Recovery of sums due to

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.