered. Provided lurther that any person who desires lo trade or transact or deal in any notified Horticultural produce in more than one market area, shall get registered, for respective function lrom the Secretary of the Board. No broker. trader, weighmen, surveyor, godown keeper or other functionaries shall, unless duly registered, carry on his occupation in a notified market area in respect of the notified Horticultural produce under this Act. Every applicalion for such registration shall be accompanied with such fee as may be prescribed. The Committee may register or renew the registration or refuse registration or renewal of the registralion or cancel the registration on any of the following grounds :- (l) If the applicant is a minor. (ll) lf the applicant has been declared defaulter; or (lll) lf the applicant has been found guilty under this Act, the rules and bye-laws made thereunder. Every Committee shall have a Secretary who shall be appointed by the State Government in accordance with the recruitment and promotion rules as may be prescribed. The Secretary of the Committee shall be the ex- oflicio Secretary of the Comrnittee and shall be custodlan of all the records and properties of the Committee. Appointment of Secretary of the Committee.

Appointment ot Sub- Committee and delega- tion of powers. Powers and duties ol the Secretary of Committee 39. The Committee may appoint a sub-committee for the conduct ol any work or to report on any matter and may delegate to such sub-committee such of its powers or duties as it think fit.

(1) Committee shall meet for the transaction of its business at least once in three months provided that the Committee may in specialcircumstances meet at any time and at any place in the market atea. (2) The Chairman shall preside over meetings ol the Commitlee and if he/she is absent, the Vice- Chairman shall preside over the meeting of i' committee and if both are absent one members present in the meeting as chosen by the members present Chairman. (3) SubJect to the provisions oI this A shall conduct its business as r 87

No act of Committee or ol any Sub-Committee thereof or of any person acting as a member, Chairman, Vice Chairman, presiding Authority or Secretary of the Committee shall be deemed to be invalid by reason only of some defect in the constitution or appointment of such Committee, Sub-Committee, Members, Chairman, Vice-Chairman, presiding authority or Secretary of the Committee or on the ground that they or any of them were disqualified for such office, or that forrnal notice of the intention to hold meeting of the Committee orof the Sub-Committee was not given duly or by reason of such act having been done during the period of any vacancy in the olfice of the Chairman, Vice Chairman, or Secretary of the Committee or member of such Committee or Sub-Committee or for any other inlirmity not affecting the merits of the case.

(1) Subjecttothe provisions of this Act, the Committee may :- (a) enforce the provisions of this Act, and the rules and bye-laws made thereunder in the notified markets. (b) establish a market in the market area and provide such facilities for persons visiting in connection with the purchase, sale, storage, weighment and processing of horticultural produce concerned as the Board may, from time to time direct. (c) do such other act as may be required in the relation to the superintendence, direction and control of market or for regulating marketing ol horticultural produce in any place in the market area and Ior the purposes connected with the matters aloresaid, and for that purpose may exercise such powers provided under this Act ; and (d) do all such other acts which may bring complete transparency in the pricing system and transaction taking place in the market area. (2) Wilhout prejudice to the generality of the foregoing provisions, the Committee may :- (i) Maintain and manage the market yards and sub-yard market yards within the market area. Act of Committee not to be invalidated Powers and functions of the Committee. 8B (ii) Provide necessary facilities for the marketing and tacilities for the transportation of horticultural produce within the market yards and sub-market yards and outside the yards and within the sub-market yards and outside sub- market yards in the market area. (iii) Regulate, conduct or supervise the auction of notilied Horticultural produce in accordance with the provision and procedure laid down under the rules made under lhis Act or bye-laws of the Committee. (iv) Regulate the making. carrying out and enforcement or cancellation of agreements of sales weighment, delivery, payment and all other matters relating to the market of notilied Horticultural produce in the manner prescribed. (v) Provide for the settlement ol all disputes betyveen the seller and the buyer arising out on any kind of transaction Horticullural produce and all matters ancillary thereof. (vi) Take all possible steps to prevent adulteration of notilied Horticulture produce. (vii) Make registration for weighmen and labour for weighing and transporting of goods in respect of transactions held in the market yard or sub-yards (viii) Set up and promote public-private partnership in management of the markets. (ix) Promote public -private partnership for carrying out extension activities in its area viz, collection, maintenance and dissemination of information in respect of production. sale. storage. processing. prices and movement of notified Horticulture produce. (x) Levy, take, recover and receive rates, charges, fees and other sums of money to which the Committee is entitled. (xi) Regulate the entry of persons and vehicles, trattic into the market yard and sub-market yard visiting the market. 89 (xii) Compound otlences committed under this Acl (except section 27) or rules and bye-laws made thereunder. (xiii) Acquire land and dispose off any movable or immovable property for the purpose of efliciently carrying out its duties. (xiv) lnstitute or defend any suit, prosecution, action, proceeding, application or arbitration and compromise such suit, action, proceeding, application or arbitration. (xv) Keep a set of standard weights and measures in each principal market yard and sub-market yard against which weighment and measurement may be checked. (xvi) lnspect and venfy scales, weight and measures in use in a market area and also the books of accounts and other documents maintained by the market functionaries in such form and in such manner as may be prescribed. (xvii) Arrange to obtain fitness (health) certificates from which are bought or sold in the market yard or market area. (xviii) Cany out publicity about the benetits of regulation, the system of transaction, facilities provided in the market yard etc; through various means such as poster, pamphlets, hoardings, cinema slides, film shows, group meetings, electronic media etc; or through any other means considered more etleclive 0r necessary. (xix) Ensure payment in respect of transaction which take place in the market yard to be made on same day to the sellel, and in default to seize the Horticultural produce in question alongwith other property of the person concerned and to arrange tor re-sale thereof and in the event of loss, to recover with charges lor recovery of the losses, if any, lrom the original buyer and effect payment of the price of the Horticulture produce to the seller. Registration of market functionaries 90 (xx) Recover the charges in respect of weighmen and distribute the same totheweighmen and iabour if not paid by the purchaser or seller, as the case may be. (xxi) Collect and maintain information in respect of production. sale, storage. processing prices and movement of notified Horticulture produce and disseminate such information as may be directed by the Board. (xxii) With a view to maintain stability in the market, take suitable measures to ensure that traders do not buy Horticultural produce beyond their capacity and avoid risk to the sellers in disposing otf the produce, and grant llcenses only after obtaining necessary security in cash as bank guarantee according to the capacity of the buyers ; and (xxiii)Promote and undertake Horticu ltu re processing including activity for value addition in Horticultural produce. (3) With the prior sanction of the Board, lhe Committee may undertake the lollowing functions:- (l) Construction of roads, godowns, ropeways and other inlrastructure in the market area to facilitate marketing of Horticultural produce and for the purpose give funds by the Board. (ll) To provide on rent storage facilities for stocking of Horticulture produce to Horticultural producers. (lll) To promote and encourage e-trading, system, create inlrastructure and undertake other activities and steps needed thereof. (lV) To maintain and circulate lrom time to time the data ol arrivals and rates of Horticulture produces standard-wise brought into the market area for sale as may be prescribed. ('1) Every person who, in respect of notified Horticulture produce, desires to operate in the market area as lrader, commission agent, weighmen, labour, surveyor, ware housemen, contract farming buyer, owner or occupier of 37 (21 (3) (4)

(1) (2) 91 processing factory or any other market functionaries, shall apply to the Secretary ol registration in such manner and within such period as may be prescribed. The Secretary of the Committee shall be the authority to grant registration certificate with lhe prior approval of the Committee. Provided that any person may buy Horticultural produce in the market yard/sib-market yard on day to day basis even without getting registered. Provided lurther that any person who desires lo trade or transact or deal in any notified Horticultural produce in more than one market area, shall get registered, for respective function lrom the Secretary of the Board. No broker. trader, weighmen, surveyor, godown keeper or other functionaries shall, unless duly registered, carry on his occupation in a notified market area in respect of the notified Horticultural produce under this Act. Every applicalion for such registration shall be accompanied with such fee as may be prescribed. The Committee may register or renew the registration or refuse registration or renewal of the registralion or cancel the registration on any of the following grounds :- (l) If the applicant is a minor. (ll) lf the applicant has been declared defaulter; or (lll) lf the applicant has been found guilty under this Act, the rules and bye-laws made thereunder. Every Committee shall have a Secretary who shall be appointed by the State Government in accordance with the recruitment and promotion rules as may be prescribed. The Secretary of the Committee shall be the ex- oflicio Secretary of the Comrnittee and shall be custodlan of all the records and properties of the Committee. Appointment of Secretary of the Committee. Appointment ot Sub- Committee and delega- tion of powers. Powers and duties ol the Secretary of Committee 92

The Committee may appoint a sub-committee for the conduct ol any work or to report on any matter and may delegate to such sub-committee such of its powers or duties as it think fit.

Secretary of the Committee shall exercise and perform following powers and duties in addition to such other powers and duties as may be specified in this Act, or the rules or byelaws made lhereunder, namely:- (l) To convene the meetings ot the Committee and the Sub-Committees, if any, and maintain minutes of the meetings thereof. (ll) To attend the meetings ofthe Committee and Sub- Committee and take part in the discussion. (lll) To take steps to give effect to the resolution of the Committee and of lhe Sub-Committee and report all actions taken in pursuance of such resolution to the Committee in the next meeting. (lV) To prepare the annual budget proposal of the Committee. (V) To furnish to the Committee such returns, statement, estimates, statistics and reports as the Commiltee may lrom time lo time, require including following information :- (a) The fines and penalties imposed on and any disciplinary action laken againstthe members or the staff and the market functionaries and others. (b) Overtrading by traders. (c) Regarding contravention oltheAct, the rules, the bye-laws or the standing orders, if any, by any person. (d) Regardlng the suspension or cancellation of licence by the Managing Director ol the Board. (e) Regarding the admrnistration of the Committee and the regulation of the marketing.

(Vl) Produce before the Committee books, registers and olher documenls as may be necessary for the transaction of the business of the Committee or the Sub-Committee, and also whenever called upon by the Committee to do so. (Vll) Exercise supervision and control over the acts ol all oflicers and servants ol the Committee. (Vlll) Collect fees and other money leviable by or due to the Committee. (lX) Be responsible for all money credited to or received on behalf of the Committee. (X) Make disbursement of all money lawfully payable by the Committee. (Xl) Operate, Maintain and transact the Committee fund. (Xll) Report to the l\.4anaging Director of the Board, as soon as possible, in respect of fraud, embezzlement, theft or shortage of Commlttee fund or property ; and (Xlll) Prefer complaints in respect ol prosecutions to be launched on behalf of the Committee and conduct proceedings, Civil or criminal on behalf of the Committee. CHAPTER - V FINANCE, ACCOUNTS AND AUDIT OF THE BOARD AND THE COMMITTEE 41. Every Committee shall levy, charge and collect market fee in the manner as may be prescribed on basis at the rate not exceeding two rupees for every one hundred rupees as may be fixed by the State Government. (l) On the sale or purchase of notified Horticultural produce, whether brought from within the State or from outside the State into the market area; and (ll) On the notified Horticulture produce whether brought from within the State or from outside the State into the market area for processing. Levy of markel Fee.

Sing le Point levy. (1) Market fee specified in section 41 shall not be levied for the second time in any market area within the State provided that market fee has already been paid on the Horticultural produce in any market area of the State and the information to this context has to be furnished by the concerned person that the payment of market fee has already been paid in other market of the State on demand. (2) On the Horticulture produce brought in the market area for commercial transaction or for processing, the market fee shall be deposited by the buyer or processor, as the case may be, in the office of the Committee, within fourteen days but before sale or resale or processing or exporl outside the market area of such Horticultural produce. (3) In case any notified Horticulture produce is found to have been processed, sold, or resold or dispatched outside the market area without payment of market fee payable on such produce, the market fees shall be levied and recovered five time the market value of the processed produce or value of the Horticulture produce, as the case may be. (1) All money received by or on behalf of the Board shall be credited into a fund to be called the Marketing Development Fund. The account shall be operated in the Joint Signatures of the Chairman of the Board, l\,lanaging Director-cum- lr,4ember Secretary and Finance & Account Officer of the Board in State level. The fund shall be deposited in any nationalized bank. (2) All payments made by the Board shall be defrayed out of the said fund. (3) The Board may for carrying out the provisions ol this Act, borrow money from the State Government or may borrow with the previous approval of the State Government r- (l) From any other agency ;or (ll) lssue debenlures on the authority ol any property vested in it or on the security of a part of its future income accruing to it under this Act, or the rules made thereunder. l\,tarketing Development Fund/corpus fund,

(4) The Marketing Development/Corpus Fund shall be utilized by the Board eitheror its own orthrough public-private partnership for the discharge of functions entrusled to the Board under this Act. Without prejudice to generality of this provision, the Marketing Development Fund may be utilized for the following purposes:-

1. (l) Payment of administrative expenditure of the Board. (ll) Travelling and other allowance to the employ- ees ol the Board, Chairman and its members. (lll) Payment of wages/salaries ol contingencies staff. (lV) Meeting any legal expenses incurred by the Board. (V) Giving aid to tinancially week Committees in the shape of loans and grants on the term and conditions as may be prescribed Propaganda and publicity on matters relatirE to marketing ol Horticulture produce. (vl) Training of the and staff of the committees and Board and also to Horticulturists. (Vll) ileeting expendilure in marketing exlen- sion activities and e-trading. (Vlll) Organizing and arranging workshops, seminars, exhibitions, etc ;on development of marketing. (lX) Maintenance of the office of the Board and construction and repair of its office buildings, rest house, and staff quarters. (X) General improvement of the regulation of markeling in the Slate. (Xl) Loans and advances to the employees. (Xll) Expenses incuned in auditing the accounts of the board. (Xlll) Providing technical and administrative assistance to theCommittee, including execution of works. Annual budget of the Board. Accounts, Audit and Annual Report of the Board. Committee Fund. (XlV) i/arket survey and research, grading and standardization, q u ality certitication of horticulture produce and other allied subjects. (XV) Grading and standardization of Horticultural produce. (XVl) Collection and dissemination of market rates and news. (XVll) Better marketing of Horticultural produce ; and (XVlll) With the previous sanction ofthe Slate Govern' ment, any other purpose which is calculated to promote the general interest of the Board, Committees or national or public interest. 44. (1) An estimate of the annual income and expenditure olthe Board forthe ensuing year shallbe prepared by the Board and submitted for sanction to the State Government not later than first week of February each year. On the sanction of the budget by the State Government, the Board shall have power to operate upon it. (2) The State Government shall sanclion and return the budget as soon as practicable, enabling the

Every Committee shall levy, charge and collect market fee in the manner as may be prescribed on basis at the rate not exceeding two rupees for every one hundred rupees as may be fixed by the State Government. (l) On the sale or purchase of notified Horticultural produce, whether brought from within the State or from outside the State into the market area; and (ll) On the notified Horticulture produce whether brought from within the State or from outside the State into the market area for processing. Levy of markel Fee. Sing le Point 42 levy. 94 (1) Market fee specified in section 41 shall not be levied for the second time in any market area within the State provided that market fee has already been paid on the Horticultural produce in any market area of the State and the information to this context has to be furnished by the concerned person that the payment of market fee has already been paid in other market of the State on demand. (2) On the Horticulture produce brought in the market area for commercial transaction or for processing, the market fee shall be deposited by the buyer or processor, as the case may be, in the office of the Committee, within fourteen days but before sale or resale or processing or exporl outside the market area of such Horticultural produce. (3) In case any notified Horticulture produce is found to have been processed, sold, or resold or dispatched outside the market area without payment of market fee payable on such produce, the market fees shall be levied and recovered five time the market value of the processed produce or value of the Horticulture produce, as the case may be. (1) All money received by or on behalf of the Board shall be credited into a fund to be called the Marketing Development Fund. The account shall be operated in the Joint Signatures of the Chairman of the Board, l\,lanaging Director-cum- lr,4ember Secretary and Finance & Account Officer of the Board in State level. The fund shall be deposited in any nationalized bank. (2) All payments made by the Board shall be defrayed out of the said fund. (3) The Board may for carrying out the provisions ol this Act, borrow money from the State Government or may borrow with the previous approval of the State Government r- (l) From any other agency ;or (ll) lssue debenlures on the authority ol any property vested in it or on the security of a part of its future income accruing to it under this Act, or the rules made thereunder. l\,tarketing Development Fund/corpus fund, 43 95 (4) The Marketing Development/Corpus Fund shall be utilized by the Board eitheror its own orthrough public-private partnership for the discharge of functions entrusled to the Board under this Act. Without prejudice to generality of this provision, the Marketing Development Fund may be utilized for the following purposes:-

1. (l) Payment of administrative expenditure of the Board. (ll) Travelling and other allowance to the employ- ees ol the Board, Chairman and its members. (lll) Payment of wages/salaries ol contingencies staff. (lV) Meeting any legal expenses incurred by the Board. (V) Giving aid to tinancially week Committees in the shape of loans and grants on the term and conditions as may be prescribed Propaganda and publicity on matters relatirE to marketing ol Horticulture produce. (vl) Training of the and staff of the committees and Board and also to Horticulturists. (Vll) ileeting expendilure in marketing exlen- sion activities and e-trading. (Vlll) Organizing and arranging workshops, seminars, exhibitions, etc ;on development of marketing. (lX) Maintenance of the office of the Board and construction and repair of its office buildings, rest house, and staff quarters. (X) General improvement of the regulation of markeling in the Slate. (Xl) Loans and advances to the employees. (Xll) Expenses incuned in auditing the accounts of the board. (Xlll) Providing technical and administrative assistance to theCommittee, including execution of works. Annual budget of the Board. Accounts, Audit and Annual Report of the Board. Committee Fund. 96 (XlV) i/arket survey and research, grading and standardization, q u ality certitication of horticulture produce and other allied subjects. (XV) Grading and standardization of Horticultural produce. (XVl) Collection and dissemination of market rates and news. (XVll) Better marketing of Horticultural produce ; and (XVlll) With the previous sanction ofthe Slate Govern' ment, any other purpose which is calculated to promote the general interest of the Board, Committees or national or public interest.

(1) An estimate of the annual income and expenditure olthe Board forthe ensuing year shallbe prepared by the Board and submitted for sanction to the State Government not later than first week of February each year. On the sanction of the budget by the State Government, the Board shall have power to operate upon it. (2) The State Government shall sanclion and return the budget as soon as practicable, enabling the Board to operate the fund within two months.

(1) The Board shall prepare once in every year. in such form and at such time as may be prescribed, an annual report, giving a true and full account ol its activities during the previous year, and shall forward a copy thereol to the State Government. (2) The accounls of the Board shall be audited annually by the Examiner of the Local Audlt Department or by such other person as the State Government may direct. (3) As soon as the accounts of the Board are audited the Board shall send a copy of the audit, report to the

(1) Save as provided in sub-section (2) all moneys received by a Committee shall be paid into a fund to be called the "Committee Fund" and all expenditure incurred by the Committee under or for the purposes of lhis Act shall be defrayed out of the said fund. Any surplus remaining with the

(2) (3) (4) 47. (1\ Committee after such expenditure has been met, shall be invested in such manner as may be prescribed. Any money received by the Committee by way of arbitration lee or as security for costs in arbitration proceedings relating to disputes or any money received by the Committee by way of security deposit, contribution to provident fund or for payment in respect of any notified Horticulture produce, or other charges payable by the Committee or such other money received by the Committee as may be provided in the rules or bye- laws, shall not torm part of Committee Fund, and shall be kept in such manner as may be prescribed. Every Committee, out of its fund, shall pay to the Board, fifty percent of the total market fee collected under section during the year, to meet the expenses of establishment of the Board and expenses incurred in execution ol the lunctions assigned to the Board under this Act. All money and receipts specified in this section and forming part olthe fund ofthe Committee shall be deposited in any Nationalized Bank or any other Bank having National Computerized Network. The account shall be operated in the Joint signatures of Chairman, Vice Chairman and member secretary in District level. The Secretary of the Committee shall be the Head ol office and shall exercise such financial powers as have been conferred under lhe Financial Rules of the State Government on the Head of office. Every Committee shall prepare and pass the budget of its income and expenditure for the ensuing year in such manner and in such form and within such period as may be prescribed and shall submit it to the Managing Director of the Board and the Managing Director shall place the same before the Board for approval. The board shall approve the budget with or without modilication within two monlhs from the date of receipt thereof. lf the budget is not returned by the Managing Director within two months, it shall be deemed to have been approved. Preparation and sanction of budget ot Committee.

Purpose lor which the Committee fund may be expended. (2) A Committee at any time during the year for which any budget has been sanctioned, cause a revised or supplementary budget to be passed and sanction in the same manner as if it were an original budget. (3) No expenditure shall be incurred by a Committee on any item if there is no provision in the sanctioned budget thereof unless it can be met by re-appropriation from saving under any other head. The sanction lor re-appropriation may be obtained from the Board. Provided that in case of re- appropriation from minor heads under one major head, sanction for re-appropriation shall not be required. Subject to the provisions of section 46, the Committee in order to discharge functions and duties entrusted to it under lhis Act, may use the Committee Fund. Without prejudice to generality of this provision the Committee fund may be used for the following purposed, namely:- (l) The acquisition ol a site or sites for the market. (ll) The establishment, maintenance and improve- ment of the market yard. (lll) The convenience and repairs ol buildings necessary for the purpose of the market yard and for convenience or safety of the persons using the market yard. (Vl) The maintenance ot standard weights and measures. (V) The meeting ol establishment charges including payments and contributions towards provident fund, pension and gratuity of the otficers and servants etc. of the Committee (Vl) Loans and advances to the employees of the committee. (Vll) The payment ol interest on the loans that may be raised forthe purpose ofthe market and provisions of sinking fund jn respect ol such loans. (Vlll) The collection and dissemination of information relating to the Horticultural produce.

(lX) The expenses incurred in auditing the accounts of the Committee and expenses incuned in the maintenance of the oflices. (X) Payment ol honorarium and travelling allowance to the Chairman and other non-employees of the committee and employees of the committee as may be prescribed. (Xl) Contribution to lvlarketing Development Fund. (Xll) Contribution to any scheme for development of Horticultural marketing including transport. (Xlll) For providing facilities like grading, standardiza- tion, and quality certilication seNices and communi- cation to Horliculturist in the market area. (XlV) lncurring expenses on research and development, extension and training to larmers in marketing of Horticultural produce. (M Prevention, inconjuction with other Agencies, State, Central, and others of distress sale ol Horticultural produce. W) Fostering cooperative marketing and assisting cooperative marketing societies in the procure- ment and profilable disposal of produce particularly the produce belonging to small and marginal larmers. (XVll) Create and promote on ils own orthrough public- private partnership inlrastruclure and post harvest handling ol Horticulture produce, cold storages, proceeding facilities, pack houses and all such infrastructure to develop modern market system. (XVlll) Meeting any legal expenses incurred by the committee. (XlX) On the training and skill enhancement of staff of lhe committee ; and (XX) With the previous sanction of the bcard, any other purpose which is calculated to promote the general interests of the committee or the notified market area or any other purpose calculated to promote the national interest.

Power to borrow. 49. (1) The committee may, with the previous sanction of the board, raise the money required for carrying on the purposes for which it is established on the security of any property vested in and belonging to the committee and of any fees leviable by the committee under this Act. (2) The Committee may, for the purpose of meeting the initial expenditure on lands, building, and equipments required for establishment of the market, obtain loan from the State Government or the Board or other committee or financial institution on such conditions, as may be prescribed. CHAPTER - VI CONTBOL 50. (1) The i,4anaging Director ol the Board may :- (a) lnspect or cause to be inspected the accounts and olfices of the committee. lnspection of Markets and enquiry into the affairs of the Committee. (d) Hold inquiry into the atfairs of a committee. Call from a committee's return, statement, accounts or reports which he may think fit to require such committee to furnish. Require the committee to take into consideration:- (l) Any objection on the ground of illegality, inexpediency, improprietywhich 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 (ll) Any information he is able to furnish and which appears to him to necessitate the doing of a certain thing by such committee. (2) When the atfairs of a market are investigated under this section or the proceedings of any committee are examined by the Managing Director of the Board under section 52, the Chairman, (b) (c)

Secretary and all other officers and 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 Managing Director of the Board or other officer authorized. as the case may be. may require. (3) An officer investigating the affairs of a committee under sub-section (1) or the Slate Government examining the proceedings of any commitlee under section 51 shall have the power to summon and enforce the attendance of officers or members of the 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 ot a Civil Court by the Code of Civil Procedure, 1908. Where the lVlanaging Director of the board has reason to believe that the books and records of a committee are likely to be tempered with or destroyed or the funds or propefry of a committee are likely to be misappropriated or misapplied, the Managing Director ol the Board may issue orders directing a person duly authorized by him in writing to seize and take possession of such books and records, funds and property of the committee and the olficer or officers of the committee responsible for the custody of such books, records, funds, and property shall give delivery thereof to the person so authorized. 51. (1) The Managing Director of the Board or the State Government as the case may be, may on its own motion or, on an application made to it, call for and examine the proceedings of any committee or of the Board, as the case any may be, Ior the purpose of satisfying itself as to the legality or propriety of any decision taken or order passed and as to the regularity of the proceedings ol the committee or lhe Board, as the case may be. lf any case , it appears to the lvlanaging Director of the Board or the State Government that any such decision or order or proceedings so called for should be modified, annulled, reversed, or remitted for reconsideration it may pass such order thereon as it may deem fit. Power to Call tor procee- dings ol committee or Board.

Power to Prohibit execution or further execution of resolution passed or order made by the committee. Liability of Chairman, Members and employees lor loss, wastes or misappropria- tion etc. Provided that every application to the lvlanaging Director of the Board or the State Government, as the case may be, shall be preferred within sixty days from the date of such decision or order to the Communication of applicant, Provided further that no such order shall be passed under sub-section ('1) without giving a reasonable opportunity ol being heard to the parties affected thereby. (2) The Managing Director of the Board or the State Government, as the case may be, may suspend the execution of the decision taken ororder passed by the Committee or the Board, as the case may be, pending the exercise of its powers under sub- section ('l ).

(1\ 97 Committee after such expenditure has been met, shall be invested in such manner as may be prescribed. Any money received by the Committee by way of arbitration lee or as security for costs in arbitration proceedings relating to disputes or any money received by the Committee by way of security deposit, contribution to provident fund or for payment in respect of any notified Horticulture produce, or other charges payable by the Committee or such other money received by the Committee as may be provided in the rules or bye- laws, shall not torm part of Committee Fund, and shall be kept in such manner as may be prescribed. Every Committee, out of its fund, shall pay to the Board, fifty percent of the total market fee collected under section 41 during the year, to meet the expenses of establishment of the Board and expenses incurred in execution ol the lunctions assigned to the Board under this Act. All money and receipts specified in this section and forming part olthe fund ofthe Committee shall be deposited in any Nationalized Bank or any other Bank having National Computerized Network. The account shall be operated in the Joint signatures of Chairman, Vice Chairman and member secretary in District level. The Secretary of the Committee shall be the Head ol office and shall exercise such financial powers as have been conferred under lhe Financial Rules of the State Government on the Head of office. Every Committee shall prepare and pass the budget of its income and expenditure for the ensuing year in such manner and in such form and within such period as may be prescribed and shall submit it to the Managing Director of the Board and the Managing Director shall place the same before the Board for approval. The board shall approve the budget with or without modilication within two monlhs from the date of receipt thereof. lf the budget is not returned by the Managing Director within two months, it shall be deemed to have been approved. Preparation and sanction of budget ot Committee. Purpose lor 48 which the Committee fund may be expended. 98 (2) A Committee at any time during the year for which any budget has been sanctioned, cause a revised or supplementary budget to be passed and sanction in the same manner as if it were an original budget. (3) No expenditure shall be incurred by a Committee on any item if there is no provision in the sanctioned budget thereof unless it can be met by re-appropriation from saving under any other head. The sanction lor re-appropriation may be obtained from the Board. Provided that in case of re- appropriation from minor heads under one major head, sanction for re-appropriation shall not be required. Subject to the provisions of section 46, the Committee in order to discharge functions and duties entrusted to it under lhis Act, may use the Committee Fund. Without prejudice to generality of this provision the Committee fund may be used for the following purposed, namely:- (l) The acquisition ol a site or sites for the market. (ll) The establishment, maintenance and improve- ment of the market yard. (lll) The convenience and repairs ol buildings necessary for the purpose of the market yard and for convenience or safety of the persons using the market yard. (Vl) The maintenance ot standard weights and measures. (V) The meeting ol establishment charges including payments and contributions towards provident fund, pension and gratuity of the otficers and servants etc. of the Committee (Vl) Loans and advances to the employees of the committee. (Vll) The payment ol interest on the loans that may be raised forthe purpose ofthe market and provisions of sinking fund jn respect ol such loans. (Vlll) The collection and dissemination of information relating to the Horticultural produce. 99 (lX) The expenses incurred in auditing the accounts of the Committee and expenses incuned in the maintenance of the oflices. (X) Payment ol honorarium and travelling allowance to the Chairman and other non-employees of the committee and employees of the committee as may be prescribed. (Xl) Contribution to lvlarketing Development Fund. (Xll) Contribution to any scheme for development of Horticultural marketing including transport. (Xlll) For providing facilities like grading, standardiza- tion, and quality certilication seNices and communi- cation to Horliculturist in the market area. (XlV) lncurring expenses on research and development, extension and training to larmers in marketing of Horticultural produce. (M Prevention, inconjuction with other Agencies, State, Central, and others of distress sale ol Horticultural produce. W) Fostering cooperative marketing and assisting cooperative marketing societies in the procure- ment and profilable disposal of produce particularly the produce belonging to small and marginal larmers. (XVll) Create and promote on ils own orthrough public- private partnership inlrastruclure and post harvest handling ol Horticulture produce, cold storages, proceeding facilities, pack houses and all such infrastructure to develop modern market system. (XVlll) Meeting any legal expenses incurred by the committee. (XlX) On the training and skill enhancement of staff of lhe committee ; and (XX) With the previous sanction of the bcard, any other purpose which is calculated to promote the general interests of the committee or the notified market area or any other purpose calculated to promote the national interest. Power to borrow. 100

(1) The committee may, with the previous sanction of the board, raise the money required for carrying on the purposes for which it is established on the security of any property vested in and belonging to the committee and of any fees leviable by the committee under this Act. (2) The Committee may, for the purpose of meeting the initial expenditure on lands, building, and equipments required for establishment of the market, obtain loan from the State Government or the Board or other committee or financial institution on such conditions, as may be prescribed. CHAPTER - VI CONTBOL

(1) The i,4anaging Director ol the Board may :- (a) lnspect or cause to be inspected the accounts and olfices of the committee. lnspection of Markets and enquiry into the affairs of the Committee. (d) Hold inquiry into the atfairs of a committee. Call from a committee's return, statement, accounts or reports which he may think fit to require such committee to furnish. Require the committee to take into consideration:- (l) Any objection on the ground of illegality, inexpediency, improprietywhich 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 (ll) Any information he is able to furnish and which appears to him to necessitate the doing of a certain thing by such committee. (2) When the atfairs of a market are investigated under this section or the proceedings of any committee are examined by the Managing Director of the Board under section 52, the Chairman, (b) (c) 101 Secretary and all other officers and 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 Managing Director of the Board or other officer authorized. as the case may be. may require. (3) An officer investigating the affairs of a committee under sub-section (1) or the Slate Government examining the proceedings of any commitlee under section 51 shall have the power to summon and enforce the attendance of officers or members of the 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 ot a Civil Court by the Code of Civil Procedure, 1908. Where the lVlanaging Director of the board has reason to believe that the books and records of a committee are likely to be tempered with or destroyed or the funds or propefry of a committee are likely to be misappropriated or misapplied, the Managing Director ol the Board may issue orders directing a person duly authorized by him in writing to seize and take possession of such books and records, funds and property of the committee and the olficer or officers of the committee responsible for the custody of such books, records, funds, and property shall give delivery thereof to the person so authorized.

(1) The Managing Director of the Board or the State Government as the case may be, may on its own motion or, on an application made to it, call for and examine the proceedings of any committee or of the Board, as the case any may be, Ior the purpose of satisfying itself as to the legality or propriety of any decision taken or order passed and as to the regularity of the proceedings ol the committee or lhe Board, as the case may be. lf any case , it appears to the lvlanaging Director of the Board or the State Government that any such decision or order or proceedings so called for should be modified, annulled, reversed, or remitted for reconsideration it may pass such order thereon as it may deem fit. Power to Call tor procee- dings ol committee or Board. Power to Prohibit execution or further execution of resolution passed or order made by the committee. Liability of Chairman, Members and employees lor loss, wastes or misappropria- tion etc. 102 Provided that every application to the lvlanaging Director of the Board or the State Government, as the case may be, shall be preferred within sixty days from the date of such decision or order to the Communication of applicant, Provided further that no such order shall be passed under sub-section ('1) without giving a reasonable opportunity ol being heard to the parties affected thereby. (2) The Managing Director of the Board or the State Government, as the case may be, may suspend the execution of the decision taken ororder passed by the Committee or the Board, as the case may be, pending the exercise of its powers under sub- section ('l ).

its own motion, or on report or compliant received, by order prohibit the execution or further execution of a resolution passed or order made by the committee or its Chairman or any of its otficers or servants, if he is ofthe opinion that such resolution or order is prejudicial to the public interest, or is likely to affect efficient running of the business in any market area, principal market yards or sub-market yards or is against the provisions of this Act or the rules or byelaws made thereunder. 53. (1) lf in the course of enquiry of inspection under section 50 or in the course of audit under this Act, it is found that any person who is or was entrusted with the management of the Board or the committee, as the member or any other officer or employee ol the Board or the committee or an officer ol the State Government has made or directed by assenting or concurring or participating in any affirmative vote or proceeding related thereto, any payment or application of any money or other property belonging to, or under the control of such committee to any purpose contrary to the

provisions ol this Act, rules or bye-laws made thereunder or has caused any deficiency or loss by gross neOligence or misconduct or has misappropriated or fraudulently retained any money or olher property belonging to the Board or the committee, the Secretary of the Board may, on his own motion or on an application, enquire himself or direct any officer subordinate to him duly authorized by him by an order in writing in this behalf to enquire into the conduct of such person. (2) lt on enquiry made under sub-section (1), the Managing Director of the Board is satisfied that there are good grounds for an order underlhis sub- section, he may make an order requiring such person, or in the case of a deceased person, his legal representative who inherits his estate, to repay or restore the money or property and any part thereof, with interest at such rate, or to pay contribution and costs or compensalion to such extend as the Managing Director ot the Board may consider just and equitable. Provided that no order underthis sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard in the matter. Provided further that the liability of a legal representative of the deceased shall be to the extend of the property of the deceased which is inherited by such legal representative. (3) Any person aggrieved by an order made under sub- section

1. (2) may, within thirty days from the date of communication of the order to him, appeal to the State Government and the order of the State Government shall be final and conclusive : Provided that in computing the period of limitation the time required for obtaining a copy of the order of appealed against shall be excluded. Members, Oflicers and Officials of the Board and Committee to be public servants. Prohibition of trade Allowances. Power to order production of accounts, entry, inspection and seizure. 14) Any order made under sub-section (2) or sub- section (3) shall, be entorced in a manner as if it were a decree of civilcourt having localjurisdiction and any sum directed to be paid by such order may be recovered as arrears of land revenue. (5) lf the Secretary of the Board is satisfied on alfidavit, enquiry or otherwise that any person with intention to delay orobstruct the enforcement of any order that may be passed against him under this section is about to dispose of the whole or any part ot his property, or is about to remove the whole or any part of his property from the State, he may, unless adequate security is furnished, direct. the conditional attachments of the said property or such part thereof as he thinks necessary and such attachment shall have the same elfect as an order a competent civil court. 54. All members, oificers and servants of the Board and the committee shall be deemed to be public servant within the meaning of section 21 of the lndian Penal Code 1860. No trade allowance or deduction, other than as prescribed by or under this Act or rules or bye-laws made thereunder, shall be made or received by any person in any market area in anytransaction in respect of the notified Horticulture produce. (1) The Secretary of the Committee or any officer of the State Government or the Board, empowered by the State Government in this behalf may, for the purposes of this Act, require any person carrying on business in any kind of notified Horticultural produce to produce before him the accounts and otherdocuments and to lurnish any information relating to stocks of such Horticultural produce or purchase, sale, processing, value addition and delivery ot such Horticulture produce by such person and also to furnish any other intormation relating to payment of market fee by such person. (2) All accounts and registers maintained by any person in the ordinary course of business of any notified Horticultural produce and documents relating to stocks or such Horticultural produce or purchase, sale, processing, value addilion of such Horticulturalproduce in his possession and offices, establishment, godowns, vessels or vehicles ot such persons shali be kept open for inspection at all reasonable time by such officers of the State Government, the Board or the committee as may be authorized by the State Government in this behalf. (3) lf any oflicer has reasons to suspectthat any person is attempting to evade the payment of any market fee due from him under thisAct or that any person has purchased, sold, processed ofvalue added any notified horticultural produce in contravention of any ol the provisions of this Act or rules or the bye-laws in force in the market areas, he/she may communicate in writing tc such person, seize such accounts, registers, and documents of such person, as may be necessary and shall grant a receipt ror the same and shall retain the same only so long as it may be necessary for examination therefore or for a prosecution. (4) For the purposes ol sub-section (2) or (3) such officer may enler or search any place of business, otfice, establishment, godown, vessel or vehicle where such officer has reason to believe that such person keeps or for the time being has kept accounls, registers of documents of his/her business, or stock of notiried horticultural produce relating to this business. (5) The provisions of section 1 00 (4) to (8) of the Code of Criminal Procedure, 1973 shall, so lar as may be, apply to a search under sub- section (4). (6) Where any books of accounts or other documents are seized from any place and there are such entries therein making reference to quantity, quotations, rates, receipts or payment of money or sale or purchase ol goods, such books of accounts or other documents shall be admitted in Assessment of Market fee. 57. (1) evidence without witness having to appearto prove the same, and such entries shall be primajacie evidence of matters. transactions and accounts purported to have been recorded therein. Every trader, processor, proprietor of a private yard, proprietor of consumer farmer market or Commission agent, carrying on business of notified Horticultural produce shall, before the 30th June, every year submit to the Secretary of the Committee a statement of transaction undertaken by or through him during the previous financial years ending on the 31st March, in such form and in such manner as may be the prescribed. The Secretary of the Committee shall accepl or rejecl the statement submitted to him under sub- section (1) alter necessary examination and verification on the basis of information duly available with the Committee and shall assess the balance amount payable by the functionary and levy the assessed amount. Any person aggrieved by the proceeding of the Secretary of the Committee may, within thirty days from the date of Communicalion of notice to him, appeal to the Committee. Any officer authorized by the Board may, on his own motion or on application made to the Board start process of re-verilication of the statement verified by the Secretary of the Committee within two months from the date ol verification and tor this purpose such officer shall exercise the powers under section 59; and the re-verification made by such officer shall be final. (21 (3) (4) 58. (1) lf any person required to produce accounts or furnish information under sub-section (1)of section 57, fails to produce such accounts or inlormation or knowingly furnishes incomplete or incorrect accounts of the business of the notified Horticultural produce, the Secretary of the Committee, on his own motion, shall assess such person lorfee levied under section 41 on the basis of information available with the committee. Submission of annual accounts by license and registered functionaries and assess- ment. 59. (1) At any time when so required, any officer of the Board empowered by the board or any officer of the Committee empowered by the Committee in this behalf, as the case may be, may direct the driver or any other person in charge o{ the vehicle, vessel or other conveyance and inspect all records relating to notified Horticultural produce carried, and give his name, address and name and address of owner of the vehicie, vesselor otherconveyance and name and address of the owner of the notified Horticultural produce canied in such vehicle, vessel or other conveyance. .(2) Persons empowered under sub-section (1) may seize any notified Horticultural produce brought into or taken out or proposed to be taken out of the market area in any vehicle, vessel or other conveyance, if he has reason to believe that any lee orother amount due under this Act or the value payable to the seller in respect of such Horticultural produce has not been paid. (3)lf any person empowered under sub-section (1) has reason to suspect that any person is attempting to evade the payment of any market fee due from him under section 41 or that any person has purchase or stored any notified Horticultural produce in contravention of any of the provisions of this Act or the rules or the bye-laws made thereunder in the market area, he may enter and search any place of business, warehouse, otfice, establishment or godown where the person empowered under sub-section (1) has reason to believe that such person keeps or has for the time being kept stock of notified Horticultural produce and may seize the notified Horticultural produce and such seized notified Horticultural produce may be confiscated in favour of the market committee in accordance with the provisions of the code of Criminal Procedure, 1973. (4) The provisions of section 100, 457, 458 and of the Code of Criminal Procedure, (No. of 1974) shall apply to entry, search and seizure under sub-section (1), (2) and (3) as they apply in Power to stop Vehicles. Power to remove encroachmenb in market yard. Power to grant exemption from market fees. Power to write off inecoverable Iee etc. (2) (3) 61. (1) (2) relation to the entry, search and seizure of properly by the police otficer. Such seizure shall forthwith be reported bythe person aloresaid to a Magistrate having jurisdiction to try the otfence under this Act. (1) Any oflicer or servant of the Committee or the Board empowered by the State Government, by notification, in this behalf shall have the power to remove any encroachment over the property owned by the Board/or the Committee including the market yard, and the expenses of such removal shall be paid by the encroacher, il he fails to pay such expenses, the same shall be recovered in the same manner as arrears of land revenue. All Police Otficers shall be bound to assist the oflicers empowered under sub-section (1 ), when required, in the pertormance of their duties under thisAct, and forthat purpose, shall havethe same powers which they have in the discharge of their ordinary police duties. lf any officer or servant of the Board or the committee empowered under sub-section (1) fails to remove the encroachment within the market yard, he shall be punished with simple imprisonment for lifteen days or with fine which may extend to one thousand rupees or with both. The State Government may, by notification and subject to such conditions and reskictions. as may be specified therein, exempt in whole or in part any Horticultural produce brought for sale or bought or sold in the payment of market fee for such period as may be specified therein. Any notification issued under sub-section ('1) may be rescinded before the expiry of the period specified therein and on rescission, such notification shall cease to be in force.

(1) lf in the course of enquiry of inspection under section 50 or in the course of audit under this Act, it is found that any person who is or was entrusted with the management of the Board or the committee, as the member or any other officer or employee ol the Board or the committee or an officer ol the State Government has made or directed by assenting or concurring or participating in any affirmative vote or proceeding related thereto, any payment or application of any money or other property belonging to, or under the control of such committee to any purpose contrary to the 103 provisions ol this Act, rules or bye-laws made thereunder or has caused any deficiency or loss by gross neOligence or misconduct or has misappropriated or fraudulently retained any money or olher property belonging to the Board or the committee, the Secretary of the Board may, on his own motion or on an application, enquire himself or direct any officer subordinate to him duly authorized by him by an order in writing in this behalf to enquire into the conduct of such person. (2) lt on enquiry made under sub-section (1), the Managing Director of the Board is satisfied that there are good grounds for an order underlhis sub- section, he may make an order requiring such person, or in the case of a deceased person, his legal representative who inherits his estate, to repay or restore the money or property and any part thereof, with interest at such rate, or to pay contribution and costs or compensalion to such extend as the Managing Director ot the Board may consider just and equitable. Provided that no order underthis sub-section shall be made unless the person concerned has been given a reasonable opportunity of being heard in the matter. Provided further that the liability of a legal representative of the deceased shall be to the extend of the property of the deceased which is inherited by such legal representative. (3) Any person aggrieved by an order made under sub- section

1. (2) may, within thirty days from the date of communication of the order to him, appeal to the State Government and the order of the State Government shall be final and conclusive : Provided that in computing the period of limitation the time required for obtaining a copy of the order of appealed against shall be excluded. Members, Oflicers and Officials of the Board and Committee to be public servants. Prohibition of 55 trade Allowances. Power to order 56 production of accounts, entry, inspection and seizure. 104 14) Any order made under sub-section (2) or sub- section (3) shall, be entorced in a manner as if it were a decree of civilcourt having localjurisdiction and any sum directed to be paid by such order may be recovered as arrears of land revenue. (5) lf the Secretary of the Board is satisfied on alfidavit, enquiry or otherwise that any person with intention to delay orobstruct the enforcement of any order that may be passed against him under this section is about to dispose of the whole or any part ot his property, or is about to remove the whole or any part of his property from the State, he may, unless adequate security is furnished, direct. the conditional attachments of the said property or such part thereof as he thinks necessary and such attachment shall have the same elfect as an order a competent civil court.

All members, oificers and servants of the Board and the committee shall be deemed to be public servant within the meaning of section 21 of the lndian Penal Code 1860. No trade allowance or deduction, other than as prescribed by or under this Act or rules or bye-laws made thereunder, shall be made or received by any person in any market area in anytransaction in respect of the notified Horticulture produce. (1) The Secretary of the Committee or any officer of the State Government or the Board, empowered by the State Government in this behalf may, for the purposes of this Act, require any person carrying on business in any kind of notified Horticultural produce to produce before him the accounts and otherdocuments and to lurnish any information relating to stocks of such Horticultural produce or purchase, sale, processing, value addition and delivery ot such Horticulture produce by such person and also to furnish any other intormation relating to payment of market fee by such person. 105 (2) All accounts and registers maintained by any person in the ordinary course of business of any notified Horticultural produce and documents relating to stocks or such Horticultural produce or purchase, sale, processing, value addilion of such Horticulturalproduce in his possession and offices, establishment, godowns, vessels or vehicles ot such persons shali be kept open for inspection at all reasonable time by such officers of the State Government, the Board or the committee as may be authorized by the State Government in this behalf. (3) lf any oflicer has reasons to suspectthat any person is attempting to evade the payment of any market fee due from him under thisAct or that any person has purchased, sold, processed ofvalue added any notified horticultural produce in contravention of any ol the provisions of this Act or rules or the bye-laws in force in the market areas, he/she may communicate in writing tc such person, seize such accounts, registers, and documents of such person, as may be necessary and shall grant a receipt ror the same and shall retain the same only so long as it may be necessary for examination therefore or for a prosecution. (4) For the purposes ol sub-section (2) or (3) such officer may enler or search any place of business, otfice, establishment, godown, vessel or vehicle where such officer has reason to believe that such person keeps or for the time being has kept accounls, registers of documents of his/her business, or stock of notiried horticultural produce relating to this business. (5) The provisions of section 1 00 (4) to (8) of the Code of Criminal Procedure, 1973 shall, so lar as may be, apply to a search under sub- section (4). (6) Where any books of accounts or other documents are seized from any place and there are such entries therein making reference to quantity, quotations, rates, receipts or payment of money or sale or purchase ol goods, such books of accounts or other documents shall be admitted in Assessment of Market fee. 106

(1) evidence without witness having to appearto prove the same, and such entries shall be primajacie evidence of matters. transactions and accounts purported to have been recorded therein. Every trader, processor, proprietor of a private yard, proprietor of consumer farmer market or Commission agent, carrying on business of notified Horticultural produce shall, before the 30th June, every year submit to the Secretary of the Committee a statement of transaction undertaken by or through him during the previous financial years ending on the 31st March, in such form and in such manner as may be the prescribed. The Secretary of the Committee shall accepl or rejecl the statement submitted to him under sub- section (1) alter necessary examination and verification on the basis of information duly available with the Committee and shall assess the balance amount payable by the functionary and levy the assessed amount. Any person aggrieved by the proceeding of the Secretary of the Committee may, within thirty days from the date of Communicalion of notice to him, appeal to the Committee. Any officer authorized by the Board may, on his own motion or on application made to the Board start process of re-verilication of the statement verified by the Secretary of the Committee within two months from the date ol verification and tor this purpose such officer shall exercise the powers under section 59; and the re-verification made by such officer shall be final. (21 (3) (4)

(1) lf any person required to produce accounts or furnish information under sub-section (1)of section 57, fails to produce such accounts or inlormation or knowingly furnishes incomplete or incorrect accounts of the business of the notified Horticultural produce, the Secretary of the Committee, on his own motion, shall assess such person lorfee levied under section 41 on the basis of information available with the committee. Submission of annual accounts by license and registered functionaries and assess- ment. 107

(1) At any time when so required, any officer of the Board empowered by the board or any officer of the Committee empowered by the Committee in this behalf, as the case may be, may direct the driver or any other person in charge o{ the vehicle, vessel or other conveyance and inspect all records relating to notified Horticultural produce carried, and give his name, address and name and address of owner of the vehicie, vesselor otherconveyance and name and address of the owner of the notified Horticultural produce canied in such vehicle, vessel or other conveyance. .(2) Persons empowered under sub-section (1) may seize any notified Horticultural produce brought into or taken out or proposed to be taken out of the market area in any vehicle, vessel or other conveyance, if he has reason to believe that any lee orother amount due under this Act or the value payable to the seller in respect of such Horticultural produce has not been paid. (3)lf any person empowered under sub-section (1) has reason to suspect that any person is attempting to evade the payment of any market fee due from him under section 41 or that any person has purchase or stored any notified Horticultural produce in contravention of any of the provisions of this Act or the rules or the bye-laws made thereunder in the market area, he may enter and search any place of business, warehouse, otfice, establishment or godown where the person empowered under sub-section (1) has reason to believe that such person keeps or has for the time being kept stock of notified Horticultural produce and may seize the notified Horticultural produce and such seized notified Horticultural produce may be confiscated in favour of the market committee in accordance with the provisions of the code of Criminal Procedure, 1973. (4) The provisions of section 100, 457, 458 and 459 of the Code of Criminal Procedure, 1973 (No. 2 of 1974) shall apply to entry, search and seizure under sub-section (1), (2) and (3) as they apply in Power to stop Vehicles. Power to remove encroachmenb in market yard. Power to grant exemption from market fees. Power to write off inecoverable Iee etc. 60 (2) (3)

(1) (2) 108 relation to the entry, search and seizure of properly by the police otficer. Such seizure shall forthwith be reported bythe person aloresaid to a Magistrate having jurisdiction to try the otfence under this Act. (1) Any oflicer or servant of the Committee or the Board empowered by the State Government, by notification, in this behalf shall have the power to remove any encroachment over the property owned by the Board/or the Committee including the market yard, and the expenses of such removal shall be paid by the encroacher, il he fails to pay such expenses, the same shall be recovered in the same manner as arrears of land revenue. All Police Otficers shall be bound to assist the oflicers empowered under sub-section (1 ), when required, in the pertormance of their duties under thisAct, and forthat purpose, shall havethe same powers which they have in the discharge of their ordinary police duties. lf any officer or servant of the Board or the committee empowered under sub-section (1) fails to remove the encroachment within the market yard, he shall be punished with simple imprisonment for lifteen days or with fine which may extend to one thousand rupees or with both. The State Government may, by notification and subject to such conditions and reskictions. as may be specified therein, exempt in whole or in part any Horticultural produce brought for sale or bought or sold in the payment of market fee for such period as may be specified therein. Any notification issued under sub-section ('1) may be rescinded before the expiry of the period specified therein and on rescission, such notification shall cease to be in force.

that any amount due to the Board or a committee is irrecoverable or should be remitted, or whenever any loss of the Board's or a committee's money or stores or other properties occurthrough fraud or negligence of any person for any other cause and

such property or money is lound to be inecoverable, the facts shall be reported to the Board or the committee, as the case may be, and the board, with the approval of the State Government, and the committee, with the approval of the board, may order the amount or value ol the property to be written off as loss irrecoverable or remitted, as the case may be Provided that in case of a committee, if in any case the amount due or the value of such property is in excess of five thousand rupees, such order shall not take effect without the approval of the State Government. 63Any sum due to the Board or the Committee from any person on account of any charges, costs, expenses, fees, rent and any olher account under the provisions of this Act or any rules or bye-laws made thereunder shall be recoverable as arrear of land revenue 64. Any dispute between the private market or consumer market and committee. shall be referred to the Secretary of lhe Board or any other officer authorized by the State Government in this behalf and shall be resolved after giving both the partres a reasonable opportunity oi being heard. Recovery of Sums due to the Board or the commitlee. Redressal ol dispute between Private Market or Consumer Market and Provided that the decision of the authority under Committee this Election shall be final. 65. (1) Any person aggrieved by an order passed under Appeal. seclion 25, 26, or 37 may prefer an appeal, in such form and in such manner as may be prescribed, to :- (a) The Committee, where such order is passed by the Secretary of the Committee with in thirty days trom the date of order; (b) The Board, where such order is passed by the committee of the Board within thirty days from the date ol order: and (c) The State Government, where such order is passed by the Managing Director olthe Board or by the Board, within thirty days from the date ol such order.

Bar to civil suit and Protection to person acting in good faith. Bar to suit in absence of notice. Power ol the State Government to amend the Schedule. Penalty for contravention of Act, Rules and Bye- laws. CHAPTER -VII PENALTY (2) The Appellate Authority, if it considers necessary so to do grant stay ol the order appealed against for such period as lt may deem fit. (3) The order passed by the State Government under this section shall be final.

Any dispute between the private market or consumer market and committee. shall be referred to the Secretary of lhe Board or any other officer authorized by the State Government in this behalf and shall be resolved after giving both the partres a reasonable opportunity oi being heard. Recovery of Sums due to the Board or the commitlee. Redressal ol dispute between Private Market or Consumer Market and Provided that the decision of the authority under Committee this Election shall be final.

(1) Any person aggrieved by an order passed under Appeal. seclion 25, 26, or 37 may prefer an appeal, in such form and in such manner as may be prescribed, to :- (a) The Committee, where such order is passed by the Secretary of the Committee with in thirty days trom the date of order; (b) The Board, where such order is passed by the committee of the Board within thirty days from the date ol order: and (c) The State Government, where such order is passed by the Managing Director olthe Board or by the Board, within thirty days from the date ol such order. Bar to civil suit and Protection to person acting in good faith. Bar to suit in absence of notice. Power ol the State Government to amend the Schedule. Penalty for contravention of Act, Rules and Bye- laws. CHAPTER -VII PENALTY 110 (2) The Appellate Authority, if it considers necessary so to do grant stay ol the order appealed against for such period as lt may deem fit. (3) The order passed by the State Government under this section shall be final.

prosecution or legal proceedings shall lie in respect of anything done in good faith or intended to be done under this Act or rule or bye-laws made thereunder, againstthe officerof the State Government or against theBoard or any committee or against any person acling under the directions ol such Board, Committee or any oflicer or servant of State Government Board or

Notwithstanding anything contained in thisAct, no suit shallbe inslituted againstthe Board or any Committee, until the expiration of two months next after notice in writing stating the cause of action, name and place of abode of the intending plaintifi, and the relief which he claims has been delivered or left at its oflice. Every such suit shall be dismissed unless it is instituted within six months from the date ol the accrual of alleged cause of action. 68. (1) The State Government may, by notification, add to or delete therelrom any of the Horticultural produce specified under column-2 in the

(See section 2 (a) and section 68) (e) (f) (s) (h) ItemEnglish NameHindi Name 1 . Fruils1. Mango 2. Banana 3. Litchi 4. Sweet Orange 5. Lemon 6. Grapes 7. pomegranate 8. Apple 9. Orange '10. Peach '11 . Kiwi '12. Plum 13. Pears 14. Gauva 15. Apricot 16. Persimon '1 7. Watermelon 18. Walnut 19. Almond Am Kela Litchi Malta Neembo Angoor Anar Saib Santra Aru Kiwi Alucha Naspati Amrud Khurmani Japani Phal Tarbuz Akhrot Badam 2. Vegetables Musk'l\.4elon Papaya Jackfruit Ber Aonla Cherry Egg lruit Avcoda Fis Date palm Jamun karonda Bael Loqout Passion Fruit Pine Apple Phalsa Sapota Strawberry Stone fruits Minor tropical fruits Peacan nut Bottle gourd Brinjal Ladi's Finger Tomato Cauliflower' Cabbage Sponge gourd Carrot French Bean Raddish Leave of lndian Capsicum Kharbuza Papita. Kalhal Ber Amla Anarash Ghia Baingan Bhindi Tamator Phulgobhi Bandhgobhi Ghia tori Galar Pharas bean Muli sag [Iirch badi 20. 21. 22. zJ. 24. 25. zo. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. EI A' 53. 3. Floriculure 4. Medicinal and Aromatic plants. 5. Spices 6. Mushrooms 54. Bitter gourd Karela 55. Cucumber Khira 56. Chilli mirch 57. Lettuce falak 58. Spinach Dhaina 59. Knol-Khol 60. Annul floers 61. Anthurium 62. Carnation 63. Rose 64. Gladiolus 65. Jasmine 66. Orchids 67. Chrsanthimum 68. All ornamental and Avenue plantations. 69. Binneal and perennial flowers. 70. All medicinal and Aromatic plants. 71. Ginger 72. Tamarind 73. Cardamoom(small & Large) 74. Turmeric 75. Black Peeper 76. And all other Spices crops. 77. Button Mushrooms 78. Oyster Mushrooms 79. Paddy Straw Mushrooms, C. P Mansai Secretary to the Government of Arunachal Pradesh, Itanagar. ,1