Vidhi Codex

(REGULATION AND DEVELOPMENT) ACT, 1966

The REGULATION AND DEVELOPMENT) ACT, 1966

General1966185 sections16 chapters

This Act establishes a licensing system for e-commerce platforms that trade in notified agricultural produce. It requires operators to obtain a license from the Director of Agricultural Marketing and mandates strict conditions regarding transparency, payment facilities, and record-keeping. The law empowers authorities to suspend or cancel licenses for fraud, breach of terms, or obstruction of market activities. It also provides a framework for resolving disputes between platform operators, traders, and buyers, including appeals to the Karnataka Appellate Tribunal. Violations of these regulations can result in imprisonment or fines, ensuring orderly and fair marketing of agricultural goods in the digital space.

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Chapter I PRELIMINARY →

  1. 0Preamble
  2. 1Consequent to the said amendment, the restriction for carrying buying and selling
  3. 2Under section 8(3) of the Act, certain exemptions were given for the restrictions imposed under section 8(2) of the Act which is also omitted.
  4. 3Consequent to the amendment made by the State Government by Act No.59 of
  5. 4At present, the State Government is of the view, that the intention of amending the

Chapter II ESTABLISHMENT OF MARKETS →

  1. 5Alteration of market area and of items of regulated agricultural produce.-
  2. 6Markets, market yards, market sub-yards, sub-markets and sub-market yards.-
  3. 7Establishment of markets
  4. 8Control of marketing of agricultural produce.- (1) After

Chapter III CONSTITUTION OF MARKET COMMITTEE →

  1. 9Establishment of Market Committee and its incorporation
  2. 12Provisions for elections
  3. 13Superintendence, direction and control of elections
  4. 14Constituencies for election of certain members
  5. 15Qualification for candidates for election
  6. 16Disqualifications for membership
  7. 17Disqualification of sitting member.- (1) If any member of the market committee,-
  8. 18Constituency or institution failing to return representative
  9. 19Prohibition of simultaneous membership.-
  10. 20Determination of validity of election
  11. 21Grounds for declaring election to be void.- If the
  12. 22Grounds for which a candidate other than the returned candidate may be declared to have been elected
  13. 23Procedure in case of an equality of votes
  14. 24Corrupt practices
  15. 25Other orders to be made by the
  16. 26Appeal against orders of
  17. 27Publication of names of elected members
  18. 28Casual vacancies
  19. 29Prohibition of canvassing in or near polling stations
  20. 30Penalty for disorderly conduct in or near polling station
  21. 31Penalty for misconduct at polling station
  22. 32Maintenance of secrecy of voting
  23. 33Officers, etc., at elections not to act for candidates or influence voting
  24. 34Breaches of official duty in connection with elections
  25. 35Act or the rules or orders made thereunder.
  26. 36Other offences and penalties therefor
  27. 37Prosecution of certain offences
  28. 38Term of office of members
  29. 39Commencement of term of office
  30. 40Resignation of members
  31. 41Election of Chairman and Vice-Chairman
  32. 42Term of office of Chairman or Vice- Chairman
  33. 43Vacancy in office of chairman and Vice- Chairman
  34. 44Motion of no-confidence
  35. 45Leave of absence to Chairman and Vice-Chairman and consequences of absence without leave

Chapter IV CONDUCT OF BUSINESS →

  1. 46Powers and duties of Chairman.- Without prejudice to the powers conferred on the
  2. 47Powers and duties of Vice-Chairman
  3. 48Meeting of the market committee
  4. 49Quorum and procedure at meetings
  5. 50Modification or cancellation of resolutions
  6. 51Minutes
  7. 52Confirmation of minutes
  8. 53Interpellation and resolutions
  9. 54Bye-laws to regulate detailed procedure at meetings
  10. 55Mode of making contracts
  11. 56Powers, functions and duties of the Secretary
  12. 57Acts of market committee, etc., not to be invalidated

Chapter V STAFF OF THE MARKET COMMITTEES →

  1. 58Appointment of Secretary and technical staff to the market committee.- (1)
  2. 59Government.
  3. 61Appointment of other staff of market committee
  4. 61AReservation of posts in appointments

Chapter VI POWERS AND DUTIES OF MARKET COMMITTEES →

  1. 63Powers and duties of market committee
  2. 64Appointment of sub-committees:- The market Committee may appoint one or
  3. 64ADuties and responsibilities of a private market yard licencee
  4. 64BConstitution of revolving fund.- (1) The State Government shall constitute a fund called revolving fund
  5. 64CState Government for approval.
  6. 65Levy of market fees.-
  7. 65APower of market committee to impose penalty
  8. 66Power to order production of accounts and power of entry, inspection and seizure
  9. 67Power to stop vehicles, etc
  10. 68Power to borrow
  11. 69Acquisition of lands.- (1) If at any time after a notification is issued under section
  12. 70Composition of offences
  13. 71Power to write off irrecoverable amount

Chapter VII REGULATION OF TRADING →

  1. 72Grant of licences
  2. 72AEstablishment of private market yards and direct purchase from agriculturist or from producer
  3. 72BEstablishment of farmer - consumer market for direct sale by the producer.-
  4. 72CMarketing from time to time.
  5. 72DPower to cancel or suspend licence
  6. 72EAppeal
  7. 73Power to cancel or suspend licences
  8. 74Appeal.- (1) Any person aggrieved by an order,-
  9. 75Payment of price
  10. 76Sale of agricultural produce
  11. 77Agreement of sale
  12. 78Commission agent's commission and responsibility
  13. 78AAdditional Payment etc., by Commission Agent in case of default
  14. 79Prohibition of certain collections
  15. 79AMarket charges by whom payable
  16. 80No deductions in weight or payment other than those specified
  17. 81Reports by market functionaries
  18. 81AReports by private market licencee, farmer - consumer market licencee.-
  19. 82Assistance by the market functionaries
  20. 82ANo market functionary to participate in strike, etc
  21. 83Production of account books, etc., by market functionaries
  22. 83ABest of judgement assessment of market fee
  23. 84Provision for settlement of disputes
  24. 84AProvision for settlement of disputes between producer, buyer, seller,
  25. 85Security by traders
  26. 87Deposit of cash security in bank
  27. 88Charge on security and refund of security deposit
  28. 89Power of committee and Chairman to impose penalties

Chapter VIII THE MARKET FUND →

  1. 90Market Fund, its custody and investment .- (1) Save as provided in sub-section
  2. 91Contribution to the Consolidated Fund of the state.- (1) The
  3. 92Contribution to State Agricultural Marketing Board
  4. 93Purposes for which the market fund shall be expended
  5. 94Honorarium and travelling allowances to the Chairman
  6. 95Chairman shall not be entitled to an honorarium for such period of absence, and the Vice

Chapter IX SPECIAL COMMODITY MARKETS →

  1. 96Establishment of independent markets and market committees for special commodities

Chapter X MANDAL PANCHAYATS →

  1. 97AS AGENTS OF MARKET COMMITTEES
  2. 98Grants and Loans to
  3. 99Effect of entrustment of powers and functions to

Chapter XI STATE AGRICULTURAL MARKETING BOARD →

  1. 100State Agricultural Marketing Board
  2. 101Composition of the State Marketing Board
  3. 102Publication of the names of the elected members of the Board.- The
  4. 103Determination of the validity of election
  5. 104Cessation of membership of elected members of the Board
  6. 105By-election
  7. 107Powers and duties of the Chairman and the Vice Chairman.- The powers and duties of the Chairman and the Vice
  8. 108Conduct of business of the Board
  9. 109Grants by the State Government.- The State Government shall for every financial
  10. 110Marketing Development Fund
  11. 110APower to borrow.- The Board may, from time to time, with previous sanction of the
  12. 111Purposes for which the Marketing Development Fund shall be expended.- The
  13. 112Functions of the Board
  14. 113Provisions of Act and Rules to apply to the Board

Chapter XII PENALTIES →

  1. 114Penalties for evasion of payment of fee, etc.-
  2. 115Liability of accused to pay fee, cess or other amount
  3. 116Power of Magistrate to recover summarily fee, or other amount
  4. 117Penalty for contravention of section 8
  5. 117APenalty for contravention of section 66
  6. 117BPenalty for contravention of section 75
  7. 118Penalty for contravention of sections
  8. 118APenalty for contravention of section 78
  9. 119Penalty for failure to obey order under section 123
  10. 120Penalty for contravening the provisions of section 123 or 124
  11. 121Penalty for contravention of section 125
  12. 122General provisions for punishment of offences

Chapter XIII CONTROL →

  1. 123Inspection, inquiry, submission of statements, etc.- The
  2. 124Duty of officers and members to furnish information to
  3. 125Seizure of account books and other documents.- Where the
  4. 126Power of State Government to call for proceedings of market committee and to pass order thereon
  5. 126APower of the Government to give direction to the market committee,
  6. 127Supersession of market committee
  7. 128Liability of members, officers and employees of market committee for loss,
  8. 129Liability of Chairman, Vice- Chairman and members for removal from office.-
  9. 130Administrator to exercise powers and perform duties of market committees
  10. 131Recovery of sums due to Government from market committee or Board.-
  11. 131AEstablishment of National Integrated Produce Market etc.- (1)
  12. 131BIntegrated Produce Market by way of business dealings or otherwise.
  13. 131CProcedure and Form of contract farming agreement

Chapter XIII-C Chapter XIII-C →

  1. 131DEstablishment of Spot Exchange.- (1) No person shall establish and run a
  2. 131EReports to be submitted by the spot exchange licensee
  3. 131FMarketing or to any officer authorized by the Director of Agricultural Marketing in this behalf.
  4. 131GProvided that no order shall be made without giving notice to the licensee.
  5. 131HAgricultural Marketing in this regard shall be final.
  6. 131IPenalty for contravention of section 131D
  7. 131JCognisance of Offence

Chapter XIII-D Chapter XIII-D →

    Chapter XIV MISCELLANEOUS →

    1. 132Recovery of sums due to
    2. 133Power to exempt certain class of
    3. 134Provisions of Act not to apply to Central and State Governments
    4. 135Proof of entries in market committee's or Board's registers, etc
    5. 136Chairman, Vice-Chairman, members, officers and servants of market committee or Board to be public servants
    6. 137Corruption Act, 1947, for the time being in force.
    7. 137AAppeal
    8. 138Powers and duties of Police Officer
    9. 139Duty of local authorities to give information and assistance
    10. 139ADuty of Officers of the Departments to give information and assistance
    11. 140Delegation of powers of State Government and
    12. 141Protection to persons acting in good faith
    13. 142Effect of mere alteration of limits of market area
    14. 143Denotification of a market area and its consequences.- (1)
    15. 144Amalgamation of market committees
    16. 145Division of market area into two or more separate market areas
    17. 146Rules
    18. 148Bye-laws
    19. 149First bye-laws on the establishment of markets
    20. 150Director of Agricultural Marketing power to direct the making or amendment of bye-
    21. 151Power to make standing orders
    22. 152Orders for bringing this Act into force
    23. 152APower to amend the Schedule
    24. 154Repeal and savings
    25. 154ATransitory provisions
    26. 155Power of State Government to transfer assets etc., in cases of market
    27. 156Amendment of
    28. 157Amendment of

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