Chapter II MARKET COMMITTEES.

(1) The Government shall establish a market committee for every notified area. It shall be the duty of the market committee to enforce the provisions of this Act and the rules and by-laws made under this Act in such notified area. (2) Where, after the establishment of a market committee under sub-section (1) any agricultural produce is notified in relation to the notified area for which the market committee has been established, then, the market committee shall be deemed, to have been established in respect of that agricultural produce also.

(1) Every market committee shall establish in the notified area such number of markets providing such facilities including e-trading as the Government may, from time to time, direct for the purchase and sale of the notified agricultural produce. (2) The Government shall, as soon as may be, after the establishment of a market committee under sub-section (1), declare, by notification, the area of the market and such area around the market as may be specified in the notification to be a notified market area for the purposes of this Act in respect of any notified agricultural produce.

(1) Notwithstanding anything contained in section 6, where the Government are satisfied that on account of the specialized nature of marketing of any agricultural produce, like fresh fruits, fresh vegetables, or wool, in any area, it is expedient to ensure the efficient regulation of the marketing of such agricultural produce in such area the Government may establish,- (a) in such area special market for such agricultural produce, and (b) independent market committee in relation to such special market notwithstanding that such area falls within the local limits of the jurisdiction of any other market committee or committees already functioning in the area. and every such special market and independent market committee shall be established and constituted in the same manner in which a market and a market committee is established and constituted under this Act. (2) Where a special market and independent market committee are established under sub-section (1), the Government may, by notification, declare that the provisions of this Act shall with such modification, restrictions or limitations as may by specified in the notification, apply in relation to such special market and independent market committee. (3) The market committee any, with the previous approval in writing of the Government establish, within the notified market area, such number of subsidiary markets as may be necessary providing such facilities as the Government may, from time to time direct, for the purchase sale of the notified agricultural produce. (4) (a) The Government may, be notification, declare their intention to direct the independent market committee, or as the case may be, the market committee concerned to close such special market or subsidiary market as may be specified in the notification. The notification shall state that any objection or suggestion which may be received by the Government, within such period as may be specified in the notification, shall be considered by it. A copy of the notification shall also be published in such other manner as may be prescribed. (b) After the expiry of the period specified in the notification under clause (a) and after considering such objection and suggestion as may be received before such expiry, the Government may direct the independent market committee, or as the case may be, the market committee concerned to close the special market or subsidiary market specified in the notification under clause (a) and such direction shall be given effect to be the independent market committee, or as the case may be the market committee concerned within such period as may be specified in the direction.

(1) No person shall within a notified area.- (a) setup, establish or use, or continue or allow to be continued any place for the purchase or sale , storage, weighment, measurement or processing of any notified agricultural produce, or (b) operate as a broker, weighman, measurer, trader warehouseman or in any other capacity in relation to the buying and selling of any notified agricultural produce, except under, and in accordance with the conditions of a licence granted to him by the market committee: Provided that the market committee may exempt from the provisions of this sub-section any person who carries on the business of purchasing or selling, storing, weighing, measuring or processing any notified agricultural produce in any quantity not exceeding such quantity as may be prescribed: Provided further that a producer selling, storing, weighing, measuring or processing any notified agricultural produce which has been grown, reared or produced by him, or a co-operative marketing society selling, storing, weighing, measuring or processing any notified agricultural produce which has been grown, reared or produced by any of its members, shall be exempt from the provision of this sub-section, but the Government may withdraw, for such period as may be prescribed, such exemption in respect of any such producer or co-operative marketing society or all of them. Explanation.-"Co-operative marketing society" means any co-operative society registered or deemed to be registered under the Tamil Nadu Co-operative Societies Act, 1961 (Tamil Nadu Act 53 of 1961) which has, as its principal object, the promotion of the marketing of the agricultural produce grown, reared or produced by its members. (2) Noting contained in sub-section (1) shall apply to - (a) a person purchasing any notified agricultural product for his own domestic consumption in any quantity not exceeding such quantity as may be prescribed; (b) a person purchasing any notified agricultural produce for his own seed purposes in any quantity not exceeding such quantity as may be prescribed; (c) a Wareshousing Corporation established or maintained by the State or central Government or a warehouseman licensed under the Tamil Nadu Warehouses Act, 1951 (Tamil Nadu Act XV of 1951) in respect of storage, weighment or measurement of anyu notified agricultural produce accepted for warehousing. (3) Notwithstanding anything contained in sub-section (1), no person shall, after the date to be notified by the Government in this behalf in the Tamil Nadu Government Gazeette, purchase or sell any notified agricultural produce in a notified market area outside the market in that area. Explanation - For the purpose of this sub-section, purchase or sale shar, unless otherwise prescribed, mean the purchase or sale in the first point in the notified market area. (4) A licence under sub-section (1) may be refused to a person - (a) whose license was cancelled and a period of three years has not elapsed since the date of the cancellation ; or (b) who has been convicted of an offence where such offence relates to his business or his integrity as a man of business: or (c) in regard to whom the market committee is satisfied, after such enquiry as it considers adequate, that he is a benamidar for, or a partner with, any other person to whom a license may be refused under clause (a) or clause (b). (5) If a market committee is satisfied, either on a reference made to it in this behalf, or otherwise, that - (a) a licence granted under sub-section (1) has been obtained by misrepresentation or fraud, or (b) the holder of a licence has contravened, or failed to comply with, any of the provisions of this Act or the rules or bylaws made under this Act or any of the conditions of the license, then, without prejudice to any other penalty to which the holder of the licence may be liable under this Act, the market committee may, subject to such rules as may be made in this behalf, cancel or suspend the licence, after giginv the holder of the licence a reasonable opportunity of showing cause against such cancellation or suspension. (6) Any person aggrieved by the decision of the market committee,- (a) refusing to grant, or register (b) cancelling or suspending, a licence may, within such time as may be prescribed, appeal to the Board and the Board may make such order in the case as it may think fit. (7) A licence granted under sub-section (1) shall be valid for a period of - (a) three years in respect of a person who carries on the business, by wholesale, of purchasing or selling any notified agricultural produce; (b) one year in respect of others, and may be renewed from time to time and the provisions of this Act shall, so far as may be, apply in relation to the renewal of a licence as they apply in relation to the grant of a licnece. (8) Every person to whom a licence is granted registered for liable to be licnece under sub-section (a) shall comply with the provisions of this Act, the rules and by-laws made under this Act and the conditions specified in the licence.

(9) Every person licensed or liable to be licensed and liable to pay fee or any other amount under this Act shall keep and maintain a true and correct account and such other records showing such particulars as may be specified in the rules and into by-laws of the market committee and shall submit such periodical returns relating to his business transaction including processing as may be prescribed, to the market committee in such manner and within such period as may be prescribed, together with the fee or other amount due on the basis of the return.

(1) The Government may, by notification, with effect on and from such date as may be specified in the notification,- (a) include any area in, or exclude any area from, any notified market area; (b) divide any notified area into two or more separate notified areas; (c) amalgamate two or more notified areas into one notified area; (d) declare that regulating the marketing iof any notified agricultural produce in any notified market area shall cease or that the marketing of any agricultural produce hitherto not regulated shall be regulated in any notified market area; Provided that the power conferred by this section shall, in relation to any notified area or agricultural produce, be subject to the provisions of section 3.

(2) when the limits of the notified area for which a market committee is established area altered under sub-section (1) the following consequences shall, with effect on and from such date as may be specified in the notification, ensure, namely:- (a) the market committee shall stand dissolved and its members shall vacate their offices as such members: (b) a new market committee shall be established and constituted for the new notified area in accordance with the provisions of section 5 and section 10; (c) the licence, if any, granted by the dissolved market committee shall be deemed to have been granted by the new market committee having jurisdiction and shall continue to have effect accordingly for the remainder of the period for which it was granted; (d) there shall be transferred to the new market committee such portion of the dissolved market committee's funds and other assets, debts and obligations as the Government may, by order, direct and the rights and liabilities of the dissolved market committee in respect of civil and criminal proceedings, contracts, agreements and every other matter or thing arising in, or relating to, any part of the notified area within the jurisdiction of the new market committee, shall vest in the new market committee.

The names of the members of the market committee nominated under section 10 shall be notified by the Government in the Tamil Nadu Government Gazette.

Every market committee shall elect in such manner as may be prescribed,- (a) one of its members who is nominated under clause (a) or clause (c) of sub-section (1) of section 10 to be its Chairman, and (b) another member to be its Vice Chairman

A person shall be disqualified for being nominated as and for being , a member of market committee (a) if he is a minor or of unsound mind (b) if he is an applicant to be adjudicated as insolvent or is an undischarged insolvent; (c) if he has been sentenced for any offence involving moral turpitude, punishable under any law with imprisonment for one year and upwards, such sentence not having been annulled and a period of five years has not elapsed from the date of expiration of the sentence; (d) if, and for so long as, there subsists a contract entered into by him in the course of his trade or business with that market committee for the supply of goods to, or for the execution of any works undertaken by, that market committee. Explanation - For the purposes of this clause, where a contract has been fully performed by the person by whom it has been entered into with the market committee, the contract shall be deemed not to subsist by reason only of the fact that the market committee has not performed its part of the contract either wholly or in part; (e) if he is in default for a period exceeding fifteen days by failing to pay any fee or any other amount due to the market committee, from the date on which a demand or notice has been served on him in that regard; (f) if he is employed as legal practitioner on behalf of the market committee or against it; or (g) if he is a paid officer or servant of any market committee.

The Assistant Director of Agriculture in-charge of marketing having jurisdiction over the notified area shall be the ex-officio member of the market committee established for which area, or where there are two or more assistant Directors of Agriculture in-charge of marketing having jurisdiction over different portions of a notified area, one of such Assistant Directors as the Government may specify in this behalf.

(1) The term of the office of the members of a market committee, other than the ex-offcio member or the members nominated under clause (d) of sub-section (2) of section 10, shall be three years from the date of publication in the Tamil Nadu Government Gazette of the notification under section 11 and such members shall be eligible for nomination for not more than another term of three years:

Provided that, for the purposes of this sub-section, a person who has held office in a causal vacancy for a period of not less than one year shall be eligible for nomination for not more than another term of three years :

Provided further that, a member notwithstanding the expiry of this term of office, shall continue to hold office and function as a member of the market committee until the nomination of his successor, or for a period of three months, whichever is earlier :

Provided also that the Government any, by notification, on or before the expiry of term of office of the members of a market committee, for sufficient cause, direct that the term of office of such members of the market committee as a whole be extended by such period not exceeding six months at any one time, but not exceeding one year in the aggregate.

(2) (a) A member of every market committee, other than the ex-officio member or the members nominated under clause (d) of sub-section (2) of section 10, shall cease to hold his office if he absents himself from three consecutive meetings of the market committee, including meetings which, for want of quorum could not be held.

(b) For the purposes of clause (a), no meeting of the market committee from which a member absents himself shall be counted against him if due notice of that meeting was not given to him.

(3) Where a person ceases to be a member under sub-section (2), the Chairman shall at once intimate the fact in writing to such person and report the same to the market committee at its next meeting. The market committee may suo-motu at that meeting and shall on an application made by such person within fifteen days of the receipt by him of such intimation, at its next meeting after the receipt of such application, restore him to his office as member:

Provided that a member shall not be so restored more than twice during his term of office.

(4) Every causal vacancy in the office of any member of the market committee shall ordinarily be filled up not later than three months from the date off occurrence of the vacancy by a fresh nomination in the manner prescribed:

Provided that no casual vacancy shall be filled up within four months before the expiry of the term of office of the member in whose office the casual vacancy has occurred.

(5) The member nominated to fill up a casual vacancy under sub-section (4) shall hold office only so long as the member in whose place he is nominated would have been entitled to hold office it the vacancy did not occur.

Explanation.- For the purpose of this section, "casual vacancy" means a vacancy occurring otherwise than by efflux of time.

(6) If at any time it appears to the Government that any person nominated by them has shown himself to be unsuitable for his office, or has been guilty of any misconduct or neglect which renders his removal expedient, the Government may, by notification, remove such person from his office.

Every market committee shall be a body corporate by such name as the Government may specify, shall have perpetual succession and a common seal, 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 acquire and hold property, both movable and immovable, sell, lease or other wise transfer any movable or immovable property which may have become vested in or been acquired by it and to contract and to do all other things necessary for the purpose for which it is established :

Provided that no immovable property shall be transferred by way of sale, lease or otherwise without the prior permission of the Government.

Every market committee shall be deemed to be a local authority for the purpose of the Land Acquisition Act, 1894 (Central Act I of 1894) and the Local authorities Loans Act, 1914 (Central Act IX of 1914).

The market committee may appoint one or more of its members to be a sub-committee or to be a special committee for the conduct of any work, or to report on any matter, pertaining to its duties or functions under this Act and the rules and by-laws made under this Act and may delegate to any one or more of its members such of its own power or duties as it may think fit.

(1) The market committee may, at any time, call a general meeting of the producers of the notified agricultural produce in the notified area and of person licensed under sub-section (1) of section 8, and shall call such a meeting within one month after receipt of a requisition in writing from the Director or from such number of producers and of persons licensed under sub-section (1) of section 8 or portion of the total number of producers and of persons so licensed as may be specified in the bylaws of market committee. (2) If no general meeting is called in accordance with such requisition, the director shall have power to call a general meeting himself.

A market committee shall have power to act, notwithstanding any vacancy in the membership, or any defect in the constitution thereof and the proceedings of a market committee shall be valid notwithstanding that some person, who was not entitled to be a member, had sat, voted or otherwise taken part in the proceedings of any such committee.

Any person nominated under clause (a), (b) or (c) of sub-section (2) of section 10 in his capacity as a member of a particular body or the holder of a licence under sub-section (1) of section 8 shall, if he ceases to be a member of that body or the holder of that licence, as the case may be, for a period of more than three months, cease to be a member of the market committee.

(1) Subject to the provisions of sub-sections (2), (3) and (4) and the rules made in this behalf, the market committee may appoint a Secretary and other paid officers and servants as are necessary for the necessary for the efficient performance of its functions. The Secretary and other paid officers and servants of the market committee shall be whole-time Government servants.

(2) Notwithstanding anything contained in any law for the time being in force, on and from the 17th November 1981, the Secretary and other paid officers and servants of every market committee established under the Tamil Nadu Agricultural Produce Markets Act, 1959 (Tamil Nadu Act 23 of 1959) shall become whole-time Government servants.

(3) The salaries, allowances, pensions and other remuneration of the Secretary and other paid officers and servants of the market committee shall be paid in the first instance from the Consolidated Fund of the State and the market committee shall, out of the Market Committee Fund, repay to the Government the amounts paid by the Government under this sub-section.

(4) Notwithstanding anything contained in this Act and subject to the provisions of Article 311 of the Constitution, the Government may make rules regulating the conditions of service of the Secretary and other paid officers and servants of the market committee.

(5) Any rule under sub-section (4) may be made so as to have retrospective effect on and from a date not earlier than the 17th November 1981.

(1) Every contract entered into by the market committee shall be in writing and shall be signed on behalf of the market committee by the Chairman, the Secretary and one other member of the market committee or where a Special Officer has been appointed under sub-section (1) of section 33 in respect of a market committee such Special Officer and the Secretary.

(2) No contract other than a contract executed as provided in sub-section (1) shall be binding on the market committee.

(1) The market committee shall levy a fee on any notified agricultural produce bought or sold in the notified market area at a rate not less than one rupee but not exceeding two rupees for every hundred rupees of the aggregate amount, for which the notified agricultural produce is bought or sold whether for cash or for deferred payment or other valuable consideration : Provided that, when any agricultural produce brought into any notified market area for the purpose of processing only, or for export is not processed or exported therefrom within thirty days from the date of its arrival therein, it shall, until the contrary is proved, be presumed to have been brought into such notified market area for buying and selling, and shall be subject to the levy of fee under this section on the value of the agricultural produce, as if it has been bought and sold therein. Explanation I. For the purposes of this sub-section, all notified agricultural produces taken out or proposed to be taken out of a notified market area shall, unless the contrary is proved, be presumed to be bought or sold within such area. Explanation II. - In the determination of the amount of the fee payable under this Act. any fraction of ten paise less than five paise shall be disregarded and any fraction of ten paise eared to or exceeding give paise shall be regarded as ten paise. “Provided further that no fee shall be levied more than once on any notified agricultural produce bought or sold in any notified market area within the State.” (2) The fee referred to in sub-section (1) shall be paid by the purchaser of the notified agricultural produce concerned : Provided that where the purchaser of notified agricultural produce cannot be identified, the fee shall be paid by the seller. (3) If any notified agricultural produce liable to payment of fee under sub-section (1) is found to have been processed without payment of fee payable in respect of that produce, the fee shall be levied and recovered on the equivalent quantity of the notified agricultural produce notwithstanding such process. (4) (a) The fee payable under sub-section (1) shall be determined and collected in such manner as may be prescribed. (b) The burden of proving that any notified agricultural produce is not liable for the levy of fee or the fee payable has already been paid under this section shall lie on the person claiming such exemption or non-liability and till it is established with sufficient records to the satisfaction of the market committee that the notified agricultural produce has already suffered the liability, the fee due on such produce shall be paid. (5) Any notified agricultural produce taken or proposed to be taken out of a notified market area exceeding such quantity as may be prescribed shall be accompanied by a permit issued by the Secretary of the market committee subject to the by-laws made in this behalf by the market committee.

(1) If the Government consider that with a view to prevent or check the evasion of payment of fee or other amount due to the market committee under the provisions of this Act, it is necessary so to do, they may, by notification, direct, the setting up of check-post or the erection of barrier or both, by the market committee at such place or places as may be specified in the notification. (2) At every check-post or barrier mentioned in sub-section (1), or at any other place when so required by any officer or servant of the market committee empowered by the Government in this behalf, the driver or any other person in charge of any animal, vessel, cart or other vehicle as the case may be, and keep it stationary so long as may reasonably be necessary and allow such officer or servant empowered as aforesaid to examine the goods carried by such animal, vessel, cart or other vehicle and inspect all records in the possession of such driver or other person in charge of such animal, vessel, cart or other vehicle. (3) If, or such examine and inspection, under sub-section (2), it appears,- (a) that the fee or other amount payable in respect of the notified agricultural produce has been paid or the provisions of this Act and the rules made under this Act or the notification or order or licence issued under this Act are complied with, the said officer or servant shall release the animal vessel, cart or other vehicle with the notified agricultural produce ; or (b) that the fee or other amount payable under the provisions of this Act in respect of the notified agricultural produce has not been paid or any of the provisions of this Act or the rules made under this Act or any of the terms of any notification or order or licence issued under this Act has not been complied with, in respect of the notified agricultural produce carried, the said officer or servant, after making such enquiry as he deems fit and satisfying himself as to such non-payment or non-compliance, as the case may be, shall seize such notified agricultural produce. (4) Any seizure made under sub-section (3) shall forthwith be reported by the officer or servant aforesaid to the Magistrate having jurisdiction to try an offence under this Act and the provisions of sections 457, 458 and 459 of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974) shall, so far as may be, apply in relation to the notified agricultural produce seized under sub-section (3) as they apply in relation to property seized by a police officer.

(1) Every market committee shall, in respect of the notified agricultural produce deposited with it, issue a receipt which shall contain full particulars of the notified agricultural produce so deposited and shall be in such form as may be prescribed. (2) The receipt issued by a market committee under sub-section (1) shall, unless it is otherwise specified thereon, be transferable by endorsement and shall entitle the lawful holder thereof to receive the notified agricultural produce specified in it on the same terms and conditions as the original depositor.

(1) The order determining the fee or other amount payable under this Act shall be conclusive evidence in any prosecution or other proceedings. (2) The validity of the levy or collection of any fee or other amount made under this Act or the liability of any person to any fee or other amount so assessed or levied shall not be questioned in any criminal court in any prosecution or other proceeding whether under this Act or otherwise.

The market committee may, subject to such rules as may be made under this Act, levy a subscription for collecting and disseminating among the sub-scribers, information as to any matter relating to statistics or marketing in respect of the notified agricultural produce.

(1) All money received by a market committee shall be paid into a fund to be called the "Market Committee Fund". All expenditure incurred by the market committee under, or for the purposes of, this Act shall be defrayed out of the said fund; and any surplus remaining after such expenditure has been met shall be invested in such manner as may be prescribed. (2) (a) Every market committee shall, in addition to the amounts payable under sub-section (3) of section 22, out of the Market Committee Fund, pay to the Government the cost of any special or additional staff employed by the Government in consultation with the market committee for giving effect to the provisions of this Act in the notified area. (b) The Government shall determine the cost of special or additional staff and shall, where the staff is employed for the purpose of more than one market committee, apportion such cost among the market committees concerned in such manner as they think fit. The decision of the Government determining the amount payable by any market committee shall be final.

Subject to the provisions of section 29, the amount standing to the credit of the market Committee Fund may be expended for all or any of the following purposes, namely :- (a) acquisition or requisitioning of any site or building or purchase of other assets for the market committee for carrying out the purposes for which it is established : (b) established, maintenance and improvement of the markets and providing such facilities in the market as the Government may direct under sub-section (1) of section 6 ; (c) construction and repair of buildings which are necessary for the purposes of such markets and for the health, convenience and safety of the persons using it ; (d) provision and maintenance of standard weights and measures ; (e) payment of amounts to the Government under sub-section 3 of section 22 ; (f) payment of amount under sub-section (6) of section 33 ; (g) payment of interest on loans that may be raised by the market committee for carrying out the purposes for which it is established and the provision of a sinking fund in respect of such loans ; (h) collection and dissemination of information regarding all matters relating to statistics and marketing in respect of the notified agricultural produce ; (i) schemes for the extension of cultivation or cultural Improvement of the notified agricultural produce within the notified area, including the grant subject to the approval of the Government, of financial aid, to schemes for such extension or Improvement within such area, undertaken by other bodies or individuals ; (j) schemes for drying, cleaning, standardizing, sampling and grading of the notified agricultural produce in order to make it fit for marketing ; (k) payments towards publicity and propaganda for the promotion of the activities of the market committee (l) contributions to the Market Board Fund ; (m) payment of insurance premium on the insurance policy of stocks held or handled in godowns and transaction sheds in markets against fire, flood and the like and of vehicles used by the market committee; or (n) such other purposes as may be authorized by the Government in this behalf by general or special order.

(1) Every market committee may, with the previous sanction of the Government, raise moneys required for carrying out the purposes for which it is established on the security of any property vested in, or belonging to, the market committee and of any fee or other amount leviable by the market committee, by or under this Act. (2) The market committee may, for the purpose of meeting the expenditure on lands, buildings and equipments, required for establishing the market, obtain a loan from the Government or the Board.

No trade allowance, other than an allowance by way deduction on account of deviation from sample, when the purchase is made by sample, or of deviation from standard, when the purchase is made by reference to a known standard, or of difference between the actual weight of the packing and the standard weight, or of the admixture of foreign matter or such other allowance as may be prescribed, shall be made or received in a notified area by any person in any transaction in respect of any notified agricultural produce and no Civil Court shall, in any suit or proceeding arising out of any such transaction, have regard to any other trade allowance.

(1) Where- (a) the term of office of the members of any market committee has expired and a new market committee cannot be constituted in accordance will the provisions of this Act, the rules and the by-laws, or (b) the new market committee constituted fails to enter, or is prevented from entering upon, office, or (c) the members of the existing market committee have tendered resignation enbloc, or (d) vacancies have arisen for any reason, or one or more members of the market committee have tendered resignation and the number of remaining members cannot from the quorum for the meeting of the market committee, the Government may, on their own motion or on application of any produce of any notified agricultural produce or on application of any producer of any person licensed by the market committee under sub-section (1) of section ; and in the case of new market committee which has failed to enter, or prevented from entering upon, office after giving the members of the said market committee an opportunity of marketing their representations, by order, appoint a Special Officer for a specified period not exceeding one year to manage the affairs of the market committee pending the constitution of a new market committee, or as the case may be, the entering upon office by the new market committee : Provided that the period specified in such order may, for special reasons to be recorded in writing by the Government, be extended from time to time but such order shall not remain in force for more than eight years and six months in the aggregate. (2) A Special Officer may be appointed under sub-section (1) for one or more market committees as the Government may, by order, specify. (3) Upon the issue of an order under sub-section (1) appointing a Special Officer, the following consequences shall ensue :- (a) all the members including the Chairman and the Vice-Chairman of the market committee constituted under this Act shall as from the date of such order be deemed to have vacated their offices ; and (b) all the assets vested in the market committee shall, subject to all liabilities, vest in the Government. (4) The Government may, by order, transfer, to the Special Officer appointed under sub-section (1), the assets and liabilities of the market committee as on the date of such transfer. (5) Where a Special Officer is appointed under sub-section (1), the Government may appoint an advisory board to advise the Special Officer in such matters any be specified by the Government and the advisory board shall consist of the following members, namely:- (a) three persons from among the producers of the notified agricultural produce in the notified area ; (b) three persons licensed under sub-section (1) of section 8 in the notified area ; (c) the Assistant Director of Agriculture in-charge of marketing having jurisdiction over the notified area referred to in section 14 ; (d) two other officers of the Government. (6) The Government may fix the remuneration payable to the Special Officer appointed under sub-section (1) and the amount of remuneration so fixed and such other expenditure incidental to the management of the market committee, during the period of appointment of the Special Officer as may be approved by the Government, shall be payable from the Market Committee Fund. (7) At any time before the expiry of the period referred to in sub-section (1), the Government may- (i) in a case where the Special Officer was appointed on the ground that the new market committee failed to enter, or prevented from entering, upon office if such new market committee has since since become capable of entering upon office, enable such market committee to enter upon office , and (ii) in other cases constitute a new market committee in accordance with section 10, and transfer thereto all the assets and liabilities of the market committee as on the date of such transfer.

(1) Where a Special Officer is appointed under section 33 and such Special Officer is resisted in, or prevented from, obtaining possession of the books, accounts, documents, securities, cash and other properties, whether movable or immovable, of the market committee (hereafter in this section referred to as the records and properties of the market committee), by any person who is not entitled to be in possession of the records and properties of the market committee, any Metropolitan Magistrate or any Judicial Magistrate of the first class in whose jurisdiction of the office of the market committee or the records and properties of that market committee is situate or are kept shall, on application by the Special Officer and on the production of the order of appointment, and of a certificate by the Director in the prescribed form setting forth that the records and properties mentioned therein belong to the market committee, direct delivery to the Special Officer, of the possession of the records and properties of the market committee. (2) Every application under sub-section (1) shall be accompanied nu a copy of the order made under section 33. (3) On receipt of an application under sub-section (1), the Metropolitan Magistrate or the Judicial Magistrate of the first class, as the case may be, shall by a warrant, authorise any police officer not below the rank of Sub-Inspection of Police to enter and search any place where the records and properties of the market committee are kept or believed to be kept and to seize such records and properties ; and the records and properties so seized shall be handed over to the Special Officer. (4) All searches and seizures made under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), relating to search or seizure made under the authority of a warrant issued by a magistrate.

(1) The Government shall establish a Board called the Tamil Nadu State Agricultural Marketing Board having jurisdiction over the entire State Of Tamil Nadu for exercising the powers conferred on, performing the functions assigned to, and discharging the duties imposed on it, by or under this Act. (2) (a) The Board shall be a body corporate by the name aforesaid, shall have perpetual succession and a common seal, 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 acquire and hold property both movable and immovable property which may become vested in, or been acquired by it and to contract and to do all other things necessary for the purposes for which it is established. Provided that no immovable property shall be transferred by way of sale, lease or otherwise out the prior permission of the Government. (b) The Board shall be deemed to be a local authority for the purposes of the Land Acquisition Act 1894 (Central Act I of 1894) and the Local Authorities Loans Act, 1914 (Central Act IX of 1914).

(1) (a) The Board shall consist of a President appointed by the Government and of the following members, namely: - i. Chairman of every market committee ; ii. Director ; iii. Registrar ; iv. Managing Director, State Ware Housing Corporation, Madras ; v. Agricultural Marketing Advisor, Government of India ; vi. President of the Tamil Nadu Co-operative Marketing Federation ; vii. An officer of the Agriculture Department in the Secretariat not below the rank of a Deputy Secretary to Government dealing with the subject agricultural marketing. (b) The Board may associate with itself, in such manner, subject to such conditions and for such purpose as may be prescribed, a nominee of the Cotton Corporation of India and such other person whose assistance or advice it may desire in complying with any of the provisions of this Act and every person so associated shall be entitled to receive such allowances or fees as may be fixed by the Government and shall have the right to take part in the proceedings of the Board relevant to the purpose for which he has been associated, but shall not have the right to vote. (c) There shall be a Vice-President who shall be elected by the members from among themselves in accordance with such procedure as may be prescribed. (d) If for any reason, the officer referred to in item (ii), (iii), (iv), (v) or (vi) of clause (a) unable to attend any meeting of the Board he may depute any officer subordinate to him to attend such meeting. The officer so deputed shall have the right to take part in the proceedings of the Board, but shall not have the right to vote: Provided that where a person ceases to be the Chainman of a market committee, he shall cease to be member of the Board on and from the date on which he ceases to be such Chairman : Provided further that in respect of any market committee the Chairman of which is a member of the Board, a special officer is appointed under section 33, such Chainman of the market committee shall cease to be a member of the Board and the special officer so appointed shall be a member of the Board in the place Chairman. (2) The term of the office of the President shall be three years from the date of this first meeting of the Board. (3) (a) The Board shall meet as often as may be necessary at such time and place, and observe such rules of procedure as may be laid down for this purpose by the Board with the approval of the Government. But three months shall not intervene between its last meeting and the next meeting. (b) The President or in his absence the Vice-President or in the absence of both the President and the Vice-President, the member chosen by the members present from among themselves shall preside at a meeting of the Board. (4) The non-official members of the Board shall be entitled to receive such allowances or fees for attending the meeting of the Board as may be fixed by the Government. (5) The Board may appoint one or more of its members to be a sub-committee or to be a special committee or to be a special committee for the conduct of any work, ort to report on any matter pertaining to its duties or functions under this Act and the rules and regulations made under this Act and may, subject to the provisions of sub-section (3) of section 47 delegate to such committee such of its powers or duties as it may think fit.

(1) Subject to the rules made in this behalf, the Government shall appoint a Chief Executive Officer to the Board. (2) Subject to the provisions of sub-section (1) and the rules made in this behalf, the Board may appoint the other paid officers and servants as are necessary for the efficient performance of its functions. (3) The Chief Executive Officer and other paid officers and servants of the Board shall be whole-time Government servants. (4) Subject to the superintendence of the Board, the general control and direction over all the officers and staff of the Board shall be vested with the Chief Executive Officer. (5) Notwithstanding anything contained in any other law for the time being in force, on and from the 17th November 1981, the paid officers and servants in the employment of the Board shall become whole-time Government servants. (6) The salaries, allowances, pensions and other remuneration of the Chief Executive Officer and other paid officers and servants of the Board shall be paid in the first instance from the Consolidated Fund of the State. The Board shall, out of the Market Board Fund, repay to the Government the amounts paid by the Government under sub-section(5). (7) Notwithstanding anything contained in this Act and subject to the provisions of Article 311 of the Constitution, the Government may make rules regulating the conditions of service of the officers and servants of the Board. (8) Any rule under sub-section (7) may be made so as to have retrospective effect on and from a date not earlier than the 17th November 1981.

The powers and functions of the Board shall be-(i) the co-ordination of the working of the market committees and other affairs thereof including programmes undertaken by the market committees for the development of markets and market areas ; (ii) to undertake the State level planning of the development of agricultural produce and markets :(iii) to administer the Market Board Fund and the Market Development Fund ;(iv) to the giving of direction to market committees in general or any market committee in particular with a view to ensure improvement thereof ;(v) to supervise and guide the market committees in the preparation of plants and estimates of construction programme undertaken by the market committees ;(vi) to execute all works chargeable to the Market Board Fund ;(vii) to maintain accounts in such forms as may be prescribed ;(viii) to publish annually at the close of the year, its progress report, balance sheet and statement of assets and liabilities and send copies thereof to each member of the Board and the Government ;(ix) to make necessary arrangements for propaganda and publicity on matters related to regulated marketing of an agricultural produce ;(x) to provide facilities for the training of officers and staff oft the market comm9ittees, Board, Department of Agricultural Marketing producers and traders in the State ;(xi) to prepare and adopt budget for the ensuing year ;(xii) to grant subventions or loan to market committees for the purposes of this Act on such terms and conditions as the Board may determine ;(xiii) to arrange or organise seminars, workshops, exhibitions, etc., on subjects related to agricultural marketing ;(xiv) to impart education in regulated marketing of agricultural produce (xv) to promote schemes for processing, grading and standardization of agricultural produce ; (xvi) the collection and dissemination of market information ;(xvii) the publication of market statistics and studies ;(xviii) the levy of subscription for collection and dissemination of information relating to agricultural marketing ;(xix) to conduct market research and market surveys ;(xx) to do such other things as may be of general interest to market committees or considered necessary for the efficient functioning of the Board ;(xxi) any other function specially entrusted to it by this Act ; and (xxii) such other functions of like nature as may be entrusted to the Board by the Government.

(1) The Board may enter into and perform all such contracts as it may consider necessary or expedient for carting out all or any of the functions for which it is established. (2) Every contract entered into by the Board shall be in writing and shall be executed on behalf of the Board by the President and the Chief Executive Officer. (3) No contract other than a contract executed as provided in sub-section (2) shall be binding on the Board.

(1) The Board may, for the purposes of carrying out all of its functions for which it is established, obtain a loan from the Government subject to such conditions, as the Government may specify. (2) The Board may, with the previous approval of the Government, raise moneys required for carrying out the functions for which it is established on the security of any property vested in, or belonging to, the Board and of any moneys received by the Bard by or under this Act or on the guarantee given by the Government and in particular, may from time to time. (a) borrow money from the public or from any bank or from any corporation owned or controlled by the Central or state Government; or (b) enter into financial arrangements with any bank or other financial institution or with the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (Central Act 31 of 1956).

Subject to such rules as may be made in this behalf, an estimate of the annual income and expenditure of the Board for the ensuing financial year shall be prepared and passed by the Board and submitted to the Government for their approval.

(1) The accounts of the Board shall be examined and audited once at least in every financial year by the Examiner of Local Fund Accounts. (2) The accounts of the Board as certified by the Examiner of Local Fund Accounts together with the audit report along with the remarks of the Board thereon shall be forwarded to the Government within such time as may be prescribed. (3) The Government may, by order in writing, direct the Board to take such action as may be specified in the order to remedy within such time as may be specified therein, the defects, if any, disclosed as a result of the audit, and the Board shall comply with such directions.

The Government shall exercise superintendence and control over the Board and its officers and may call for such information as they may deem necessary and, in the event of their being satisfied that the Board is not functioning properly, they may supersede the Board and, till such time as a new Board is constituted, make such arrangements for the exercise of the functions of the Board as they may think fit : Provided that the Board shall be constituted within six months from the date of its supersession.

(1) All moneys received by the Board shall be paid into a fund to be called "Market Board Fund". all expenditure incurred by the Board under or for the purposes of this Act, shall be defrayed from out of such Fund and any surplus remaining after such expenditure has been met, shall be invested in such manner as may be prescribed. (2) Every market committee shall pay to the Board as contribution such percentage of its receipts derived from licence fee and fee levied under sub-section (1) of section 24 in such manner, as may be prescribed. (3) The Board shall, in addition to the amounts payable under sub-section (6) of section 37, out of the Market Board Fund, pay to the Government the cost of any special or additional staff employed by the Government in consultation with the Board for giving effect to the provisions of this Act and the rules made under this Act. (4) The Market Board Fund shall be expended for the following other purposes, namely :-(a) administrative expenditure of the Board ;(b) payment of travelling and other allowances to the President, Vice-President and members of members of the Board as may be prescribed ;(c) loans and advances to the officers and servants in the employment of the Board ;(d) payment towards insurance premium ;(f) provision of sinking fund and reserve fund ;(g) contributions and transfer of funds towards the Market Development Fund ; and (h) such other purposes as the Government may, by general or special order, specify in this behalf.

(1) There shall be formed a separate fund to be called the "Market Development Fund". (2) The Board shall contribute to the Market Development Fund such percentage of its annual receipts, as may be prescribed. (3) The Board shall transfer the entire money borrowed or any other amount obtained under sub-section (2) of section 40 to the Market Development Fund. (4) The Board may accept towards the Market Development Fund any grant, subsidy, donation or gift from the Central or State Government or a local authority or any individual or body, whether incorporated or not, for all or any of the purposes for which the said Fund shall be expended. (5) All moneys received and forming part of the Market Development Fund shall be credited into the said Fund. All expenditure for carrying out all or any of the purposes specified in sub-section (7) shall be defrayed from out of the said Fund and any surplus remaining after such expenditure has been met, shall be invested in such manner as may be prescribed. (6) The Market Development Fund shall be operated upon by such officer of the Board as may be authorized by it in this behalf. (7) The Market Development Fund shall be expended for all or any of the following purposes, namely:- a. acquisition of site or sites for the Board ; b. construction of, and repairs to, buildings necessary for the purposes of the Board ; c. payment towards propaganda, demonstration and publicity for promotion of regulated markets for agricultural produce ; d. market research, special studies, preparation of project reports relating to agricultural marketing; e. collection and dissemination information regarding matters relating to crop statistics and marketing in respect of notified agricultural produce ; f. schemes for processing, grading and standardization of agricultural produce . g. giving aid to market committees in the shape of loan grant or subsidy h. payment of interest on loans or borrowings that may be raised; i. payment of legal expenses incurred by the Board ; j. training of the paid officers and servants of the market committees and Board ; k. imparting education in marketing of agricultural produce ; l. organizing or arranging workshops, seminars, exhibitions, etc., on development of marketing ;