Establishment of Market Committee and its incorporation

(1) Save as provided in Chapter IX, for every market area, there shall be a market committee having jurisdiction over the entire market area. (2) Every market committee established under this Act shall be a body corporate by such name as the State Government may by notification specify. It shall have perpetual succession and a common seal and may sue and be sued in its corporate name and shall, subject to such restrictions as are imposed by or under this Act, be competent to contract and to acquire, hold, lease, sell or otherwise transfer any property and to do all other things necessary for the purpose for which it is established: Provided that no immoveable property shall be acquired or transferred without the permission of the 3[Director of Agricultural Marketing] : 2[Provided further that the 3[Director of Agricultural Marketing] may, for reasons to be recorded in writing, revoke such permission before the completion of the acquisition or the execution of the deed of transfer as the case may be.] 4[Provided also that Market Committee may, with the prior approval of the Director of Agricultural Marketing and after obtaining valuation certificate from the Deputy Commissioner, enter into agreement with the owner of any land or building and purchase such land or building.] 1[(3) Notwithstanding anything contained in any law for the time being in force every market committee shall for all purposes be deemed to be a local authority.] 1. Substituted by Act 17 of 1980 w.e.f. 30.6.1979. 2. Inserted by Act 4 of 1982 w.e.f. 1.5.1968. 3. Substituted by Act 35 of 1986 w.e.f. 17.6.1986. 4. Inserted by Act 16 of 1991 w.e.f. 1.8.1991. *10. Constitution of the first market committee.- (1) Notwithstanding anything contained in section 11, 1[the first market committee constituted for a market area declared after the commencement of this Act under section 4] shall consist of the following members nominated by notification by the State Government:- (i) 5[ 3[ 2[fourteen agriculturists of whom three shall be women] and 4[one person] 1. Substituted by Act 19 of 1969 w.e.f. 1.5.1968 2. Substituted by Act 17 of 1980 w.e.f. 30.6.1979 3. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 4. Substituted by Act 13 of 2002 w.e.f. 11.4.2002 5. Substituted by Act 20 of 2016 w.e.f 27.07.2016. belonging to the Scheduled Castes, one person belonging to the Scheduled Tribes] , one person falling under category 'A' and one person falling under category'B'] residing in the market area, not disqualified under sub-clause (a) of clause (1) or clause (2) of section 16; (ii) 1[one trader] 1. Substituted by Act 17 of 1980 w.e.f. 30.6.1979 2. Inserted by Act 16 of 1991 w.e.f. 1.8.1991 2[other than a retail trader] residing in the market area not disqualified under clause (2) of section 16: 1[(iii) x x x] 1. Omitted by Act 16 of 1991 w.e.f. 1.8.1991 1[(iv) one shall be a member of the committee of management of a Co-operative Marketing Society carrying on business in notified agricultural produce within the market area, who is not disqualified under section 16;] 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 1[(v) one shall be a member of the committee of management of a an Agricultural Co- operative Processing Society carrying on business in notified agricultural produce within the market area, who is not disqualified under section 16;] 1. Inserted by Act 16 of 1991 w.e.f. 1.8.1991 1[(vi), (vii) x x x] 1. Omitted by Act 17 of 1980 w.e.f. 3.11.1979 1[(viii) one shall be an officer not below the rank of the Secretary of the concerned market committee, nominated by the Director of Agricultural Marketing, who shall have no right to vote under section 44;] 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991. 1. Omitted by Act 16 of 1991 w.e.f. 1.8.1991. 1[(ix)x x x] Provided that if suitable persons of the categories specified in any category of 1[clauses (ii), (iv) and (v)] are not available, the committee shall consist only of persons of the available categories nominated by the State Government: 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 Provided further that when suitable persons of the categories not nominated earlier become available subsequently, they may be nominated as members and such members shall hold office so long as the members first nominated hold the office of members. 1[(1A) x x x] 1. Omitted by Act 16 of 1991 w.e.f. 1.8.1991 (2) The State Government shall by notification nominate the Chairman and the Vice- Chairman from among the members nominated under clause (i) of sub-section (1). (3) The notifications under sub-sections (1) and (2) shall be issued as soon as possible after the issue of a notification under sub-section (2) of section 6 declaring any specified area as the market. (4) (a) Save as otherwise provided in this Act, 1[but subject to the pleasure of the State Government] the members of the first market committee shall hold office for a period of two years from the date of notification under sub-section (1): Provided that the State Government may by notification extend the term of office of the members by such period or periods not exceeding 2[two years] in the aggregate. 1[(b) A person who is nominated as a member under 2[clause (iv) or (v)] of sub-section (1) shall hold office so long only as he continues to be the member of the 2[Co- operative Marketing Society or Agricultural Co-operative Processing Society] .] (c) In the event of a vacancy occurring on account of death, resignation or otherwise, the vacancy shall be filled by nomination by the State Government and the person nominated shall hold office so long only as the member in whose place he is nominated would have held it, if the vacancy had not occurred. This Section and Section 11, 63(2) and 75 were amended , new section 77A was inserted and section 78 was substituted by Act 16 of 1998 but the said amendments are not yet brought into force. The text of the amendment etc., made is at the end of the Act. *11. Constitution of second and subsequent market committees.- (1) Save as provided in section 10, every market committee shall consist of the following members, namely:- 1[(i) eleven members shall be persons elected by the agriculturists in the market area of whom 2[two shall be a woman] , one shall be a person belonging to the Scheduled Castes, one shall be a person belonging to Scheduled Tribes and two persons belonging to the Backward Classes out of which one shall be from persons falling under Category 'A' and one shall be from persons falling under category 'B': Provided that if no person belonging to the Scheduled Caste is available, the seat reserved for that category shall also be filled by a person belonging to the Scheduled Trbies and vice versa: Provided further that if no persons falling under category 'A' is available, the seat reserved for that category shall also be filled by a person falling under category 'B' and vice versa.] * 1. Inserted by Act 17 of 1980 w.e.f. 30.6.1979 2. Substituted by Act 8 of 2001 w.e.f. 24.1.2001 1. Substituted by Act 17 of 1980 w.e.f. 3.11.1979 2. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 1. Substituted by Act 13 of 2002 w.e.f. 11.4.2002 2. Substituted by Act 20 of 2016 w.e.f 27.07.2016. 1[(ii) one member shall be a person elected by the traders other than retail traders, in the market area;] 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 1[(iii) x x x] 1. Omitted by Act 16 of 1991 w.e.f. 1.8.1991 1[(iv) one member shall be a representative of Co-operative Marketing Societies carrying on business in notified agricultural produce within the market area, who is not disqulaified under section 16, elected by the committee of management of such socities;] 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 1[(v) one member shall be a representative of Agricultural Co-operative Processing Socities carrying on business in notified agricultural produce, within the market area, who is not disqulified under section 16, elected by the committe of management of such socities:] 1. Clause (v) with provisos was omitted by Act 17 of 1980 w.e.f. 3.11.1979 and Clause (v) inserted by Act 16 of 1991 w.e.f. 1.8.1991 1[(vi), (vii) x x x] 1. Omitted by Act 17 of 1980 w.e.f. 3.11.1979 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 1[(viii) one shall be an officer not below the rank of the Secretary of the concerned Market Committee nominated by the Director of Agricultural Marketing, who shall have no right to vote under section 41 or section 44.] 3[ 2[ 1[(ix) three members shall be persons belonging to agriculturists and among them, one shall be a woman to be nominated by the State Government, who shall have right to participate and vote in all the meetings of the Market Committee and shall hold office at the pleasure of the State Government.] ] ] 1. Omitted by Act 16 of 1991 w.e.f. 1.8.1991. 2. Inserted by Act 17 of 1998 w.e.f. 31.3.1998 3. Substituted by Act 20 of 2016 w.e.f 27.07.2016. Provided that if persons of the categories specified in any category of 1[clauses (ii), (iv) and (v)] 1. Substituted by Act 16 of 1991 w.e.f. 1.8.1991 are not available, the committee shall consist only of persons of the categories available: Provided further that when persons of those categories become available, they may be elected as members and such members shall hold office so long only as the members first elected hold the office of members. 1. Omitted by Act 16 of 1991 w.e.f. 1.8.1991 1[Proviso x x x] 1. Omitted by Act 17 of 1980 w.e.f. 3.11.1979 1[Explanation.- x x x ] 1[“(2) The seats reserved for members under clause (i) of sub-section (1) shall be allotted by rotation to different constituencies in the market area: Provided that the principle of rotation for the purpose of reservation of seats for members under clause (i) of sub-section (1) shall commence from the first general election to be held after the commencement of the Karnataka Agricultural Produce Marketing (Regulation) (Amendment) Act, 2002. (3) Nothing contained in this section shall be deemed to prevent the persons belonging to the Scheduled Castes or the Scheduled Tribes or Backward classes or women for whom seats are reserved in a Market Committee under clause (i) of sub-section (1) from standing for election to the non-reserved seats in such Market Committee. Explanation: For the purpose of this section, section 10 and section 14 categories ‘A’ and ‘B’ shall mean category ‘A’ and ‘B’ referred to in clause “(2B)” of section 2.”] 1. Inserted by Act 13 of 2002 w.e.f. 11.4.2002

1. (2) Every market committee established under this Act shall be a body corporate by such name as the State Government may by notification specify. It shall have perpetual succession and a common seal and may sue and be sued in its corporate name and shall, subject to such restrictions as are imposed by or under this Act, be competent to contract and to acquire, hold, lease, sell or otherwise transfer any property and to do all other things necessary for the purpose for which it is established: Provided that no immoveable property shall be acquired or transferred without the permission of the 3[Director of Agricultural Marketing] :

2[Provided further that the

3[Director of Agricultural Marketing]

may, for reasons to be recorded in writing, revoke such permission before the completion of the acquisition or the execution of the deed of transfer as the case may be.]

4[Provided also that Market Committee may, with the prior approval of the Director of Agricultural Marketing and after obtaining valuation certificate from the Deputy Commissioner, enter into agreement with the owner of any land or building and purchase such land or building.]

1[(3) Notwithstanding anything contained in any law for the time being in force every market committee shall for all purposes be deemed to be a local authority.]

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

² Inserted by Act 4 of 1982 w.e.f. 1.5.1968.

³ Substituted by Act 35 of 1986 w.e.f. 17.6.1986.

⁴ Inserted by Act 16 of 1991 w.e.f. 1.8.1991.

*10. Constitution of the first market committee.- (1) Notwithstanding anything contained in section 11,

1[the first market committee constituted for a market area declared after the commencement of this Act under section 4] shall consist of the following members nominated by notification by the State Government:- (i)

5[

3[

2[fourteen agriculturists of whom three shall be women] and

4[one person]

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

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

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

⁴ Substituted by Act 13 of 2002 w.e.f. 11.4.2002

⁵ Substituted by Act 20 of 2016 w.e.f 27.07.2016.

belonging to the Scheduled Castes, one person belonging to the Scheduled Tribes] , one person falling under category 'A' and one person falling under category'B'] residing in the market area, not disqualified under sub-clause (a) of clause (1) or clause (2) of section 16; (ii)

1[one trader]

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

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

2[other than a retail trader] residing in the market area not disqualified under clause (2) of section 16:

1[(iii) x x x]

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

1[(iv) one shall be a member of the committee of management of a Co-operative Marketing Society carrying on business in notified agricultural produce within the market area, who is not disqualified under section 16;]

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

1[(v) one shall be a member of the committee of management of a an Agricultural Co- operative Processing Society carrying on business in notified agricultural produce within the market area, who is not disqualified under section 16;]

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

1[(vi), (vii) x x x]

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

1[(viii) one shall be an officer not below the rank of the Secretary of the concerned market committee, nominated by the Director of Agricultural Marketing, who shall have no right to vote under section 44;]

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

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

1[(ix)x x x] Provided that if suitable persons of the categories specified in any category of

1[clauses (ii), (iv) and (v)] are not available, the committee shall consist only of persons of the available categories nominated by the State Government:

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

Provided further that when suitable persons of the categories not nominated earlier become available subsequently, they may be nominated as members and such members shall hold office so long as the members first nominated hold the office of members.

1[(1A) x x x]

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

1. (2) The State Government shall by notification nominate the Chairman and the Vice- Chairman from among the members nominated under clause (i) of sub-section (1).
2. (3) The notifications under sub-sections (1) and (2) shall be issued as soon as possible after the issue of a notification under sub-section (2) of section 6 declaring any specified area as the market.
3. (4) (a) Save as otherwise provided in this Act, 1[but subject to the pleasure of the State Government] the members of the first market committee shall hold office for a period of two years from the date of notification under sub-section (1): Provided that the State Government may by notification extend the term of office of the members by such period or periods not exceeding 2[two years] in the aggregate. 1[(b) A person who is nominated as a member under 2[clause (iv) or (v)] of sub-section
4. (1) shall hold office so long only as he continues to be the member of the 2[Co- operative Marketing Society or Agricultural Co-operative Processing Society] .]
   • (c) In the event of a vacancy occurring on account of death, resignation or otherwise, the vacancy shall be filled by nomination by the State Government and the person nominated shall hold office so long only as the member in whose place he is nominated would have held it, if the vacancy had not occurred. This Section and Section 11, 63(2) and 75 were amended , new section 77A was inserted and section 78 was substituted by Act 16 of 1998 but the said amendments are not yet brought into force. The text of the amendment etc., made is at the end of the Act. *11. Constitution of second and subsequent market committees.- (1) Save as provided in section 10, every market committee shall consist of the following members, namely:- 1[(i) eleven members shall be persons elected by the agriculturists in the market area of whom 2[two shall be a woman] , one shall be a person belonging to the Scheduled Castes, one shall be a person belonging to Scheduled Tribes and two persons belonging to the Backward Classes out of which one shall be from persons falling under Category 'A' and one shall be from persons falling under category 'B': Provided that if no person belonging to the Scheduled Caste is available, the seat reserved for that category shall also be filled by a person belonging to the Scheduled Trbies and vice versa: Provided further that if no persons falling under category 'A' is available, the seat reserved for that category shall also be filled by a person falling under category 'B' and vice versa.] *

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

² Substituted by Act 8 of 2001 w.e.f. 24.1.2001

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

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

¹ Substituted by Act 13 of 2002 w.e.f. 11.4.2002

² Substituted by Act 20 of 2016 w.e.f 27.07.2016.

1[(ii) one member shall be a person elected by the traders other than retail traders, in the market area;]

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

1[(iii) x x x]

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

1[(iv) one member shall be a representative of Co-operative Marketing Societies carrying on business in notified agricultural produce within the market area, who is not disqulaified under section 16, elected by the committee of management of such socities;]

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

1[(v) one member shall be a representative of Agricultural Co-operative Processing Socities carrying on business in notified agricultural produce, within the market area, who is not disqulified under section 16, elected by the committe of management of such socities:]

1. Clause (v) with provisos was omitted by Act 17 of 1980 w.e.f. 3.11.1979 and Clause (v) inserted by

Act 16 of 1991 w.e.f. 1.8.1991

1[(vi), (vii) x x x]

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

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

1[(viii) one shall be an officer not below the rank of the Secretary of the concerned Market Committee nominated by the Director of Agricultural Marketing, who shall have no right to vote under section 41 or section 44.]

3[

2[

1[(ix) three members shall be persons belonging to agriculturists and among them, one shall be a woman to be nominated by the State Government, who shall have right to participate and vote in all the meetings of the Market Committee and shall hold office at the pleasure of the State Government.] ] ]

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

² Inserted by Act 17 of 1998 w.e.f. 31.3.1998

³ Substituted by Act 20 of 2016 w.e.f 27.07.2016.

Provided that if persons of the categories specified in any category of

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

are not available, the committee shall consist only of persons of the categories available: Provided further that when persons of those categories become available, they may be elected as members and such members shall hold office so long only as the members first elected hold the office of members.

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

1[Proviso x x x]

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

1[Explanation.- x x x ]

1[“(2) The seats reserved for members under clause (i) of sub-section (1) shall be allotted by rotation to different constituencies in the market area: Provided that the principle of rotation for the purpose of reservation of seats for members under clause (i) of sub-section (1) shall commence from the first general election to be held after the commencement of the Karnataka Agricultural Produce Marketing (Regulation) (Amendment) Act, 2002.

1. (3) Nothing contained in this section shall be deemed to prevent the persons belonging to the Scheduled Castes or the Scheduled Tribes or Backward classes or women for whom seats are reserved in a Market Committee under clause (i) of sub-section (1) from standing for election to the non-reserved seats in such Market Committee. Explanation: For the purpose of this section, section 10 and section 14 categories ‘A’ and ‘B’ shall mean category ‘A’ and ‘B’ referred to in clause “(2B)” of section 2.”]

¹ Inserted by Act 13 of 2002 w.e.f. 11.4.2002