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H.P. Agricultural and Horticultural Produce Marketing (Development And Regulation) Act, 2005

(Act No. 20 of 2005)

Last Updated 18th December, 2019 [hp158]

Chapter-I

Preliminary

(a) "agricultural produce" means all produce and commodities, whether processed or unprocessed of agriculture, horticulture, apiculture, sericulture, livestock and products of live stock, fleeces (raw wool) and skins of animals, forest produce and fisheries as are specified in the Schedule to this Act or declared by the Government by notification under section 19 of this Act, and also includes a mixture of two or more than two such products;

(b) "agriculturist" means a person who is a bonafide Himachali and owns and possesses land in Himachal Pradesh and who is engaged in production of agricultural produce by himself or by hired labour or otherwise, but does not include any market functionary;

(c) "Board" means the Himachal Pradesh State Agricultural Marketing Board established under section 3 of this Act;

(d) "business" means purchase, sale, processing, value addition, storage, transportation and connected activities of agricultural produce;

(e) "buyer" means a person, a firm, a company or a Cooperative Society or Government Agency, Public Undertaking/ Public Agency or Corporation, commission agent, who himself or on behalf of any other person or agent buy or agrees to buy agricultural produce in the notified market area;

(f) "bye-laws" means the bye-laws made by the Board for the Committee under section 84 of this Act;

(g) "Chairman" means Chairman of the Board;

(h) "commission agent" means a person who on behalf of his principal trader and in consideration of a commission or percentage on the amount involved in such transaction buys agricultural produce and makes payment, keeps it in his custody and delivers it to the principal trader in due course or who receives and takes in his custody agricultural produce sent for sale within the market area or from outside the market area, sells the same in the market area and collects payment thereof from the buyer and remits the sale proceeds to his principal trader;

(i) "Committee" means an Agricultural Produce Market Committee established under section 29;

(j) "contract farming" means farming by a person called "Contract Farming Producer" under a written agreement with another person called "Contract Farming Sponsor" to the effect that his farm produce shall be purchased as specified in the agreement;

(k) "Contract Farming Agreement" means the agreement made for a specific period for contract farming between Contract Farming Sponsor and Contract Farming Producer;

(l) "Cooperative Society" means a Cooperative Society of producers registered under the provisions of the Himachal Pradesh Cooperative Societies Act, 1968, which deals in the purchase, sale, processing, or storage of agricultural produce, or is otherwise engaged in the business of disposal of agricultural produce;

(m) "export" means dispatch of agricultural produce outside India;

(n) "exporter" means a person who exports agricultural produce;

(o) "e-trading" means trading in which billing, booking, contracting, negotiating, information exchange, record keeping and other connected activities are done electronically on computer network/ internet;

(p) "hamal" means a labourer, hamal or coolie engaged for dara-making, loading, unloading, filling, stitching, emptying or carrying any agricultural produce in the notified market area;

(q) "import" means bringing agricultural produce from outside India;

(r) "importers" means person who imports agricultural produce from outside India;

(s) "license" means license granted under this Act;

(t) "licensee" means a person or association, firm, company, public sector undertaking or society holding a license issued under this Act;

(u) "market" means a market established under section 19 of this Act which includes market area, market yard/ sub yards and principal market yard;

(v) "market area" means area notified under section 19 of this Act;

(w) "market charges" includes charges on account of or in respect of commission, brokerage, weighing, measuring, hammaling (loading, unloading or carrying), cleaning, drying, sieving, stitching, stacking, hiring, gunny bags, stamping, bagging, storing, warehousing, grading, surveying, transporting and processing;

(x) "market functionary" means a trader, a commission agent, buyer, hamal, processor, a stockiest, and any other person as may be declared by the State Government, by notification, to be a market functionary;

(y) "market yard" in relation to a market area means a specified place and includes any enclosures, buildings or locality declared as such in any market area by the State Government by notification;

(z) 'member' includes the Chairman, of the Board;

(za) "marketing" means all activities involved in the flow of agricultural produce from the production points commencing from the stage of harvest till these reach the ultimate consumers, viz, grading, processing, storage, transport, channels of distribution and all other functions involved in the process;

(zb) "notification" means notification issued under this Act and published in the Official Gazette;

(zc) "notified agricultural produce" means any agricultural produce notified under section 19 of this Act;

(zd) "person" shall include any company or association or body of individuals, whether incorporated or not;

(ze) "producer" means a person, who in his normal course of avocation, grows, manufactures, rears or produces, as the case may be, agricultural produce personally, through tenants or otherwise, but does not include a person who works as a trader or a broker or who is a partner of a firm of traders or brokers is otherwise engaged in the business of disposal or storage of agricultural produce other than that grown, manufactured, reared or produced by himself through his tenants or otherwise:

(zf) "prescribed" means prescribed by rules made under this Act;

(zg) "processing" means any one or more of a series of treatments relating to powdering, crushing, decorticating, dehusking, parboiling, polishing, ginning, pressing, curing, cleaning, or any other manual, mechanical, chemical or physical treatments to which raw agricultural produce or its product is subjected to;

(zh) "processor" means a person who undertakes processing of any notified agricultural produce on his own accord or on payment of a charge;

(zi) "private market yard" means such place other than the market yard/ sub market yard in the market area where infrastructure has been developed and managed by a person for marketing of notified agricultural produce holding a licence for this purpose under this Act;

(zj) "registration" means registration done under this Act;

(zk) "regulation" means regulations made by the Board under section 85 of this Act;

(zl) "retail sale" means sale of agricultural produce not exceeding such quantity as may be prescribed;

(zm) "State Government" or "Government" means the Government of Himachal Pradesh;

(zn) "seller" means a person who sells or agrees to sell any agricultural produce;

(zo) "trader" means a person who in his normal course of business buys or sells any notified agricultural produce and includes a person engaged in processing of agricultural produce but does not include an agriculturist;

(zp) "transportation" means taking agricultural produce by push cart, bullock cart, truck or other vehicle in course of business for marketing from one place to another;

(zq) "transporter" means a person who transports agricultural produce; and

(zr) "value addition" means processing, grading, packing or other activities due to which value is added to agricultural produce.

Chapter-II

Establishment, Constitution, Powers and Functions of The Board.

(a) Ex-officio members,-

(i) The Secretary (Agriculture) to the Government of Himachal Pradesh. - Vice-Chairman;

(ii) The Secretary (Horticulture) to the Government of Himachal Pradesh;

(ii) The Secretary (Finance) to the Government of Himachal Pradesh;

(iv) The Secretary (Forest) to the Government of Himachal Pradesh;

(v) The Principal Chief Conservator of Forests, Himachal Pradesh;

(vi) Director of Agriculture, Himachal Pradesh;

(vii) Director of Horticulture, Himachal Pradesh;

(viii) Registrar, Cooperative Societies, Himachal Pradesh;

(ix) Chief General Manager of National Bank for Agriculture and Rural Development, Shimla; and

(x) Managing Director of the Himachal Pradesh State Agricultural Marketing Board.

(b) Non-official members,-

(i) two shall be Chairmen of the Committees;

(ii) four shall be other progressive agriculturists/farmers;

(iii) two shall be from amongst such traders registered under section 40 of this Act; and

(iv) two shall be from amongst experts having experience in agricultural marketing.

(a) does not ordinarily reside within Himachal Pradesh;

(b) is below 25 years of age;

(c) has been removed under section 8 or section 33 of this Act;

(d) is of unsound mind; and

(e) has been declared insolvent or sentenced by a criminal court, whether within or outside Himachal Pradesh for an offence involving moral turpitude:

(i) exercise superintendence and control over all the Committees established and constituted under this Act;

(ii) coordinate the working of the Committees and other affairs thereof including programmes undertaken by such Committees for the development of markets and market areas;

(iii) undertake the State level planning of the development of agricultural produce markets;

(iv) administer the Marketing Development Fund;

(v) to give directions to the Committees in general or any Committee in particular with a view to ensure improvement thereof;

(vi) any other functions specifically entrusted to it by this Act; and

(vii) such other functions of like nature as may be entrusted to the Board by the State Government.

(i) to approve proposals for selection of new sites by the Committees for establishment of principal or sub-market yard;

(ii) to approve proposal for constructing infrastructure facilities in the market area such as grading, pack houses, storages, processing, other post harvest management facilities etc;

(iii) to supervise and guide the Committee in the preparation of plans and estimates of construction programme undertaken by the Committee;

(iv) to execute all works chargeable to the Board's fund;

(v) to maintain accounts and get the same audited in such form and in such manner as may be prescribed;

(vi) 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 State Government;

(vii) to undertake marketing extension activities in the Board for the transfer of marketing technology and extension services. It may also make necessary arrangements for propaganda and publicity on matters related to regulated marketing of an agricultural produce and development of marketing;

(viii) to provide facilities for the training of officers and staff of Committees and the Board after assessing the demand for trained personnel in agricultural marketing at all levels;

(ix) to prepare and adopt budget for the ensuing year;

(x) arrange or organize seminars/ workshops/ exhibitions, etc. on subjects related to agricultural marketing;

(xi) to do such other things as may be of general interest to Committees or considered necessary for the efficient functioning of the Board;

(xii) to organise and promote grading and standardization of notified agricultural produce and e-trading; and

(xiii) to set up an Agricultural Produce Marketing Standards Bureau to perform such functions and duties as may be prescribed for the purpose of promotion of grading, standardization and quality certification of agricultural produce in the State;

(i) exercise supervision and control over officers and staff of the Board in matters of executive administration, concerning accounts and records and disposal of all questions relating to the service of the employees in accordance with the procedure as may be prescribed;

(ii) incur expenditure from the Marketing Development Fund on the sanctioned items of work;

(iii) have the same powers as are conferred under the financial rules of the State Government on the Head of the Department and exercise such other powers and discharge such other duties as may be prescribed;

(iv) have the power to transfer employees of one Committee to the Board and vice-versa on administrative grounds;

(v) in case of emergency, direct the execution or stoppage of any work and doing of any act which requires the sanction of the Board;

(vi) prepare annual budget of the Board;

(vii) arrange for internal audit of the Board;

(viii) arrange for the meeting of the Board and maintain records of the proceedings of the meetings of the Board in accordance with the procedure as may be prescribed;

(ix) take such steps as deemed necessary for execution of the decision of the Board;

(x) inspect the construction work undertaken by the Committees either from their own funds or loans or grants provided by the Board or any other agencies and take corrective measures;

(xi) report such acts either of the Committees or of the Board which are contrary to the provisions laid down under this Act or rules and bye-laws made thereunder to the State Government; and

(xii) take such steps as deemed necessary for effective discharge of the functions of the Board.

(2) Subject to the provisions of this Act, the Board may by general or special order delegate to the Managing Director of the Board or Sub- Committee appointed by it or to any officer of the Board, any of powers and duties conferred on it by or under this Act as it may deem fit.

Chapter-III

Regulation of Trading and Contract Farming

(a) to alter the limits of a market area by including within it any other area in the vicinity thereof or by excluding therefrom any area comprised therein; or

(b) to amalgamate two or more market areas and constitute one Committee thereof; or

(c) to split up a market area and to constitute two or more Committees thereof; or

(d) to de-establish a market.

(a) include the area or any part thereof in the market area or exclude it therefrom;

(b) constitute a new Committee for the market area amalgamated; or

(c) split up an existing market area and constitute two or more Committees for such areas, as the case may be; or

(d) to de-establish a market.

(i) market yard managed by the Committee;

(ii) one or more than one sub-market yards managed by the Committee; and

(iii) private market yards, private markets farmers and consumer markets managed by a person other than a Committee.

(a) the process of the notified agricultural produce;

(b) the trade of notified agricultural produce of particular specification;

(c) the export of notified agricultural produce; and

(d) the grading, packing and transaction in other way by value addition of notified agricultural produce,

(i) the Committee dues are outstanding against the applicant;

(ii) the applicant is a minor or not bonafide;

(iii) the applicant has been declared defaulter under the Act and the rules and bye-laws made thereunder;

(iv) the applicant having been declared guilty in any criminal case and convicted by imprisonment;

(v) the State Government is satisfied that granting or renewal of license to the applicant is not going to promote the interest of the producers; and

(vi) there is any other reasons which the Managing Director of the Board may consider to be against the interest of the producer or the consumer.

(a) if the license has been obtained through willful misrepresentation or fraud; or

(b) if the holder of the licence or any of his servant or any person acting on his behalf, commits a breach of any of the terms or conditions of license; or

(c) if the holder of the license in combination with other license holder commits any act or abstains from carrying on his normal business in the market area with the intention of willfully obstructing, suspending or stopping the marketing of notified agricultural produce in the market yard/ sub- market yard and in consequence whereof the marketing of any notified agricultural produce has been obstructed, suspended or stopped; or

(d) if the holder of the license has become an insolvent; or

(e) if the holder of license incurs any disqualification as may be prescribed; or

(f) if the holder of the license is convicted of any offence under this Act, then within one year of the conviction if the conviction, is for the first time, and within three years for subsequent conviction.

(i) use any place in the market area for the marketing of notified agricultural produce; and

(ii) operate in the market area as a market functionary.

(i) where the sale is made by the producer himself to any person for his domestic consumption in quantity upto the prescribed limit;

(ii) purchase or sale of which is made by a petty trader as may be prescribed; and

(iii) purchase of which is made by an authorized fair price shop dealer from the Food Corporation of India, the State Commodities Trading Corporation or any other agency or institution authorized by the State Government for distribution of the essential commodities through the Public Distribution System.

(2) The price of the notified agricultural produce, brought for sale into the market yard, shall be settled by open auction or by any other transparent system as may be prescribed and no deduction shall be made from the agreed price on any account whatsoever from the seller :

CHAPTER-IV

Establishment, Constitution, Powers and Functions of The Committee

(i) Deputy Commissioner - Vice Chairman;

(ii) Dy. Director of Agriculture;

(iii) Dy. Director of Horticulture;

(iv) Dy. Director of Animal Husbandry;

(v) In charge, Krishi Vigyan Kendra; and

(vi) Secretary of the Committee.

(3) The non-official members shall be appointed by the State Government out of a panel of names given by the Deputy Commissioner concerned equal to twice the number of vacancies to be filled up, in the manner provided here under:-

(i) nine non-official members from the producers of the notified market area; and

(ii) one non-official members from the traders registered under section 40, from the notified market area.

(a) enforce the provisions of this Act, the rules and bye-laws made thereunder in the notified market area;

(b) establish a market in the market area and provide such facilities for persons visiting in connection with the purchase, sale, storage, weighment and processing of agricultural produce concerned as the Board may, from time to time, direct;

(c) do such other acts as may be required in relation to the superintendence, direction and control of market or for regulating marketing of agricultural produce in any place in the market area, and for the purposes connected with the matters aforesaid, and for that purpose may exercise such powers and discharge such functions as may be provided by or under this Act; and

(d) do all such other acts which may bring complete transparency in pricing system and transactions taking place in the market area.

(i) maintain and manage the market yards and sub- market yards within the market area;

(ii) provide necessary facilities for the marketing and facilitate for the transportation of agricultural produce within the market yards and outside the yards and within the sub-market yards and outside the sub-market yards in the market area;

(iii) regulate, conduct or supervise the auction of notified agricultural produce in accordance with the provisions and procedure laid down under the rules made under this Act or bye-laws of the Committee;

(iv) regulate the making, carrying out and enforcement or cancellation of agreements of sales, weighment, delivery, payment and all other matters relating to the marketing of notified agricultural produce in the manner prescribed;

(v) provide for the settlement of all disputes between the seller and the buyer arising out of any kind of transaction connected with the marketing of notified agricultural produce and all matters ancillary thereto;

(vi) take all possible steps to prevent adulteration of notified agricultural produce;

(vii) make registration for weighmen and hamals for weighing and transporting of goods in respect of transactions held in the market yards or sub-yards;

(viii) set up and promote public-private partnership in the management of the markets;

(ix) promote public-private partnership for carrying out extension activities in its area viz, collection, maintenance and dissemination of information in respect of production, sale, storage, processing, prices and movement of notified agricultural produce;

(x) levy, take, recover and receive rates, charges, fees and other sums of money to which the Committee is entitled;

(xi) regulate the entry of the persons and vehicles, traffic into the market yard and sub-market yard visiting the market;

(xii) compound offences committed under this Act (except section 27) or rules and bye-laws made thereunder;

(xiii) acquire land and dispose off any moveable or immovable property for the purpose of efficiently carrying out its duties;

(xiv) institute or defend any suit, prosecution, action, proceeding, application or arbitration and compromise such suit, action, proceeding, application or arbitration;

(xv) keep a set of standard weights and measures in each principal market yard and sub-market yard against which weighment and measurement may be checked;

(xvi) inspect and verify scales, weights and measures in use in a market area and also the books of accounts and other documents maintained by the market functionaries in such form and in such manner as may be prescribed;

(xvii) arrange to obtain fitness (health) certificate from a veterinary doctor in respect of animals, cattle, birds etc. which are bought or sold in the market yard or market area;

(xviii) carry out publicity about the benefits of regulation, the system of transaction, facilities provided in the market yard etc. through various means such as poster, pamphlets, hoardings, cinema slides, film shows, group meetings, electronic media etc.; or through any other means considered more effective or necessary;

(xix) ensure payment in respect of transactions which take place in the market yard to be made on same day to the seller, and in default to seize the agricultural produce in question along with other property of the person concerned and to arrange for re-sale thereof and in the event of loss, to recover the same from the original buyer together with charges for recovery of the losses, if any, and effect payment of the price of the agricultural produce to the seller;

(xx) recover the charges in respect of weighmen and hamals and distribute the same to the weighmen and hamals if not paid by the purchaser or seller, as the case may be;

(xxi) collect and maintain information in respect of production, sale, storage, processing prices and movement of the notified agricultural produce and disseminate such information as directed by the Board;

(xxii) with a view to maintain stability in the market, take suitable measures to ensure that traders do not buy agricultural produce beyond their capacity and avoid risk to the sellers in disposing off the produce and grant licenses only after obtaining necessary security in cash as bank guarantee according to the capacity of the buyers; and

(xxiii) promote and undertake agricultural processing including activity for value addition in agricultural produce.

(i) construction of roads, godowns, ropeways and other infrastructure in the market area to facilitate marketing of agricultural produce and for the purpose give funds to the Board;

(ii) to provide on rent storage facilities for stocking of agricultural produce to agriculturists;

(iii) to promote and encourage e-trading, Committee may establish regulatory system, create infrastructure and undertake other activities and steps needed thereto;

(iv) to maintain and circulate from time to time the data of arrivals and rates of agricultural produces standard-wise brought into the market area for sale as may be prescribed.

(i) if the applicant is a minor;

(ii) if the applicant has been declared defaulter; or

(iii) if the applicant has been found guilty under this Act, the rules and byelaws made thereunder.

(2) The Secretary of the Committee shall be the ex-officio Secretary of the Committee and shall be custodian of all the records and properties of the Committee.

(i) to convene the meetings of the Committee and the Sub- Committees, if any, and maintain minutes of the meetings thereof;

(ii) to attend the meetings of the Committee and Sub-Committees and take part in the discussion;

(iii) to take steps to give effect to the resolution of the Committee and of the Sub-Committees and report all actions taken in pursuance of such resolution to the Committee in the next meeting;

(iv) to prepare the budget proposal of the Committee;

(v) to furnish to the Committee such returns, statements, estimates, statistics and reports as the Committee may from time to time, require including following informations :-

(a) the fines and penalties imposed and any disciplinary action taken against the members or the staff and the market functionaries and others;

(b) overtrading by the traders;

(c) regarding contraventions of the Act, the rules, the bye laws or the standing orders, if any, by any person;

(d) regarding the suspension or cancellation of license by the Managing Director of the Board;

(e) regarding the administration of the Committee and the regulation of the marketing;

(vi) produce before the Committee, books, registers and other documents, as may be necessary for the transaction of the business of the Committee or the Sub-Committee, whenever called upon by the Committee to do so;

(vii) exercise supervision and control over the acts of all the officers and the servants of the Committee;

(viii) collect fees and other money leviable by or due to the Committee;

(ix) be responsible for all money credited to or received on behalf of the Committee;

(x) make disbursements of all money lawfully payable by the Committee;

(xi) operate, maintain and transact the Committee fund;

(xii) report to the Managing Director of the Board, as soon as possible, in respect of fraud, embezzlement, theft or loss of the Committee fund or property; and

(xiii) prefer complaints in respect of prosecutions to be launched on behalf of the Committee and conduct proceedings, civil or criminal on behalf of the Committee.

Chapter-V

Finance, Acounts and Audit of The Board and The Committee.

(i) on the sale or purchase of the notified agricultural produce, whether brought from within the State or from out side the State into the market area; and

(ii) on the notified agricultural produce whether brought from within the State or from out side the State into the market area for processing.

(i) from any other agency; or

(ii) issue debentures on the authority of any property vested in it or on the security of a part of its future income accruing to it under this Act, or the rules made thereunder.

(i) payment of administrative expenditure of the Board;

(ii) traveling and other allowances to the employees of the Board, Chairman and its members;

(iii) payment of salary, leave allowance, gratuity, compassionate allowance, compensation for injuries or death resulting from accident while on duty, medical aid, pension or provident fund to the persons employed by the Board and leave and pension contribution to the Government servants on secondment;

(iv) meeting any legal expenses incurred by the Board;

(v) giving aid to financially weak Committees in the shape of loans and grants on the term and conditions as prescribed;

(vi) propaganda and publicity on matters relating to the marketing of agricultural produce;

(vii) training of the officers and staff of the Committees and the Board and also to the agriculturists;

(viii) meeting expenditure in marketing extension activities and e- trading;

(ix) organizing and arranging workshops, seminars, exhibitions, etc. on development of marketing;

(x) maintenance of the office of the Board and construction and repair of its office buildings, rest houses, and the staff quarters;

(xi) general improvement of the regulation of marketing in the State;

(xii) loans and advances to the employees;

(xiii) expenses incurred in auditing the accounts of the Board;

(xiv) providing technical and administrative assistance to the committees, including execution of works;

(xv) market survey and research, grading and standardization, quality certification of agricultural produce and other allied subjects;

(xvi) grading and standardization of agricultural produce;

(xvii) collection and dissemination of market rates and news;

(xviii) better marketing of agricultural produce; and

(xix) with the previous sanction of the State Government, any other purpose which is calculated to promote the general interest of the Board, Committees or national or public interest.

(2) A Committee at any time during the year for which any budget has been sanctioned, cause a revised or supplementary budget to be passed and sanction in the same manner as if it were an original budget.

(3) No expenditure shall be incurred by a Committee on any item if there is no provision in the sanctioned budget thereof unless it can be met by re-appropriation from saving under any other head. The sanction for re-appropriation may be obtained from the Board provided that in case of re-appropriation from minor heads under one major head, sanction for re-appropriation shall not be required.

(i) the acquisition of a site or sites for the market;

(ii) the establishment, maintenance and improvement of the market yard;

(iii) the construction and repairs of buildings necessary for the purpose of the market yard and for convenience or safety of the persons using the market yard;

(iv) The maintenance of standard weights and measures;

(v) the meeting of establishment charges including payments and contributions towards provident fund, pension and gratuity of the officers and servants etc. of the Committee.

(vi) Loans and advances to the employees of the Committee;

(vii) the payment of interest on the loans that may be raised for the purpose of the market and provisions of sinking fund in respect of such loans;

(viii) the collection and dissemination of information relating to crop statistics and marketing in respect of the agricultural produce;

(ix) the expenses incurred in auditing the accounts of the Committee and expenses incurred in the maintenance of the offices;

(x) payment of honorarium and traveling allowance to the Chairman and other non-official members of the Committee and employees of the Committee as may be prescribed;

(xi) contribution to Marketing Development Fund;

(xii) contribution to any scheme for development of agricultural marketing including transport;

(xiii) for providing facilities like grading, standardization, quality certification services and communication to agriculturist in the market area;

(xvi) incurring expenses on research and development, extension and training to farmers in marketing of agricultural produce;

(xv) prevention, in conjunction with other agencies, State, Central and others of distress sale of agricultural produce;

(xvi) fostering cooperative marketing and assisting cooperative marketing societies in the procurement and profitable disposal of produce particularly the produce belonging to small and marginal farmers;

(xvii) create and promote on its own or through public private partnership infrastructure and post harvest handling of agricultural produce, cold storages, pre-cooling facilities, pack houses and all such infrastructure to develop modern market systems;

(xviii) meeting any legal expenses incurred by the Committee;

(xix) on the training and skill enhancement of staff of the Committee; and

(xx) with the previous sanction of the Board, any other purpose which is calculated to promote the general interests of the Committee or the notified market area or any other purpose calculated to promote the national interest.

(2) The Committee may, for the purpose of meeting the initial expenditure on lands, building, and equipments required for establishing the market, obtain loan from the State Government or the Board or other Committees or financial institutions on such conditions, as may be prescribed.

Chapter-VI

Control

(a) inspect or cause to be inspected the accounts and offices of the Committee;

(b) hold inquiry into the affairs of a Committee;

(c) call from a Committee's return, statement, accounts or reports which he may think fit to require such Committee to furnish;

(d) require a Committee to take into consideration-

(i) any objection on the ground of illegality, inexpediency or impropriety which appears to him to exist to the doing of anything which is about to be done or is being done by or on behalf of such Committee; or

(ii) any information he is able to furnish and which appears to him to necessitate the doing of a certain thing by such Committee.

(2) The Managing Director of the Board or the State Government, as the case may be, may suspend the execution of the decision taken or order passed by the Committee or the Board, as the case may be, pending the exercise of its powers under sub-section(1).

(2) If, on enquiry made under sub-section (1), the Managing Director of the Board is satisfied that there are good grounds for an order under this subsection, he may make an order requiring such person, or in the case of a deceased person, his legal representative who inherits his estate, to repay or restore the money or property and any part thereof, with interest at such rate, or to pay contribution and costs or compensation to such extent as the Managing Director of the Board may consider just and equitable:

(a) the Committee, where such order is passed by the Secretary of the Committee within thirty days from the date of order;

(b) the Board, where such order is passed by the Committee within thirty days from the date of order; and

(c) the State Government, where such order is passed by the Managing Director of the Board or by the Board, within thirty days from the date of such order.

Chapter-VII

Offences and Penalities

(a) where the offence consists of the failure to pay or the evasion of any fee, or other amount recoverable under this Act or the rules or the bye-laws made thereunder in addition to the fee or other amount so recoverable, a sum of money not less than the amount of the fee or other amount and not more than five times the amount of fee or other amount; and

(b) In other cases a sum of money not exceeding five thousand rupees.

Chapter-VIII

Miscellaneous

(a) Secretary of the Committee may execute contract or agreement on behalf of the Committee where the amount or value of such contract or agreement does not exceed rupees five thousand regarding matters in respect of which he is generally or specifically authorized to do so by a resolution of the Committee;

(b) The Chairman and the Secretary of the Committee may jointly execute a contract or an agreement on behalf of the Committee when the amount or value of such contract or agreement does not exceed rupees twenty thousand;

(c) In any case other than those referred to in clauses (a) and (b), a contract or agreement on behalf of the Committee may be executed by the Chairman, Secretary and two other members of the Committee of whom one shall be ex-officio member who have been generally or specially authorized by a resolution of the Committee to do so.

(2) The Board or a Committee shall be deemed to be a local authority for the purposes of the Land Acquisition Act, 1894.

(2) Where the State Government is of the opinion that a Committee has failed in the performance of its functions or discharge of its duties or has exceeded or abused the powers conferred on it by or under this Act, it may, by notification published in the official Gazette, supersede the Committee:

(3) Upon publication of the notification superseding a Committee under sub-section (2), all the members including the Chairman shall, cease to hold the office, and the State Government shall take steps to constitute a new Committee under section 30 and till such time a new Committee is constituted, the Board shall make such arrangements for carrying out the functions of the Committee as it may deem fit for the period not exceeding six months and may, for that purpose, direct that all the functions, powers and duties of the Committee and its Chairman, under this Act, shall be performed, exercised and discharged by such person or authority as the Board may appoint in this behalf and such person or authority shall be deemed be the Committee or the Chairman, as the case may be.

(2) The Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply to the conciliation and arbitration proceedings referred under subsection (1).

(a) the members including the Chairman of the Himachal Pradesh Marketing Board shall cease to hold office;

(b) all properties, funds and dues which are vested in or realisable by the Himachal Pradesh Marketing Board shall vest in and be realizable by the Board; and

(c) all the liabilities which are enforceable against the Himachal Pradesh Marketing Board shall be enforceable against the Board.

(a) the members including the Chairman of the Market Committees shall cease to hold office;

(b) all properties, funds and dues which are vested in or realizable by the Market Committees shall vest in and be realizable by Agricultural Produce Market Committees; and

(c) all liabilities which are enforceable against the Market Committees shall be enforceable against the Agricultural Produce Market Committees.

(a) the quantity of agricultural produce for retail sale under section 2 (zl);

(b) the sitting fee and allowances to be paid from the fund of the Board to the Chairman and non-official members of the Board under section 10;

(c) and audit thereof under sub-section (2) (v) of section 11;

(d) the duties and functions to be discharged by the Agricultural Produce Marketing Standards Bureau for the promotion of grading, standardization and quality certification of agricultural produce under sub-section (2) (xiii) of section 11;

(e) the procedure to be followed in exercise of supervision and control over officers and staff of the Board by the Managing Director in the matter of administration, accounts and records and disposal of all questions relating to the service of the employees;

(f) the powers and duties to be exercised and discharged by the Managing Director of the Board under section 12 (iii);

(g) the procedure to be followed in maintaining records of the proceedings of the meetings of the Board under section 12 (viii);

(h) the development of infrastructure to establish consumers or farmers markets and the procedure for the sale of agricultural produce by the producer direct to the consumer in the market area under section 23 (1);

(i) the form of agreement for contract farming and the manner in which a person shall enter into agreement with contract farming producer under section 24;

(j) the application for the grant and renewal of licence for establishment of private yard, consumer and farmer market, the period for which the licence is to be issued, the form of licence and the conditions and the fee to be charged for grant of such licence under section 25 (1);

(k) the disqualifications for suspension/ cancellation of license under section 26 (e);

(l) the maximum quantity which can be sold by the producer direct to any person for domestic consumption and the maximum quantity of the agricultural produce purchase or sale of which can be undertaken by petty trader under sub-section (2) of section 27;

(m) the transparent system to be followed for settlement of price of the notified agricultural produce for sale into the market yard under sub-section(2) of section 28;

(n) the manner and procedure to be followed by the Committee for the conduct of its business under sub-section (3) of section 34;

(o) the procedure to be followed by the Committee to regulate the making, carrying out and enforcement or cancellation of agreements of sales weightment, delivery, payment and other matters relating to the market of notified agricultural produce under clause (iv) of sub-section (2) of section 39;

(p) the form and the manner and procedure to be followed for the maintaining of books of accounts and other documents by the market functionaries under clause (xvi) of sub-section (2) of section 39;

(q) the procedure and the manner to be followed for maintaining and circulating the data of arrivals and rates of agricultural produce standardwise brought into the market area for sale under clause (iv) of sub-section (3) of section 39;

(r) the form of application for registration or renewal of registration, the form of registration/ certificate or renewal of registration certificate, the period within which application for registration or ren4ewal of registration is to be made and the fee for such registration or renewal of registration under section 40 (1) (3);

(s) the manner and the procedure to be followed by the Committee for levy and collection of market fee under section 44;

(t) the terms and conditions subject to which financial weak committees may be aided by granting loans and grants out of the marketing development fund under clause (v) of sub-section (4) of section 46;

(u) the form, time and procedure to be followed in preparation of annual report by the Board under sub-section (1) of section 48;

(v) the manner in which the surplus remaining with the Committee shall be invested under sub-section (1) of section 49;

(w) the manner in which any money received by the Committee by way of arbitration fee, security for cost in arbitration proceeding, security deposit, contribution to provident fund, payment in respect of any notified agricultural produce, other charges payable by the Committee or such other money received by the Committee under the rules or bye-laws, shall be kept under sub-section (2) of section 49;

(x) the form, procedure and manner and the period within which the Committee shall prepare and pass the budget and its income and expenditure for the ensuing year under sub-section (1) of section 50;

(y) the manner and procedure for payment of honorarium and traveling allowance to the Chairman and other non-official members of the Committee and to the employees of the Committee under clause (x) of section 51;

(z) the conditions subject to which the Committee for the purpose of meeting the initial expenditure on lands, buildings and equipments required for the establishment of market, may obtain loan from the State Government or the Board or other Committees or financial institutions under sub-section (2) of section 52;

(za) the form and the manner in which a statement of transaction shall be submitted to the Secretary of the Committee for the previous financial year ending on 31st March under sub-section (1) of section 60;

(zb) the form and the manner in which an appeal may be filed under sub-section (1) of section 68; and

(zc) any other matter which is to be or may be prescribed.

(i) the regulation of business of the Market Committee;

(ii) the conditions of trading in a market;

(iii) the delegation of powers, duties and functions to a subcommittee, if any;

(iv) enabling and regulating e-trading;

(v) any other matters for which bye-laws are to be made under this Act or it may be necessary to frame bye-laws for effectively implementing the provisions of this Act and the rules made thereunder in the market area;

(a) summoning and holding of meetings of the Board, the time and date when such meetings are to be held, the conduct of business at such meetings;

(b) powers and duties of the officers and other employees of the Board;

(c) salaries and allowances and other conditions of service of officers and other employees of the Board and the Market Committees.

(d) management of the property of the Board;

(e) execution of contracts on behalf of the Board;

(f) Maintenance of accounts and the preparation of balance sheet by the Board;

(g) procedure for carrying out the functions of the Board under this Act;

(h) other matter for which provision is to be or may be made in regulation.

(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder, or

(b) the right, privilege, obligation or liability acquired, accrued or incurred under the repealed Act, or

(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the repealed Act, or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege obligation, liability, penalty, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced and any such penalty, forfeiture or punishment may be imposed as if this Act has not been enforced:

The Schedule

(See section 2 (a) and section 71)