Chapter XIV MISCELLANEOUS

E-Commerce Platform

131-K. Establishment of E-Commerce Platform.- (1) No person shall establish and run e-commerce platform for trading in notified agricultural produce without obtaining a license under this section.

1. (2) Subject to such conditions, and such fees and such security deposit as may be prescribed, the Director of Agricultural Marketing shall grant license to setup e-commerce platform for facilitating trading in the notified agricultural produce.
2. (3) Any person who desires to establish and run e-commerce platform may apply to the Director of Agricultural Marketing in such manner along with such fee and security deposit as may be prescribed.
3. (4) The e-commerce platform shall,-
   • (i) provide payment facility for notified agricultural produce traded by traders in the platform;
   • (ii) allow only the licensed traders licensed by the appropriate authority under the Act for registering with the e-commerce platform.
   • (iii) ensure transparency in operation, decision making related to entire trading operations taking place in the platform.
   • (iv) provide for collection of fees, charges etc., relating to registration, trading transactions taken place in the platform.
   • (v) maintain records in electronic format of all the transactions traded in the platform;
   • (vi) provide services relating to grading, quality certification and standardization of commodities, collateral financing, borrowing and other services required by the participants of the platform;
   • (vii) trade only in the market fee suffered goods offered for sale by the licensed traders and in case, contrary to the above takes place, the licensee of the platform has to pay the market fee applicable to the concerned market committee; and
   • (viii) provide the operational and working guidelines to the licensing authority and after approval of the same, function the platform accordingly.

131-L. Reports of E-commerce Platform Licensee.- The licensee shall maintain

record of all the transactions taken place on the e-commerce platform in the electronic format and submit such periodical reports and returns at such times and in such forms as specified by the Director of Agricultural Marketing from time to time to the licensing authority or any officer authorized by him in this behalf.

131-M. Power to cancel or suspend e-commerce license.- The Director of Agricultural Marketing for reasons shall recorded in writing suspend or cancel e-commerce platform license granted by him in the following circumstances, namely:-

1. (i) if the license has been obtained through willful misrepresentation or fraud;
2. (ii) if the license holder or any one acting on his behalf with his express or implied permission commits a breach of any of the terms or conditions of the license;
3. (iii) if the license holder in combination with licensed traders or other licensed e- commerce platform holders, commits any act or abstains from carrying normal business in the platform with an intention of willfully obstructing, suspending or stopping of marketing of notified agricultural produce in the market area which had a consequence on the business operations in the market yards.
4. (iv) if the license holder becomes an insolvent; and
5. (v) if the license holder incurs any disqualification in such manner as may be prescribed; Provided that, no order shall be made without giving notice to the licensee. 131-N. Appeal.- Any person aggrieved by an order of the Director of Agricultural Marketing prefer an appeal to the Karnataka Appellate Tribunal within thirty days of receipt of the order communicated in this regard.

131-O. Redressal of disputes.- Any dispute between the e-commerce platform

licensee, licensed trader permitted to operate in the platform or the buyer of the produce

offered in the platform, as the case may be regarding payment to be made to the licensed

traders for the sale of agricultural produce in the platform, jurisdiction of operation, weight of agricultural produce, quality, price, charges, fees etc., shall in writing file a complaint by himself or through his authorized representative before the Director of Agricultural Marketing within thirty days from the date of arising the dispute with necessary documents.

1. (2) The Director of Agricultural Marketing on receipt of the complaint, after giving an opportunity of being heard with the concerned parties and making necessary enquiry, decide the dispute within a period of sixty days from the date of receipt of the complaint. 131-P. Penalty for contravention of section 131-K.- Whoever contravenes the provisions of section 131-K shall, on conviction, shall punished with imprisonment for a term which may extend to six months or with a fine of rupees one lakh or with both.]

1. Section 131K, 131L, 131M, 131N, 131O, 131P Inserted by Act 19 of 2025 w.e.f. 25.03.2025.

2[market Committee, Board or the Seller] .- (1) Any sum due to a market committee or the Board on account of any charge, costs, expenses, fees, rent or on any other account

3[or payment of price to the seller under section 75 or 78]

under the provisions of this Act or any rule, regulation or bye-law made thereunder shall be

recoverable from the person from whom such sum is due, in the same manner as an arrear of land revenue.

1. (2) If any question arises whether a sum is due to the market committee or the Board 3[or the seller] within the meaning of sub-section (1), it shall be referred to the 1[Director of Agricultural Marketing] or an officer subordinate to him authorised by him, and the 1[Director of Agricultural Marketing] or the authorised officer shall after making such enquiry as he deems fit, and after giving to the person from whom the sum is alleged to be due an opportunity of being heard, decide the question; and his decision shall be final and shall not be called in question in any court or before any other authority.

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986.

² Substituted by Act 23 of 2007 w.e.f. 16.8.2007.

³ Inserted by Act 23 of 2007 w.e.f. 16.8.2007.

provisions of Act.- The State Government may, by notification, exempt

any class of co-operative societies

4[or farmers producer

organizations in the State]

3[x x x] from any of the provisions of this Act or the rules or the bye-laws subject to such conditions and restrictions as may be specified in such notification.

¹ Substituted by Act Act 35 of 1986 w.e.f. 17.6.1986

² Inserted by Act Act 35 of 1986 w.e.f. 17.6.1986

⁴ Inserted by Act 5 of 2014 w.e.f. 04.01.2014

3. Omittted by Act 47 of 1976 w.e.f. 22.6.1976

The provisions of this Act shall not apply to any sales or purchases made directly by the Central Government or the State Government. 1[Provided that nothing in this section shall exempt any buyer or purchaser from the 1. Inserted by Act 4 of 1982 w.e.f. 1.5.1968 State or Central Government from liability to pay the fee payable under section 65.]

1[Provided that nothing in this section shall exempt any buyer or purchaser from the

¹ Inserted by Act 4 of 1982 w.e.f. 1.5.1968

State or Central Government from liability to pay the fee payable under section 65.]

(1) A copy of any entry in any book, register or list regularly kept in the course of its business by a market committee or the Board shall, if duly certified in such manner as may be prescribed, be received in any suit or other legal proceeding as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent to which, the original entry would, if produced, have been admissible to prove such matter, transactions or accounts. (2) No officer of a market committee or the Board shall, in any legal proceeding to which the committee or the Board is not a party, be compelled to produce any of the committee's or Board's books the contents of which can be proved under sub-section (1), or to appear as a witness to prove the matters, transactions or accounts therein recorded, unless by order of the court or other authority made for special cause. (3) (a) On the application of any party to a legal proceeding, the court or other authority may order that such party may inspect and take copies of any entries in a market committee's or Board's book for any of the purposes of such proceeding, or may order the committee or the Board, as the case may be, to prepare and produce, within a time to be specified in the order, certified copies of all such entries accompanied by a further certificate that no other entries are to be found in the books of the committee or Board relevant to the matters in issue in such proceeding and such further certificate shall be dated and subscribed in the manner prescribed for certified copies under sub-section (1). (b) An order under this sub-section or sub-section (2), may be made either with or without summoning the committee or Board, and shall be served on the committee or the Board three clear days exclusive of public holidays before the same is to be complied with, unless the court or other authority shall otherwise direct. (c) The Committee or the Board may at any time before the time specified for compliance of any such order either offer to produce its books at the trial or give notice of its intention to show cause against such order, and thereupon the same shall not be enforced without further orders.

1. (2) No officer of a market committee or the Board shall, in any legal proceeding to which the committee or the Board is not a party, be compelled to produce any of the committee's or Board's books the contents of which can be proved under sub-section (1), or to appear as a witness to prove the matters, transactions or accounts therein recorded, unless by order of the court or other authority made for special cause.
2. (3) (a) On the application of any party to a legal proceeding, the court or other authority may order that such party may inspect and take copies of any entries in a market committee's or Board's book for any of the purposes of such proceeding, or may order the committee or the Board, as the case may be, to prepare and produce, within a time to be specified in the order, certified copies of all such entries accompanied by a further certificate that no other entries are to be found in the books of the committee or Board relevant to the matters in issue in such proceeding and such further certificate shall be dated and subscribed in the manner prescribed for certified copies under sub-section (1).
   • (b) An order under this sub-section or sub-section (2), may be made either with or without summoning the committee or Board, and shall be served on the committee or the Board three clear days exclusive of public holidays before the same is to be complied with, unless the court or other authority shall otherwise direct.
   • (c) The Committee or the Board may at any time before the time specified for compliance of any such order either offer to produce its books at the trial or give notice of its intention to show cause against such order, and thereupon the same

shall not be enforced without further orders.

The Chairman, the Vice- Chairman, the members, the officers and other servants of a market committee and the Vice-Chairman, the members, the officers and other servants of the Board shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code and the Prevention of

Bar of suit or other legal proceeding in absence of notice.- No suit or other legal proceeding shall be instituted against any market committee or the Board or any member, officer or servant thereof or any person acting under the direction of any such

market committee, Board, member, officer or servant for anything done or purporting to be

done in good faith as such member, officer, servant or person under this Act, until the expiration of two months next after notice in writing, stating the cause of action, the name and place of abode of the intending plaintiff and the relief which he claims has been in the case of a market committee or the Board delivered or left at its office, and in the case of such member, officer, servant or person as aforesaid delivered to him or left at his office or usual place of abode, and the plaint shall contain a statement that such notice has been so delivered or left: Provided that nothing in this section shall be applicable to any suit or other legal proceeding by the State Government, the

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986

committee or the Board against any member, officer, servant , or other person.

(1) Save as otherwise provided in this Act, any person aggrieved by an original order of the Chairman or the Secretary under this Act may, within thirty days, appeal to the market committee. (2) The market committee may after giving a reasonable opportunity of being heard to the appellant and after such enquiry as it deems fit decide the appeal and its decision shall be final.] 1. Inserted by Act 16 of 1991 w.e.f. 1.8.1991

1. (2) The market committee may after giving a reasonable opportunity of being heard to the appellant and after such enquiry as it deems fit decide the appeal and its decision shall be final.]

¹ Inserted by Act 16 of 1991 w.e.f. 1.8.1991

(1) Any police officer may arrest any person committing in his view any offence against any provision of this Act or any rule or bye-law, if the name and address of such person be unknown to him and the person declines to give his name and address on demand, or gives a name and addreess the accuracy of which such officer has reason to doubt; and such person may be detained at the police station until his correct name and address has been ascertained. (2) It shall be the duty of every police officer to communicate as soon as may be, to the market committee any information which he receives regarding any attempt to commit or the commission of any offence against this Act or any rule or bye-law made thereunder, and to assist the Secretary or any officer or servant of the market committee reasonably demanding his aid in the exercise of his lawful authority.

1. (2) It shall be the duty of every police officer to communicate as soon as may be, to the market committee any information which he receives regarding any attempt to commit or the commission of any offence against this Act or any rule or bye-law made thereunder, and to assist the Secretary or any officer or servant of the market committee reasonably demanding his aid in the exercise of his lawful authority.

(1) It shall be the duty of every local authority to give all the necessary information in the possession of or under the control of its officers to the market committee or its officers authorised in that behalf, relating to the import and export of notified agricultural produce into and out of the area of the local authority, free of any charges. (2) It shall be also the duty of every local authority and its officers and staff concerned with the collection of octroi to give all the possible assistance to any officer of the market committee in exercising his powers and discharging his duties under sections 66 and 67.

1. (2) It shall be also the duty of every local authority and its officers and staff concerned with the collection of octroi to give all the possible assistance to any officer of the market committee in exercising his powers and discharging his duties under sections 66 and 67.

It shall be the duty of every officer of any of the Departments of the State Government to give all necessary information free of charge under the control of Departments to the market committee or its officer authorised in that behalf relating to the import and export of notified agricultural produce into and out of the area of any market committee.] 1. Inserted by Act 16 of 1991 w.e.f. 1.8.1991

¹ Inserted by Act 16 of 1991 w.e.f. 1.8.1991

2[Director of Agricultural

Marketing] .- (1) The State Government may by notification direct that any of the powers conferred on it by or under this Act, other than those conferred by sections 1, 2, 3, 4, 5, 10, 18, 38, 62, 68, 69, 96, 100, 126, 127, 130, 133, 143, 144, 145, 146 and 152 may subject to

such restrictions and conditions as may be specified in such notification, be exercisable also

by such officers of the State Government as shall be specified in such notification.

1. (2) The State Government may by notification direct that any of the powers conferred on the 2[Director of Agricultural Marketing] by or under this Act, other than those conferred by sections 6, 7, 9, 11, 1[x x x] , 91, 149 and 150 may subject to such restrictions and conditions as may be specified in such notification, be exercisable also by such of his subordinate officers as may be specified in such notification. .

¹ Omitted by Act 17 of 1980 w.e.f. 3.11.1979

² Substituted by Act 35 of 1986 w.e.f. 17.6.1986

No suit, prosecution or other legal proceeding shall be instituted against any person for anything done or intended to be done in good faith under this Act, or the rules, regulations or the bye-laws.

Where a notification is issued under section 5, excluding any area from any market area and such excluded area is not declared to be a separate market area or a notification is issued under section 5, including any area within a market area, the market committee constituted for such market area before the date of such exclusion or inclusion shall, notwithstanding anything contained in this Act, continue to be the market committee for the said market area until the reconstitution of such market committee under this Act.

Government may by notification declare that a market area shall from a date to be specified in the notification, cease to be a market area.

1. (2) When any area ceases to be a market area under sub-section (1), the market committee constituted therefor shall cease to exist, and the property and rights vested in any such market committee shall subject to all charges and liabilities affecting the same, 2[vest in such neighbouring market committee as the State Government may, by order, specify.]
2. (3) Where any such area is included in two or more other market areas, the State Government shall, by order, direct that such property, right, charges and liabilities shall vest in the market committees of such areas in such manner and in such proportions as may be specified in such order.

¹ Omitted by Act 4 of 1982 w.e.f.4.11.1981.

² Substituted by Act 23 of 2007 w.e.f. 16.8.2007.

Where the State Government is satisfied that for securing efficient regulation of marketing of any agricultural produce in any market

area, it is necessary that two or more market committees therein should be amalgamated,

then the State Government may, after consulting the market committees concerned provide for the amalgamation of such market committees into a single market committee for the market area in respect of the agricultural produce specified in the notification, with such constitution, property, rights, interests and authorities and such liabilities, duties and obligations (including provision in respect of contracts, assets, employees, proceedings, and

such incidental consequential and supplementary matters as may be necessary to give effect to such amalgamation) as may be specified in the notification.

(1) Subject to the procedure specified in sections 3 and 4, the State Government may divide a market area into two or more separate market areas. (2) When during the term of a market committee the market area for which it is established is divided into two or more separate market areas, the following consequences shall ensue:- (a) the market committee constituted for the market area under this Act shall be deemed to have been dissolved, and the State Government shall constitute separate market committees under section 10 for each of the separate market areas subject to such conditions as may be prescribed, and the 1[Director of Agricultural Marketing] shall also simultaneously declare a specified area and a specified place as the market and the market yard for each of the new market areas; (b) the term of office of the newly constituted committees shall be the same as is applicable to the first market committee under sub-section (3) of section 10; (c) the assets, rights and liabilities of the dissolved market committee shall be distributed by the State Government between the new market committees in accordance with such rules as may be prescribed; (d) any appointment, notification, notice, fee, order, scheme, licence, permission, bye-law or form, made, issued or imposed by the market committee which has been dissolved, in respect of any part of the area subject to the authority of the new market committees shall be deemed to have been made, issued or imposed by such market committee concerned unless and until it is superseded by any notification, notice, fee, order, scheme, licence, permission, rule, bye-law or form, made issued or imposed by it. (3) If any difficulty arises in giving effect to the provisions of this section, the State Government may by order published in the official Gazette, as the occasion may require, do anything which appears to it to be necessary to remove the difficulty. 1. Substituted by Act 35 of 1986 w.e.f. 17.6.1986

1. (2) When during the term of a market committee the market area for which it is established is divided into two or more separate market areas, the following consequences shall ensue:-
   • (a) the market committee constituted for the market area under this Act shall be deemed to have been dissolved, and the State Government shall constitute separate market committees under section 10 for each of the separate market areas subject to such conditions as may be prescribed, and the 1[Director of Agricultural Marketing] shall also simultaneously declare a specified area and a specified place as the market and the market yard for each of the new market areas;
   • (b) the term of office of the newly constituted committees shall be the same as is applicable to the first market committee under sub-section (3) of section 10;
   • (c) the assets, rights and liabilities of the dissolved market committee shall be distributed by the State Government between the new market committees in accordance with such rules as may be prescribed;
   • (d) any appointment, notification, notice, fee, order, scheme, licence, permission, bye-law or form, made, issued or imposed by the market committee which has been dissolved, in respect of any part of the area subject to the authority of the new market committees shall be deemed to have been made, issued or imposed by such market committee concerned unless and until it is superseded by any notification, notice, fee, order, scheme, licence, permission, rule, bye-law or form, made issued or imposed by it.
2. (3) If any difficulty arises in giving effect to the provisions of this section, the State Government may by order published in the official Gazette, as the occasion may require, do anything which appears to it to be necessary to remove the difficulty.

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986

(1) The State Government may for the whole of the State or for any class of market committees by notification and after previous publication, make rules for carrying into effect the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing provision, such rules may provide for,- (a) the preparation and revision of the list of voters, the division of the market area into constituencies 1[reservation of one agriculturist's constituency for the Scheduled Castes and the Scheduled Tribes] , the election or nomination of members of the market committee, the payment of deposits and their forfeiture, the manner of holding elections, the drawing up of the election programme, the fixing of polling stations, the appointment of returning officers, presiding officers and polling officers and all matters ancillary to such elections; (b) the election of the Chairman and the Vice-Chairman of the market committee; (c) the filling up of casual vacancies in the office of the Chairman, the Vice-Chairman or member of the market committee; (d) the forms in which returns shall be submitted by the market committee to the 2[Director of Agricultural Marketing] and such other officers as may be authorised by the 2[Director of Agricultural Marketing] ; (e) the persons by whom and the form in which copies of documents, and entries in the books of a market committee or the Board may be certified and the charges to be levied for the supply of such copies; (f) the manner in which the inquiry and inspection of the market committee shall be held; (g) the restrictions and conditions subject to which a market committee or the Board may incur any expenditure; (h) the restrictions and conditions subject to which a market committee or the Board may enter into contracts; (i) the circumstances in which any commodity shall be deemed to be adulterated; (j) the fees payable in respect of appeals under this Act or the rules and the fees payable in respect of any other matters; (k) the preparation of plans and estimates for works proposed to be constructed at the expense of a market committee or the Board and the grant of sanction to such plans and estimates; (l) the form in which the accounts of a market committee or the Board shall be kept, the audit, inspection and publication of such accounts, the charges, if any, to be made for such audit and inspection, audit memoranda of the accounts and supply of copies of such memoranda; (m) the preparation and submission for sanction of the annual budget and the report and returns of a market committee or the Board; (n) the investment and disposal of surplus funds of a market committee or the Board; 3[(n1) the procedure and fee for registration under section 64A; 1. Inserted by Act 17 of 1980 w.e.f. 30.6.1979 (n2) the infrastructure of farmer consumer market and appeal under section 72A, 72B, 72C and 72E; (n3) the manner of settlement of disputes under section 84A; (n4) the powers and functions of Agricultural Marketing Bureau under section 112(k); (n5) the manner of registering the contract farming sponsor under section 131C; (n6) the terms and conditions of the contract to be entered into under sub-section (2) of section 131C; (n7) the manner of resolving disputes under sub-section (4) of section 131C.] 2. Substituted by Act 35 of 1986 w.e.f. 17.6.1986 3. Inserted by Act 23 of 2007 w.e.f. 16.8.2007. (o) any other matter for which there is no provision in this Act (including prescribing appellate authorities, periods within which appeals or revision petitions have to be filed), and for which provision is, in the opinion of the State Government, necessary for giving effect to the purposes of this Act. (3) A rule under this Act may be made with retrospective effect and when such a rule is made, the reasons for making the rule shall be specified in a statement laid before both Houses of the State Legislature. Subject to any modification made under section 149, every rule made under this Act shall have effect as if enacted in this Act. *147. Regulations.- Subject to the provisions of this Act and the rules the Board may, by notification, and with the previous approval of the State Government, make regulations in relation to the carrying into effect the functions entrusted to the Board under this Act. • see footnote below section 61

effect the purposes of this Act.

1. (2) In particular, and without prejudice to the generality of the foregoing provision, such rules may provide for,-
   • (a) the preparation and revision of the list of voters, the division of the market area into constituencies 1[reservation of one agriculturist's constituency for the Scheduled Castes and the Scheduled Tribes] , the election or nomination of members of the market committee, the payment of deposits and their forfeiture, the manner of holding elections, the drawing up of the election programme, the fixing of polling stations, the appointment of returning officers, presiding officers and polling officers and all matters ancillary to such elections;
   • (b) the election of the Chairman and the Vice-Chairman of the market committee;
   • (c) the filling up of casual vacancies in the office of the Chairman, the Vice-Chairman or member of the market committee;
   • (d) the forms in which returns shall be submitted by the market committee to the 2[Director of Agricultural Marketing] and such other officers as may be authorised by the 2[Director of Agricultural Marketing] ;
   • (e) the persons by whom and the form in which copies of documents, and entries in the books of a market committee or the Board may be certified and the charges to be levied for the supply of such copies;
   • (f) the manner in which the inquiry and inspection of the market committee shall be held;
   • (g) the restrictions and conditions subject to which a market committee or the Board may incur any expenditure;
   • (h) the restrictions and conditions subject to which a market committee or the Board may enter into contracts;
     • (i) the circumstances in which any commodity shall be deemed to be adulterated;
   • (j) the fees payable in respect of appeals under this Act or the rules and the fees payable in respect of any other matters;
   • (k) the preparation of plans and estimates for works proposed to be constructed at the expense of a market committee or the Board and the grant of sanction to such plans and estimates;
   • (l) the form in which the accounts of a market committee or the Board shall be kept, the audit, inspection and publication of such accounts, the charges, if any, to be made for such audit and inspection, audit memoranda of the accounts and supply of copies of such memoranda;
   • (m) the preparation and submission for sanction of the annual budget and the report and returns of a market committee or the Board;
   • (n) the investment and disposal of surplus funds of a market committee or the Board;

3[(n1) the procedure and fee for registration under section 64A;

¹ Inserted by Act 17 of 1980 w.e.f. 30.6.1979

(n2) the infrastructure of farmer consumer market and appeal under section 72A, 72B, 72C and 72E; (n3) the manner of settlement of disputes under section 84A; (n4) the powers and functions of Agricultural Marketing Bureau under section 112(k); (n5) the manner of registering the contract farming sponsor under section 131C; (n6) the terms and conditions of the contract to be entered into under sub-section (2) of section 131C; (n7) the manner of resolving disputes under sub-section (4) of section 131C.]

² Substituted by Act 35 of 1986 w.e.f. 17.6.1986

³ Inserted by Act 23 of 2007 w.e.f. 16.8.2007.

1. (o) any other matter for which there is no provision in this Act (including prescribing appellate authorities, periods within which appeals or revision petitions have to be filed), and for which provision is, in the opinion of the State Government, necessary for giving effect to the purposes of this Act.

1. (3) A rule under this Act may be made with retrospective effect and when such a rule is made, the reasons for making the rule shall be specified in a statement laid before both Houses of the State Legislature. Subject to any modification made under section 149, every rule made under this Act shall have effect as if enacted in this Act.

*147. Regulations.- Subject to the provisions of this Act and the rules the Board may, by

notification, and with the previous approval of the State Government, make regulations in relation to the carrying into effect the functions entrusted to the Board under this Act.

• • see footnote below section 61

(1) Subject to the provisions of this Act and the rules made under section 146 and with the previous sanction of the

¹ Omitted by Act 4 of 1982 w.e.f. 1.5.1968 and inserted by the same Act w.e.f. 17.12.1981

1[after previous publication in the prescribed manner] make bye- laws for the regulation of the business and the conditions of trading in the market area. Every bye-laws made under this section shall be published in the prescribed manner.

² Substituted by Act 35 of 1986 w.e.f. 17.6.1986

1. (2) In particular and without prejudice to the generality of the foregoing provision, the bye-laws may provide for,-
   • (i) the regulation of business of the market committee;
   • (ii) the regulation of the business of the sub-committees of the market committee;
   • (iii) the conditions of delegation of powers, functions and duties of the market committee to sub-committees; 1[(iv) x x x]
   • (v) the assignment of powers, functions and duties to the officers and servants of the market committe;
   • (vi) the procedure for the granting, renewal, refusal, suspension or cancellation of licences under this Act and the circumstances in which any suspension or cancellation of a licence may be annulled by the market committee;
   • (vii) the conditions for trading or operating in any capacity as a market functionary within the market area;
   • (viii) the control and regulation of the dealings between sellers and purchasers;
   • (ix) the enforcement of the weighment of notified agricultural produce in due time;
   • (x) the enforcement of issue of immediate receipt to the producer in respect of the produce entrusted by the producer to the commission agent for sale;
   • (xi) the procedure of sale of notified agricultural produce in the yards and outside the market and sub-market in the market area;
   • (xii) the sales of notified agricultural produce in the yards under the direct supervision of the staff of the market committee;
   • (xiii) the execution of agreement of sale soon after the sale is agreed upon;
   • (xiv) the taking of delivery of goods soon after the agreement of sale is effected;
   • (xv) the payment of the price of the produce by the purchaser to the seller at the time of taking delivery of goods in all cases of direct purchases made from the producer without the assistance of a commission agent;
   • (xvi) the fixing of the maximum period of credit permissible to the purchaser from the commission agent from the date of the agreement of sale;
   • (xvii) the enforcement of prompt payment by the commission agent to his principal soon after delivery of the goods is given to the purchaser; (xviii) the enforcement of payment of the price of goods by the purchaser to the commission agent as and when it falls due in accordance with the terms of credit where the commission agent has allowed credit before the expiry of the maximum term of credit permissible under the bye-laws;
   • (xix) the procedure to be adopted where any licensed trader or commission agent suspends payment or becomes insolvent or is otherwise unable or refuses or neglects to discharge his liabilities and obligations in relation to transactions in the yards and outside the market or sub-market in the market area, and the rights, duties and liabilities of such trader or commission agent and those with whom he had such transactions and the manner in which and terms upon which they are to be closed or passed on;
   • (xx) the enforcement of the submission of returns, reports and statements from the market functionaries to the market committee;
   • (xxi) the enforcement of the production of the account books and any other books, files or documents of the market functionaries for inspection;
   • (xxii) the prevention of the adulteration of goods; (xxiii) the licence fees payable in respect of licences issued to the different classes of market functionaries;
   • (xxiv) the fixing of the percentage of the security amount to be deposited or the amount

¹ Omitted by Act 35 of 1986 w.e.f. 17.6.1986

of bank guarantee to be furnished by the commission agents and by the different

categories of traders, under sections 85 and 86;

1. (xxv) the travelling allowances and daily allowances of the members of the market committee;
2. (xxvi) the circumstances in which a warning may be given or a penalty may be imposed by the market committee on the market functionaries or other persons for breach of bye-laws and the procedure to be followed for the purpose; (xxvii) the procedure for entry and inspection of places of business and other places under section 66; (xxviii) the assistance to be rendered to a producer by way of preparing invoices and bills when he sells his goods directly to a purchaser without the assistance of a commission agent;
3. (xxix) the regulation of the admission of the market functionaries in to the yard and control over the behaviour of such functionaries; (x xx) the form of application for licence, the qualifications and disqualifications for securing the renewal of the different kinds of licences the procedure for the inquiry about and verifying the correctness of the statements made in the applications for licences;
4. (xxxi) the opening and closing of marketing in the yards; (xxxii) the books, registers and documents to be kept and maintained, and the compilation of statements to be prepared from the returns received from the market functionaries and the registers, books and documents to be kept and maintained by the market functionaries; (xxxiii) any other matter in respect of which bye-laws are required to be or may be made under this Act.

1. (3) Any bye-law made under this section may provide that any contravention thereof shall, on conviction, be punished with fine which may extend to two hundred rupees.
2. (4) Where any bye-law is submitted to the 1[Director of Agricultural Marketing] for sanction under sub-section (1), and if the 1[Director of Agricultural Marketing] is satisfied,-
   • (a) that the proposed bye-law is not contrary to the provisions of this Act or the rules;
   • (b) that it complies with the requirements of sound administration; he may sanction the bye-law.
3. (5) When the 1[Director of Agricultural Marketing] refuses to sanction any amendment or bye-law, he shall communicate his order with the reasons therefor, to the market committee: Provided that no such order shall be made without giving the market committee a reasonable opportunity of being heard.
4. (6) A market committee aggrieved by an order of the 1[Director of Agricultural Marketing] under sub-section (5), may within ninety days from the date on which the order of refusal to sanction is received by the market committee, appeal to the State Government. The decision of the State Government on such appeal shall be final and shall not be called in question in any court of law. .

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986

(1) As soon as may be, after the Chairman is nominated for 2[the first market committee constituted under section 10 for a market area declared after the commencement of this Act, under section 4] , the 1[Director of Agricultural Marketing] shall, in consultation with the said Chairman, and taking into consideration the local conditions make the first bye-laws for the market area in accordance with the provisions of this Act and the rules. The first bye-laws so made shall, notwithstanding anything contained in this Act, be deemed to be the bye-laws made by the market committee until superseded or amended by any bye-law made under section 148. (2) The first bye-laws shall be published in such manner as may be prescribed. 150. 1. Substituted by Act 35 of 1986 w.e.f. 17.6.1986 2. Substituted by Act 19 of 1969 w.e.f. 1.5.1968 2[Director of Agricultural Marketing's] power to direct the making or amendment of bye-laws.- (1) If it appears to the 2[Director of Agricultural Marketing] that it is necessary or desirable in the interests of market or market committee to make any bye- law or to amend any bye-law, he may by order require the market committee concerned to make the bye law or the amendment of the bye-law within such time as he may specify in such order. (2) If the market committee fails to make such bye-law or such amendment of the bye- law and forward the same to the 2[Director of Agricultural Marketing] for sanction in accordance with the provisions of section 148 within the time specified in such order, the 2[Director of Agricultural Marketing] may, after giving the market committee 1[x x x] a reasonable opportunity of being heard, by order make such bye-law or such amendment of the bye-law, and thereupon, subject to any order under sub-section (3), such bye-law or such amendment of the bye-law shall be deemed to have been made or amended by the market committee in accordance with the provisions of this Act. Every order made by the 1[Director of Agricultural Marketing] under this sub-section shall be published in the official Gazette. (3) An appeal shall lie to the State Government from any order of the 2[Director of Agricultural Marketing] under sub-section (2) within sixty days from the date of publication of such order and the order of the State Government on such appeal shall be final. 1. Omitted by Act 4 of 1982 w.e.f. 1.5.1968. 2. Substituted by Act 35 of 1986 w.e.f. 17.6.1986.

2[the first market committee constituted under section 10 for a market area declared after the commencement of this Act, under section 4] , the

1[Director of Agricultural Marketing] shall, in consultation with the said Chairman, and taking into consideration the local conditions make the first bye-laws for the market area in accordance with the provisions of this Act and the rules. The first bye-laws so made shall, notwithstanding anything contained in this Act, be deemed to be the bye-laws made by the market committee until superseded or amended by any bye-law made under section 148.

1. (2) The first bye-laws shall be published in such manner as may be prescribed. 150.

¹ Substituted by Act 35 of 1986 w.e.f. 17.6.1986

² Substituted by Act 19 of 1969 w.e.f. 1.5.1968

2[Director of Agricultural Marketing's]

power to direct the making or

amendment of bye-laws.- (1) If it appears to the

2[Director of Agricultural Marketing] that it is necessary or desirable in the interests of market or market committee to make any bye- law or to amend any bye-law, he may by order require the market committee concerned to make the bye law or the amendment of the bye-law within such time as he may specify in such order.

1. (2) If the market committee fails to make such bye-law or such amendment of the bye- law and forward the same to the 2[Director of Agricultural Marketing] for sanction in accordance with the provisions of section 148 within the time specified in such order, the 2[Director of Agricultural Marketing] may, after giving the market committee 1[x x x] a reasonable opportunity of being heard, by order make such bye-law or such amendment of the bye-law, and thereupon, subject to any order under sub-section (3), such bye-law or such amendment of the bye-law shall be deemed to have been made or amended by the market committee in accordance with the provisions of this Act. Every order made by the 1[Director of Agricultural Marketing] under this sub-section shall be published in the official Gazette.
2. (3) An appeal shall lie to the State Government from any order of the 2[Director of Agricultural Marketing] under sub-section (2) within sixty days from the date of publication of such order and the order of the State Government on such appeal shall be final.

¹ Omitted by Act 4 of 1982 w.e.f. 1.5.1968.

² Substituted by Act 35 of 1986 w.e.f. 17.6.1986.

laws.

(1) Subject to the provisions of this Act and the rules and bye-laws made thereunder, every market committee may by resolution make standing orders for the regulation of any class of transactions or any class of market functionaries. (2) Every Standing Order made under sub-section (1) shall be published in such manner as may be prescribed.

1. (2) Every Standing Order made under sub-section (1) shall be published in such manner as may be prescribed.

(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, the State Government may by order published in the official Gazette make such provisions as appears to it to be necessary or expedient,- (a) for bringing the provisions of this Act into effective operation; (b) for removing difficulties arising in connection with the transition to the provisions of this Act or giving effect to the provisions of this Act; (c) so far as it appears necessary or expedient in connection with any of the matters aforesaid for varying the powers or jurisdiction of any court or authority and empowering new courts or other authorities to exercise such jurisdiction as may be specified in such order. (2) The provisions made by any order under sub-section (1) shall, subject to the provisions of section 149, have effect as if enacted in this Act, and any such order may be made so as to be retrospective to any date not earlier than the date of commencement of this Act: Provided that no person shall be deemed to be guilty of an offence by reason of so much of any such order as makes any provision thereof retrospective to any date before the making thereof.

1. (a) for bringing the provisions of this Act into effective operation;
2. (b) for removing difficulties arising in connection with the transition to the provisions of this Act or giving effect to the provisions of this Act;
3. (c) so far as it appears necessary or expedient in connection with any of the matters aforesaid for varying the powers or jurisdiction of any court or authority and empowering new courts or other authorities to exercise such jurisdiction as may be specified in such order.

1. (2) The provisions made by any order under sub-section (1) shall, subject to the provisions of section 149, have effect as if enacted in this Act, and any such order may be made so as to be retrospective to any date not earlier than the date of commencement of this Act: Provided that no person shall be deemed to be guilty of an offence by reason of so much of any such order as makes any provision thereof retrospective to any date before the making thereof.

The State Government may, by notification, add to, amend or delete any of the items of agricultural produce specified in the Schedule and thereupon the Schedule shall be deemed to be amended accordingly.]

¹ Inserted by Act 17 of 1980 w.e.f. 30.6.1979

153.

2[Rules, orders]

and notifications to be laid before Legislature.- Every rule made under this Act

3[every notification issued under section 133]

1[or section 152A]

and every order issued under section 152 shall be laid as soon as may be after it is made,

before each House of the State Legislature while it is in session, for a total period of thirty

days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session in which it is so laid or the sessions immediately following, both Houses agree that the

2[rule, notification or order]

should not be made, the

2[rule, notification or order] 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

2[rule, notification or

¹ Inserted by Act 17 of 1980 w.e.f. 30.6.1979

² Substituted by Act 47 of 1976 w.e.f. 22.6.1976

order] .

³ Inserted by Act 47 of 1976 w.e.f. 22.6.1976

(1) The Madras Commercial Crops Markets Act, 1933(Madras Act XX of 1933), as in force in Bellary District, the Madras Commercial Crops Markets Act, 1933 (Madras Act XX of 1933), as in force in the

3[Manglore and Kollegal

Area] , the Bombay Agricultural Produce Markets, Act, 1939 (Bombay Act XXII of 1939) , as in force in the

3[Belgaum] Area, the Hyderabad Agricultural Market Act, 1339 F (Hyderabad

Act II of 1339 Fasli), as in force in the

3[Gulburga] Area, the Mysore Agricultural Produce Markets Act, 1939 (Mysore Act XVI of 1939), as in force in the Mysore Area and the Coorg Agricultural Produce Markets Act, 1956 (Coorg Act VII of 1956), as in force in the Coorg District, are hereby repealed: Provided that,-

1. (a) the repeal shall not affect the previous operation of any enactment so repealed, and anything done or action taken (including any appointment, delegation or declaration made, notification, order, rule, direction or notice issued, bye-law framed, market areas, markets, sub-markets and yards declared, established or notified, licences granted, fees levied and collected, instruments executed, any fund established or constituted) by or under the provisions of any such enactment shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act, and shall continue in force unless and until susperseded by anything done or any action taken under this Act;
2. (b) the mention of particular matters in the preceding proviso shall not affect the general application to this Act of section 6 of the 3[Karnataka] General Clauses Act, 1899 ( 1[Karnataka] Act 3 of 1899) in respect of the repealed enactments, and sections 8 and 24 of the said Act shall be applicable as if the said enactments had been repealed and re-enacted by this Act;
3. (c) all market committees constituted, members of such committees appointed or elected and Chairmen and Vice- Chairmen, elected or appointed under the repealed enactments shall exercise the powers conferred, perform the functions, and be subject to the liabilities imposed by the provisions, of this Act and the rules made thereunder on market committees members of such committees. Chairmen and Vice-Chairmen, respectively, 1[until the 19th day of July 1969.]
4. (d) casual vacancies in the seats of members or market committees or in the office of Chairmen or Vice-Chairmen of market committees functioning under the preceding proviso shall, 2[until the 19th day of July 1969] be filled and all matters in connection with the filling of such vacacies shall be regulated in accordance with the provisions governing the filling up of such vacancies and regulating such matters as were in force immediately before the date of coming into force of this Act. 2[Proviso x x x]

1. (2) Notwithstanding anything contained in sub-section (1), for the purpose of giving effect to the provisions of the 1[proviso] to the said sub-section, the State Government may by notification, make such provision as appears to it to be necessary or expedient,-
   • (a) for making omissions from, additions to and adaptations and modifications of the rules, notifications and orders issued under the repealed enactments;
   • (b) for specifying the authority , officer or person who shall be competent to exercise such functions exercisable under any of the repealed enactments or any rules, notifications, or orders issued thereunder as may be mentioned in the said notification. 3.Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973

¹ Substituted by Act 19 of 1969 w.e.f. 1.5.1968.

² Omitted by Act 19 of 1969 w.e.f. 1..5.1968.

(1) Not withstanding anything contained in this Act or any of the enactments repealed by sub-section (1) of section 154 or any other law,-

1. (a) on the 19th day of July 1969, the term of office of the members of every market committee and of the Chairman and Vice-Chairman thereof continuing to function under clause (c) of the proviso to sub-section (1) of section 154 shall expire, and with effect from the said date, the powers conferred and the duties imposed on the market committee the chairman, Vice-Chairman and any sub-committee or other body constituted by the market committee shall be exercised and performed by the Administrator referred to in the Explanation to this sub-section;
2. (b) within a period of one year from the 19th day of July 1969 the market committees shall be constituted in accordance with the provisions of section 11;
3. (c) the Administrator shall hold office until the date immediately preceding the date of the first meeting of the market committee constituted under section 11.

Explanation.- For the purposes of this sub-section, "the Administrator" means,-

1. (i) the Deputy Commissioner, in respect of a market committee of a market area, the market yard of which is situated in the head quarters of the district;
2. (ii) the Assistant Commissioner of the revenue sub-division, in respect of a market committee of a market area, the market yard of which is situated in the headquarters of the revenue sub-division other than the headquarters of the district;
3. (iii) the Tahsildar of the taluk, in respect of a market committee of a market area, the market yard of which is situated in any place in such taluk, other than the headquarters of the district or the headquarters of the revenue sub-division.

1. (2) Notwithstanding anything contained in sub-section (1), the State Government may, at any time after the 19th day of July, 1969, by notification, appoint, from time to time any

officer not below the rank of a Tahsildar, to be the Administrator for any market committee

and the said officer shall be deemed to be the Administrator of the said market committee for purposes of this section.]

¹ Inserted by Act 19 of 1969 w.e.f. 1.5.1968

committees constituted for excluded areas under replaced Acts.- Where before the commencement of this Act, any area comprised in any market area was excluded from such market area under an enactment repealed by section 154 and the area so excluded was declared as a separate market area under the said enactment and a separate market committee was constituted therefor, and both the market committees continue to function immediately after such commencement and the assets, rights and liabilities of the separate market committee are not yet determined either by agreement between the market committees or otherwise, then the State Government may, by notification, after consulting the market committees concerned provide for the transfer of the assets, rights and liabilities of the market committee in relation to the area so excluded (including the rights under any contract made by it) to the separate market committees on such terms and conditions as may be specified in such notification.

1[Karnataka]

2[Act 16 of 1958]

.- In schedule II to the

1[Karnataka] Court Fees and Suits Valuation Act, 1958, the following amendments shall be, and shall be deemed to have been, made with effect from the 1st October 1964, namely:-

1. (a) in clause (ii) of Article 3, after the words " 1[Karnataka Revenue Appellate Tribunal]

", the words "or the Co-operative Appellate Tribunal" shall be inserted.

1. (b) in clause (j) of Article 10 after the words " 1[Karnataka Revenue Appellate Tribunal] " , the words " or the Co-operative Appellate Tribunal" shall be inserted. 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973

² Substituted by Act 22 of 2000 w.e.f. 1.5.1968

1[Karnataka]

Act 11 of 1959.- In section 2B of the

1[Karnataka]

Co-operative Societies Act, 1959,-

1. (1) in sub-section (1), after the words "by or under this Act", the words "or under any other law for the time being in force" shall be added;
2. (2) in sub-section (4), after the word "thereunder" the words "and in respect of proceedings under any other law, consistent with such law", shall be inserted;
3. (3) in sub-section (6) after the words " an appeal lies to it" the words "under this Act or any other law for the time being in force" shall be inserted;
4. (4) in sub-section (7), after the words and figures "under section 105", the words "of this Act or under any other law" shall be inserted. 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973