The Karnataka Agricultural Produce Marketing (Regulation) Act, 1966

Short title, extent and commencement.-

1. (1) This Act may be called the 1[Karnataka]1 Agricultural Produce Marketing (Regulation) Act, 1966.
2. (2) It extends to the whole of the 1[State of Karnataka.]1
3. (3) It shall come into force on such 1[date]1 as the State Government may, by notification, appoint.

Definitions:- In this Act, unless the context otherwise requires,- 1[(1)“Agricultural produce” means the produce or goods specified in the Schedule]1 1[(2)“agriculturist” means a person cultivating any agricultural land who is an occupant of such land, or a tenant of an occupant: Explanation.- For purposes of this clause, the expressions 'occupant' and 'tenant' shall have the meaning assigned to them in the 2[Karnataka]2 Land Revenue Act, 1964. (2[Karnataka]2 Act 12 of 1964);]1 1[(2A) "Agricultural Co-operative Processing Society" means an agricultural Co-operative Processing Society registered or deemed to have been registered under the Karnataka Co-operative Societies Act, 1959 for the purpose of processing of agricultural produce in a market area;]1 1[(2B)"Backward Classes" measn such class or classes of citizens as may be classified as category 'A' and 'B' and notified by the State Government from time to time for the purpose of reservation of seats in the market committee."]1

1. (3) “Board” means the 1[Karnataka State Agricultural Marketing Board]1 established under this Act;
2. (4) “broker” means an agent who in consideration of a commission, fee or reward, merely negotiates and brings about a contract for the purchase or sale of notified agricultural produce on behalf of his principal, but does not receive, deliver, transport, pay for the purchase of, or collect the payment for the sale of, the notified agricultural produce;
3. (5) “buyer” or “ purchaser” means a person who buys or agrees to buy goods;
4. (6) “bye-laws” means bye-laws made under this Act; 1[(6A) "cattle " includes buffalo, bullock, cow, 2[ox, goat, sheep and their young]2;]1 1[(7) x x x]1 1[(8)“commission agent” means a person who in the ordinary course of business makes or offers to make a purchase or sale of agricultural produce on behalf of the owner or seller or purchaser or such agricultural produce for commission;]1
5. (9) “commodity” means any kind of agricultural produce meant for sale; 1[(10) "Co-operative Marketing Society" means a Co-operative Marketing Society registered or deemed to have been registered under the Karnataka Co-operative Societies Act, 1959 for the purpose of marketing of agricultural produce in a market area;]1
6. (11) “delivery” means voluntary transfer of possession from one person to another;
7. (12) “Deputy Commissioner” includes any officer subordinate to the Deputy Commissioner not below the rank of a Tahsildar authorised by the State Government by notification to exercise the powers and perform the functions of the Deputy Commissioner under this Act in respect of any market area within the territorial jurisdiction of such officer; 1[(12A) "Director of Agricultural Marketing" means the officer appointed by the State Government as such and includes any other officer or officers empowered by the State Government, by notification to exercise or perform such of the powers or functions of the Director of Agricultural Marketing under the provisions of this Act or the rules as may be specified in such notification;]1
8. (13) “exporter” means a person other than a producer who exports goods or causes goods to be exported on one’s own account or as agent of another person, from the market area outside such area for the purpose of selling, processing, manufacturing or for any other purpose except for the purpose of one’s own domestic consumption, but shall not include a public carrier; 1[x x x]1;
9. (14) “goods” means any kind of notified agricultural produce; 1[(14A) "importer" means a person who imports or causes goods to be imported on his own account or as an agent for another person from outside the market area into a market area for the purpose of selling, processing, manufacturing or for any other purpose except for one's own domestic consumption, but shall not include a public carrier;]1
10. (15) “insolvent” means a person who ceases to pay his debts in the ordinary course of business or cannot pay his debts as they become due, whether he has committed an act of insolvency or not; 1[(16) x x x]1; 1[(17) x x x]1
11. (18) “market” means any notified area declared 1[or deemed to be declared]1 to be a market under 2[this Act]2; 1[(18A) "Marketing" means buying and selling of agricultural produce and includes grading, processing, storage, transport, packaging, market information and channels of distribution.]1
12. (19) “Market area” means any area declared to be a market area under section 4; 1[(19A) "market charges" means all charges in connection with the handling of agricultural produce such as the commission of commission agents, brokerage, remuneration for weighment, loading, unloading, cleaning, sorting, counting, sieving and dressing of agricultural produce;]1
13. (20) “Market committee” or “committee” means a market committee constituted for a market area under this Act;
14. (21) “market functionary” or “functionary” includes a broker, a commission agent, an exporter, a ginner, an importer, a presser, a processor, a stockiest, a trader, and such other person as may be declared under the rules or the bye-laws to be a market functionary;
15. (22) “market sub-yard” means a specified place declared 1[or deemed to be declared]1 to be a market yard under 2[this Act]2;
16. (23) “market yard” means a specified place declared 1[or deemed to be declared]1 to be a market yard under 2[this Act]2;
17. (24) “market year” means the year commencing on the first day of 1[April]1;
18. (25) “member” means a member of a market committee;
19. (26) “misconduct” in relation to a market functionary shall include any conduct of such functionary which is contrary to any of the provisions of this Act, the rules, the bye-laws or standing orders or is inconsistent with the objects and purposes of this Act;
20. (27) “notification” means a notification published in the official Gazette;
21. (28) notified agricultural produce” means any agricultural produce which the State Government has by notification issued under sections 4 and 5 declared as an agricultural produce the marketing of which shall be regulated in the market area;
22. (29) “over-trading” in relation to a trader means,-
    • (i) buying goods on credit t

Definitions:- In this Act, unless the context otherwise requires,- 1[(1)“Agricultural produce” means the produce or goods specified in the Schedule]1 1[(2)“agriculturist” means a person cultivating any agricultural land who is an occupant of such land, or a tenant of an occupant: Explanation.- For purposes of this clause, the expressions 'occupant' and 'tenant' shall have the meaning assigned to them in the 2[Karnataka]2 Land Revenue Act, 1964. (2[Karnataka]2 Act 12 of 1964);]1 1[(2A) "Agricultural Co-operative Processing Society" means an agricultural Co-operative Processing Society registered or deemed to have been registered under the Karnataka Co-operative Societies Act, 1959 for the purpose of processing of agricultural produce in a market area;]1 1[(2B)"Backward Classes" measn such class or classes of citizens as may be classified as category 'A' and 'B' and notified by the State Government from time to time for the purpose of reservation of seats in the market committee."]1 (3) “Board” means the 1[Karnataka State Agricultural Marketing Board]1 established under this Act; (4) “broker” means an agent who in consideration of a commission, fee or reward, merely negotiates and brings about a contract for the purchase or sale of notified agricultural produce on behalf of his principal, but does not receive, deliver, transport, pay for the purchase of, or collect the payment for the sale of, the notified agricultural produce; (5) “buyer” or “ purchaser” means a person who buys or agrees to buy goods; (6) “bye-laws” means bye-laws made under this Act; 1[(6A) "cattle " includes buffalo, bullock, cow, 2[ox, goat, sheep and their young]2;]1 1[(7) x x x]1 1[(8)“commission agent” means a person who in the ordinary course of business makes or offers to make a purchase or sale of agricultural produce on behalf of the owner or seller or purchaser or such agricultural produce for commission;]1 (9) “commodity” means any kind of agricultural produce meant for sale; 1[(10) "Co-operative Marketing Society" means a Co-operative Marketing Society registered or deemed to have been registered under the Karnataka Co-operative Societies Act, 1959 for the purpose of marketing of agricultural produce in a market area;]1 (11) “delivery” means voluntary transfer of possession from one person to another; (12) “Deputy Commissioner” includes any officer subordinate to the Deputy Commissioner not below the rank of a Tahsildar authorised by the State Government by notification to exercise the powers and perform the functions of the Deputy Commissioner under this Act in respect of any market area within the territorial jurisdiction of such officer; 1[(12A) "Director of Agricultural Marketing" means the officer appointed by the State Government as such and includes any other officer or officers empowered by the State Government, by notification to exercise or perform such of the powers or functions of the Director of Agricultural Marketing under the provisions of this Act or the rules as may be specified in such notification;]1 (13) “exporter” means a person other than a producer who exports goods or causes goods to be exported on one’s own account or as agent of another person, from the market area outside such area for the purpose of selling, processing, manufacturing or for any other purpose except for the purpose of one’s own domestic consumption, but shall not include a public carrier; 1[x x x]1; (14) “goods” means any kind of notified agricultural produce; 1[(14A) "importer" means a person who imports or causes goods to be imported on his own account or as an agent for another person from outside the market area into a market area for the purpose of selling, processing, manufacturing or for any other purpose except for one's own domestic consumption, but shall not include a public carrier;]1 (15) “insolvent” means a person who ceases to pay his debts in the ordinary course of business or cannot pay his debts as they become due, whether he has committed an act of insolvency or not; 1[(16) x x x]1; 1[(17) x x x]1 (18) “market” means any notified area declared 1[or deemed to be declared]1 to be a market under 2[this Act]2; 1[(18A) "Marketing" means buying and selling of agricultural produce and includes grading, processing, storage, transport, packaging, market information and channels of distribution.]1 (19) “Market area” means any area declared to be a market area under section 4; 1[(19A) "market charges" means all charges in connection with the handling of agricultural produce such as the commission of commission agents, brokerage, remuneration for weighment, loading, unloading, cleaning, sorting, counting, sieving and dressing of agricultural produce;]1 (20) “Market committee” or “committee” means a market committee constituted for a market area under this Act; (21) “market functionary” or “functionary” includes a broker, a commission agent, an exporter, a ginner, an importer, a presser, a processor, a stockiest, a trader, and such other person as may be declared under the rules or the bye-laws to be a market functionary; (22) “market sub-yard” means a specified place declared 1[or deemed to be declared]1 to be a market yard under 2[this Act]2; (23) “market yard” means a specified place declared 1[or deemed to be declared]1 to be a market yard under 2[this Act]2; (24) “market year” means the year commencing on the first day of 1[April]1; (25) “member” means a member of a market committee; (26) “misconduct” in relation to a market functionary shall include any conduct of such functionary which is contrary to any of the provisions of this Act, the rules, the bye-laws or standing orders or is inconsistent with the objects and purposes of this Act; (27) “notification” means a notification published in the official Gazette; (28) notified agricultural produce” means any agricultural produce which the State Government has by notification issued under sections 4 and 5 declared as an agricultural produce the marketing of which shall be regulated in the market area; (29) “over-trading” in relation to a trader means,- (i) buying goods on credit t

ESTABLISHMENT OF MARKETS

Markets, market yards, market sub-yards, sub-markets and sub-market yards.—

1. (1) For each market area there shall be one principal market yard and there may be one or more sub-market yards as the State Government may, by notification, specify.
2. (2) The State Government may, by notification, declare any enclosure, building or locality in any market area to be a market yard or a sub-market yard.

Markets, market yards, market sub-yards, sub-markets and sub-market yards.—

1. (1) For each market area there shall be one principal market yard and there may be one or more sub-market yards as the State Government may, by notification, specify.
2. (2) The State Government may, by notification, declare any enclosure, building or locality in any market area to be a market yard or a sub-market yard.

Control of marketing of agricultural produce.—(1) No person shall, except in accordance with the provisions of this Act,—

1. (a) use any place in the market area for the marketing of notified agricultural produce;
2. (b) operate in the market area as a market functionary: Provided that nothing in this sub-section shall apply to a person who sells notified agricultural produce which has been produced by him: Provided further that the State Government may, by notification, exempt any person or class of persons from the operation of this sub-section subject to such conditions as may be specified in the notification.

1. (2) Nothing in sub-section (1) shall apply to the sale of notified agricultural produce by a person in a market area if such sale is made to a retail trader or a consumer in a quantity not exceeding such quantity as may be specified in the bye-laws or if such sale is for his own domestic consumption.

CONSTITUTION OF MARKET COMMITTEES

Establishment of market committee and its incorporation.

Constitution of the first market committee.-

1. (1) The State Government shall, by notification, constitute the first market committee for a market area.
2. (2) Such committee shall consist of the following fifteen members, namely:-
   • (i) one representative of the agriculturists from each of the Taluks comprised in the market area, elected by the agriculturists in the Taluk;
   • (ii) one representative of the Co-operative Marketing Societies established in the market area, elected by the members of the managing committees of such societies;
   • (iii) such number of representatives of the traders, not being less than three, as the State Government may, by notification, specify, elected by the traders holding licences in the market area;
   • (iv) one representative of the Taluk Board having jurisdiction over the market area and one representative of the Municipality, if any, comprised in the market area, nominated by the respective local authorities;
   • (v) the Assistant Director of Agricultural Marketing or any other officer authorised by the Director of Agricultural Marketing, ex-officio, who shall have no right to vote.
3. (3) The members of the first market committee shall hold office for a period of two years from the date of their appointment: Provided that the State Government may, by notification, extend the said period for an additional period not exceeding one year.
4. (4) If the first market committee is not constituted in accordance with sub-sections (1) and (2) or if the committee is not functioning, the State Government may appoint one or more persons to perform all or any of the functions of the market committee and such person or persons shall be deemed to be the market committee for the purposes of this Act.

Constitution of second and subsequent market committees.-

1. (1) Every market committee constituted after the first market committee shall consist of the following members, namely:-
   • (i) eleven agriculturists elected by the agriculturists in the market area;
   • (ii) one representative from the Co-operative Marketing Societies and one from the Agricultural Co-operative Processing Societies carrying on business in notified agricultural produce within the market area, elected by the members of the managing committees of such societies;
   • (iii) three representatives of traders, elected by the traders holding licences in the market area;
   • (iv) one representative of the consumers, elected by the consumers in the market area;
   • (v) the Assistant Director of Agricultural Marketing or any other officer authorised by the Director of Agricultural Marketing, ex-officio, who shall have no right to vote.
2. (2) The members of the market committee shall hold office for a period of five years from the date of the first meeting of the committee: Provided that the State Government may, by notification, extend the said period for an additional period not exceeding one year in the aggregate.

Provisions for elections.-

1. (1) The election of the representatives for the market committee shall be conducted by the Director of Agricultural Marketing or such other officer as may be authorised by him in this behalf.
2. (2) The election shall be held in the manner prescribed by rules.
3. (3) The voters' list for the election shall be prepared in accordance with the rules.
4. (4) Every person enrolled as a voter in the voters' list shall be eligible to vote at the election.

Superintendence, direction and control of elections.-

1. (1) The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to a market committee shall vest in the Director of Agricultural Marketing.
2. (2) The Director of Agricultural Marketing may, by notification, appoint such number of officers and staff as he may consider necessary to assist him in the performance of his functions under this Act.

Constituencies for election of certain members.-

1. (1) For the purpose of election of representatives of the agriculturists, the market area shall be divided into such number of constituencies as the State Government may, by notification, specify.
2. (2) The number of seats to be filled by election from each constituency shall be determined by the State Government by notification.

Qualification for candidates for election.-

1. (1) No person shall be qualified to be chosen as a member of a market committee unless he is an elector for a constituency of the market area and he is not disqualified under this Act.
2. (2) A person shall be disqualified from being chosen as a member of the market committee if he is a paid officer or servant of the market committee or of any local authority.
3. (3) In the case of a representative of a Co-operative Society, the person must be a member of the managing committee of that society.
4. (4) In the case of a representative of traders, the person must be a holder of a valid licence under this Act.

Disqualifications for membership.—(1) A person shall be disqualified for being chosen as and for being a member of a market committee, if he,—

1. (a) is not a citizen of India;
2. (b) is less than twenty-one years of age;
3. (c) has been adjudged by a competent court to be of unsound mind;
4. (d) is an undischarged insolvent;
5. (e) has been convicted by a criminal court of any offence involving moral turpitude, unless a period of five years has elapsed since the date of his conviction;
6. (f) holds any office of profit under the Government or any local authority, other than an office declared by the State Government to be an office of profit which does not disqualify a member;
7. (g) has been removed from the office of member or disqualified from being a member of a market committee for any of the corrupt practices mentioned in section 24;
8. (h) is a person who is a defaulter in the payment of market fees in respect of agricultural produce or any other amount due to the market committee;
   • (i) is a person who is a trader, commission agent, broker, importer or exporter and has not paid the dues to the market committee up to the date of election;
9. (j) is a person convicted under this Act.

Disqualification of sitting member.—(1) If a member of a market committee,—

1. (a) becomes subject to any of the disqualifications mentioned in section 16;
2. (b) absents himself from three consecutive meetings of the market committee without the permission of the market committee;
3. (c) ceases to be a member of the constituency from which he was elected; his seat shall thereupon become vacant: Provided that before declaring the seat as vacant, the member shall be given an opportunity to be heard.

Constituency or institution failing to return representative.—If any constituency or institution fails to return a member at an election held under this Act, the Director of Agricultural Marketing shall, by notification, require the constituency or institution to elect a member within such time as may be specified in the notification. If the constituency or institution fails to elect a member within the specified time, the State Government shall nominate a person eligible for election to that seat to be a member of the market committee.

Prohibition of simultaneous membership.—(1) No person shall be a member of more than one market committee.

1. (2) If a person is elected to more than one market committee, he shall, within fifteen days from the date of publication of the names of elected members, choose one of the market committees of which he wishes to be a member and resign his membership from others.
2. (3) If he fails to resign from others, the Director of Agricultural Marketing shall, after giving him an opportunity to be heard, declare his seat in all the market committees to which he was elected to be vacant.

Determination of validity of election.—(1) No election of a member shall be called in question except by an election petition presented to the Munsiff having jurisdiction over the area in which the market is situated, within thirty days from the date of declaration of the result of the election.

1. (2) The Munsiff shall, after holding such inquiry as he deems fit, pass such order including an order for costs, as he deems just.
2. (3) The order made by the Munsiff under sub-section (2) shall be final.

Grounds for declaring election to be void.—The Munsiff shall declare an election to be void if he is satisfied,—

1. (a) that on the date of his election the returned candidate was not qualified, or was disqualified to be chosen as a member under this Act;
2. (b) that any corrupt practice has been committed by a returned candidate or his agent or by any other person with the consent of a returned candidate or his agent;
3. (c) that any nomination has been improperly rejected;
4. (d) that the result of the election, in so far as it concerns a returned candidate, has been materially affected,—
   • (i) by the improper acceptance of any nomination; or
   • (ii) by any corrupt practice committed in the interests of the returned candidate by a person other than that candidate or his agent or a person acting with the consent of such candidate or agent; or
   • (iii) by the improper reception, refusal or rejection of any vote or the reception of any vote which is void; or
   • (iv) by any non-compliance with the provisions of this Act or of any rules made under this Act.

Grounds for which a candidate other than the returned candidate may be declared to have been elected.—If any person who has lodged a petition has, in addition to calling in question the election of the returned candidate, claimed a declaration that he himself or any other candidate has been duly elected and the Munsiff is of opinion—

1. (a) that in fact the petitioner or such other candidate received a majority of the valid votes; or
2. (b) that but for the votes obtained by the returned candidate by corrupt practices the petitioner or such other candidate would have obtained a majority of the valid votes, the Munsiff shall after declaring the election of the returned candidate to be void declare the petitioner or such other candidate, as the case may be, to have been duly elected.

Below is the text of Section 23 of The Karnataka Agricultural Produce Marketing (Regulation) Act, 1966:

23. Procedure in case of an equality of votes.—If after the counting of the votes is completed, an equality of votes is found to exist between any candidates, and the addition of one vote will entitle any of those candidates to be declared elected, the Munsiff shall forthwith decide between those candidates by lot, and proceed as if the candidate on whom the lot falls had received an additional vote.

Corrupt practices.—The following shall be deemed to be corrupt practices for the purposes of this Act:—

1. (1) Bribery, that is to say,—
   • (a) any gift, offer or promise by a candidate or his agent or by any other person with the consent of a candidate or his election agent, of

Other orders to be made by the Munsiff.

However, based on the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966, the text of Section 26 is as follows:

26. Appeal against orders of Munsiff.—(1) Any person aggrieved by any decision or order of the Munsiff under section 20, 21, 22, 23 or 25, may, within thirty days from the date of such decision or order, appeal to the District Judge within whose jurisdiction the market area is situate, and the decision of the District Judge on such appeal shall be final.

1. (2) The District Judge shall, while deciding an appeal under sub-section (1), follow such procedure as may be prescribed.

Casual vacancies.-

1. (1) A casual vacancy in the office of a member of the market committee shall be filled by the election of a person thereto, and the person so elected shall hold office for the remainder of the term of office of the member in whose place he is elected: Provided that no such casual vacancy shall be filled if the vacancy occurs within six months preceding the date on which the term of office of the member ordinarily expires.

Prohibition of canvassing in or near polling stations.

Penalty for disorderly conduct in or near polling station

Penalty for misconduct at polling station

Maintenance of secrecy of voting

Officers, etc., at elections not to act for candidates or influence voting

Breaches of official duty in connection with elections

Removal of ballot papers from polling stations to be an offence.

Other offences and penalties therefor

Prosecution of certain offences

Term of office of members

Commencement of term of office.

Resignation of members.

Election of Chairman and Vice-Chairman.

Term of office of Chairman or Vice-Chairman.

Vacancy in office of Chairman and Vice-Chairman.

Motion of no-confidence.

Leave of absence to Chairman and Vice-Chairman and consequences of absence without leave.

CONDUCT OF BUSINESS

Powers and duties of Chairman.

Powers and duties of Vice-Chairman.

Minutes.

Confirmation of minutes.

Interpellation and resolutions.

Bye-laws to regulate detailed procedure at meetings.—

1. (1) The market committee may, with the previous sanction of the Director of Agricultural Marketing, make bye-laws for the regulation of the detailed procedure at its meetings and for the conduct of its business, consistent with this Act and the rules made thereunder.
2. (2) Such bye-laws may provide for—
   • (a) the procedure to be followed in the conduct of its business;
   • (b) the procedure for maintenance of the minutes of the meetings;
   • (c) the procedure for the issue of notices for meetings;
   • (d) the manner of voting at meetings;
   • (e) any other matter relating to the procedure at meetings which is not specifically provided for in the Act or the rules.

STAFF OF THE MARKET COMMITTEES

Omitted.

Karnataka State Marketing Service,etc.

POWERS AND DUTIES OF MARKET COMMITTEES

Powers and duties of market committee

The market committee and Secretary to exercise powers and functions under the Karnataka Act Nos.22 of 1964, 14 of 1976 and 20 of 1985

Appointment of sub-committees

Levy of market fees

Power of market committee to impose penalty

REGULATION OF TRADING

Grant of licences.-

1. (1) No person shall, except in accordance with the provisions of this Act and the conditions specified in the licence granted by the Market Committee, carry on the business of a market functionary in a market area: Provided that any person who is already carrying on the business of a market functionary on the date of declaration of market area, may continue to do so for such period as may be prescribed.
2. (2) Every person who desires to carry on the business of a market functionary in a market area shall make an application to the Market Committee for the grant of a licence in such form as may be specified in the bye-laws.
3. (3) On receipt of an application under sub-section (2), the Market Committee may, after making such inquiry as it deems fit and on verification that the applicant satisfies the conditions prescribed for such licence, grant a licence to such person on payment of such fees as may be specified in the bye-laws.

Power to cancel or suspend licences.-

1. (1) The Market Committee may, for reasons to be recorded in writing, suspend or cancel a licence granted or renewed under this Act, if the holder of the licence,-
   • (a) has failed to comply with any of the conditions of the licence or has contravened any of the provisions of this Act, the rules or the bye-laws;
   • (b) has been convicted of an offence punishable under this Act;
   • (c) has become an insolvent or has compounded with his creditors;
   • (d) has failed to pay any fees or other amount due from him to the Market Committee.
2. (2) No licence shall be suspended or cancelled under sub-section (1) unless the holder of the licence has been given a reasonable opportunity of showing cause against such suspension or cancellation.
3. (3) The suspension or cancellation of a licence shall not affect the liability of the holder of the licence to pay any dues to the Market Committee.

Appeal.- Any person aggrieved by an order of the Market Committee refusing to grant or renew, or suspending or cancelling a licence, may, within thirty days from the date of communication of the order, appeal to the Director of Agricultural Marketing or such other officer as may be authorised by the State Government in this behalf, and the decision of the appellate authority on such appeal shall be final.

Payment of price.- The price of the notified agricultural produce brought to the market by the seller shall be paid by the buyer to the seller on the same day on which the agricultural produce is sold.

Sale of agricultural produce.-

1. (1) All notified agricultural produce shall be sold in the market yard, market sub-yard or sub-market yard: Provided that nothing contained in this sub-section shall apply to,-
   • (a) sale of notified agricultural produce by a person for his own domestic consumption;
   • (b) notified agricultural produce which is brought for sale by head-loads;
   • (c) notified agricultural produce processed by the producer himself;
   • (d) such other class of sales as may be prescribed.
2. (2) Every sale of notified agricultural produce in the market yard, market sub-yard or sub-market yard shall be by open auction.

Agreement of sale.-

1. (1) Every sale of notified agricultural produce at the market yard or market sub-yard or sub-market yard shall be evidenced by a sale slip in such form as may be specified in the bye-laws.
2. (2) The sale slip shall be prepared in triplicate, one to be given to the seller, one to the buyer and one to the Market Committee.
3. (3) The sale slip shall contain such particulars as may be prescribed.

Payment of price of notified agricultural produce by the traders.-

1. (1) The buyer shall pay the price of the notified agricultural produce to the seller immediately after the sale in the market yard, market sub-yard or sub-market yard.
2. (2) If the buyer fails to pay the price as provided in sub-section (1), the Market Committee shall recover the amount from the buyer and pay the same to the seller.
3. (3) Where the amount is recovered by the Market Committee under sub-section (2), it shall also recover from the buyer interest at such rate as may be prescribed for the period of delay in payment.

Commission agent's commission and responsibility.-

1. (1) No commission agent shall collect from the seller or buyer any commission in excess of such rate as may be specified in the bye-laws.
2. (2) The commission agent shall be responsible for the payment of the price of the notified agricultural produce to the seller in accordance with the provisions of this Act and the rules.

Prohibition of certain collections.

79A. Market charges by whom payable.

No. deductions in weight or payment other than those specified.

Reports by market functionaries.

Assistance by the market functionaries.

No market functionary to participate in strike, etc.,

Production of account books, etc., by market functionaries.

Provision for settlement of disputes.

Omitted.

Security by traders.

Deposit of cash security in Bank.

Power of committee and Chairman to impose penalties [Section text not available in the official gazette publication.]

THE MARKET FUND

Market fund, its custody and investment.

Contribution to State Agricultural Marketing Board [Section text not available in the official gazette publication.]

Purposes for which the market fund shall be expended [Section text not available in the official gazette publication.]

SPECIAL COMMODITY MARKETS

Establishment of independent markets and market committees for special commodities.

MANDAL PANCHAYATS AS AGENTS OF MARKET COMMITTEES

Mandal Panchayats as agents of market committees.

Grants and loans to Mandal panchayats.

Effect of entrustment of powers and functions to Mandal Panchayats.

STATE AGRICULTURAL MARKETING BOARD

State Agricultural Marketing Board.

Composition of the State Marketing Board.

Publication of the names of the elected members of the Board.

Determination of the validity of election.

Cessation of membership of elected members of the Board.

By-election.

Term of office of the members of the Board.

Sitting fees and allowance to Chairman, Vice-Chairman and other members.

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

Conduct of business of the Board.-

1. (1) The Board shall meet for the transaction of its business at least once in three months.
2. (2) The Board shall meet at such time and place and the meeting shall be convened in such manner as may be prescribed: Provided that the Chairman may, whenever he thinks fit, and shall upon the written request of not less than one-third of the total number of members, call a special meeting.
3. (3) The quorum for the transaction of business at a meeting of the Board shall be such as may be prescribed.
4. (4) Every meeting shall be presided over by the Chairman and in his absence by the Vice-Chairman.
5. (5) All questions at a meeting shall be decided by the majority of the votes of the members present and voting, and in case of equality of votes, the Chairman or in his absence the Vice-Chairman presiding, shall have and exercise a second or casting vote.
6. (6) The record of the proceedings of the meetings of the Board shall be maintained in such manner as may be prescribed.

Grants by the State Government.- The State Government may, after due appropriation made by State Legislature by law in this behalf, make such grants to the Board as it may consider necessary for the performance of the functions of the Board under this Act.

Functions of the Managing Director.- The Managing Director shall be the Chief Executive Officer of the Board and shall exercise such powers and perform such duties and functions as may be prescribed.

Marketing Development Fund.-

1. (1) There shall be a fund to be called the "Marketing Development Fund".
2. (2) The following shall be credited to the said fund, namely:-
   • (a) all contributions made by the market committees to the Board under section 92;
   • (b) all grants, loans and advances made by the State Government;
   • (c) all moneys borrowed by the Board;
   • (d) all moneys received by the Board in any other manner or from any other source.

Power to borrow.- The Board may, with the previous sanction of the State Government and subject to such conditions as may be specified by the State Government, borrow money from the State Government or from any financial institution for carrying out the purposes of this Act.

Purposes for which the Marketing Development Fund shall be expended.- The Marketing Development Fund shall be expended for the following purposes, namely:-

1. (i) making grants, loans and advances to market committees;
2. (ii) promoting and conducting research in marketing of agricultural produce;
3. (iii) organizing and providing training for members and staff of market committees;
4. (iv) to provide technical assistance to market committees in the designing and planning of market yards;
5. (v) for any other purpose which the State Government may, by notification, specify as being in the interest of agricultural marketing.

Functions of the Board.- The Board shall perform the following functions, namely:-

1. (i) to co-ordinate the functioning of the market committees;
2. (ii) to undertake and promote research, survey and grading, and standardization of agricultural produce;
3. (iii) to provide assistance to market committees in the form of loans and grants for the development of market yards and sub-yards;
4. (iv) to organize training for the staff of market committees;
5. (v) to provide expert service to market committees;
6. (vi) such other functions as may be prescribed by rules.

Provisions of the Act and Rules to apply to the Board.- The State Government may, by notification, direct that any of the provisions of this Act or of the rules made thereunder shall, with such modifications as may be specified in the notification, apply to the Board as if the Board were a market committee.

PENALTIES

Penalties for evasion of payment of fee, etc.-

1. (1) Any market functionary, trader or other person who evades or attempts to evade the payment of any fee or other amount due from him under this Act or the rules or bye-laws made thereunder shall, on conviction, be punishable with fine which may extend to twice the amount of the fee or other amount due.
2. (2) Any market functionary, trader or other person who is convicted under sub-section (1) for the second or subsequent time shall, in addition to the fine under sub-section (1), be punishable with imprisonment for a term which may extend to six months.

Liability of accused to pay fee, cess or other amount.-

1. (1) Where a person is convicted of an offence under section 114, the Magistrate shall, in addition to the fine, order the accused to pay such amount of fee, cess or other amount as may be found to be due from him to the market committee.
2. (2) If the person so ordered fails to pay such amount, the Magistrate shall recover the same as if it were a fine imposed by him.

Power of Magistrate to recover summarily fee, or other amount.-

1. (1) Whenever any person is convicted by a Magistrate of an offence under this Act, the Magistrate may, in addition to any punishment, summarily determine the amount of fee or other amount due from him to the market committee and recover the same as a fine.
2. (2) The recovery of such amount shall not entitle the person to claim immunity from any other proceeding under this Act.

Penalty for contravention of section 8.- Whoever contravenes the provisions of section 8 shall, on conviction, be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five hundred rupees, or with both, and in the case of a continuing contravention, with a further fine which may extend to fifty rupees for every day during which the contravention continues after the first conviction.

Penalty for contravention of section 66.- Whoever contravenes the provisions of section 66 shall, on conviction, be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both.

Penalty for failure to obey order under section 123.

Penalty for contravening the provisions of section 123 or 124.

General provisions for punishment of offences.

CONTROL

Inspection, inquiry, submission of statements, etc.—

1. (1) The Director of Agricultural Marketing or any officer authorised by the State Government in this behalf may,—
   • (a) inspect or cause to be inspected the accounts and offices of a market committee;
   • (b) hold inquiry into the affairs of a market committee;
   • (c) call for and inspect, or cause to be inspected, the books of account or other documents in the possession of the market committee;
   • (d) require the market committee to furnish such statements, accounts, returns or copies of documents relating to the proceedings of the market committee or general meetings, as he may think fit.
2. (2) The market committee or any officer or servant of the market committee shall comply with the directions issued by the Director or such officer under sub-section (1), or produce the books of account or other documents or furnish the statements, accounts, returns or copies of documents as required under the said sub-section.

Duty of officers and members to furnish information to Director of agricultural Marketing, authorised officers and State Government.—Every officer and member of a market committee shall be bound to furnish such information as the Director of Agricultural Marketing, the authorised officer or the State Government may require concerning the affairs of the market committee and the marketing of agricultural produce in the market area.

Power of State Government to call for proceedings of market committee and to pass order thereon.—(1) The State Government may, at any time, call for and examine the proceedings of any market committee or of the Chairman, or any officer of such committee, for the purpose of satisfying itself as to the legality or propriety of any order passed, or proceeding taken, under this Act, and may pass such order in reference thereto as it thinks fit: Provided that no order shall be passed under this section which adversely affects any person, unless such person has been given a reasonable opportunity of being heard.

1. (2) The State Government may by order stay the execution of any such decision or order pending the exercise of powers under sub-section (1) in respect thereof.
2. (3) The State Government may delegate the power under this section to the Director of Agricultural Marketing.

Government's power to give directions to the market committee [Section text not available in the official gazette publication.]

Supersession of market committee.

NATIONAL INTEGRATED PRODUCE MARKET

Removal of difficulties.

MISCELLANEOUS

Recovery of sums due to market committee or Board.

Power ro exempt certain class of Co-operative Societies etc. from the provisions of Act.

Provisions of Act not to apply to Central and State Governments

Proof of entries in market committee's or Board's registers, etc

Chairman, Vice-Chairman, members, officers and servants of market committee or Board to be public servants

Bar of suit or other legal proceeding in absence of notice

Powers and duties of police officer

Duty of local authorities to give information and assistance

Duty of officers of the Departments to give information and assistance

Delegation of powers of State Government and Director of Agricultural Marketing.-

1. (1) The State Government may, by notification, delegate to the Director of Agricultural Marketing or any other officer, all or any of the powers conferred on or functions exercisable by it under this Act, other than the power to make rules under section 146.
2. (2) The Director of Agricultural Marketing may, by order in writing, delegate to any officer subordinate to him, all or any of the powers conferred on or functions exercisable by him under this Act.

Protection to persons acting in good faith.- No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule or bye-law made thereunder.

Effect of mere alteration of limits of market area.- The alteration of the limits of a market area shall not affect the entity of the market committee of the market area, and the market committee shall continue to be the same, and the rules and bye-laws of the market committee and the notifications, orders and directions issued under the Act, in force in any area before such alteration, shall continue to be in force in the market area as altered until modified or cancelled.

Denotification of a market area and its consequences.-

1. (1) Where the State Government is satisfied that the marketing of any agricultural produce in a market area is no longer required to be regulated under this Act, it may, by notification, denotify such market area.
2. (2) On such denotification, the market committee of the market area shall stand dissolved and the assets and liabilities of the committee shall be disposed of in such manner as the State Government may direct.

Amalgamation of market committees.-

1. (1) The State Government may, by notification, amalgamate two or more market committees into one market committee.
2. (2) Upon such amalgamation, the assets and liabilities of the amalgamated market committees shall vest in the new market committee.
3. (3) The members of the amalgamated market committees shall vacate their offices and until a new market committee is constituted, the State Government shall appoint an Administrator to manage the affairs of the new market committee.

Division of market area into two or more separate market areas.-

1. (1) The State Government may, by notification, divide a market area into two or more separate market areas.
2. (2) The State Government shall, by order, provide for the apportionment of assets and liabilities of the original market committee between the new market committees formed upon such division.
3. (3) The members of the original market committee shall vacate their offices upon such division and until new market committees are constituted, the State Government shall appoint Administrators for such new market committees.

Below is the text of Section 150 of the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966:

150. Director of Agricultural Marketing power to direct the making or amendment of bye-laws.—(1) If it appears to the Director of Agricultural Marketing that it is necessary or desirable in the interests of a market committee to make any bye-laws or to amend any bye-laws, he may, by order, direct the market committee to make such bye-laws or to amend the bye-laws within such time as he may specify in such order.

1. (2) If the market committee fails to make or amend any bye-laws within the time specified in the order under sub-section (1), the Director of Agricultural Marketing may, after giving the market committee an opportunity of being heard, make or amend the bye-laws and pass such incidental, consequential and supplementary provisions as may be necessary to give effect to such bye-laws or amendment.
2. (3) The bye-laws so made or amended shall have the same force and effect as if they had been made or amended by the market committee under section 148.

Power to make Standing Orders.—The Market Committee may, for the regulation of the procedure and the conduct of business of the Market Committee, make standing orders consistent with this Act and the rules.

Rules, orders and notifications to be laid before legislature.—Every rule made under this Act, every notification issued under this Act and every order made under this Act shall be laid as soon as may be after it is made or issued, before each House of the State Legislature while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in any such rule, order or notification or both Houses agree that the rule, order or notification should not be made, the rule, order or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule, order or notification.

Power of state Government to transfer assets, etc., in cases of market committees constituted for excluded areas under repealed Acts.—

1. (1) If the state Government is of opinion that any assets, rights or liabilities pertaining to a market committee constituted for an excluded area under any of the repealed Acts require to be transferred to any other market committee or local authority, it may, by order, direct that such assets, rights or liabilities shall be transferred to such market committee or local authority as it may specify in the order, and the same shall thereupon vest in such market committee or local authority.

SCHEDULE.