THE PUNJAB AGRICULTURAL PRODUCE MARKETS ACT, 1961

(PUNJAB ACT NO. 23 OF  1961)

 

Contents

 

SN

Subject

  1.  
Short title, extent and Commencement
  1.  

Definitions

2A

Construction of certain references in Act

3

State Agricultural Marketing Board, Constitution, powers and duties

3A

The powers of the board in respect of the transferred territory and the union Territory of Chandigarh

4

******

  1.  

Notification of intention of excersing control over purchase, sale, Storage and processing of agricultural produce in specified area

  1.  

Declaration of notified market area

  1.  

Declaration of market yards

  1.  

No private market to be opened in or near places declared to be markets

  1.  

Authority to whom applications  for grant of license are to be made

  1.  

Applications for licences, fees to be paid and cancellation  or Suspension of licences

10A

Certain persons to be licensees

  1.  

Establishment of Market Committee

  1.  

Constitution of Committee

12A

Suppression of Nominated Committees

12B

Constitution of Committees by nomination for fixed period

12C

Suppression of nominated committee

12D

Constitution of committees by nomination for fixed period

  1.  

Duties and powers of committee

  1.  

Term of office of members

  1.  

Removal of members

  1.  

Election of Chairman and  Vice-Chairman

  1.  

Filling of  Vacancies

17A

Election Petition

  1.  

Incorporation of Committees

  1.  

Appointment of sub-committees and joint committees and

Delegation of powers

  1.  

Appointment and salaries of officers and servants of committees

  1.  

Persons who are to be deemed public servants within the meaning of section 21 of the Indian Penal Code

  1.  

Execution of Contracts

  1.  

Levy of fees

23A

Saving of excess fee charged

  1.  

Octroi not payable on certain agricultural produce

  1.  

Marketing Development Fund

  1.  

Purpose for which the Marketing Development Fund may be expended

  1.  

Market Committee Fund

  1.  

Purposes for which the Market committee Funds may be expended      

  1.  

Liability of member or employee of Committees or the Board   

  1.  

No Trade Allowance permissible except as prescribed

  1.  

Bar of suit in absence of notice      

  1.  

Power to borrow

  1.  

Power to call information, inspect, enforce attendance and to suspend actions, etc. of Committee

33A

Power to order production of accounts and power of entry, inspection and seizure

33B

Power to stop vehicles

  1.  

Acquisition of land for the Board and Committee

  1.  

Suppression of Committees

  1.  

Emergency powers

  1.  

Penalties

  1.  

Power of State Government to amend the Schedule        

  1.  

Trial of offences       

  1.  

Appeal

  1.  

Recovery of sums due to State Government from Committee

41A

Power of State Government to issue directions to Board

  1.  

Revision

  1.  

Power to make rules

  1.  

Bye-laws

  1.  

Power to write off irrecoverable fees, etc  

  1.  

Power to compound offences          

  1.  

Repeal and Savings  

 

 

THE PUNJAB AGRICULTURAL PRODUCE MARKETS ACT, 1961

(PUNJAB ACT NO. 23 OF 1961)

 

(Received the assent of the president of India on the 18th May, 1961, and first published for general information in the PUNJAB GOVERNMENT GAZETTE (EXTRA ORDINARY), Legislative Supplement, of the 26th May, 1961.)

 

            An Act to consolidate and amend the law relating to the better regulation of the purchase, sale, storage and processing of agricultural produce and the establishment of markets for agricultural produce in the State of Punjab.

 

            Be it enacted by the Legislature of the State of Punjab in the Twelth Year of the Republic of India as follows:-

 

1. Short title, extent and commencement (1) - This Act may be called the Punjab Agricultural Produce Markets Act, 1961.

 

1[ (2)       It extends to the States of Punjab and Haryana, the territories transferred to the Union Territory of Himachal Pradesh under section 5 of Punjab Reorganization Act, 1966 (31 of 1966) and the Union Territory of  Chandigarh .)

 

(3)         It shall come into force at once.

 

2.      Definitions - In this Act, unless the context otherwise requires: -

 

(a)              “agricultural produce” means all produce , whether processed or not, of agriculture, not,  of agriculture horticulture, animal  husbandry or forest as specified in the schedule to this Act;

 

(b)              Board“ means the Punjab State Agricultural Marketing Board or the Haryana State Agricultural Marketing Board established under the Act for the State of Punjab or the State of Haryana and includes the Administrator of the union Territory of Himachal Pradesh functioning as the Board for the transferred territory and the administrator of the union Territory and the Administrators of the Union Territory of Chandigarh functioning as the Board for the Union Territory of Chandigarh.)

(c)   “Broker” means person, other than a private servant or an auctioneer,  usually employed on commission to enter into contracts on behalf of others for the purchase or sale of agricultural produce;

(d)   “Committee” means a market committee established and constituted under sections 11 and 12;

(e)   “Co-operative Society”  means a Co-operative society registered or deemed to be registered under the Punjab Co-operative Societies Act, 1954, [ or any other corresponding law for the time being in force} which deals in the purchaser, sale, processing, or storage of agricultural produce, or is otherwise engaged in the business of disposal of agricultural produce;

 

(f)    “dealer” means any person who within  the notified market  area set up, establishes or continues or allows to be continued any place for the purchaser, sale, storage, or processing of agricultural produce notified under sub-section (1) of section 6 or purchaser, sells, stores or processes such produce;

 

2[(g) “Director...................(omitted)]

 

(h)  ”Godown keeper” means a person, other than a producer, who stores agricultural produce for himself for sale or stores agricultural produce of others in lieu of storage charges;       

 

3[(hh) “ licensee” means a person to whom a licence is granted under section 10 and the rules made under this Act and includes any person who buys or sells agricultural produce and to whom a licence is granted as Kacha Arhtia or commission agent or otherwise but does not include a person licensed under section 13; ]

 

(i)                “market” means a market established and regulated under this Act for the notified market area, and includes a market proper , a principal market yard and sub-market yard;

(j)                4[“Marketing officer” ....................  omitted ]

 

(k)   “market proper” means any area including all lands with the buildings thereon, within such distance of the principal market or sub-market yard, as may be notified in the official gazette by the state Government , to be a market proper;

 

5(kk)    “member” includes the chairman of the Board;]

 

(L)             “notified market area” means any area notified under section 6;

(l)     “Prescribed” means prescribed by the rules made under this Act;

 

1             Inserted by G.O.I.S. O. No. 3021, dated 18th July, 1969.

2                                          Omitted vide Punjab Act No. 13 of 1979.

3                                          Inserted by Punjab Act 34 of 1976.

4                                          Omitted by Punjab Act 40 of 1963.

5                                          Inserted by Punjab Act 40 of 1963.

 

 

(n)  “Principal market yard” and “sub-market yard” mean an enclosure building or locality declare to be a principal market yard and sub-market yard under section 7;

 

(o)              “Producer” means a person who in his normal course of avocation grows, manufactures, rears or producers, as the case may be, agricultural produce personally, through tenants or otherwise, but does not include a person who works as a dealer or a broker or who is a partner of a firm of dealers or brokers or is otherwise engaged in the business if disposal of Agricultural produce other than that grown, manufacture, reared, or produced by himself, through his tenants or otherwise, If a question arises as to whether any person is a producer or not for the purposes of this Act, the decision of the Deputy commissioner of the District in which the person carries on his business or profession shall be final ;

 

Producer that no person shall be disqualified from being a producer merely on the ground that he is a member of a cooperative society;

Explanation:- The term ‘producer’ shall also include tenant.

           

(p)              1[“region” ...................................... omitted ]

 

(q)              “retail sale” mean sale of agricultural produce not exceeding such quantity as may be prescribed  ;

(r)               “secretary” means the Executive officer of a committee and includes an assistant secretary or a person officiating  or acting as secretary ;

(s)               “Trade allowance” includes an allowances having the sanction of custom in the notified market area concerned and market charges payable to various functionaries.

2[(t) “transferred territory” means the territory transferred to the union territory of Himachal Pradesh under section 5 of the Punjab Reorganization Act, 1966 (31 of 1966)].

 

3[2 A. Construction of certain references in The Act - In the application of the provisions of this Act, -

(1)              to the state of  Haryana, any reference therein to any expression mentioned in column :-

(1)   Of the table below shall be construed as a reference to the corresponding expression mentioned in column (2) of the said Table.

1.                             Deleted by G.O.I.S.O. No.  3021, Dated 18th July, 1969.

2.                             Inserted clause (t) by G.O.I.S.O. No. 3021 dated 18th  July, 1969.

3.                             Inserted by G.O.I.S.O. No. 3021 dated 18th July, 1969.

 

 

TABLE

 

State Government Punjab State or state Of Punjab except in section 1 of the Act. State Agricultural Marketing Board. 

Government of the State Of Haryana. State of Haryana. Haryana State Agricultural Marketing Board.

 

(2) To the territory transferred to Himachal Pradesh any reference therein to any expression mentioned in column (1) of the Table below shall be construed as a reference to the corresponding expression mentioned in column (2) of the said Table.

                                             

TABLE

 

State Government Punjab State or state Of Punjab except in section 1 of the Act. State Agricultural Marketing Board. 

Administrator of the Union Territory of Himachal Pradesh. Transferred territory. Administrator of the Union Territory of  Himachal Pradesh.

 

 (3)to the Union Territory of Chandigarh, any reference, therein to any expression mentioned in column (1) of the Table below shall be construed as a reference to the corresponding expression mentioned in column (2) of the said Table .

 

TABLE

State Government Punjab State or state Of Punjab except in section 1 of the Act. State Agricultural Marketing Board. 

Administrator of the Union Territory of Himachal Pradesh. Transferred territory. Administrator of the Union Territory of  Himachal Pradesh.

 

3.         State Agricultural Marketing Board, Constitution, powers and duties. (1)- The State Government may, for exercising powers conferred on and performing the function and duties assigned to the Board by or under this Act, establish and constitute a State Agricultural Marketing Board, Consisting of a Chairman to be nominated the State Government and 1[Sixteen other members of whom eight] shall be officials and eight non-officials, to be nominated by the State Government in the following manner: -

 

(a)   official members shall include 2[a Joint secretary to the State Government in the Department of finance,  The Director of Horticulture , Punjab], 3[the Secretary of the Board and five other officials , one representing the Agriculture Department , the Second representing the Co-operation Department , the third representing the Animal Husbandry Department , the fourth rep[resenting the Colonization Department and the fifth representing the Food and supplies Department ;]

(b)   of the non-official members:-

(i)                 one shall be a producer member of a Committee ;

(ii)               one shall be from among such person licensed under section 10 as are members of the Committee ;

(iii)              one shall be from among such person licensed under section 13 as are members of a Committee ;

(iv)             one shall be a member of a registered organization of farmers ;

(v)               three shall be progressive producers of the Punjab , one from each division; and

(vi)             one representing the Co-operative Societies ;

 

Provided that when the non-official members referred to in sub-clauses (i),(ii) and (iii) of clause (b) cannot be nominated owing to all the Market committees being under super session the Board shall consist of all the members, including the Chairman, referred to in this sub-section excepting the members referred to in the aforesaid sub-clauses and the same shall be deemed to be validly constituted Board till such member are nominated by the State Government after the Market Committees are constituted.

  

 4 [(2) There shall be a Secretary of the Board who shall be appointed by the State Government from amongst those members of the Indian Administrative Service, the Punjab Civil service (executive Branch ) or the Punjab Agricultural service (class 1) who have put in not less than five years service as such member ].

 

            (3) The Board shall be a body corporate as well as a local authority by the name of the State Agricultural Marketing Board having perpetual succession and a common seal, with power, subject to the provisions of this act, to acquire and hold property and shall by the said name sue and be sued.

 

            (4) The term of office of the non – official member of the board shall be three years.

 

(5)   No person shall be eligible to become a member of the board who:-

 

(a)              does not ordinarily reside within the Punjab state;

(b)              is below twenty- five years of ago;

(c)              has been removed under sub-section (7) or section 15;

(d)              is of unsound mind ; or

(e)       Has been declared as insolvent or sentenced by a criminal court, whether within or outside the Punjab state, for an offence involving moral turpitude:

 

Provided that the disqualification under clause (e) on the ground of a statement by a criminal court shall not apply after the expiry of your years from the date on which the sentence of such has expired.

 

(6) A member of the board may resign from membership by tendering his resignation to the State Government through the chairman of the board and the seat of such members shall become vacant on the date of acceptance of his resignation;

 

1[provided that the chairman of the board may resign by tendering his resignation to the state government].

 

2[7] The state government may, by notification remove any member of the board other than official member, -

(a)   If he has become subject to any of the disqualification specified in sub-section (5); or

(b)   If he is, in its opinion, remiss in the discharge of his duties; or

(c)   If he has without the permission of the chairman of the board and in the opinion of the state government without sufficient cause absented himself for not less than three consecutive meetings of the board, and may appoint another member in his place in the manner provided in clause (b) of sub-section (1) from the category to which the removed member belongs;

 

                Provided that before removing a member the reasons for the Proposed action shall be conveyed to him and his reply’ invited within a specified period and duly considered:

 

Provided further that the term of office of the member so appointed shall on the same date as the term of office of the vacating member would have expired had the latter held office for the period allowed under sub-section (4) unless there be delay in appointing a new member who succeeds the member first mentioned above in which case it shall expire on the date on which his successor is appointed by the State Government.

 

            (8) The state government shall exercise superintendence and control over the board and its officers and may call for such information as it may deem necessary and, in the event of its being satisfied that the board is not functioning properly or is abusing its power or is guilty of corruption or mismanagement, it may suspend the board and, till such time as a new Board is constituted, make such arrangements for the exercise of the functions of the board  1[ and of its chairman] as it may think fit :

 

            Provided that the board shall be constituted within 2 [five years & six months] from the date of its suspension.

           

            *(9) The Board shall exercise superintendence and control over the committees.

 

            (10) The state Government or the chairman or the Secretary of the board or any other officer of the board authorised in this behalf by the board may cal for any information or return relating to agricultural produce from a committee or a dealer or a godown keeper or other functionaries and shall have the power to inspect the records and accounts of a committee and account of any dealer, godown-keeper or other functionaries for that purpose.

 

            (11) The  3[chairman or subject to his control the secretary of the board] may transfer the secretary or any employee dealing with the accounts of one committee to another committee and they shall exercise such other powers and discharge such other duties a may be prescribed :

 

            Provided that any increase or decrease in emoluments of a transferred employee shall be referred to the state Government whose decision on such reference shall be finial.

 

            (12) Subject to the provisions of this Act and the rules and bye-laws made thereunder, the board may employee such persons for the performance of the functions of the board under this Act, and may give them such remuneration, as it may think fir, and may suspend, remove, dismiss or otherwise punish any person so employed.

 

            (13) Subject to rules made under this Act, an estimate of the annual income and expenditure of the board for the ensuring year shall be prepared and passed by the board and submitted every year for the sanction of the state Government shall sanction and return the budget within two months from the date of the receipt thereof. If it is not received within two months it shall be presumed to have been sanctioned.

 

            (14) Subject to rules made under this Act, the board may, with the approval of the state Government, frame bye-law for-

 

(a)   regulating the transaction of business at  its meeting;

 

(b)   the assignment of duties and powers of the board to its chairman, Secretary or person employed by it  ; and

(c)   Such other matters as may be prescribed.

 

               (15)  1[Six] members shall constitute a quorum at a meeting of the board:

 

            Provided that if a meeting is adjourned for want of quorum, no quorum shall be necessary at the next meeting called for transacting the same business.

 

            (16) All questions before a meeting of the Board shall be determined by a majority of votes of the member present and voting and, in case of equality of votes, the chairman may exercise a casting vote.

 

Note: - The powers of the  ‘Board ‘ under sub-section (12) of section 3 have been delegated to secretary board vide Govt. Memo No. 11(6) –M- 87/221-spl. Dated 11.8.87.

 

            (17)(i) The state Government may delegate to the board or its 2[Chairman or secretary] any of the powers conferred on it by or under this Act,; and

 

(ii)               The board may 3[with the prior approval of the State Government], delegate any of its powers to its chairman, secretary or any of its officers.

 

            (18) The headquarter of the board shall be located at a place to be determined by the state Government.

 

            (19) No act or proceeding of the board shall be invalid by Reason only of the existence of any vacancy among its members or any defect in the constitution thereof.

 

1[3-A. The powers of the board in respect of the transferred territory and the union Territory of Chandigarh - Notwithstanding anything contained in this Act, the Administrator of the union Territory of Himachal Pradesh in relation to the transferred territory and the Administrator of the union Territory of Chandigarh in relation to that territory, shall, until other provisions is made by law, be deemed to be the board constituted under this Act, respectively for the transferred territory and the union Territory of Chandigarh and accordingly shall perform the functions, discharge the duties and exercise the powers of the Board in relation to  these areas  ].

 

4.                            2[Advisory Committee...............omitted ]

 

5.                             Notification of intention of exercising control over purchase, sale, and storage and processing of agricultural produce in specified area - The State Government may. By notification, declare its intention of exercising control over the purchase, sale, storage and processing of such agricultural produce, and in such area as may be specified in the notification. Such notification shall state that any objections or suggestions, which may be received by the State Government within a period of not less than thirty days to be specified in the notification, will be considered.

 

6.                             Declaration of notified market area - (1)           After the expiry of the period specified in the notification under section 5 and after considering such objections and suggestions as may, be received before the expiry of such period, the State Government may be notification and in any other manner that may be prescribed, declare the area notified under section 5 or any portion thereof to be a notified market area for the purpose of this Act in respect of the agricultural produce under section 5 or any part thereof.

           

            (2) The State Government if satisfied that in any notified market area a Committee is not functioning 3[or two such areas or parts thereof are to be amalgamated or a part of any such area is to be amalgamated with another such area or is to be constituted into a separate notified market area,] may be notification denitrify any market area notified under sub-section (1) or any part thereof and, when the whole of such area is denotified, cancel a Committee and transfer all with the assets of that Committee which remain after Satisfaction of all its liabilities to the liabilities to the Board. Such assets shall be utilized by the Board for such objects in the area as it may consider to be for the benefit of the producers of that area.

 

            (3)       After the date of issue of such  notification or from such later date as may be specified therein, no person, unless exempted by rules made under this Act, shall, either for himself or on behalf of another person or of the State Government within the notified market area, set up, establish or continue or allow to be continued any place for the purchase sale, storage and processing of the agricultural produce so notified, or purchase, sell, store or process such agricultural produce except  under a licence granted in accordance with the forevisions of this act provisions of this act, the rules and bye-laws made thereunder and the conditions specified in the licence.                                    

 

Provided that a licence shall not be required by a producer who sells himself or through a bona-fide agent, not being a commission agent, his own agricultural produce or the agricultural produce of his tenants on their behalf or by a person who purchases any agricultural produce for his private use.                       

            (4)  For the removal of doubts it is hereby declared that a notification published in the official gazette under this section or section 5 shall have full force and effect notwithstanding any omission to publish, or any irregularity or defect in the publication of a notification under this section or under section 5 as the case may be. .                                

 

7.         Declaration of market yards - (1)     For each notified market area there shall be one principal market yard and one or more sub-market yards as may be necessary.                        

 

(2)       The State Government may, by notification, declare any enclosure, building or locality in any notified market area to be principal market yard for the area and other enclosures,  buildings or localities to be one or more sub-market yards for the area.               

 

8.         No private market to be opened in or near places declared to be markets - On and after the date on which the State Government have by a notification under section 7 declared any palace to be a principal or sub-market yard, no person or Municipal Committee, District Board,  Panchayat or any Local Authority, notwithstanding anything contained in any enactment relating to such Municipal Committee, District Board, Panchayat or Local Authority shall be Competent  to set up, establish or continue or allow to be continued any place within the limits of such market of within a distance thereof to be notified in the official gazette in this Behalf in each case by the State Government for the purchase , sale, storage and processing of any agricultural produce;

                                  

            Provided that a producer shall not be deemed to set up, establish or continue or allow to be continued a place as a market for the purpose of the Purchase , Sale, storage or processing of agricultural produce if he sale his own agricultural produce outside the premises set apart by the Committee for the agricultural produce.

 

9.                                        Authority to whom applications for grant of licences are to be made - The 1[Secretary of the Board] or any other officer authorised by him in writing in this behalf shall be the authority for granting licences required under Section 6.

 

10.                                     Applications for licences, fees to be paid and cancellation or suspension of licences - Any person may apply to the authority specified in Sec.9 for a licence which may be granted for such period , in such form , on such  conditions and on payment of such fees not exceeding one hundred rupees as may be prescribed:

 

Provided that if any person carrying on any business of the nature specified in sub-section (3) of section 6 in a notified market area on the date of issue of notification under sub-section (1) of that section , fails to apply for a licence on or before the date specified therein for obtaining licence , the prescribed authority may, before a licence is issued, impose on him such penalty not exceeding one hundred rupees as may be prescribed.

                                  

(1)              The  2[ secretary of the board] may, on being satisfied that there has been a breach of any of the conditions specified in a licence, by an order in writing, cancel or suspend such licence and may also direct that such licence shall not be renewed for such period not exceeding five months for the first breach and not exceeding nine months for the second breach and not exceeding one year for every subsequent breach, as may be specified in that order:

 

            Provided that the chairman of a committee of the committee  of the area concerned may under intimation to the Secretary of the Board suspend a licence for a period not exceeding fifteen days :

 

            Provided further that no such shall be made without giving the licence an opportunity to show cause why such an order should not be made. 

 

(2)              The 1 [Secretary of the board] after such enquiry as he may consider necessary, refuse a licence to a person who in his option :-

 

(a)              is a benamidar for or a partner with any person to whom a licence has been refused , or whose licence is cancelled or suspended under sub-section (2) for the period of such cancellation or suspension ; or

 

(b)              is convicted of an offence affecting that said person’s integrity as a man of business within two years of such conviction ; or

 

(c)              is undischarged insolvent :

 

Provided that no such order shall be made without giving such person an opportunity to show cause why such an order should not be made.

 

(3)              Any person aggrieved by an order made under this section may at any time within one month of the making thereof, appeal to the state Government if such order is passed by the 2 [Secretary of the Board] and to the Secretary of the Board if such order is passed by the Chairman of the Committee.

 

3[10-A.            Certain person to be licensees  - Any person to whom a licence is granted under section 10 shall be deemed to be licensee under that section for the purposes of this Act and the rules made there under including that of levy of fees under section 23 on the agricultural produce bought or sold by him in the notified market area, irrespective of the fact whether the business of buying or selling of agricultural produce is specified in his licence or not ].

 

11.     Establishment of market committee - The State government shall by notification establish a market committee for every notified establish market area and shall specify its headquarters.

 

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