Chapter I Chapter I

(1) This Act may be called the Tamil Nadu Specified Commodities Markets (Regulation of Location) Act, 1996. (2) It extends to the whole of the State of Tamil Nadu. (3) It shall come into force in the Madras Metropolitan Planning Area at once and in any other local area, on such date as the Government may, by notification, appoint and different dates may be appointed for different local areas.

(1) Whenever local authority of any local area, for the purpose of decongesting any part of the local area, considers necessary to shift the commercial activities in respect of any specified commodity to places outside such part, such local authority may, by notification, specify its intention to recommend and to call upon the Government to declare any other area in such local area to be a market area in respect of such specified commodity as specified in such notification. (2) (a) The notification shall state that any objection or suggestion which may be received by the local authority, within such period as may be specified in the notification, will be considered by it. (b) A copy of the notification shall also be published in such other manner as may be prescribed. (3) After the expiry of the period specified in the notification under sub-section (1), and after considering the objections and suggestions as may be received before such period, and after considering the interest of the wholesale traders carrying on business in such specified commodity and such other factors, if any, the local authority shall recommend to the Government to declare such area to be a market area in such local area in respect of such specified commodity as specified in the notification under sub-section (1): Provided that the local authority may make recommendation in respect of more than one specified commodity to be shifted to the same area to be a market area under this section.

(1) (a) The Government may, after considering the recommendation of the local authority, by notification, declare such area as may be specified in the notification to be a market area in respect of such specified commodity as may be specified in the notification. (b) A copy of the notltication shall also be published in such other manner as may be prescribed. (2) A notification under section 3 or under sub-section (1) shall have full force and effect notwithstanding any irregularity or defect in the publication of such notification.

Every market committee shall be deemed to be a local authority for the purposes of the Land Acquisition Act, 1894 and the Local Authorities Loans' Act, 1914.

(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 market area ; (b) divide any market area into two or more separate market areas ; (c) amalgamate two or more market areas into one market area ; (d) declare that the wholesale trade of any specified commodity in any market area shall cease or that the wholesale trade of any specified commodity hitherto not carried on shall be carried on in any market area : provided that the power conferred by this section shall, in relation to any market area or specified commodity, be subject to the provisions of sections 3 and 4. (2) When the limits of the market area for which a market committee is established are altered under sub-section (1), the Government may, by notification and from such date as may be specified in the notification, direct that, (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 market area in accordance with the provisions of sections 5 and 8 ; (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 market area within the jurisdiction of the new market committee, shall vest in the new market committee.

(1) The Chief Administrative Officer of every market committee shall maintain a register for every specified commodity for registering the wholesale traders, in such form and in such manner as may be prescribed. (2) As soon as may be, after any area is declared to be a market area for any specified commodity, the Chief Administrative Officer shall issue a notice in such form and publish it in such manner as may be prescribed, inviting all the wholesale traders actively engaged in the wholesale trade of such specified commodity in the local area, to apply in writing to him for registering themselves with the market committee. Such applications shall be invited within such period as may be prescribed, calling upon the applicants to adduce evidence that the applicants have been actively engaged in the wholesale trade of such specified commodity in the local area immediately before the date of publication of the notification under sub-section (1) of section 4. (3) Every person other than the persons referred to in sub-section (2) intending to carry on the wholesale trade of such specified commodity in any market area shall also apply to the Chief Administrative Officer for registering his name with the market committee. (4) The application for such registration shall be made in such form and shall be accompanied by such fees and documents as may be prescribed. (5) The Chief Administrative Officer shall consider all applications received by him and if he is satisfied on making such further inquiry, if any, as he may deem fit that an applicant was actively engaged in, or intending to carry on, the wholesale trade, he shall include his name in the register maintained by him under sub-section (1) and inform the applicant accordingly. Every such registered wholesale trader shall be eligible to get a licence as provided in section 21. (6) If the Chief Administrative Officer refuses to register the name of any person who has applied for the same, he shall communicate his decision in writing with reasons therefor to such person: Provided that no order under this sub-section shall be passed unless the person concerned is given a reasonable opportunity of being heard. (7) If the Chief Administrative Officer, on application made to him or information received by him or on his own motion, is satisfied after such inquiry as he deems fit, that any entry in the register is erroneous or defective in any particular or should be omitted on the ground that the person concerned has ceased to carry on the wholesale trade in such specified commodity, he may, after giving the person a reasonable opportunity of being heard, amend or omit the entry in the register. (8) Any person aggrieved by any decision of the Chief Administrative Officer in regard to the refusal of registration or amendment or omission of any entry of his name in the register, may make an appeal in writing to the local authority within such period as may be prescribed. (9) The decision of the Chief Administrative Officer in regard to such registration, and where an appeal is made against such decision, the decision of the local authority, shall be final.

(1) On and after the date specified by the local authority, by notification (hereafter in this section referred to as the notified date), no person shall, within a market area.—(a) set up, establish or use, or continue or allow to be continued, any place for the wholesale trade of any specified commodity: or (b) operate as weighman, measurer, trader, warehouserman or in any other capacity in relation to the wholesale trading of any specified commodity; or (c) carry on any wholesale trade of any specified commodity in any place in the market area other than in the market or special market, as the case may be exmpt under, and in accordance with the conditions of, a licence granted to him in that behalf by the market committee under this Act: Provided that—(i) All orders granting, renewing, refusing to grant or refusing to renew, cancelling or suspending any licence shall be in writing and no order refusing to grant or renew or cancelling or suspending a licence shall be made without giving the person concerned a reasonable opportunity of stating his case; (ii) the reasons for any such refusal, cancellation or suspension of a licence shall be recorded in writing; (iii) the market committee shall not refuse to grant or renew licence to any registered wholesale trader. (2) Nothing contained in sub-section (1) shall apply to a warehousing corporation established or maintained by the State or Central Government or a warehouserman licensed under the Tamil Nadu Warehouses Act, 1951 in respect of storage, weighment or measurement of any specified commodity accepted for warehousing. (3) A licence under sub-section (1) may be refused to a person,—(a) whose licence 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 licence may be refused under clause (a) or clause (b). (4) 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 by laws made under this Act or any of the conditions of the licence, then, without prejudice to any other penalty to which the holder of the licence is 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 giving the holder of the licence a reasonable opportunity of showing cause against such cancellation or suspension. (5) Any person aggrieved by the decision of the market committee—(a) refusing to grant, or (b) cancelling or suspending a licence may, within such time as may be prescribed, appeal to the local authority and the local authority may make such order in the case as it may think fit. (6) A licence granted under sub-section (1) shall be valid for a period of three years 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 licence. (7) Every person to whom a license is granted under sub-section (1) shall comply with the provisions of this Act, the rules and by laws made under this Act and the conditions specified in the licence. (8) (a) Notwithstanding anything contained in any law for the time being in force, no local authority, including the Madras City Municipal Corporation constituted under the Madras City Municipal Corporation Act, 1919 having jurisdiction over the market area, shall, on and after the notified date, establish, authorise or continue, or allow to be established, authorised or continued, any place in the local area including the market area as a market or a place to carry on the wholesale trade in respect of any specified commodity and any permission or licence already granted by such local authority shall stand cancelled on the notified date. (b) Upon such cancellation of any permission or licence, if the holder of such permission or licence refuses to discontinue his wholesale trade in respect of any specified commodity in the place referred to in clause (a), the market committee may, by notice in writing, direct such person, within a period of one month or such further period as may be specified therein, to stop carrying on the wholesale trade in such place. (c) If any direction given under clause (b) is not complied with, within the time specified in the notice, the market committee may, without prejudice to any penalty that may be imposed for any contravention of the provisions of this section, have such direction carried into effect at his cost and have the amount thereof recovered from the defaulter in the same manner as arrears of land revenue. (d) Upon such cancellation of any permission or licence, the holder of such permission or licence shall not be entitled to claim and receive any compensation, but shall be entitled to claim and receive such amount towards refund of the fees paid by him as is proportional to the unexpired period of such permission or licence.

(1) It shall be incumbent on the market committee to provide every registered wholesale trader with suitable alternative facilities at such places in the market, of such nature and size, and on such terms and conditions as the market committee may determine, to enable him to carry on his wholesale trade in the market: Provided that if any such person fails to utilise the alternative facilities so provided, within such period as may be prescribed, the liability of the market committee to provide such facilities shall cease. (2) Any registered wholesale trader aggrieved by anything done by the market committee under sub-section (1), may appeal to the local authority within such period as may be prescribed and the order of the local authority, on such appeal, shall be final: provided that no order shall be passed by the local authority on such appeal against any registered wholesale trader without giving him a reasonable opportunity of being heard.