Chapter XIII CONTROL

1[Director of Agricultural Marketing] or any officer authorised by him by general or special order in this behalf, may,-

1. (a) inspect or cause to be inspected the accounts and offices of a market committee;
2. (b) hold inquiry into the affairs of a market committee;
3. (c) call for any return, statement, accounts or report which he may think fit to require such committee to furnish;
4. (d) require a committee to take into consideration,-
   • (i) any objection on the ground of illegality or inexpediency or impropriety which appears to him to exist to the doing of anything which is about to be done or is being done by or on behalf of such committee; or
   • (ii) any information he is able to furnish and which appears to him to necessitate the doing of a certain thing by such committee; and to make a written reply to him within a reasonable time stating its reasons for doing, or not doing such thing;
5. (e) direct that anything which is about to be done or is being done should not be done, pending consideration of the reply, and anything which should be done but is not being done should be done within such time as he may direct.

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

, authorised officers and State Government.- (1) When the affairs of a market committee are investigated under section 123 or the proceedings of such committee are examined under section 126, all officers, servants and members of such committee shall furnish such information in their possession in regard to the affairs or proceedings of the committee as the

1[Director of Agricultural Marketing] , officer authorised or, as the case may be, the State Government, may require.

1. (2) An officer investigating the affairs of a market committee under section 123 or the State Government examining the proceedings of such committee under section 126 shall have the power to summon and enforce the attendance of officers or members of the market committee and to compel them to give evidence and to produce documents by the same means and as far as possible in the same manner as is provided in the case of a civil court by the Code of Civil Procedure, 1908.

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

has reason to believe that the books and records of a market committee are likely to be tampered with or destroyed or the funds or property of a market committee are likely to be misappropriated or misapplied, the

1[Director of Agricultural

Marketing] may issue an order directing a person duly authorised by him in writing to seize and take possession of such books and records, funds and property of the market committee, and the officer or officers of the market committee responsible for the custody of such books, records, funds and property, shall give delivery thereof to the person so authorised.

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

The State Government may at any time call for and examine the proceedings of

1[any officer subordinate to it or any market committee] for the purpose of satisfying itself as to the legality or propriety of any proceeding or decision taken or order passed

1[by the officer or the market committee, as the case may be] . If in any case, it appears to the State Government that any decision or order passed or proceeding taken, should be modified, annulled, or reversed, the State Government may pass such order thereon as it thinks fit: Provided that no such order shall be passed by the State Government without giving a reasonable opportunity of being heard to the market committee and to the parties affected:

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

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

2[Provided further that clerical or arithmetical mistakes in the order or errors arising therein from any accidental slip or omission may at any time be corrected by the State Government either of its own motion or on the application of any of the parties.]

private market licensee and farmer - consumer licensee.-The State Government may give such directions to the market committee, private market licensee and farmer - consumer market licensee as in its opinion are necessary or expedient for carrying out the purposes of this Act and it shall be the duty of such market committee, private market licensee and farmer-consumer market licensee, as the case may be, to comply with such directions.]

¹ Substituted by Act 23 of 2007 w.e.f. 16.8.2007.

(1) If, in the opinion of the State Government] , a market committee is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses its powers, or wilfully disregards any orders issued by the

1[State Government] or any officer duly

1[authorised by it] in this behalf arising out of audit of accounts of the market committee or inspection of the office and work thereof, the

1[State Government]

may, after giving the committee an opportunity of rendering an explanation, by notification, with reasons therefor, suspersede such market committee for such period as may be specified in the notification;

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

1. (2) When a market committee is superseded by notification under sub-section (1), the following consequences shall ensue:-
   • (i) all the members of the market committee shall, on such date as may be specified in the notification be deemed to have vacated their offices;
   • (ii) during the period of supersession of the market committee, all powers and duties conferred and imposed on the market committee by or under this Act or any other law shall be exercised and performed by such officer as the 1[State Government] may from time to time appoint in that behalf;
   • (iii) all property vested in the market committee shall, until it is reconstituted, vest in the 1[State Government] .
2. (3) If, after inquiry made, the 1[State Government] so directs, by notification, then, notwithstanding the term of the members of the superseded market committee, the period of supersession with all the consequences aforesaid shall from time to time, be continued until such date as may be fixed by the 1[State Government] for reconstitution of the market committee. 2[(4) x x x]

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

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

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

waste, misappropriation, etc.- (1) If, in the course of an inquiry or an inspection under section 123 or in the course of an audit under the rules, it is found that any person who is or was a member of a market committee or of the Board or who is or has at any time been an officer or an employee of a market committee or Board has made any payment contrary to this Act, the rules, the regulations or the bye-laws, or has caused any deficiency in the assets of the market committee or Board by breach of trust or willful negligence or has misappropriated or fraudulently retained any money or other property belonging to the said market committee or the Board, the

1[Director of Agricultural Marketing] may himself inquire or direct any subordinate officer authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person.

1. (2) Where an inquiry is made under sub-section (1), the 1[Director of Agricultural Marketing] may, after giving the person concerned an opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with

interest at such rate, to pay contribution and costs or compensation to such extent, as the

1[Director of Agricultural Marketing] may consider to be just and equitable.

1. (3) Any person aggrieved by an order of 1[Director of Agricultural Marketing] under sub-section (2) may, within sixty days from the date of the communication of the said order, appeal to the 1[Karnataka Appellate Tribunal] , and the decision of the 1[Karnataka Appellate Tribuna] on such appeal shall be final and shall not be called in question in any court of law.
2. (4) Any action under this section shall be without prejudice to the prosecution of the person concerned in respect of any offence.

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

1. (1) Every Chairman and Vice-Chairman shall, after an opportunity is afforded for hearing him, be removable from his office as such Chairman or Vice- Chairman by the 2[State Government] for mis-conduct in the discharge of his duties or for neglect of or incapacity to perform his duties or for being persistently remiss in the discharge of his duties, and a Chairman or Vice-Chairman so removed who does not cease to be a member under clause
   • (b) of sub-section (2), shall not be eligible for re-election as Chairman or Vice- Chairman during the remainder of his term of office as member of the market committee. 2[Explanation.- For the purpose of this sub-section "misconduct" shall include any conduct which is of culpable neglect in regard to his office.]
2. (2) (a) The 2[State Government] may, 2[if it thinks fit] 1[either suo-motu or] , on the recommendation of the market committee remove any member of the market committee after giving him an opportunity of being heard and after such enquiry 2[as it deems] necessary, if such member is in the opinion of the 2[State Government] , been guilty of mis-conduct in the dis-charge of his duties, or of any disgraceful conduct, or has become incapable of performing his duties as a member or does anything against the interests of the market committee;
   • (b) when under sub-section (1) any person is removed from office of the Chairman or Vice- Chairman for mis-conduct in the discharge of his duties, he shall, from the date of such removal cease to be a member and shall be deemed to be removed from the membership of the market committee under this sub-section. 3[(3) x x x]

¹ Inserted by Act 29 of 1987 w.e.f. 10.8.1987.

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

3. Omittted by Act 16 of 1991 w.e.f. 1.8.1991.

not validly constituted or in the working of which a deadlock is created.- (1) Notwithstanding anything contained in this Act, or the rules, if at any time it shall appear to the State Government, that on account of a decision or order of a competent court, a market committee has not been validly constituted under this Act or that it is disabled from functioning or that the number of seats required to be filled by election under sub-section (2) of section 39 is not filled,

2[x x x]

the Government may by notification, cause all or any powers and duties of the market committee and its Chairman to be exercised and performed by such officer in such manner

1[for a period not exceeding one year] and subject to such conditions as it may, by notification, direct.

1. (2) All the powers and the duties of the market committee exercised and performed bona fide till the date of the notification referred to in sub-section (1), by the persons who constituted such market committee shall be deemed to have been validly exercised and performed by the said persons; and no acts done by the said persons shall be deemed to be invalid or called in question on the ground merely that they were not members of a validly constituted market committee.

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

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

Every sum due from a market committee or the Board to the State Government shall be paid by the person in charge of the fund of the market committee or Board on receipt of a requisition from the

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

1[Director of Agricultural Marketing] or the State Government. * [CHAPTER XIII A NATIONAL INTEGRATED PRODUCE MARKET

Notwithstanding anything contained in this Act, or any other law for the time being in force the State Government may, by notification, declare that with effect form such date as may be specified therein there shall be established for marketing fruits and vegetables in respect of any area or areas in the State a National Integrated Produce Market owned and managed as an autonomous entity by National Diary Development Board incorporated under the National Diary Development Board Act, 1987 (Central Act 37 of 1987) (hereinafter referred to as NDDB), directly or through any organisations set up by it in conjunction with farmers association and thereupon the NDDB may,-

1. (i) establish a National Integrated Produce Market of fruits and vegetables in respect of the area or areas specified in the notification;
2. (ii) set up by itself or finance, assist or support farmers and farmers associations to set up collection centers by whaterever name called at various places in the State whether within or outside the area aforesaid to collect, assemble, sort, grade, process, pack, store or transport, fruits and vegetables and to provide, market information and to carryout such other activities as may enable them to market the produce using the National Integration Produce Market or to do anything facilitatory or incidental thereto;
3. (iii) set up or support or otherwise assist in setting up distribution channels and institutions at various places in the state whether within or outside the area aforesaid;
4. (iv) register users of the National Integrated Produce Market and may also levy and collect registration fees, security deposit and advance and levy and collect other charges for the services rendered and utilities provided to the farmers, farmers associations, farmers co-operative Societies, buyers and all other functionaries registered with, or using, the National Integrated Produce market: Provided that the State Government may, by notification direct that from such date as may be specified therein marketing of flowers in the National Integrated Produce Market shall also be governed by the provisions of this Chapter and thereupon all the provisions of this chapter shall be applicable to the marketing of flowers and other attendant activities in the National Integrated Produce Market.

1. (2) The NDDB may make regulations under this sub-section for the purposes of ownership, management marketing, trading and other related activities in relation to National Integrated Produce Market and for the enforcement thereof.
2. (3) Nothing contained in this Act or the rules, regulations or bye-laws made thereunder except the provisions of this chapter, shall apply to,-
   • (a) anything done or any action taken in relation to the establishment and management of the National Integrated Produce Market under this section or anything done in pursuance thereof; or
   • (b) any person, agency or organaisation interacting in relation to the National

Removal of difficulties.- If any difficulty arises in giving effect to the provisions of this chapter including establishment of National Integrated Produce Market, the State Government may, by order, do anything, not inconsistent with the foregoing provisions, for the purpose of removing difficulty: Provided that no such order shall be made after a period of five years from the date of commencement of the provisions of this Chapter.] *

• • Sections 131A & 131B Chapter XIIIA inserted by Act 31 of 2000 w.e.f. 16.6.2000 * [Chapter-XIII-B Contract Farming

Contract Farming agreements shall be governed in the manner laid down hereinafter,-

1. (1) Contract farming Sponsor shall register himself 2[XXX] with such officer and in such manner as may be prescribed.
2. (2) The Contract Farming Sponsor shall get the contract farming agreement registered with such officer as may be prescribed in this behalf. The contract farming agreement shall be in such form containing such particulars and terms and conditions such as may be prescribed.
3. (3) Notwithstanding anything contained in contract farming agreement, no title, rights, ownership or possession shall be transferred or attenuated or vest in the contract farming sponsor or his successor or his agent as a consequence arising out of the contract farming.

from the date of reference of dispute by giving the parties a reasonable opportunity of being heard, in such manner as may be prescribed.]

1. (5) The party aggrieved by the decision of the 1[Registering Authority] under sub- section (4), may prefer an appeal to the Director of Agricultural Marketing within thirty days from the date of the decision. The Director of Agricultural Marketing shall dispose off the appeal within thirty days after giving the parties a reasonable opportunity of being heard and the decision of the Director of Agricultural Marketing shall be final.
2. (6) The decision of the authority under sub-section (4) and decision in appeal under sub-section (5) shall have the force of a decree of the civil court and shall be enforceable as such and decretal amount shall be recovered as arrears of land revenue.

¹ Substituted by Act 5 of 2014 w.e.f. 04.01.2014.

² Omitted by Act 5 of 2014 w.e.f 04.01.2014.