Chapter VIII THE MARKET FUND

(2), all moneys received by a market committee by way of market fees, licence fees or other fees or charges, all moneys realised by way of penalty, all loans raised by the committee, and all grants, loans or contributions made by the State Government to the committee shall form part of a fund to be called the Market Fund.

1. (2) Save as otherwise provided in this Act, any money received by the market committee by way of arbitration fee or as security for costs in arbitration proceedings relating to disputes or any money received by the committee by way of security or contributory provident fund and such other moneys received by the committee as may be provided in the rules or bye-laws shall not form part of the Market Fund, and shall be kept in such manner as may be prescribed. 1[(3) Save as otherwise provided in this Act, the amount to the credit of the market fund and all other moneys received by the market committee shall be kept or invested,-
   • (a) in the Karnataka State Co-operative Apex Bank; or
   • (b) in a Co-operative District Central Bank approved by the Registrar of Co-operative societies; or
   • (c) in a Government savings bank; or
   • (d) in a scheduled bank with the previous approval of the Director of Agricultural Marketing; or in any of the Central or State Government securities with the previous approval of the Director of Agricultural Marketing.]

¹ Substituted by Act 20 of 2016 w.e.f.27.07.2016

4[Director of

Agricultural Marketing] shall before the end of

4[March] in every year, estimate the probable expenditure likely to be incured by the State Government during the ensuing financial year on account of,-

1. (i) the salary and other allowances and the leave salary and pension contribution in respect of the services of the Government servants appointed or to be appointed as officers and servants under section 58 1[or section 59] in respect of all the market committes in the State; and
2. (ii) general elections and by-elections of the members of the market committees in the State. he shall also on the basis of the receipts of the previous year estimate the probable gross receipts by way of market fees and licence fees of all the market committees in the State for the ensuing financial year for meeting such expenditure during the said financial year.

1. (2) Taking into consideration the estimates made under sub-section (1), the 4[Director of Agricultural Marketing] shall by order determine the 2[x x x] percentage of the gross receipts that every market committee shall have to contribute to the Consolidated Fund of the State during the ensuing financial year for meeting the expenses referred to in sub-

section (1), and send a copy of the order to every market committee.

3[Provided that the

4[Director of Agricultural Marketing] may, for reasons to be recorded in writing, at any time before the end of the financial year during which the contributions are to be made , alter the percentage.]

1. (3) Every market committee in the State shall pay to the State Government before the fifteenth of every month in such manner as may be prescribed, such percentage of its gross receipts during the preceding month by way of market fees and licence fees, as has been notified by the 4[Director of Agricultural Marketing]

under sub-section (2), from the first day of April of the financial year in respect of which the percentage has been determined. Explanation.- For purposes of this section and section 92, gross receipts in respect of market fees shall include the amount paid to the market committee under sub-section (3) of section 97 and gross receipts in respect of licence fees shall exclude the amounts paid to the Panchayats under sub-section (1) of section 98.

1.

² Omitted by Act 17 of 1980 w.e.f.30.6.1979.

³ Inserted by Act 4 of 1982 w.e.f.1.5.1968.

⁴ Substituted by Act 35 of 1986 w.e.f.17.6.1986.

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

Every market committee in the State shall pay to the State Agricultural Marketing Board before the fifteenth of every month, in such manner as may be prescribed, five per cent of its gross receipts during the previous calendar month, by way of market fees and licence fees.

Subject to the provisions of sections 91 and 92 and the other provisions of this Act, the rules and the bye- laws, the market committee fund shall be expended for meeting the expenses relating to,- (i) the obligatory and discretionary duties and functions of the market committee under this Act; (ii) the pay, leave allowances, pensions, gratuities and provident fund of the officers and servants employed by it. (iii) the payment of interest on the loans,if any, raised by the market committee and the provision of sinking funds in respect of such loans; (iv) payment of honorarium, allowances and travelling allowances to the Chairman, Vice-Chairman and other members of market committee; (v) payment of fees and travelling allowances of arbitrators appointed under section 1[and the members of the Advisory Committee appointed under section 42] ; and (vi) any other purpose within the scope of this Act as may be prescribed in the bye- laws. 1. Inserted by Act 17 of 1980 w.e.f. 3.11.1979

1. (i) the obligatory and discretionary duties and functions of the market committee under this Act;
2. (ii) the pay, leave allowances, pensions, gratuities and provident fund of the officers and servants employed by it.
3. (iii) the payment of interest on the loans,if any, raised by the market committee and the provision of sinking funds in respect of such loans;
4. (iv) payment of honorarium, allowances and travelling allowances to the Chairman, Vice-Chairman and other members of market committee;
5. (v) payment of fees and travelling allowances of arbitrators appointed under section 1[and the members of the Advisory Committee appointed under section 42] ; and
6. (vi) any other purpose within the scope of this Act as may be prescribed in the bye- laws.

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

3[and the Vice-

Chairman] .-

1[(1) The market committee shall pay to the Chairman

3[and the Vice-

Chairman] of the market committee such honorarium as may be prescribed.]

1. (2) The Chairman of a market committee shall be entitled to such travelling allowances as may be prescribed by the bye-laws. 2[Provisos x x x]
2. (3) If the Chairman is absent from the market area with the leave of the market committee for purposes un-connected with the affairs of the market committees, the

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

² Omitted by Act 16 of 1991 w.e.f.1.8.1991.

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

Manner of preparing budget, etc.- The manner in which any payment from the Market Fund shall be made, its accounts shall be kept and audited or re-audited (including powers to be exercised by the auditor in that behalf), its annual, revised or supplementary budget estimates of income and expenditure shall be made (including provision for modifying, annulling or rescinding such budgets) and its annual administration report shall be prepared, shall be prescribed by rules made in that behalf.