ANDHRA PRADESH (AGRICULTURAL PRODUCE AND LIVESTOCK) MARKETS ACT, 1966

16 of 1966

29th November, 1966

An Act to consolidate and amend the law relating to the regulation of purchase and sale of agricultural produce, livestock and products of livestock and the establishment of markets in connection therewith. Be it enacted by the Legislature of the State of Andhra Pradesh in the Seventeenth Year of the Republic of India as follows :-

Section 1 Short title, extent and commencement

(1) This Act may be called the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the Government may, by notification, appoint.

Section 2 Definitions

In this Act, unless the con otherwise requires :-

(i) "Agricultural produce" means anything produced from land in the course of agriculture or horticulture and includes forest prodce or any produce of like nature either processed or unprocessed and declared by the Government by notification to be agricultural produce for the purposes of this Act ;

(ia) Assessing authority shall mean the Secretary of the Market Committee as specified in its bye laws ;

(ii) "Director of Marketing" means the Director of Marketing appointed by the Government and includes the Commissioner for Development of Marketing.

(iii) Government means the State Government ;

(iv) grower means a person, who produces by himself or by hired labour or otherwise, or receives under tenancy agreement, the agricultural produce, but does not include a dealer or commission agent in such produce, although he may be a grower of such produce. If any question arises as to whether a person is a grower or not, the decision of the Director of Marketing thereon shall be final:

(v) livestock means cows, buffaloes, bullocks, bulls, goats and sheep, and includes poultry, fish and such other animals as may be declared by the Government by notification to be livestock for the purposes of this Act ;

(vi) market means a market established under sub section (3) of Section 4 and includes market yard and any building therein ;

(vii) market committee means a committee constituted or reconstituted under the provisions of this Act :

(viii) municipality means any municipality governed by the law relating to municipalities for the time being in force in the State and includes the Municipal Corporation of Hyderabad.

(ix) notification means a notification published in the Andhra Pradesh Gazette, and the word notified shall be construed accordingly ;

(x) notified agricultural produce, livestock or products of livestock means agricultural produce, livestock or products of livestock specified in the notification under Section 3 ;

(xi) notified area means any area notified under Section 3 ;

(xii) notified market area means any area declared to be a market area by notification under Section 4 ;

(xiii) person means an individual or a company or an association of individuals whether incorporated or not, and includes a joint Hindu Family ;

(xiv) prescribed means prescribed by rules made under this Act;

(xv) products of livestock means such products of livestock as may be declared by the Government by notification, to be products of livestock for the purposes of this Act.

(xvi) trader means the person licensed under sub section (1) of Section 7 and includes the person in whose management the collection of fees is placed whether he is called a commission agent, ginner, presser, warehouseman, importer, exporter, stockist or by whatever local name he is called".

Section 3 Declaration of notified area

(1) The Government may publish in such manner as may be prescribed a draft notification declaring their intention of regulating the purchase and sale of such agricultural produce, livestock or products of livestock in such area as may be specified in such notification.

(2) Such notification shall state that any objections or suggestions which may be received by the Government from any person within a period to be specified therein will be considered by them.

(3) After the expiration of the period specified in the draft notification and after considering such objections and suggestions as may be received before such expiration, the Government may publish in such manner as may be prescribed a final notification declaring the area specified in the draft notification or any portion thereof, to be a notified area for the purposes of this Act in respect of any agricultural produce, livestock and products of livestock specified in the draft notification.

(4) Subject to the provisions of sub sections (1), (2) and (3), the Government may, by notification -

(a) exclude from a notified area, any area comprised therein ; or

(b) include in any notified area, any area specified in such notification ; or

(c) declare a new notified area by separation of area from any notified area or by uniting two or more notified areas or parts thereof or by uniting any area to a part of any notified area ;

Provided that where, as a result of declaration of a new notified area under this clause, the entire area comprised in an existing notified area is united to one or more notified areas, the said existing notified area shall stand abolished.

Section 4 Constitution of a Market Committee and declaration of notified market area

(1) The Government shall constitute by notification a market committee for every notified area from such date as may be specified in the notification and the market committee so constituted shall be a body corporate by such name as the Government may specify in the said notification, having perpetual succession, and a common seal with power to acquire, hold and dispose of property and may, by its corporate name, sue and be sued ;

Provided that any market committee functioning immediately before such constitution in respect of a notified area abolished under the proviso to clause (c) of sub section (4) of Section 3 shall stand abolished.

(1 A) Any notification made under sub section (1) for the constitution of a new market committee in respect of any new notified area declared under clause (c) of sub section (4) of Section 3, may contain such supplemental, incidental and consequential provisions, including provisions as to the composition of the new market committee or new and existing market committees and the apportionment of the assets and liabilities between the market committees affected thereby.

(2) It shall be the duty of the market committee to enforce the provisions of this Act and the rules and bye laws made thereunder in the notified area.

(3)

(a) Every market committee shall establish in the notified area excluding the Scheduled Areas such number of markets as the Government may, from time to time, direct for the purchase and sale of any notified agricultural produce, livestock or products of livestock and shall provide such facilities in the market as may be specified by the Government from time to time, by a general or special order.

(b) Every market committee shall also establish in the notified area such number of markets as the Government may, from time to time, direct for the purchase and sale, solely of vegetables or fruits and shall provide such facilities in the market as may be specified by the Government from time to time by a general or special order.

(c) The market committee shall declare, by notification, the limits of every market established by it under clauses (a) and (b) (hereinafter referred to as the market area).

(4) As soon as may be after the establishment of a market under sub section (3), the Government shall declare by notification the market area and such other area adjoining thereto 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, livestock or products of livestock.

(5) Subject to the provisions of sub sections (1), (2), (3) and (4), the Government may, by notification -

(a) exclude from a notified market area, any area comprised therein ; or

(b) include in any notified market area, any area specified in such notification

Section 5 Composition of Market Committee

(1) Every Market Committee shall consist of fourteen members and shall be constituted by the Government by notification in the following manner,--

(i) eight members to be appointed by the Government in consultation with the Director of Marketing from among the following categories of growers of agricultural produce, owners of livestock and products of livestock in the notified area, namely :-

(a) growers of agricultural produce who are small farmers;

(b) growers of agricultural produce other than small farmers;

(c) owners of livestock and products of livestock:

Provided that there shall atleast be three members from among persons belonging to Scheduled Castes, Scheduled Tribes, Backward Classes, minorities and women; Provided that there shall be atleast two members representing the category of small farmers;

(ii) two members to be appointed by the Government in consultation with the Director of Marketing from among the licensed traders in the notified area of whom one shall be a small trader;

(iii) one member to be appointed by the Government from among the Presidents or persons-in-charge, if any, for the time being performing the functions of Primary Agricultural Co-operative Societies or the Co-operative Marketing Societies having areas of operation within the notified area;

(iv) the Assistant Director of Marketing having jurisdiction over the notified area or any other officer nominated in this behalf by the Director of Marketing;

(v) the Assistant Director of Agriculture or Assistant Director of Horticulture or Assistant Director of Animal Husbandry or Assistant Director of Fisheries having jurisdiction over the notified area or any other officer nominated in this behalf by the concerned Head of the Department;

(vi) Chairperson of the Municipality or the Sarpanch of the Gram Panchayat, as the case may be, in whose jurisdiction the office of the Market Committee is located:

Provided that in the case of a Municipal Corporation constituted under any law relating to Municipal Corporations for the time being in force in the State, one person as may be nominated by the Corporation shall represent the Corporation in the Agricultural Market Committee concerned where a notified area comprises the Corporation also.

Explanation I :- For the purpose of this sub-section, a small farmer' means a farmer holding an extent not more than 4.04686 hectares (ten acres) of dry land or 2.02343 hectares (five acres) of wet land.

Explanation II :- In computing the extent of land held by the farmers for the purpose of this sub-section 0.404686 hectares (one acre) of wet land shall be deemed to be equal to 0.809372 hectares (two acres) of dry land.

(2) Every Market Committee shall have a Chairman appointed from among its members specified in Clause (i) of sub-section (1) and a Vice-Chairman to be appointed from among its members specified in Clause (i) or Clause (ii) of sub-section (1), by the Government in consultation with the Director of Marketing;

(3) Save as otherwise provided in this Act, the term of office of the members appointed under sub section (1) shall be three years from the date of appointment;

Provided that a member appointed under clause (ii) of sub section (1) shall cease to hold office, if he ceases to be a trader ;

Provided further that a non official member of the market committee shall cease to hold his office if he absents himself for three consecutive meetings of the committee, including meetings, which for want of quorum could not be held.

Explanation : For the purposes of the second proviso, 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.

(4) Where a person ceases to be member under the second proviso to sub section (3), 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. If such person applies for restoration to the market committee on or before the date of its next meeting or within fifteen days of the receipt by him of such intimation the market committee may at the next meeting after the receipt of such application restore him to his office.

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

(5) The Government may, by notification, remove the Chairman or Vice Chairman who in their opinion wilfully omits or refuses to carry out or disobeys the provisions of this Act or any rules or bye laws or lawful orders issued thereunder or abuses his position or the powers vested in him, after giving him an opportunity for explanation, and the said notification shall contain a statement of the reasons of the Government for the action taken.

(6) Any person removed under sub section (5) from the office of Chairman or Vice Chairman shall be ineligible for appointment to either of the said offices, until the date of next reconstitution of the market committee under sub section (1) of Section 6.

(7) Any other member of a market committee may, at any time, be removed from office by the Government for such reasons and after such inquiry, as may be pescribed.

(8) When any vacancy occurs in the office of a member it shall be filled in the manner laid down in sub section (1) ;

Provided that no such vacancy shall be filled within three months before the expiration of the term of office of the member.

(9) The member appointed to fill a vacancy under sub section (8) shall hold office for the remainder of the term of his predecessor.

(10) When any vacancy occurs in the office of a Chairman or Vice Chairman, it shall be filled in the manner laid down in sub section (2) and the person appointed to fill in such vacancy shall hold office only for the remainder of the term of his predecessor.

Section 6 Reconstitution of the market committee

(1) The Government shall reconstitute the market committee on the expiration of the term of office of the members of the market committee or of the term as extended under sub section (2).

(2) The Government may extend the term of office of the members of a market committee for a period not exceeding one year.

Provided that no such extension shall be given for a period exceeding six months at a time.

(3)

(a) Where, for any reason, there is delay in the constitution or reconstitution of the market committee in accordance with the provisions of this Act, the Government may appoint a person or persons to manage the affairs of the market committee until the market committee is reconstituted.

(b) The person or persons so appointed shall, subject to the control of the Government and to such instructions or directions as they may issue from time to time, exercise the powers, discharge the duties and perform the functions of the market committee and take all such action as may be required in the interests of the market committee.

(c) The Government may fix the remuneration payable to the person or persons so appointed. The amount of such remuneration and other costs, if any, incurred in the management of the market committee shall be payable out of the Market Committee Fund.

(d) The Government may at any time, and shall at the expiration of the period of appointment of person or persons so appointed, arrange for the constitution or reconstitution of the market committee in accordance with the provisions of this Act. The person or persons so appointed shall cease to manage the affairs of the market committee on such constitution or reconstitution.

Section 6A Power of Government to suspend the Chairman of the Market Committee

If the Government are of the opinion that the Chairman of the Market Committee wilfully omitted or refused to carry out the orders of the Government for the proper working of the Market Committee or abused his position or the powers vested with him, and that the further continuance of such person in office would be detrimental to the interests of the Market Committee or the inhabitants of the market, the Government may, by order, suspend the Chairman of the Market Committee from office for a period not exceeding three months, pending investigation into the said charges and action thereto under the foregoing provisions of this section :

Provided that it shall be competent for the Government to extend from time to time, the period of suspension for such further period not exceeding three months, so however, that the total period of suspension shall not exceed six months.

Section 6B Power of Government to withdraw the powers of Chairman

Notwithstanding anything in this Act or the rules made thereunder, where in the opinion of the Government, the Chairman of the Market Committee wilfully omits or refuses to carry out the orders of the Government for the proper working of the market committee or abuses his position or the powers vested in him, they may by order, withdraw all or any of the powers vested in him by or under this Act pending investigation into such omission, refusal or abuse of position or power, and cause all or any of the powers and functions of the Chairman to be exercised and performed by such person or authority as the Government may appoint in that behalf.

Section 7 Trading etc., in notified agricultural produce, livestock and products of livestock in the notified area

(1) No person shall, within a notified area, set up, establish or use, or continue or allow to be continued, any place for the purchase, sale, storage, weighment, curing, pressing or processing of any notified agricultural produce or products of livestock or for the purchase or sale of livestock 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 any notified agricultural produce, livestock or products of livestock not exceeding such value as may be prescribed :

Provided further that a person selling notified agricultural produce, livestock or products of livestock grown, reared or produced by him, shall be exempted from the provisions of this sub section, but the Government may for special reasons to be recorded in writing, withdraw such exemption in respect of any such person.

Provided also that the market committee shall not renew the licence granted under this section, unless the licensee pays all the arrears of amounts due to it under provisions of this Act.

Explanation : Nothing in the second proviso to this sub section shall be construed as exempting a co operative marketing society registered or deemed to be registered under the Andhra Pradesh Co operative Societies Act, 1964, selling notified agricultural produce, livestock or products of livestock grown, reared or produced by any of its members.

(2) Nothing in sub section (1) shall apply to a person purchasing notified agricultural produce, livestock or products of livestock for his own domestic consumption.

(3) A licence granted under sub section (1) shall be in such form and subject to the payment of such fees, as may be prescribed : Provided that no fees shall be charged for the grant of a licence 197

(i) to the Khadi and Village Industries Commission ;

(ii) to a co operative marketing society referred to in the explanation to sub section (1) ;

(iii) to a person merely for curing, pressing or processing any notified agricultural produce or products of livestock.

(4)

(a) A licence under sub section (1) may be refused to a person -

(i) whose licence was cancelled and one year has not elapsed since the date of the cancellation :

(ii) who has been convicted of an offence or been guilty of misconduct which, in the opinion of the market committee, affects the said person integrity as a man of business ;

(iii) in regard to whom the market committee is satisfied, after such inquiry 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 sub clause (i) or sub clause (ii) ;

(iv) if, in the opinion of the market committee, the grant of a licence is likely to affect the transaction of purchase or sale in the market or the levy of market fees therefor.

(b) The Market Committee may, in accordance with such rules as may be made by the Government and after such inquiry as it deems fit, cancel or suspend any licence granted under sub section (1):

Provided that in the case of refusal to grant a licence or of suspension or cancellation of a licence, the applicant or the licensee, as the case may be, shall be entitled to appeal to such officer and in such manner as may be prescribed.

(5) A person to whom a licence is granted under sub section (1) shall comply with the provisions of this Act, the rules and the bye laws made thereunder and the conditions specified in the licence.

(6) Notwithstanding anything in sub section (1), no person shall purchase or sell any notified agricultural produce, livestock and products of livestock in a notified market area, outside the market in that area.

Section 8 Sub committee and delegation of powers

The market committee may appoint one or more of its members, to be a sub committee or special committee or for the conduct of any work or to report on any matter, and may delegate to any one or more of its members such of its powers or duties as it may think fit.

Section 9 Meetings

(1) The market committee may, at any time, call a meeting of the market committee, but such meeting shall be held at least once in every month. The market committee shall also call a meeting of the market committee within one month after receipt of a requisition in writing from the Director of Marketing or one third of the total number of members of the market committee. Explanation : In the determination of one third of total number of members under this sub section, any fraction arrived at shall be counted as one.

(2) Where a meeting is not called as provided in sub section (1) the Director of Marketing shall call such meeting.

(3) It shall be the duty of the Chairman to convene the meetings of the Market Committee in accordance with the provisions of sub section (1) and where a Chairman of the Market Committee fails to convene three consecutive meetings of the market committee from the date of the commencement of office or the last meeting of the Committee, he shall cease to be the Chairman unless such cessation has otherwise occurred before that date and for a period of one year from such date he shall not be eligible to be appointed as Chairman.

Section 10 Appointment and salaries of officers and servants of Market Committee

(1) All appointments of officers and other employees necessary for the management of the market Committee shall be made in the prescribed manner.

(2) The market committee shall in the case of persons in the service of the Government whom it employs, make such contribution towards his pension and leave allowances, as may be required by the conditions of his service under the Government to be paid by him or on his behalf.

(3) The Chairman, Vice Chairman and every officer or servant of a market committee shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.

Section 11 Execution of contracts

(1) Every contract entered into by a market committee shall be in writing and shall be signed on its behalf by the chairman and two other members thereof and if the market committee has been superseded, by the person or persons appointed under sub section (3) of Section 22.

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

Section 12 Levy of fees by the market committee

(1) The market committee shall levy fees on any notified agricultural produce, livestock or products of livestock purchased or sold in the notified market area at such rate, not exceeding two rupees as may be specified in the bye laws for every hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock is purchased or sold, whether for cash or deferred payment or other valuable consideration.

Explanation I : For the purpose of this section, all notified agricultural produce, livestock or products of livestock taken out of a notified market area shall, unless the contrary is proved, be presumed to have been purchased or sold within such area.

Explanation II : In the determination of the amount of fees payable under this Act, fractions of ten paise equal to or exceeding five paise shall be counted as ten paise and other fractions of ten paise shall be disregarded.

(2) The fees referred to in sub section (1) shall be paid by the purchaser of the notified agricultural produce, livestock or products of livestock ;

Provided that where the purchaser cannot be identified, the fees shall be paid by the seller.

Section 12A Submission of return of turnover by trader

Every trader in the notified area, who is liable to pay fees under Section 12, shall submit such return or returns relating to his turnover in such manner, within such period and to such authority, as may be specified by the market committee in its bye laws.

Explanation B : For the purposes of Sections 12 A to 12 G (both inclusive) the terms

(i) "market fees" shall mean the fees levied under sub section (1) of Section 12 ;

(ii) "turnover" shall mean the aggregate amount for which the notified agricultural produce, livestock or products of livestock are purchased or sold, whether for cash or deferred payment or other valuable consideration.

Section 12B Assessment of market fees

(1) If the assessing authority is satisfied that any return submitted under Section 12 A is correct and complete, it shall assess the amount of market fees payable by the trader on the basis thereof ; but if the return appears to be incorrect or incomplete, it shall, after giving the trader an opportunity of proving the correctness and completeness of the returns submitted by him and after making such inquiry as it considers necessary, assess to the best of its judgment the amount of market fees due from the trader. An assessment under this section shall however, be made only within a period of three years from the expiry of the year to which the assessment relates.

(2) Where the return submitted by a trader includes the turnover or any of the particulars thereof which would not have been disclosed but for an inspection of accounts, registers or other documents of the trader made by an officer authorised under this Act before the submission of such returns, the assessing authority may, after giving an opportunity to the trader for making a representation in this behalf, treat such return to be an incorrect or incomplete return within the meaning of sub section (1) and proceed to take action on that basis.

(3) While making an assessment to the best of Judgment under sub section (1) the assessing authority may also direct the trader to pay, in addition to the market fees assessed a penalty equal to two times the market fees due on the turnover that was not disclosed by the trader in his return.

(4) Where any trader liable to pay market fees under this Act,

(i) fails to submit return before the date specified in that behalf ; or

(ii) produce the accounts, registers and other documents after inspection ; or

(iii) submits a return subsequent to the date of inspection ; the assessing authority may, at any time within a period of three years from the expiry of the year to which the assessment relates, after issuing a notice to the trader, and after making such inquiry as it considers necessary, assess to the best of its judgment, the amount of market fees due from the trader, on his turnover for that year and may direct him to pay in addition to the market fees so assessed, a penalty equal to two times the market fees due.

(5) Where, for any reason, the whole or any part of the turnover of a trader has escaped assessment to market fees or has been under assessed or assessed at a rate lower than the correct rate, the assessing authority may, at any time within a period of three years from the date on which any order of assessment was served on the trader,

(a) determine to the best of its judgment the turnover that has escaped assessment and assess the turnover so determined ;

(b) assess the correct amount of market fees payable on the turnover that has been under assessed ;

(c) assess at the correct rate the turnover that has been assessed at a lower rate, after issuing a notice to the trader and after making such inquiry as it considers necessary. The assessing authority, in addition to the market fee so assessed, also direct the trader to pay a penalty equal to two times the market fees.

Section 12C Payment of market fees and other dues payable under the Act

(1) The market fees assessed under this Act and the penalty levied under sub sections (3), (4) and (5) of Section 12 B shall be paid by the trader in such manner and within such time not being less than fifteen days from the date of service of the notice of assessment or of the levy of penalty, as may be specified in such notice.

(2) The Director of Marketing may by general or special order permit the payment of any market fees or penalty or both assessed or levied under this Act in two or more instalments within such intervals as may be specified in the said order.

(3) If the market fees assessed under this Act or any instalment thereof is not paid by any trader within the time specified therefor in the notice of assessment or in the order permitting payment in instalments, the traders shall pay in addition to the amount of such market fees or instalment, interest at the rate of twelve percent per annum of such amount from the date when the market fees becomes due.

(4) If the market fees assessed or the penalty levied under this Act or any instalment thereof is not paid by any trader within the time specified therefor, the whole of the amount then remaining unpaid, may be recovered from him as if it were an arrear of Land Revenue.

(5) The penalty payable under this Act shall be without prejudice to the institution of any proceedings for an offence under this Act, or for the recovery of the entire amount remaining unpaid under sub section (4).

Section 12D Recovery of market fees where business of trader is transferred

Where the ownership of the business of a trader liable to pay market fees is transferred, any market fees or other amount payable under this Act in respect of such business and remaining unpaid at the time of transfer may, without prejudice to any action, that may be taken for its recovery from the transferor, be recoverable from the transferee as if he were the trader liable to pay such market fees or other amount.

Section 12E Appeals

(1) Any trader objecting to an order of assessment passed, or proceeding recorded by the assessing authority, under the provisions of this Act may, within thirty days from the date on which the order or proceeding was served on him, appeal to the Regional Joint Director of Marketing having jurisdiction over the notified area concerned (hereinafter referred to as the Appellate Authority) :

Provided that the Appellate Authority may admit an appeal preferred after the period of thirty days aforesaid, if it is satisfied that the trader has sufficient cause for not preferring the appeal within that period ;

(2) Before preferring an appeal under this section, market fee shall be paid in accordance with the assessment made in the case and no appeal shall be entertained until the said market fee is paid.

(3) The appeal shall be in such form and shall be accompanied by such fees as may be specified by the market committee concerned in its bye laws.

(4) The Appellate Authority may, after giving the appellant an opportunity of being heard and subject to such rules of procedure as may be prescribed,

(a) confirm, reduce, enhance or annul the assessment or the penalty or both ; or

(b) set aside the assessment or penalty or both and direct the assessing authority to pass a fresh order after such further inquiry as may be directed ; or

(c) pass such other orders as it may think fit.

(5) Before passing an order under sub section (4) the Appellate Authority may make such inquiry as it deems fit or remand the case to the Deputy Director of Marketing having jurisdiction over the notified area concerned for an inquiry and report on any specified point or points.

(6) Every order passed in appeal under this section shall, subject to the provisions of Sections 12 F and 12 G be final.

Section 12F Revision by the Director of Marketing

(1) The Director of Marketing may suo motu, or on an application made to him call for and examine the record of any order passed or proceeding recorded by any authority or officer subordinate to him or by any market committee or any authority or person authorised by it, under the provisions of this Act for the purpose of satisfying himself as to the legality or propriety of such order or as to the regularity of such proceeding and may pass such order in reference thereto as he thinks fit ;

Provided that every application for the exercise of the powers under this section shall be preferred within thirty days from the date on which the order or proceedings was communicated to the applicant.

(2) In relation to an order of assessment passed under this Act, the powers conferred by sub section (1) shall be exercisable only within such period not exceeding three years from the date on which the order was served on the trader, as may be prescribed.

(3) No order shall be passed under sub section (1) enhancing any assessment unless an opportunity has been given to the assessee to show cause against the proposed enhancement.

Section 12G Appeal to High Court

(1) Any trader objecting to an order relating to assessment passed by the Director of Marketing under sub section (1) of Section 12 F, may appeal to the High Court within sixty days from the date on which the order was served on him :

Provided that the High Court may admit an appeal preferred after the period of sixty days mentioned in sub section (1), if it is satisfied that the trader has sufficient cause for not preferring the appeal within that period.

(2) The appeal shall be in such form, shall be verified in such manner and shall be accompanied by such fee as may be prescribed.

(3) The High Court after giving both parties to the appeal, an opportunity of being heard pass such order thereon as it thinks fit.

(4) Before preferring an appeal under this section, market fee shall be paid in accordance with the assessment made in the case and no appeal shall be entertained until the said market fee is paid :

Provided that if as a result of the appeal, any change becomes necessary in such assessment, the High Court may authorise the assessing authority to amend the assessment and on such amendment being made, the excess amount paid by the trader shall be refunded to him without interest or the further amount of market fees due from him shall be collected in accordance with the provisions of the Act as the case may be.

(5) In respect of every appeal preferred under sub section (1), the cost shall be in the discretion of the High Court.

Section 13 Levy of subscription for market reports etc.

The market committee may, in accordance with such rules as may be made in this behalf, levy a subscription for collecting and disseminating among the subscribers, information as to any matter relating to statistics or marketing in respect of notified agricultural produce, livestock or products of livestock.

Section 14 Market Committee Fund

(1) All moneys received by a market committee shall be paid into a fund to be called The Market Committee Fund and the said Fund shall be deposited, in a single banking account with the nearest Government treasury, or with the sanction of the Government, in a Bank. 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 shall be invested in such manner as may be prescribed.

(2)

(a) Every market committee shall, out of its fund, pay to the Government the cost of any special or additional staff employed by the Government in consultation with market committee in the notified area for giving effect to the provisions of this Act.

(b) The Government shall determine the cost of such special or additional staff and shall, where the staff is employed for the purposes of more than one market committee, apportion such cost among the market committees concerned in such manner as the Government think fit. The decision of the Government in determining the amount payable by any market committee shall be final.

(3) A market committee may grant loans to another market committee out of its surplus funds and with the previous sanction of the Government at such rates of interest as may be prescribed.

Section 15 Purposes for which the Market Committee Fund may be expended

Subject to the provisions of Section 14, the Market Committee Fund shall be expended for all or any of the following purposes, namely :

(i) the acquisition of site for the market ;

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

(iii) the construction and maintenance of buildings necessary for the market and for the health, convenience and safety of the persons using the market and maintenance of buildings under the control of the market committee ;

(iv) the provision and maintenance of standard weights and measures ;

(v) the pay, pensions, leave allowances, gratuities, compassionate allowances and contribution towards leave allowances, pensions or provident fund of officers and servants employed by the market committee ;

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

(vii) the collection and dissemination of information regarding all matters relating to crop statistics and marketing in respect of notified agricultural produce, livestock and products of livestock ;

(viii) schemes for the extension or cultural improvement of notified agricultural produce, livestock and products of livestock within the notified area, including the grant, subject to the approval of the Government, of financial aid to the schemes for such extension or improvement within such area, undertaken by other bodies or individuals ;

(ix) propaganda for the improvement of agriculture, livestock and products of livestock and thrift ;

(x) ( )

(xi) the promotion of grading services ;

(xii) measures for the preservation of foodgrains ;

(xii) (a) ( .)

(xiii) such other purposes as may be specified by the Government by general or special order.

Section 16 Central Market Fund

(1) There shall be formed for the whole of the State, a fund to be called the Central Market Fund . Every Market Committee shall contribute ten per cent of its annual income to the Central Market Fund and the contribution so paid shall be placed to the credit of the said Fund. Provided that it shall be competent for the Director of Marketing to grant postponement of the payment of contribution or reduction or remission thereof in respect of any newly constituted market committee upto a period of three years from the date of its constitution.

(2) The Central Market Fund shall be vested in the Government and deposited in the Government treasury at Hyderabad. It shall be administered and applied by the the Director of Marketing for all or any of the following purposes, namely :

(i) grant in aid of the market committees for the first year after their constitution under this Act ;

(ii) grant in aid of a deficit market committee for a period not exceeding three years ;

(iii) grant of loans to the market committees at such rates of interest as are charged on loans granted by the Government for development purposes ;

(iv) such other similar or allied purposes as may be specified by the Government by general or special order ;

Provided that the Director of Marketing shall obtain the approval of the Government before sanctioning any grant in aid or loan exceeding rupees five thousand

Section 17 No trade allowance permissible except as prescribed by rules or under bye laws

No trade allowance other than an allowance prescribed by rules or provided under bye laws, shall be made or received, in a notified area by any person in any transaction in respect of notified agricultural produce, livestock or products of livestock and no civil court shall, in any suit or proceeding arising out of any such transaction, have regard to any trade allowance not so prescribed or provided.

Explanation: In the case of notified agricultural produce and products of livestock, every deduction other than a 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 on account of difference between the actual weight of the sacking and the standard weight, shall be regarded as a trade allowance for the purposes of this section.

Section 17A Recovery of excess and unauthorised collections

Where a market committee is of the opinion that any trader or commission agent in the notified market area has made any collection in excess of what is allowed by law or unauthorisedly by whatever name called, the market committee may require, at any time within a period of eleven years from the date of the said excess or unauthorised collection, such trader or commission agent to produce before it all accounts, registers and other documents and to furnish any other information relating to such transaction, and may, after such enquiry as it deems fit, in the circumstances of the case, determine the amount collected in excess or unauthorisedly by such trader or commission agent, and shall, thereupon, call upon him to explain why the said amount shall not be recovered from him and upon considering the explanation, if any, given by such trader or the commission agent, determine the amount and direct that he shall pay to it the amount in such manner and within such period as may be prescribed. The market committee shall refund the amount so paid to it to the concerned grower or the purchaser, as the case may be. If the trader or commission agent fails to pay the amount as required by the market committee, the said amount shall be recovered as if it were an arrear of land revenue, on a certificate issued by the market committee.

Section 17B Maintenance of true and correct accounts and records by traders etc.

Every trader shall keep and maintain true and correct accounts and records relating to his business promptly showing such particulars as may be prescribed.

Section 17C Power to order production of accounts and power of entry, inspection and seizure

(1) The assessing authority or any officer of the department of Marketing not below the rank of an Assistant Director of Marketing authorised by the Director of Marketing in this behalf, may, for the purposes of this Act, require any trade to produce before it or him the accounts, registers and other documents and to furnish any other information relating to his business or the levy of fees.

(2) All accounts, registers and other documents maintained by a trader in the course of his business the notified agricultural produce, livestock or products of livestock in his possession, and his offices, shops or establishments, godowns, vessels or vehicles shall be open to inspection by such authority or officers at any time during the business hours specified under the relevant law for the time being in force or where no such hours are specified, at all reasonable times.

(3) If any such authority or officer has reasons to suspect that any trader is attempting to evade the payment of any fees or other amount due from him under this Act, or that any offence has been or is being or about to be committed by contravening any of the provisions of this Act, or the rules made thereunder or the bye laws made by a Market Committee, such authority or Officer may, for reasons to be recorded in writing, seize any of the accounts, registers or other documents of such trader and shall give the trader a receipt for the same. The accounts, registers and documents so seized shall be retained by such authority or officer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act.

(4) For the purposes of sub section (2), or sub section (3) the assessing authority or the other officers so authorised shall have power to enter and search at any time during the business hours specified under the relevant law for the time being in force or where no such hours are specified at all reasonable times, any office, shop, godown, vessel, vehicle or any other place, where such authority or officer has reason to believe that the trader keeps or is for the time being keeping any notified agricultural produce, livestock or products of livestock, accounts, registers or other documents of his business.

(5) All searches under this section shall, so far as may be, be made in accordance with the provisions of the Code of Criminal Procedure, 1973.

(6) When so required by the assessing authority or the officer so authorised, the driver or any other person in charge of the vehicle, vessel or other conveyance, which is taken or proposed to be taken out of the notified market area, shall stop the vehicle, vessel or other conveyance as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the said authority or officer to examine the contents in the vehicle, vessel or other conveyance and inspect all records relating to the notified agricultural produce, livestock or products of livestock which are in the possession of such driver, or other person in charge for the purpose of ascertaining whether there has been any sale or purchase of the notified agricultural produce, livestock or products of livestock carries whether the notified Agricultural produce, livestock or products of livestock so carried is liable to fees under this Act and whether such fees has been paid or properly accounted for.

(7) The assessing authority or the officer so authorised shall have power to seize any notified agricultural produce, livestock or products of livestock taken or proposed to be taken out of the notified market area either by human labour or in any vehicle, vessel or other conveyance, if such officer has reason to believe that any fees or other amount due under this Act, in respect of such produce has not been paid. Such seizure shall forthwith be reported by the authority or officer aforesaid to a Magistrate having jurisdiction to try the offences under this Act and the provisions of Sections 457, 458 and 459 of the Code of Criminal Procedure, 1973 shall, so far as may be, apply in relation to such notified agricultural produce, livestock or products of livestock so seized as they apply in relation to any property seized by a police officer.

(8) Any person aggrieved by such seizure may appeal to the Director of Marketing, who shall, after giving the said officer and the owner of the seized property, an opportunity of being heard, give his decision thereon ; and every decision of the Director of Marketing shall be complied with.

Section 18 Power to borrow

(1) A market committee may, with the previous sanction of the Government, raise the money required for carrying out the purposes for which it is constituted on the security of any property belonging to it and of any fees leviable by it under this Act. A market committee may, for the purpose of meeting the initial expenditure on lands, buildings and equipment required for establishing the market, obtain a loan from the Government.

(2) The conditions under which such money or loan shall be raised and the time within which the same shall be repayable shall be subject to the previous sanction of the Government.

Section 19 Liability of the Chairman and member for loss, waste or misapplication of property

(1) The Chairman, Vice Chairman and every member of a market committee shall be liable for the loss, waste or misapplication of any money or other property belonging to the market committee if such loss, waste or misapplication is a direct consequence of his negligence or misconduct and a suit for compensation may be instituted against him in a court of competent jurisdiction by the market committee with the previous sanction of the Director of Marketing.

(2) Every such suit shall be commenced within three years from the date on which the cause of action arose.

Section 20 Member not to be liable personally in respect of a contract or agreement made by or on behalf of the market committee

No member of a market committee shall be personally liable in respect of any contract or agreement made, or for any expense incurred by or on behalf of the market committee ; but the funds at the disposal of the market committee shall be liable for, and charged with, all costs in respect of any such contract or agreement and all such expenses.

Section 21 Costs of suit filed against market committee etc., without notice

(1) Where a suit is instituted against the market committee, the Chairman, Vice Chairman, or any other member or any of its officers, or servants or any person acting under the direction of such market committee Chairman, Vice Chairman or other member or officer or servant acting in good faith and the claim of the plaintiff is satisfied before the date fixed for the settlement of issues or where the summons are issued for the final disposal of the suit, before the date of the hearing for the final disposal, the plaintiff shall not be entitled to the costs of the suit against the market committee or the Chairman, Vice Chairman, or any other member or officer or servant, as the case may be, unless a notice of sixty days of the suit stating particulars of the claim was given before its institution in the manner provided in sub section (2).

(2) A notice for the purposes of this section shall be in writing and shall

(i) in the case of suit against the market committee, be left at the office of that market committee ;

(ii) in the case of a suit against the Chairman, Vice Chairman or any other member or officer or servant, be delivered to that Chairman, Vice Chairman or other member or officer or servant, as the case may be.

Section 22 Supersession of market committees

(1) If, in the opinion of the Government a market committee is not competent to perform or persistently makes default in performing the duties imposed on it by or under this Act, or abuses its powers, they may, by notification, supersede such committee for a period not exceeding six months in the first instance and may, by order, extend, from time to time, the period of supersession so however that the total period of supersession in the case of any market committee shall not exceed one year. Provided that before issuing a notification under this sub section, the Government shall give to the market committee an opportunity of making representation on the action proposed and shall consider the explanation or objection, if any, of the market committee thereon.

(2) As from the date of publication of a notification under sub section (1), superseding a market committee, the following consequences shall ensue -

(a) all the members as well as the Chairman and Vice Chairman of the market committee shall be deemed to have vacated their offices ;

(b) all the assets vested in the market committee shall, subject to all its liabilities, vest in the Government.

(3) Where a market committee has been superseded -

(a) the Government may, by order, appoint a suitable person or persons to exercise the powers and perform the functions of the market committee during the period of its supersession and transfer to such person or persons the assets and liabilities of the superseded market committee as on the date of such transfer ; and

(b) the Government, may, at any time before the expiration of the period of supersession, constitute a new market committee under sub section (1) of Section 4 and transfer thereto the assets and liabilities of the superseded market committee as on the date of such transfer.

Section 23 Penalties

(1) Whoever contravenes the provisions of Section 7 or fails to pay the fees levied under sub section (1) of Section 12 shall, on conviction be punished with imprisonment for a term, which shall not be less than six months but which may extend to one year and with fine, which may extend to five thousand rupees, and in the case of a continuing contravention with further fine which may extend to five hundred rupees for every day during which the contravention is continued after conviction thereof ; Provided that the Court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months.

(2) Whenever any person is convicted of an offence under Section 7 or fails to pay the fees levied under sub section (1) of Section 12, the Magistrate shall, in addition to any fine which may be imposed recover summarily and pay over to the market committee the amount of the fees chargeable for the licence under Section 7 or the fees levied under sub section (1) of Section 12 as the case may be, and may in his discretion also recover summarily and pay over to the market committee such amount, if any, as he may fix as the cost of the prosecution.

(3) The recovery of the licence fees under sub section (2) shall not entitle the person convicted to the grant of a licence under this Act.

(4) Any person, who wilfully acts in contravention of the provisions of Section 17 or Section 17 A, shall, on conviction, be punished with imprisonment for a term, which shall not be less than three months but which may extend to six months and with fine, which may extend to one thousand rupees ; Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months.

(5) Any person who -

(i) prevents or obstructs inspection, entry, search or seizure by the assessing authority or an officer authorised under Section 17 C, in contravention of the terms thereof; or

(ii) prevents or obstructs inspection of any notified agricultural prooduce, livestock or products of livestock or of any vehicel, vessel or other conveyance carrying such produce, by the officer aforesaid, shall, on conviction, be punished with imprisonment which shall not be less than three months but which may extend to six months:

Provided that the Court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than three months.

Section 23A Compounding of offences

(1) The market committee may accept from any person, who has committed or is reasonably suspected of having committed an offence against this Act or the Rules or bye laws made thereunder, other than such offences as may be prescribed, or by way of compounding of such offences

(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 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 subject to a minimum amount of rupees two hundred and fifty ; and

(b) in other cases, a sum of money not exceeding rupees five hundred.

(2) On payment of the amount by way of compounding, no further proceedings shall be taken or continued against the defaulter in regard to the offence or suspected offence so compounded.

Section 24 Power to write off irrecoverable amounts

A market committee may, subject to such restrictions and control as may be prescribed, write off any amount due to it, if in its opinion such amount is irrecoverable ;

Provided that the market committee shall obtain the previous sanction of the Government for writing off any such amount where it exceeds one hundred rupees.

Section 25 Trial of offences

(1) No offence punishable by this Act or any rule or bye law made thereunder shall be tried by a court inferior to that of a magistrate of the first class.

(2) Prosecution for the contravention of the provisions of this Act or any rule or bye law made thereunder may be instituted by any person duly authorised in writing by the market committee in this behalf.

(3) All fines recovered from any person convicted shall be credited to the Consolidated Fund of the State and a grant equivalent to such fine shall be paid to the market committee.

Section 26 Recovery of sums due to Government and market committee

(1) All sums due from a market committee to the Government may be recovered in the same manner as arrears of land revenue.

(2) All sums due to the market committee by way of market fees or other fees may be recovered in the same manner as arrears of land revenue.

Section 27 Revision

(1) The Director of Marketing may, of his own motion or on application made to him, call for and examine the record of any market committee and the Government may, of their own motion or on application made to them, call for and examine the record of the Director of Marketing, in respect of any proceeding, other than a proceeding relating to assessment and recovery of market fees under Sections 12 A to 12 F (both inclusive), to satisfy himself or themselves as to the regularity of such proceeding, or the correctness, legality or propriety of any decision passed or order made therein; and if in any case it appears to the Director of Marketing or the Government that any such decision or order should be modified, annulled, reversed or remitted for reconsideration, he or they may pass orders accordingly ;

Provided that every application to the Director of Marketing or the Government for the exercise of the powers under this section shall be preferred within ninety days from the date on which the proceeding, decision or order to which the application relates was communicated to the applicant.

(2) No order prejudicial to any person shall be passed under sub section (1) unless such person has been given an opportunity of making his representation.

(3) The Director of Marketing or the Government, as the case may be, may suspend the execution of the decision or order pending the exercise of his or their power under subsection (1) in respect thereof.

(4) The Director of Marketing or the Government may award costs in proceedings under this section to be paid either out of the funds of the market committee or by such party to the application for revision as the Director of Marketing or the Government may deem fit.

Section 27A Power to remove difficulties

If any difficulty arises in giving effect to the provisions of this Act, the Government, as occasion may require, may by order do anything which appears to them to be necessary for the purpose of removing the difficulty.

Section 28 Act not to apply to markets established by or on behalf of Government

Nothing in this Act shall apply to any place set up, established or continued on behalf of the Government for the purchase, sale, storage, weighment, pressing or processing of any notified agricultural produce or products of livestock or the purchase, sale or accommodation of livestock or to the purchase or sale of any such notified agricultural produce, livestock or products of livestock by or on behalf of the Government.

Section 29 Payment of compensation in respect of markets in municipalities and in areas within the jurisidiction of other local authorities

(1) Where in pursuance of Section 3, the Government notify any area comprised within the local limits of the jurisdiction of a municipality or other local authority. no such municipality or other local authority shall levy any fees on any notified agricultural produce, livestock or products of livestock purchased or sold in the notified area.

(2) The market committee of the notified area shall, out of its funds, pay every year to the municipality or other local authority. which was levying such fees immediately before the notification of the area, a sum equivalent to the licence fees levied by such municipality or other local authority during the period of one year immediately before the notification of the area, for a period of ten years as compensation for the loss of income of the municipality or the local authority on account of the establishment of markets in the area by the market committee.

Section 30 Act to override other laws

Nothing in any law providing for the establishment, maintenance or regulation of a market or the levy of fees therein shall apply to any market established under this Act or affect in any way the powers of a market committee, in respect of such market.

Section 31 Registration of document executed on behalf of a market committee

(1) Notwithstanding anything in the Indian Registration Act, 1908, it shall not be necessary for the Chairman or any member or officer of a market committee to appear in person or by agent at any registration office in any proceeding connected with the registration of any instrument executed by him in his official capacity or to sign as provided in Section 58 of that Act.

(2) Where any instrument is so executed, the registration officer to whom such instrument is presented for registration may,if he thinks fit, refer to the chairman, member or person referred to in sub section (1) of Section 11 for information respecting the same and, on being satisfied of the execution thereof, shall register the instrument.

Section 32 Power of the Government to regulate or prohibit commission agents

Where, in the opinion of the Government, it is considered necessary so to do, they may, by notification, regulate or prohibit the commission agents operating in the market.

Provided that nothing in this section shall prevent the market committee from issuing licences to commission agents operating in the market until the issue of notification under this section.

Section 32A

OMITTED

Section 33 Power to make rules

(1) The Government may, either generally or specially for any notified area or areas, make rules for carrying out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power such rules may provide for

(i) the appointment and removal of members of a market committee.

(ii) the appointment of the Chairman and Vice Chairman of a Market Committee and their term of office;

(iii) the filling of casual vacancies in the office of the Chairman, Vice Chairman or member of a market committee:

(iv) regulating the methoods of recruitment and conditions of service of officers and other employees of the market committee;

(v) the procedure to be adopted by the market committee for the issue of passes to enter into a market area and for the publication of information with regard to the proceedings of the market committee and the arrivals, prices and stocks of notified agricultural produce, livestock or products of livestock.

(vi) arrangements to be made for the functioning of the markets, discharge of duties of a market committee and its chairman, in case they are prevented from discharging their duties under any lawful order;

(vii) the acquisition of land by a market committee for the purposes of the Act under the Land Acquisition Act, 1894;

(viii) the issue by a market committee of licences under Section 7, the forms in which, and the conditions under which, such licences shall be issued or renewed, the annual fees that may be levied for such licences and the recovery of such fees;

(ix) the maximum rates of subscriptions which may be levied by the market committee under Section 13 and the recovery of such subscriptions;

(x) the issue by a market committee of licences to commission agents, weighmen, measurers, surveyors and other persons operating in the market, the form in which and the conditions under which, such licences shall be issued or renewed, the fees to be charged therefor, the suspension or cancellation of such licences and appeal to be made to the Government against the suspension or cancellation of such licences;

(xi) the trade allowances, which may be made or received by a person in transactions governed by this Act in a notified area;

(xii) the provision of facilities for the settlement of any dispute between a buyer and seller of notified agricultural produce, livestock or products of livestock or their agents including, in the case of notified agricultural produce and products or livestock, disputes regarding the quality or weight of the article, the allowances for wrappings, dirt or impurities or deductions from any cause;

(xiii) the prohibition of commission agents from acting in any transaction on behalf of both the buyer and seller of any notified agricultural produce, livestock or products of livestock;

(xiv) the provision of accommodation for livestock and for storing any notified agricultural produce or products of livestock brought into the market;

(xv) the preparation of plans and estimates for works proposed to be constructed partly or wholly at the expense of the market committee and the grant of sanction to such plans and estimates;

(xvi) the procedure to be followed by a market committee in respect of financial matters generally including the manner in which and the restrictions and conditions subject to which, expenditure may be incurred by it;

(xvii) the form in which the accounts of a market committee shall be kept, the audit and publication of such accounts, and charges if any, to be made for such audit;

(xviii) the powers to disallow any surcharge items and the recovery of sums so disallowed and surcharged;

(xix) the institution of provident funds;

(xx) the preparation and submission for sanction of an annual budget and the reports and returns to be furnished by a market committee.

(xxii) the inspection of the accounts and stocks of trades;

(xxiii) the prevention of adulteration of notified agricultural produce and products of livestock;

(xxiv) the maintenance of standards of notified agricultural produce,livestock and products of livestock;

(xxv) regulation of market charges such as commission, weighment charges, godown charges and other incidental charges;

(xxvi) inspection and administration of market committees.

(xxvii) the manner in which, and the purposes for which, the Central Market Fund shall be administered and applied.

(3) Any rule made under this section may provide that any contravention thereof or of any of the conditions of any licence issued or renewed thereunder shall, on conviction, be punished with imprisonment for a term which shall not be less than six months but which may extend to one year or with fine which may extend to five thousand rupees or with both.

(4) The power to make rules conferred by this section shall be subject to the condition of the rules being made after previous publication for a period of not less than one month.

(5) Every rule made under this section shall immediately after it is made be laid before each House of the State Legislature if it is in session and if it is not in session, in the session immediately following for a total period of fourteen days which may be comprised in one session or in two successive sessions and if before the expiration of the session in which it is so laid or the session immediately following, both the Houses agree in making any modification in the rule or in the annulment of the rule, the rule shall thereafter have effect only in such modified form or shall stand annulled, as the case may be, so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Section 34 Bye laws

(1) Subject to any rules made by the Government under Section 33 and with the previous sanction of the Director of Marketing, a market committee may, in respect of the notified area for which it was constituted, make bye laws for the regulation of the business and the conditions of trading therein; Provided that it shall be competent for a market committee to adopt the bye laws of any other market committee by a resolution and the bye laws so adopted shall come into force in respect of the market committee adopting the same on the publication of the resolution in the Andhra Pradesh Gazette and it shall not be necessary to publish the adopted bye laws in the said Gazette." Provided further that where a market committee fails to make bye laws or adopt the bye laws of some other market committee under this sub section within two months from the date of its constitution, the Director of Marketing may make such bye laws as he thinks fit, and the bye laws so made shall remain in operation until the market committee has made bye laws under this sub section.

(2) Every bye law made under this section shall be published in English and Telugu in the Andhra Pradesh Gazette and it shall come into operation on the date of its publication in English in the Andhra Pradesh Gazette.

(3) Any bye law made under this section may provide that any contravention thereof shall be punishable with fine which may extend to five hundred rupees.

Section 35 Exemption

The Government may, by notification, and for the reasons to be specified therein, either permanently or for any specified period, exempt any market committee, any person or class of persons from all or any of the provisions of this Act, subject to such conditions as the Government may deem fit to impose.

Section 36 Repeal and savings

The Andhra Pradesh (Andhra Area) Commercial Crops Markets Act, 1933 and the Andhra Pradesh (Telangana Area) Agricultural Market Act, 1939 F, are hereby repealed :

Provided that

(a) any area declared to be a notified area or market under any of the Acts so repealed shall be deemed to have been declared under this Act

(aa) any area declared to be a notified area or market or market yard by or under any of the Acts so repealed shall be deemed to have been declared to be a notified market area under this Act for the purpose of Section 12 ;

(b) any market committee constituted under any of the Acts so repealed and existing immediately before the commencement of this Act shall be deemed to have been constituted under this Act until a market committee is constituted under this Act in its place and on such constitution all the assets and liabilities of the market committee so deemed to have been constituted shall devolve on the market committee so constituted under this Act ;

(c) the repeal shall not affect the previous operation of the Acts so repealed or anything duly done thereunder and anything done or any action taken under the said Acts shall be deemed to have been done or taken under this Act and shall continue to be in force, unless and until superseded by anything done or any action taken under this Act.

Section 37 Validation

(1) Notwithstanding anything in the Andhra Pradesh (Telangana Area) Agricultural Market Act, 1339 Fasli, all contributions made by the Market Committee constituted under that Act to the fund which was called the Central Market Fund and all expenditure incurred therefrom, before the commencement of this Act shall be deemed always to have been validly made and incurred as if such contributions and expenditure were expressly provided for in the said Act, and no such contribution or expenditure shall be questioned in any court of law on the ground that the said Act did not provide for such contribution or expenditure.

(2) The balance of the said fund, if any, outstanding at the commencement of this Act shall stand transferred on such commencement to the Central Market Fund formed under sub section (1) of Section 16 and shall for all purposes be deemed to form part of that Fund.

Provided that the said balance shall be administered and applied under sub section (2) of Section 16, only for the purposes of the market committees constituted for the notified areas within the territories specified in sub section (1) of Section 3 of the States Re organisation Act, 1956.

RULE:

ANDHRA PRADESH (AGRICULTURAL PRODUCE AND LIVESTOCK) MARKETS RULES, 1969

In exercise of the powers conferred by Section 33 of the Andhra Pradesh (Agricultural Produce and Livestock), Markets Act, 1966 (Act 16 of 1966), and in supersession of all the rules on the subject made under the Acts repealed by Section 36 of the said Act, the Governor of Andhra Pradesh hereby makes the following rules, the same having been previously published at pages 460 578 of the Rules Supplement to Part II (19) of the Andhra Pradesh Gazette, dated the 23rd November, 1967 as required by sub section (4) of Section 33 of the said Act.

CHAPTER 1 Preliminary

Rule 1 Short title, extent and commencement

(1) These Rules may be called the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, 1969.

(2) They shall extend to the whole of the State of Andhra Pradesh.

(3) They shall come into force at once.

Rule 2 Definitions

In these rules, unless the con otherwise requires :

(i) Act means the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 ;

(ii) Amanat Patti means a storage slip or voucher wherein a commission agent records the entries of a notified agricultural produce or products of livestock stored or kept with him by a seller and amount of money, if any, advanced by him to the seller on the pledge of such notified commodity ;

(iii) Assistant Director of Marketing means the Assistant Director of Marketing in whose jurisdiction the notified area of the market committee is situated ;

(iv) Broker means an agent whose ordinary course of business is to negotiate and make contracts on payments of brokerage for purchase or sale of notified agricultural produce or livestock or products of livestock on behalf of his principal but does not include a servant of such principal whether engaged in negotiating or making such contracts ;

(v) Bye law means a bye law made by a market committee or by the Director ;

(vi) Chungdi means the residue of a lot of a notified commodity which is left over after weighing such lot in units of weighment; and which forms a fraction of a unit of weighment ;

(vii) Collector means the Collector of the District in which notified area of the market committee is situated ;

(viii) Commission agent means a person who, on behalf of another person and in consideration of a commission makes or offers to make a purchase or sale of any agricultural produce, livestock or products of livestock or does or offers to do anything necessary for completing or carrying out such purchase or sale and includes "adatya".

(ix) Director means the Director of Marketing ;

(x) Emoluments means pay, leave salary, subsistence grant or allowances classed as pay in the rules or regulations, applicable to the officers and employees of the market committee ;

(xi) Family means :

(a) in the case of a male subscriber to the provident fund, the wife and children of the subscriber and the widow and children of deceased son of the subscriber :

Provided that if a subscriber proves that his wife has been judicially separated from him or has ceased, under the customary law of the community to which she belongs, to be entitled to maintenance, she shall henceforth be deemed to be no longer a member of the subscriber family in matters to which these rules relate, unless the subscriber subsequently indicates by express notice in writing to the Secretary that she shall continue to be so regarded : and

(b) in the case of a female subscriber to the provident fund, the husband and children of the subscriber and the widow and children of a deceased son of the subscriber :

Provided that if a subscriber by notice in writing to the Secretary expresses her desire to exclude her husband from her family, the husband shall henceforth be deemed to be no longer a member of the subscriber family in matters to which these rules relate, unless the subscriber subsequently cancels formally in writing her notice excluding him :

Explanation : For the purpose of this clause :

(1) Children means legitimate children ;

(2) an adopted child shall be considered to be a child when the Secretary is satisfied that under the personal law of the subscriber, adoption is legally recognised ;

(xii) Form means a form appended to these rules ;

(xiii) Hamal means a person licensed by a market committee to render service on wages in handling of a notified commodity in the market and includes woman labourer ;

(xiv) Leave means any kind of leave recognised by the rules and regulations applicable to the officers and employees of Market Committee.

(xv) Market Engineer means an Engineer not below the rank of an Assistant Engineer of the Marketing Department, Public Works Department,Roads and Buildings Department or Public Health Department having jurisdiction over the notified area of the market committee.

(xvi) Notified Commodity means a notified agricultural produce or a notified product of livestock or both ;

(xvii) Office of the Market Committee means the place where the head quarters of the market committee is located ;

(xviii) Polling Officer means an officer of the Marketing Department appointed under Rule 13 by the Election Officer, to conduct elections of the persons licensed under sub section (1) of Section 7;

(xix) Processing means powdering, crushing, decorticating, dehusking, parboiling, polishing, ginning, pressing, curing, or any other treatment to which an agricultural produce or products of livestock is subjected to before final consumption ;

(xx) Secretary means the Secretary of the market committee ;

(xxi) Section means a section of the Act ;

(xxii) Takpatti means a voucher wherein any commission agent records the entries of the notified agricultural produce, livestock and products of livestock sold through him and the sale proceeds paid to the seller ;

(xxiii) Trader means a person ordinarily engaged in the business of buying and selling of notified agricultural produce, livestock or products of livestock as a principal or as a duly authorised agent of one or more principals and includes a person ordinarily engaged in the business of processing of notified agricultural produce, or products of livestock ;

(xxiv) Warehouseman means a person who arranges for the storage of any notified commodity ;

(xxv) Weighman means a person who weighs or counts a consignment of the notified agricultural produce, livestock, or products of livestock ;

(xxvi) Year means the financial year.

CHAPTER 2 Publication etc. of Notifications relating to Notified Areas

Rule 3 Manner of publication of Notifications

(1) Every notification under Section 3 declaring a notified area or excluding therefrom or including therein any area shall be published in the Andhra Pradesh Gazette.

(2) Copies of such notification may be

(a) published in the Village Supplement of the District Gazette, if any, in the district concerned ;

(b) displayed, by affixture in a conspicuous position, in the office of the Municipality, Zilla Parishad, Panchayat Samithi, and Gram Panchayat, and the Village Chavadi of the village within whose jurisdiction the area specified in such notification or any part thereof is situated.

(3) No notification under Section 3 published in the Andhra Pradesh Gazette, shall be deemed to be invalid by reason only of the fact that copies thereof have not been published or displayed as provided in sub rule (2).

Rule 4 Copy of Act, Rules and Bye laws to be kept

The market committee shall keep a copy of the Act, and of the rules and notifications made or issued thereunder and of its bye laws open to inspection at its office, free of charge.

CHAPTER 3 Composition of and election to market committee

Rule 5 Composition of Market Committee

(1) Every Market Committee shall consist of fourteen members and shall be constituted by the Government by notification in the following manner:-

(i) eight members to be appointed by the Government in consultation with the Director of Marketing from among the following categories of growers of agricultural produce, owners of livestock and products of livestock in the notified are a namely:-

(a) growers of agricultural produce who are small farmers;

(b) growers of gricultural produce other than small farmers;

(c) Owners of livestock and products of livestock;

Provided that there shall atleast be three members from among persons belonging to Scheduled Castes, Scheduled Tribes, Backward Classes, Minorities and Women:

Provided further that there shall be atleast two members representing the category of small farmers;

(ii) One member to be appointed by the Government from among the Presidents or persons in charge, if any, for the time being performing the functions of primary Agricultural Co-operative Societies or the Co-operative Marketing Societies having areas of operation within the notified area;

(iii) The Assistant Director of Agriculture or Assistant Director of Horticulture or Assistant Director of Animal Husbandry or Assistant Director of Fisheries having jurisdiction over the notified area or any other officer nominated in this behalf by the concerned Head of Department.

(iv) Chairperson of the Municipality or the Sarpanch of the Grampanchayat, as the case may be, in whose jurisdiction the office of the Market Committee is located; Provided that in the case of a Municipal Corporation constituted under any law relating to time being in force in the State, one person as may be nominated by the Corporation shall represent the Corporation in the Agricultural Market Committee concerned where a notified area comprises the Corporation also.

(v) two members to be appointed by the Government in consultation with the Director of Marketing from among the licenced traders in the notified area of whom one shall be a small trader;

(vi) the Assistant Director of Marketing having jurisdiction over the notified area or any other officer nominated in this behalf by the Director of Marketing:

(2) Within 30 days from the date of receipt of requisition from the Director or the officer authorised by him in this behalf, the Deputy Registrar of operative Societies having jurisdiction over the notified area of the market committee shall furnish a list of the names of the Presidents and the persons if any, for the time being performing the functions of the Presidents of the operative Marketing Societies having their areas of operation within the notified area.

(3)

(a) The Assistant Director of Marketing concerned shall furnish the name of Chairman of the Municipality or Sarpanch of the Gram Panchayat, as the case may be, within whose jurisdiction the office of the market committee is located, within 30 days of the requisition of the Director of Marketing.

(b) The Municipal Corporation of Hyderabad shall communicate the name of its representative as may be nominated by the corporation within 45 days from the date of requisition sent to the Commissioner, Municipal Corporation by the Director of Marketing.

Rule 6

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 7

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 8

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 9

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 10

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 11

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 12

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 13

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 14

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 15

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 16

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 17

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 18

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 19

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 20

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 21

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 22

(Omitted by G.O.Ms.No. 253, F A, (MKG II) dated 4-6-1981)

Rule 23 Handing over charge to new Chairman or Vice Chairman by the out going Chairman or Vice Chairman

(1) On the appointment of a new Chairman or Vice Chairman the outgoing Chairman or Vice Chairman in whose place the new Chairman or Vice Chairman has been {appointed shall forthwith handover charge of his office to such new Chairman or Vice Chairman, as the case may be.

(2) If the outgoing Chairman or Vice Chairman fails or refuses to handover charge of his office as required under sub rule (1), the Director or any officer empowered by the Director in this behalf may by order, in writing direct the Chairman or Vice Chairman, as the case may be, to handover the charge of his office and all records and property of the market committee forthwith, if any, in his possession as such Chairman or Vice Chairman, to the new Chairman or Vice Chairman.

Rule 24 Resignation of office by Chairman or Vice Chairman

The Chairman or Vice Chairman may resign his office as such Chairman or Vice Chairman by giving notice in writing to the market committee. Except in a case where the person resigning delivers the notice of resignation personally to the Secretary, the Secretary shall on receipt of notice of resignation obtain confirmation from the person concerned as to its genuineness. A resignation delivered personally or confirmed as aforesaid shall take effect on and from the date on which the notice is placed before the market committee.

Rule 25 Resignation or removal of member of a Market Committee

(1) Any member other than the Chairman or Vice Chairman may resign his office by giving notice to the Chairman and such resignation shall take effect on the date on which it is received by the Chairman. Such resignation of the member accepted by the Chairman shall be brought to the notice of the Director of Marketing immediately and the Market Committee in its next meeting.

(2) Any member of a Market Committee may be removed by the Government

(a) if he acts in a manner which in the opinion of the Government is prejudicial to the working of the Market Committee, or

(b) if he is convicted by a Court of Law for any one or more offences under the Act or any other Act or the rules or bye laws made thereunder unless a period of three years has elapsed from the date of expiry of such conviction, or

(c) if he becomes of unsound mind and stands so declared by a competent court, or

(d) if he is employed as a paid legal practitioner on behalf of the market committee or, as legal practitioner against the market committee or as an officer or servant under the Act. Explanation : For the purpose of this sub rule a member of a market committee shall be considered by the Government to have acted in a manner, prejudicial to the working of the market committee, if on the receipt of a report from the Chairman through the Director supported by such evidence, if any, as may be produced, the Government are satisfied that

(i) he openly or secretly organised some or all traders against their assemblage at the competitive auctions of the notified agricultural produce, livestock or products of livestock with a view to depress the market prices thereby forcing the sellers to part with their commodities at lower prices ; or

(ii) he himself persuaded or organised others to persuade the sellers to sell their notified agricultural produce, livestock or products of livestock in his premises or premises belonging to others without the channel of the market with a view to earning, without the notice or knowledge of the market committee, for himself and others in whose premises the sales are to take place unauthorised allowances from such sales or,

(iii) he himself or in collusion with others wilfully disobeys or refuses to carry out, the provisions of the Act and of the rules or the bye laws made thereunder which regulate the payment of licence fees, market fees or any other fees or refuses to pay any arrears of amount due to the market committee or sale proceeds of the notified commodities due to a seller or commission agent with a view to deprive the market committee of its financial resources or with a view to force the sellers or commission agents to bargain with the sellers to the latter advantage.

(iv) he himself or in connivance with others organizes strikes or helps the organisation of strikes by weighmen, hamals, motor lorry drivers, cartmen, or other functionaries of the market for gaining higher emoluments or any other concessions from the market committee, buyers, sellers, or commission agents.

(3)

(i) The Government shall, before taking action under sub rule (2), issue a notice calling upon the member of the market committee concerned to show cause within such time as may be specified therein, not being less than seven days from the service thereof why he should not be removed as a member of the market committee and consider his reply thereto, if any, received from the member before the expiry of the time specified in the notice.

(ii) The Government shall also send a copy of the notice referred to in clause (i) to the market committee concerned for information.

CHAPTER 4 Powers and Functions of the Market Committee, etc. and the conduct of business at its Meetings etc.

Rule 26 Control of Market

(1)

(a) The Market Committee shall have absolute control over the market and subject to these rules and to the orders of the Government and to such control as is by these rules or by any other law invested in the Director, District Collector or the Government, shall manage its affairs having due regard always to the convenience and best interests of the trade in the notified agricultural produce, livestock or products of livestock.

(b) For exercising the above control effectively, the market committee shall entrust the management of each market to the Assistant Secretary, if any, appointed or to the Supervisor, if no such Assistant Secretary is appointed. The Assistant Secretary or the Supervisor as the case may be, shall manage the market under the direct supervision of the Secretary.

(2) The market shall be open for trading at such hours as the market committee may, from time to time, fix.

(3) Carts, vehicles and animals intended to transport notified commodities shall be kept or allowed to remain at such stands or places and for such time, as may be earmarked by the market committee.

(4) The notified agricultural produce, livestock or products of livestock intended for sale shall be exhibited at such places and in such manner and at such times as may be permitted by the market committee.

(5) The ingress and egress in the market area shall be permitted to such persons and at such times as the market committee may deem proper.

Provided that no person licensed under the Act shall be prevented from entering the market during any time, when it is open to the public.

Rule 27 Powers and duties of market committee

The market committee shall

(i) implement the provisions of the Act and of the rules and bye laws thereunder in the market area;

(ii) implement the directions given by the Government from time to time, in the establishment and development of markets;

(iii) maintain and manage the market yards;

(iv) provide necessary facilities for the marketing of notified agricultural produce, livestock or products of livestock in the market area;

(v) supervise the conduct of the market functionaries;

(vi) regulate the opening, closing and suspending of transactions in a market yard;

(vii) enforce the conditions of a licence;

(viii) regulate the making, execution and enforcement or cancellation of agreements of sales, the weightment, delivery, payment and all other matters relating to the marketing of notified agricultural produce livestock or products of livestock.

(ix) provide for the settlement of all disputes between the seller and the buyer and others arising out of any kind of transaction connected with the marketing of a notified agricultural produce, livestock or products of livestock and all matters ancilliary thereto;

(x) collect, maintain and disseminate information in respect of

(a) sale prices and movement of notified agricultural produce, livestock or products of livestock; and

(b) production, processing and storage of notified commodities;

(xi) take all possible steps to prevent adulteration and to promote grading and standardization of notified commodities;

(xii) levy, recover and receive fees, subscription and other sums of money to which the market committee is entitled;

(xiii) employ necessary number of officers and servants for the efficient implementation of the provisions of the Act and of the rules or bye laws made thereunder;

(xiv) conduct the auction of notified agricultural produce,livestock or products of livestock strictly in accordance with the procedure laid down therefor under these rules or the bye laws of the market committee;

(xv) ensure correct weighment of notified commodities;

(xvi) regulate the entry of persons and the vehicular traffic into the market yard;

(xvii) prosecute persons for violating the provisions of the Act or of the rules and the bye laws made thereunder.

(xviii) acquire, hold and dispose of any movable or immovable property for the purpose of efficiently carrying out its duties.

(xix) institute or defend any suit, action, proceeding, application or arbitration and compromise any such suit, action proceeding, application or arbitration.

(xx) provide facilities, such as provision of adequate space for direct sales by a producer and assist a producer by preparing invoices and bills on his behalf when he sells his produce to a trader without employing a commission agent.

Rule 28 Powers and duties of Chairman and Vice Chairman

(1) The Chairman of the Market Committee shall be the Chief Controlling and supervising authority of the market committee. All officers and servants of the market committee shall, subject to the provisions of the Act and of the rules and bye laws and to the directions, if any given by the market committee, be subject to his control.

(2) The Chairman shall--

(a) preside over the meetings of the market committee and of every sub committee thereof and conduct business at such meetings;

(b) control the financial and executive administration of the market committee;

(c) exercise general supervision and control over the officers and servants employed in connection with the affairs of the market committee (whether such officers or servants are Government servants or not);

(d) in case of emergency, direct the execution or stoppage of any work or the doing of any act which requires the sanction of the market committee.

(3) The Vice Chairman shall

(a) in the absence of the Chairman, preside over the meetings of the market committee;

(b) exercise such powers and perform such duties of the Chairman as the Chairman may, from time to time, delegate to him; and

(c) exercise the powers and perform the duties of the Chairman during the absence of the Chairman on account of a vacancy in the office of the Chairman or otherwise.

(4) In the absence of both the Chairman and Vice Chairman, the member elected by the meeting shall preside over such meeting of the market committee.

Rule 29 Quorum for a meeting of market committee

The quorum for a meeting of the market committee consisting of 18 members and 15 members shall be 10 and 8 respectively;

Provided that the quorum for the adjourned meeting shall be 5 for 18 member market committee and 4 for 15 member market committee and at such a meeting only such specific items of agenda as have been circulated to members for discussion in the meeting called earlier shall be disposed off.

Rule 30 Minutes book etc

(1) A minute book shall be kept by the market committee for permanent record and record of the proceedings of every meeting shall be entered therein by the Secretary under the supervision of the Chairman or the member presiding over the meeting and shall be signed both by the Chairman or the member presiding and the Secretary. It shall be open for inspection during the office hours of the market committee by members thereof and also by the Director, and any other officer authorised by him in this behalf. It shall not be treated as a public document and copies of the record of proceedings of any meeting entered therein shall be supplied by the Chairman to a person when so required by an Order of a Court or an application made to Chairman in this behalf, after collecting the necessary fees fixed therefor in its bye laws.

(2) Copies of the agenda and of resolutions of the meeting shall be sent to all members of the market committee, the Director and the Assistant Director concerned. On a requisition made in this behalf, a copy of the resolutions passed at a meeting shall also be sent to the officers of the other departments who have attended such meeting.

Rule 31 Duties and powers of Secretary

(1) The Secretary shall be the Executive Officer of the Committee. All employees of the Committee shall be under his control, and all orders issued to them shall pass through him. He shall be competent to pass orders with regard to their posting in the principal market yard and sub market yards, (except in the case of Assistant Secretaries) according to the requirements of the Committee and to grant casual leave to such employees.

(2) The Secretary shall work under the control of the Chairman.

(3) The Secretary shall attend all meetings of the committee or sub committee or a joint committee or an ad hoc committee, except a meeting wherein anything, pertaining to him or any of his relatives is to be considered. Explanation : "Relative ", for the purpose of this sub rule, shall mean;

(a) father,mother, son, daughter, brother and sister of the Secretary:and

(b) brother and sister of the father of the Secretary; and

(c) father, mother,son, daughter, brother and sister of the wife or husband of the Secretary.

(4) The Secretary shall advise the Committee and its Chairman in the light of the provisions of the Act, Rules and Bye laws framed under the Act and the directions of the Government or of the Director of Marketing issued from time to time and the previous decisions of the committee. His opinion shall be recorded in the proceedings of of the Committee. The Secretary shall be responsible to send a copy of the proceedings of all the meetings of the committee to the Director immediately, but in no case, later, than three days from the date of the meeting.

(5) It shall be the duty of the Secretary to carry into effect the provisions of the Act, Rules and Bye laws made under then Act and the instructions of the Government or of the Director and the decisions of the committee and Chairman, consistent with the provisions of the Act, the Rules and the Bye laws to effect maximum improvement in the market.

(6) The Secretary shall see that communications addressed to the committee by the Government and the Director are dealt with promptly, and efficiently.

(7) Subject to the provisions of the sub rule (5), the Secretary shall be responsible for carrying on the day to day working of the office of the committee, maintenance of accounts, punctual rendering of returns, monthly review of the progress made in the enforcement of the Act and the safe custody of the cash, the common seal, the minute book and other records and assets of the committee.

(8) The Secretary shall make an annual assessment of the work of the employees engaged in connection with the management of the affairs of the committee and shall submit to the Chairman of the Committee who shall take this assessment into consideration while making final assessment of the work of such employees.

Rule 32 Constitution of sub committees

(1) A market committee may constitute all or any of the following sub committees for assisting it in the discharge of its functions, namely.

(i) Executive sub committee;

(ii) Appointments Sub committee;

(iii) Finance and Works Sub committee;

(iv) Disputes Sub committee;

(2) Each of the sub committees aforesaid shall, besides the Chairman of the market committee, consist of two other members appointed by the market committee in the following manner, namely.

(a) in the case of each of the sub committee, other than the disputes sub committee both the members shall be such as may be appointed by the market committee from among the members thereof;

(b) in the case of disputes sub committee, one member shall be a member of the market committee representing the growers of agricultural produce and owners of livestock and the products of livestock and the second member shall be a member of the market committee representing the persons licensed under Section 7.

(3)

(a) Every sub committee constituted under sub rule (1) shall have as its Chairman, the Chairman of the market committee, who shall preside over the meetings of such sub committee.

(b)

(i) In the absence of the Chairman, the vice Chairman of the market committee, shall act as the Chairman of every sub committee, except the disputes sub committee, and preside over its meetings.

(ii) In the case of the disputes sub committee, in the absence of its Chairman at any meeting, one of the members selected by lot shall preside over such meeting.

(4) The Secretary shall also function as the Secretary of all the sub committees.

Rule 33 Nature of dispute to be decided by the Disputes Sub Committee and the procedure to be followed therefore

(1) The Disputes Sub Committee shall arrange for the settlement of disputes in regard to the quality or weight as the case may be, of the agricultural produce, livestock or products of livestock or the price or rate to be paid therefore the allowances for wrappings, dirt or impurities or the deductions for any cause or the payment of sale proceeds due to a seller or commission agent from a buyer or a commission agent or the time lag fixed in connection with such payment, arising between

(i) a buyer and a seller

(ii) a buyer and a commission agent;

(iii) a commission agent and a seller;or

(iv) the agents of any of them.

(2) The disputes sub committee shall appoint a panel of not less than five but not more than fifteen person s, known for their integrity, to act as arbitrators in the settlement of disputes referred to the disputes sub committee, from among the agriculturists residing in the market area and the traders doing business in such area but not being the members of the market committee.

(3) {Where any dispute of the nature referred to in sub rule (1) arises, it shall be reported to the Secretary by submitting an application in writing signed by either of the parties for the dispute together with such fees not exceeding Rs.10 as may be fixed and notified by the Market Committee for each such dispute and the dispute shall be decided in accordance with following procedure,namely:

(i) The Secretary shall try to settle the dispute himself by hearing both the parties. In case the parties do not agree to the settlement suggested by him he shall call upon each of the parties to select one arbitrator from the panel of arbitrators appointed under sub rule (2).

(ii) The arbitrators so selected shall, after hearing the parties give their decision thereon. If there is no unanimity in the decision of the arbitrators, they shall refer the same to an umpire named by them from the panel of arbitrators aforesaid who shall, after considering the views of both the arbitrators, give his decision in the matter.

{(iii) If any of the parties to the dispute is aggrieved by the decision of the arbitrators or the umpire, he may prefer an appeal against such decision to the Disputes Sub Committee whose decision therein shall be final and binding on both parties to the dispute and if any party defies the decision of the Dispute Sub committee the Market Committee may cancel the licence of such party.

(iv) The dispute shall, as far as possible, be decided on the spot and on the same day.

(v) The Market Committee shall maintain a full record of all the disputes reported and settled as aforesaid in a register in Form 14.

Rule 34 Subscription for Market Intelligence

The market committee may, with the approval of the Director, levy a subscription not exceeding Rs.25 per annum exclusive of postage from every subscriber for copies of the market report published by the market committee. Such subscription shall be paid in advance to the market committee. The market committee shall display on the notice board of its office the arrivals, prices and stocks of notified agricultural produce, livestock or products of livestock.

Rule 35 Propaganda in favour of production and marketing of the notified agricultural produce, livestock or products of livestock

The market committee shall whenever its funds permit, subject to the prior approval of the Director provide staff for propaganda (including demonstration) and publicity in favour of the improvement of the production and marketing of the notified agricultural produce, livestock or products of livestock.

Rule 36 Promotion of grading services

The market committee shall undertake grading of notified commodities in accordance with the grade, at designations fixed under the Agricultural Produce (Grading and Marketing) Act,1937 (Central Act 1 of 1937)or other grade fixed by the market committee according to the standards of commercial grading. The market committee shall, with the previous sanction of the Director, appoint necessary staff required for such grading.

Rule 37 Prevention of adulteration of notified commodities

It shall be the duty of the market committee to take all possible steps to prevent adulteration of notified commodities in the notified area and no person doing business in the notified area, shall cause adulteration of any notified commodity or sell or cause to be sold any adulterated commodity in the notified area.

Explanation : For the purpose of this rule,adulteration of notified commodities shall include--

(a) the mixing of varieties of different qualities of a commodity, mixing of sieved remains of commodities and mixing of earth, dirt or stones or any other extraneous matter with any notified commodities.

(b) the addition of non edible colouring matter in polishing of turmeric or non edible clarificant in the preparation of jaggery.

Rule 38 Travelling Allowance of the Members of the Committees

(1) The Market Committees with the strength of 16,14 and 12 members shall pay sitting fees not exceeding Rs.12 and Rs.10 per day respectively to its Chairman, Vice Chairman and members

.

(2) The Market Committee shall pay its Chairman, Vice Chairman and Members the travelling allowance for journeys undertaken by them for attending the meetings of the Market Committee, meetings convened by the Director or for inspection tour within the notified area or study tour outside such notified area at the rates specified below;

(a) for journey by railway : First Class fare and daily allowance of Rs.10.

(b) for journey by road :

(i) Only daily allowance of Rs.10 when Market Committee Vehicle or Government Vehicle is used, or

(ii) Actual bus fare plus Daily Allowance at the rates prescribed in clause (a)above.

(c) for journey partly by railway and partly by road : First class fare for the rail journey and actual bus fare for the road journey plus the Daily Allowance at the rate prescribed in clause (a)above.

(d) for journey by road between places unconnected by train or bus : Travelling Allowance at the rate of 16 paise per Kilometre or Daily Allowance at the rates prescribed in clause (a) above whichever is beneficial.

(e) for halts at the State Capital and places outside the State : Daily Allowance of Rs.15.

(f) for halts at Delhi,Bombay,Calcutta and Srinagar : Daily Allowance of Rs.20. Provided that where the Chairman, Vice Chairman or a Member of the Market Committee travels in a class lower than that to which he is eligible by rail, he shall draw a single fare of the class by which he actually travelled.

Provided further that if the Chairman, Vice Chairman or a Member of the Market Committee undertakes tour on the same day under this sub rule or under sub rule (1),he shall be allowed either sitting fees or daily allowance for the day whichever is advantageous to him.

(3) The Market Committee shall not allow its Chairman, Vice Chairman,Members, officers or employees to incur any expenditure for performing journeys beyond its jurisdiction to any place within the State without the previous sanction of the Director {or any officer authorised by him in this behalf and to any place outside the State without the previous sanction of the Government.

(4) The market committee shall not incur any expenditure on any deputation sent by it to any place outside the State without the sanction of the Government and the number of members for any such deputation shall in no case exceed three including the Chairman or Vice Chairman.

(5) The market committee may pay any an honorarium to its Chairman at the rate not exceeding Rs.200 per month, Rs.150 per month and Rs.100 per month where the annual income of the Market Committee is Rs. Lakhs and above, less than Rs.2 lakhs, but not less than of 1 lakh and less than Rs.1 lakh,respectively subject to the availability of funds and with the prior approval of the Director.

Rule 39 Security

The market committee shall take cash and personal security or as the case may be personal security only as specified below from each of the categories of its employees at the rates specified against each of these categories,namely:

Rule 40 Inspection and administration of the market committees

(1) The Director shall control and ordinate the administration and proper working of the market committees in the State.

(2)

(a) He shall inspect and may authorise any of his officers to inspect periodically the offices of the market committees, markets, premises of the licensees, etc., and issue such instructions, from time to time, for proper implementation of the provisions of the Act or of the rules and buy laws made thereunder.

(b) The Director may, of his own motion, himself inspect or cause to be inspected by an officer authorised by him, the accounts of a market committee of hold an enquiry into the affairs of the market committee.

(3) When the affairs of a market committee are enquired into, all members, officers and servants of the market committee shall furnish such information and produce such documents in their possession, relating to the affairs of the market committee as the Director or the officer authorised by him may require.

Rule 41 Officers entitled to attend meetings of Market Committee

Officers of the Marketing Department not below the rank of Assistant Director of Marketing, the District Collector or any of his subordinates not below the rank of a Tahsildar authorised by him in writing shall be entitled to attend any meeting of the market committee constituted for any notified area within his jurisdiction and to address the market committee, on any matter but shall not be entitled to vote. The Chairman of the market committee may request an officer of any other department connected with any notified agricultural produce, livestock or products of livestock to attend and address any meeting to the market committee.

Rule 42 Meetings of the Market Committee not open to the public

The meetings of the market committee shall not ordinarily be open to the public but such persons of the public who are interested in attending a meeting can do so with the prior permission of the Chairman or the presiding member.

Rule 43 Proposals and references

All proposals or references from a market committee intended for sanction by or for information or approval of the Government shall be sent to the Director who shall forward such proposals or references to the Government with his remarks and all references from the market committee to any officer of the Government shall be made through the Head of the Department to which he belongs.

Rule 44 Penalty for disobedience of orders

Any person entering or attempting to enter the market when directed not to do so by an officer of the market committee or disobeying the instructions of any such officer of the market committee in regard to the places where carts and other vehicles loaded with the notified agriculture produce, livestock or products of livestock and animals may stand or in regard to the roads by which and in regard to the time at which they may proceed, shall be punishable with fine which may extend to ten rupees in the case of first offence and to fifty rupees in the case of every subsequent offence.

Rule 45 Bye laws

The market committee shall make bye laws under Section 34 consistent with these rules and model bye laws framed by the Director to regulate its own procedure and to specify the conditions of trading in the notified area. The bye laws shall, inter alia, provide for

(1) the procedure regarding issue of passes;

(2) the method of disposal and hearing of complaints:

(3) the levy of licence fees;

(4) the levy of market charges.

(5) the regulation of the duties of commission agents and other traders sellers, brokers, weighman and other licensed persons of a market.

(6) the time lag allowed for submission of copies of tak patties and Amanat Parties to the office of the market committee by the commission agent and the late fee chargeable after due date.

(7) the fixing of percentage of refraction and tare weight;

(8) the refund of excess deductions made from the sale proceeds due to the seller and the recovery of the over payment made to the seller.

(9) fees for supply of copies of records of proceedings of the meetings;

(10) Procedure for the conduct of auction of notified agricultural produce, livestock or products of livestock.

Rule 46 Prosecutions

(1) No prosecution shall be instituted for any breach of any of these rules without the previous sanction of the market committee. No prosecution shall be instituted against a licensed person until he has been given an opportunity of explaining his conduct and then only under the special orders of the market committee passed at a special meeting of which notice shall be given to all members.

(2) Notwithstanding anything in sub rule (1), the Director or any officer authorised by him may, if he is satisfied that the previous sanction is refused on flimsay grounds or passing of the special orders under that sub rule is unduly delayed, he may himself institute a prosecution for any offence under these rules.

Rule 47 Exercise of the powers to write off irrecoverable amounts

Before exercising the powers to write off irrecoverable amounts under Section 24 the market committee shall consider the issue in a meeting and satisfy itself that the amounts due cannot be recovered either because the person is not traceable or has become insolvent or the officer entrusted to collect such amounts has reported that the recovery is not possible.

CHAPTER 5 Regulation of Trading

Rule 48 Application for grant or renewal of licence under sub section (1),of Section 7 and fees chargeable therefore

(1) Any person desiring to obtain or renew a licence under sub section (1) of Section 7 shall make an application in Form 5.

(i)Provided that every such applications shall be accompanied with such fees which shall not exceed {Rs.125 (Rupees one hundred twenty five only) as may be fixed in the bye laws of the market committee.

(ii)Provided further that a person residing outside the notified area and desiring to operate in a notified area of a Market Committee for specific transactions which may not exceed ten in a year may be granted a special licence on payment of such fees which shall not exceed Rs.20.(Rupees twenty only) as may be fixed in the bye laws of market committee;

(iii) Provided also that every application for renewal of licence shall be accompanied with such fees which shall be half of the fees fixed for issue of licence;

(iv) Provided also that where a trader licensed in one market committee desires to effect purchase or sale in the jurisdiction of another market committee, he may be granted a special licence on payment of Rs.15

(2) A Market Committee may exempt from the provisions of subsection (1) of Section 7 any person who on any single day carries on the business of purchasing or selling any notified agricultural produce, livestock or products of livestock of a value not exceeding Rs.300 (Rupees three hundred only).

Rule 49 Licence to operate as broker, carting or clearing agent, etc., in notified area

(1) No person shall operate within a notified area as broker, carting or clearing agent, warehouseman, weighman, measurer, surveyor, lorry owner, cartman or hamal except under and in accordance with the conditions of a licence granted to him by the Market Committee: Provided that no person who is in the service of any other person, or who does any other business, shall be eligible to hold a licence as a broker, warehouseman, weighman, measurer, surveyor, or cartman, carting or clearing agent.

(2) Any person desiring to obtain a licence or renew his licence under sub rule (1)shall make an application in Form 6 or Form 7, as the case may be together with such fees not exceeding the maximum specified below as may be fixed in the bye laws of the market committee.

Licence to operate as

Maximum fee per annum for

obtaining or renewing

licence annually.

Rs.

1. Broker

25

2. Carting or clearing agent

10

3. Warehouseman

5

4. Weighman, measurer or surveyor

10

5. Lorry owner

5

6. Cartman

2

7. Hamal

1

Provided that the market committee may, in the case of Hammal decide not to collect any licence fee.

Rule 50 Great or Renewal of Licences

(1) The Market Committee shall within fifteen days of the receipt of the application for a grant or renewal of a licence under Rule 48 or Rule 49, either issue or renew a licence in Form 8 or Form 9 or Form 10 or Form 11, as the case may be, or reject the application therefor giving reasons for such rejection.

(2)

(a) An application for the renewal of a licence shall be made atleast thirty days before the date on which the licence is due to expire. Provided that where any such application is not made as aforesaid, but before the date of expiry of the licence, the market committee shall on payment of a late fee at a rate equivalent to 10 percent of the prescribed licence fees during the first fifteen days and at a rate equal to 25 percent of the prescribed licence fees thereafter but within thirty days after the expiry of the date of licence, in case of a trader or a commission agent; or a late fees equal to half the amount of an annual licence fee in case of any other licence in addition to the fees specified in Rule 49 renew such licence in Form 9 or Form 10 or Form 11, as the case may be, with thirty days after the date of expiry of the licence.

(b) Every renewal of licence granted under this sub rule shall take effect from the date following that on which the licence expired.

(3) Every licence issued or renewed under this rule shall expire on the last day of the financial year, for which it was issued. Full fees shall be payable even for a part of the year.

Rule 51 Issue of Duplicate licence

The market committee, if it is satisfied that licence issued by it has been lost or accidently destroyed, may issue a duplicate of that licence on payment of a fee of Re.1,(Rupee one only).

Rule 52 Suspension or cancellation of licences

(1) The market committee may by a resolution passed in a meeting or by circulation and approved by a majority consisting of not less than four of its members, cancel or suspend the licence granted to any commission agent or trader or any other person licensed under sub section (1) of Section 7, if it is satisfied that:

(a) the licence has been obtained through wilful misrepresentation or fraud;or

(b) the holder thereof or any servant or any one acting on his behalf with his express or implied permission commits a breach of any of the terms or conditions of the licence or the provisions of these rules or the bye law of the market committee;or

(c) the holder of the licence in combination with other holders of licences commits any act or abstains from carrying out his normal business in the market with the intention of wilfully obstructing, suspending of stopping the marketing of any notified agricultural produce, livestock or products of livestock in the market area in consequence where of the marketing of such notified agricultural, produce, livestock or products of livestock has been obstructed, suspended or stopped ;or

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

(e) the holder of the licence is convicted of any offence under the Act.

(2) The market committee before cancelling or suspending the licence granted under sub rule (1) shall issue a notice to the person concerned calling upon him to show the cause with the seven days from the service thereof, why the licence should not be cancelled or suspended and consider his reply thereto if any, received from him before the expiry of the time specified in the notice:

{Provided that the Chairman, Market Committee may suspend the licence of a person who obtains licence under Section 7 or Rule 79 for a period not exceeding 7 days pending ratification by the Market Committee.

Rule 53 Appeal from the orders cancelling or suspending a licence

(1) An appeal from the orders of the Market Committee shall be preferred within period of ninety days from the date of communication of such orders before the Director. The Director shall, on receipt of such appeal, call for all the relevant registers and records from the market committee, make or cause such enquiry as he deems necessary and pass order either confirming or cancelling the orders of suspension or cancellation of the licence.

(2) The Director may suspend the execution of the order pending the exercise of his power under sub rule (1) in respect thereof.

Rule 54 Method of sale

Sale of all the notified agricultural produce, livestock or products of livestock brought into a market for sale shall be conducted by the market committee by open auction or tender system or any other system specified in the bye laws. They shall be exhibited for sale, auctioned or weighed in the manner laid down in its bye laws.

Rule 55 Unit of price quotations

The unit of price quotations in respect of sale of notified agricultural produce, livestock or products of livestock shall be the unit of metric weight, or metric measure or the number specified in the bye laws of the market committee.

Rule 56 Trade practices

(1) The market committee shall provide facilties for direct sale between a seller and buyer in the market. The seller shall be free to sell his notified agricultural produce, livestock or products of livestock either directly or through a licenced commission agent or any other person licensed for the purpose.

(2) It shall be the responsibility of the buyer to take delivery of the notified agricultural produce, livestock or products of livestock immediately after its weighment, measurement for counting as the case may be in the market in its naked form and make payment therefor on the same day.

Rule 57 Places of control over weighment, measurement or counting

(1) All the weighments, measurement, or counting, as the case may be, of the notified agricultural produce, livestock or products of livestock purchased or sold in the market and those under storage, pressing, processing or export in the notified market area shall be conducted under the control of the market committee through licensed weighmen who shall render such accounts therefor as may be specified by the market committee.

(2) Any person contravening the provisions of this rule shall be punishable with fine which may extend to five hundred rupees.

Rule 58 Authorised weights and measures to be used

Only such weights and measures as conform to the metric weights or metric measures and their multiples and sub multiples thereof shall be used in transactions governed by the Act, in the notified area.

Rule 59 Test of scales, weights and measures, weighments, measurements and counting

Any officer or employee of the market committee authorised by it in this behalf, may, at any time and without notice, examine and test any scale, weight or measure used, kept or possessed in any place within the limits of the notified area and inspect, examine and test the weighment, measurement or counting, as the case may be, of any notified agricultural produce, livestock, or products of livestock within the limits of the notified area.

Rule 60 Set of metric weights and measures to be kept by the market committee

The market committee shall keep at least one set of metric weights and scales which shall, during the office hours of the market committee, be available to the public for comparison with their own metric weights and scales.

Rule 61 Counter balancing in weighment

A weight equivalent to that of the bag, tin or other packing material, which contains the notified agricultural produce or products of livestock and the rope or twine used for the packing thereof shall be added to the weight side of the scale in order to counter balance the weight of such bag, tin or other packing material and the rope or twine placed on the weighing side of the scale.

Rule 62 Production of scales, measures and weights for inspection

Every person who is granted a licence under sub section (1) of Section 7 shall on order by any person authorised under Rule 59 declare every scale, measure or weight kept or possessed by him or by any person or persons under his authority and control and produce them for examination at such time and in such place as may be required and shall allow the person authorised under Rule 59 to examine and test the same.

Rule 63 Report on incorrect scales, measures and weights

If on examination under Rule 59 or Rule 62 any scale, measure or weight is found to be unauthorised or to be incorrect, the matter shall be reported by the Secretary to the concerned Government officer in charge of the administration of the weights and measures for such action as is deemed necessary by him in the circumstances of the case.

Rule 64 Commission agent or buyer to pay scale proceeds to the seller promptly

When the notified agricultural produce, livestock or products of livestock is sold through a commission agent, he shall pay the sale proceeds of the notified agricultural produce, livestock or products of livestock from his own account to the seller on the same day of its sale after deducting charges payable by the latter as permissible under the bye laws of the market committee and recover the same from the buyer:

Provided that when any notified agricultural produce, livestock or products of livestock is sold directly by the seller to the buyer, the latter shall pay the sale proceeds to the seller immediately on the same day after the weighment, measurement or counting is done through the market committee on the basis of measurement or counting prepared by it. He shall be entitled to lift the notified agricultural produce, livestock or products of livestock only after payment of sale proceeds.

Rule 65 Issue of tak patti

Every commission agent shall effect payment in accordance with the tak patti (sale slip) prepared and shall issue the original to the seller, duplicate to the buyer, triplicate to the officer of the market committee and the fourth copy duly signed or marked with the thumb impression of the seller as having received the net amount of the sale proceeds shall be retained by the commission agent himself for a period of two years or till such time as the tak patties are audited by the officer authorised whichever is earlier.

Rule 66 Issue of amanat patti

Where any notified commodity is brought to the commission agent to conduct its sale in the market or to transport it to other market or export at a later date, the latter shall arrange for its storage on his own account pending such sale or transport thereof, and he shall issue amanat patti (storage slip) in the manner specified in the bye laws of the market committee.

Rule 67 Commission agent to arrange storage facilities

It shall be the responsibility of the commission agent to arrange for the storage of the notified commodities and its insurance against theft, fire, floods, rains or any natural calamity, if desired by the seller pending its sale in the market or export thereof, at a later date :

Provided that where a seller assembles any notified commodity in the market by direct sale, the market committee besides providing all facilities for such sales, may provide temporary storage for unsold stocks for a period not exceeding one week, if so desired by the seller and also undertake such insurance on his behalf and recover such amounts as may from time to time, be determined ;

Provided further that where a notified commodity is stored and not removed within a week, the said notified commodity may be dealt with as specified in the bye laws of the market committee.

Rule 68 Fixation of trade allowance and deductions

(1) No licensed trader, broker or weighman shall demand, take or retain any allowance or unpaid for sample in regard to any transaction entered into in the notified area. Any person demanding, taking or retaining such allowance or unpaid for sample or in any way facilitating or conniving at the demanding, taking or retaining of such allowance or unpaid for sample shall be punishable with fine which may extend to two hundred rupees. Explanation : A sample which it is intended to pay for on weighment is not an unpaid for sample within the meaning of this rule.

(2) No fees or contribution on account of charity shall be levied on or paid by any seller in respect of the auction sale of his notified commodity in the notified area or its storage, weighment, measurement, pressing, processing or export in the notified area and any person demanding, taking or deducting such fees in the tak patti or amanat patti or in any way facilitating or conniving at the demanding, taking or deducting such collection directly or indirectly in respect of any notified commodity in the notified area shall be punishable with fine which may extend to five hundred rupees.

(3) Where a Market Committee is of the opinion that any trader or commission agent in the notified market area has made any collection in excess of what is allowed in the rules or in the bye laws, the market committee shall by a resolution passed in a meeting, authorise any officer not a below the rank of an Assistant Secretary to direct the trader or commission agent to produce before him the Tak Patties, the account books, relevant records and documents for inspection and to furnish any other information and to explain contents thereof. Such records and documents shall be treated as confidential except for the purposes of any Government Department.

(4) The officer authorised by the Market Committee in this behalf, after examination and inspection of the records and after such enquiry as may be necessary may determine the amount collected in excess or unauthorisedly on the basis of the transactions, appearing in the dealer accounts books and on the basis of enquiry made. The officer authorised shall issue a notice to the trader or commission agent concerned calling upon him to show cause within seven days from the service thereof why the said amount collected in excess or unauthorisedly shall not be recovered from him. The Market Committee after duly considering the reply thereto, if any, received from the trader or commission agent, before the expiry of the time specified in the notice, shall direct that he shall pay the excess amount collected within a period of 15 (fifteen) days either by crossed Demand Draft or in cash and obtain receipt therefor in token of having paid to the Market Committee the excess collection made by him.

(5) Whoever, in contravention of the provisions of this rule, refuses to produce the record and accounts as required by the officer authorised by the Market Committee, shall be punishable with fine which may extend to five hundred rupees ; and in the case of continuing offence with a further fine which may extend to fifty rupees for every day during which the contravention is continued after conviction therefor.

Rule 69 Chungdi to be brought by the buyer

No buyer shall refuse to buy the chungdi at the same price as declared for the lot, of which the former forms a part; any sweepings of the market shall be the property of the market committee and the cost thereof shall be credited to its accounts at the end of each day transactions.

Rule 70 Registers to be kept by traders, commission agents, weighmen, etc

(1) Every licensed trader, commission agent, ginner, presser, processor, warehouseman, importer, exporter, stockists and any other licensed person operating in the notified area shall maintain accounts in such manner and submit such reports and returns to such authority as may be specified by the Market Committee in this behalf .

(2) If any licensed person fails to send any reports or returns under this rule or if the Secretary or the Director considers it necessary to examine the account books relating to the business of any such person, to satisfy himself about the corrections of any report or returns submitted by him or for any other sufficient reason, the Secretary or the Director, as the case may be, may direct such person to produce before him the account books and other relevant records and documents for the inspection and to explain the contents thereof. Such records and documents of the licensed person shall be treated as confidential except for purposes of any Government Department. If any licensed person fails, without sufficient cause, to comply with the directions of the Secretary or the Director aforesaid, he shall be punishable with fine which may extend to Rs. 500. (Five hundred rupees).

Rule 71 Employing a Broker

(1) No person shall, in the absence of an express agreement, be bound to employ a broker in any transaction or be required to pay for a broker employed by any other party to the transaction or to pay for a broker when none is employed.

(2) The same person shall not act as a broker both for the buyer and the seller of a notified agricultural produce, livestock, or products of livestock or present or offer for sale in a notified area an adulterated notified commodity.

Rule 72 Storage and Accommodation

The market committee, may, so far as its funds permit, arrange accommodation for livestock in the market and for the storage or for stocking of notified commodities. The market committee shall not allow any such accommodation to be utlised for the purpose of facilitating speculative holding up of any such notified commodities.

Rule 73 Market Charges

(1) No charges other than those specified by the Director by a general or special order shall be payable by the seller or the purchaser in a market.

(2) A licensee functioning as commission agent shall not collect any amounts other than the market charges as prescribed under the provisions of the Act, the rules made thereunder or the bye laws.

(3) Any person contravening the provisions of sub rule (2) shall be punishable with a fine which may extend to five hundred rupees.

CHAPTER 6 Market fees Levy and collection of fees

Rule 74 Market Fees

(1) The fees leviable under sub section (1) of Section 12 on notified agricultural produce, livestock and products of livestock if paid to a market committee within the State shall not be collected by another Market Committee when such notified agricultural produce, livestock or products of livestock are brought into the notified market area of another market committee for the purpose of processing, pressing, packing, storage, export and on sales effected in the course of commercial transactions between the licensed traders, and the licensed traders and consumers subject to production of such evidence as may be prescribed in the bye laws about the payment of market fees from where it was brought. Provided that the fees shall be levied on the notified agricultural produce, livestock or products of livestock when such agricultural produce, livestock or products of livestock are sold in auction or in other manner prescribed in the bye laws in the market either directly or through commission agents even though purchased already in the same market or some other market or place within the State.

(2) Such fees shall be leviable as soon as the notified agricultural produce, livestock and products of livestock is purchased or sold by a licensee. The notified agricultural produce, livestock or products of livestock shall be deemed to have been purchased or sold after the notified commodity has been weighed or measured or counted or when it is taken out of the notified market area.

(3)

(4) The market committee may collect market fees through its licensed commission agents.

(5)

(a) The market fees collected by the licensed commission agents or traders on the notified agricultural produce, livestock or products of livestock, shall be paid to the market committee not later than the 25th of the succeeding month

(b) Any contravention of this sub rule shall be punishable with fine which may extend to five hundred rupees.

Rule 75 Check post

(1) No person shall transport any notified agricultural produce, livestock, or products of livestock purchased or sold in the notified market area, from the limits thereof, except on production of the receipt for the payment of prescribed fees in respect of such notified agricultural produce, livestock or products of livestock to the market committee concerned.

(2) Any employee of the market committee authorised by it in this behalf shall have power at any time and without notice to stop and check any vehicle suspected to carry unauthorisedly any notified agricultural produce, livestock or products of livestock from any place within the limits of any notified market area.

(3) Any person who fails to stop the vehicle when required to do so under sub rule (2), shall be punishable with fine which may extend to Rs. 500 .

Rule 76 Penalty for evasion of payment of fees

Any person removing or attempting to remove any notified agricultural produce, livestock or products of livestock from any notified market area or allowing the transport of any such notified agricultural produce, livestock or products of livestock from such area in contravention of the provisions of Rule 75 before the fee has been paid therefor and a receipt obtained in respect of such payment or practising any device in order to evade or facilitate evasion of the payment of the fees shall be punishable with fine which may extend to five hundred rupees.

Explanation: For purposes of Rules 75 and 76, the expression person shall include a Government.

Rule 77 Register of Fees

The market committee shall maintain a register showing the licence fees, fees under Section 12 or any other charges collected by it. A receipt shall be granted to every person in respect of the fees, or charges so collected from him under these rules

Rule 78 Use of employees for collecting fees

The fees under Section 12 shall be collected only by the officers and servants of the market committee. The of collecting fees shall not be leased out.

Rule 79 Employees collecting fees

Every officer or servant of the market committee other than the Secretary shall carry an identification card given under the seal of the market committee authorising him to collect fees on behalf of the market committee.

Rule 80 Inspection of cash and accounts

The Secretary shall arrange to inspect and check periodically the cash and accounts of the officers and servants, authorised to collect fees on behalf of the market committee.

CHAPTER 7 Market Committee Funds, Budget and Account

Rule 81 Budget

The market committee shall meet annually not later than two months, proceeding the commencement of its official year to prepare and adopt the budget of income and expenditure for the next year in the form specified by the Director and shall submit to the Director for sanction before 45 days of the closure of the year:

Provided that the market committee shall be competent to incur expenditure provisionally as per budget passed by the committee in case the sanction of the Director is not received within 30 days from the date of submission of the budget to him.

Rule 82 Budget conference of Committee

The Director may convene a conference or conferences of the representatives of the market committees to discuss issues relating to the budget estimate of individual committees and may effect alterations whenever necessary considering the resources and needs of each of such market committees.

Rule 83 Re-appropriation of Savings from and item to another item of Expenditure and Supplementary Grants

The market committee shall regulate its expenditure in accordance with the provisions of its budget and in accordance with instructions issued from time to time, by the Director. No expenditure shall be incurred for which there is no budget provision unless it can be met by reappropriation from savings under other heads or by a supplementary grant from the available reserve, subject to such demand from the market committee and sanction thereto by the Director.

Rule 84 Publication of Accounts in Audit

(1) The market committee shall keep such accounts and in such form and in such manner as may be specified by the the Government in this behalf by general or special order for the audit of the accounts of the committee. The market committee shall prepare and publish annually before the end of the month following the close of its official year a statement of its assets and liabilities with a balance sheet as on the closing day of that year.

(2) The Secretary shall cause to be produced all accounts, registers, documents, and other papers, which may be required by the Director in connection with the audit of the accounts of the market committee. He shall also furnish immediately any explanation called for by the Director for the settlement of any discrepancy in such accounts.

Rule 85 Surplus Fund

All unexpended balances on the last working day of the committee official year shall be invested in such banks or in such interest bearing securities with the sanction of the Government or of an officer authorised by the Government in this behalf.

Rule 86 Central Market Fund

The market committee at the end of every month shall assess the amount of contribution on the basis of all monies received by it and credit the same to the Central Market Fund.

Rule 86A Contribution to the Market Fund

(1) Every market committee shall contribute to Central Market Fund before the 20th of April, of the subsequent year 10% of its income derived in the previous year.

(2) Every Market Committee shall maintain a separate Register showing the income of every year and remittance to the Central Market Fund every year.

(3) In case any market committee fails to remit the contribution to the Central Market Fund within the time prescribed, the said amount with simple interest at 6 per annum shall be recoverable from the market committee by the Director.

Rule 86B Application and Administration of Central Market Fund

(1) The Central Market Fund may be appied by the Director for all or any of the following purposes, namely:

(i) Grant in aid of the market committee for the first year after their constitution under the Act for incurring initial expenditure for the setting up of office of market committee or a market.

(ii) Grant in aid not exceeding Rs.20,000 shall be sanctioned to such of those committees which are either deficit or lacking the repaying capacity. Such grants shall be used for providing amenities to the users of Market Yard.

(iii) Grant of loans to market committees for acquisition of sites for market yards and their development, at such rate of interest as is charged on loans granted by the Government to local bodies for developmental purposes.

(iv) Expenditure to be incurred in maintaining and running the Central Market Fund and in connection with State Agricultural Marketing Advisory Board.

(v) Expenditure to be incurred for grading, market intelligence, publicity, developmental works, purchase of movable and immovable properties and appointment of staff necessary therefor.

(v-a) Expenditure to be incurred for receiving and entertaining the marketing delegations and V.I.Ps. from other States to the extent of Rs.1,000 on each occasion.

(vi)

Such other purposes as the Government may by general or special order specify to promote agricultural marketing in general.

(2) The director shall obtain the approval of the Government before sanctioning any grant in aid or loan exceeding Rupees five thousand.

(3) The grant in aid of a deficit market committee may be for a period not exceeding three years.

Rule 86C Budget of Central Market Fund

The Director of Marketing will prepare the Annual Budget of income and expenditure of the Central Market Fund and submit before the 30th April of every year to the Government for sanction:

Provided that the Director shall be competent to incur expenditure provisionally as provided for in the budget pending sanction of the Government.

Rule 86D State Agricultural Marketing Advisory Board

(1) There shall be a State Agricultural Marketing Advisory Board consisting of 25 members, of whom,

(a) 3 shall be the following officials:

(i) the Secretary to Government, Food and Agriculture Department;

(ii) the Director of Marketing ; and

(iii) one official representing the Directorate of Marketing and Inspection, Government of India;

(b) 9 shall be from among the Members of the Andhra Pradesh State Legislature, to be nominated by the Government;

(c) 13 shalll be non officials to be nominated by the Government in consultation with the Director of Marketing in the following manner:

(i) three Chairmen, Market Committees from each of the three zones I, II and III as specified in Rule 159 ;

(ii) three progressive growers;

(iii) one representative of Chamber of Commerce of Andhra Pradesh. The Minister in charge of Marketing shall be Ex officio Chairman, and the Director of Marketing shall be Secretary of the Board. There shall also be a Vice Chairman to be elected from among the non official nominated members, including members of the State Legislature.

(2) The functions of the Board shall be--

(i) to tender advice to the Government in all matters relating to utilisation of Central Market Fund for the general improvement of markets in the State;

(ii) to consider different problems of the Market Committees arising out of the enforcement of the Act and Rule and to render necessary advice, from time to time;

(iii) to do all such acts may be directed by the Government, from time to time, to promote orderly marketing of commodities notified under the Act;

(iv) to review the working of regulated markets in general and suggest measures to being about uniformity in marketing practices in all the reguated markets :

(3) The term of office of the non official members of the Board shall be three years.

Provided that the members of the Board who are nominated from among the members of the State Legislature shall continue only so long as they remain to be such members.

Provided that a non official member shall cease to hold his office, if he absents himself from three consecutive meetings of the Board including meetings which for want of quorum could not be held".

(3A) Where a person ceases to be a member under the proviso to Rule (3), the Secretary of the Board shall at once intimate the fact in writing by Registered Post with Acknowledgment due to such person and report the same to the Board, at its next meeting. If such person applies for restoration of membership to the Board on or before the date of its next meeting or within fifteen days of the receipt by him of such intimation, the Board may at the next meeting after the receipt of application restore him to his office.

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

(4) Subject to the rules made for the purpose of administration of the Central Market Fund, the Board may employ such persons for the performance of the functions of the Board and may give them such remuneration as it may think fit and may suspend, remove, dismiss or otherwise punish any person so employed.

(4A) The rules relating to the conditions of service, pay and allowances, pension, provident fund contributions applicable to the employees of the Market Committees, for the time being in force, shall apply to the persons of the corresponding posts employed under sub rule (4).

(5) The Board shall meet at least once in three months.

(6) The members of the Board shall be eligible for Travelling Allowance and Daily Allowance at such rates as may be prescribed by the Government for a 1st Class Committee:

{Provided that the members whose headquarters is located at a place where the meetings of the Board are held, they shall be eligible to draw only sitting fees equal to daily allowance.

CHAPTER 8 Market Committee Works

Rule 87 Works

(1)

(a) All plans and estimates for works proposed to be carried out by the market committees shall wherever feasible or practicable be designed by the Engineering cell of the office of the Director. In cases where such Engineering cell considers that the technical advice of any Engineer of the Public Works Department or Roads and Buildings Department or Public Health Department is necessary, the case may be referred to such Department.

(b) Technical sanction of all the original works and repairs shall be accorded by the Market Engineer.

(c) No works for which plans and estimates have not been previously prepared or which have not received the technical sanction shall be included in the budget.

(2) The Market Committee shall call for tenders in the proforma and in accordance with the procedure which shall be specified by the Government in consultation with the Director and the Public Works Department.

(3)

(a) No works shall be undertaken or carried out except under the supervision of a qualified technical officer not below the rank of an overseer or supervisor appointed for the purpose by the market committee in consultation with the Director.

(b) In respect of any work the approved estimate of which exceeds Rs. 5,000, the Market Engineer authorised by the Director in this behalf shall inspect the works at the stage of excavation and roof level on intimation by the Market Committee. The foundations shall be filed under the supervision of the said Market Engineer and roof shall not be laid in his absence : Provided that where the approved estimate of any work does not exceed Rs. 5,000 it shall be competent for the Market Committee to execute the same under its own supervision in accordance with the technical advice tendered by the Director from time to time ;

Provided further that the final payment for the work shall be made by market committee on its own responsibility, only after check measurement made by the Market Engineer authorised by the Director in this behalf.

CHAPTER 9 Surcharge Rules

Rule 88 Submission of Accounts

The Secretary shall submit all accounts of the market committee to the Director of Local Fund Audit (hereinafter referred to as "the auditor") as required by him.

Rule 89 Power to summon Documents

(1) The Auditor may

(a) by summons in writing, require the production of any book, deed, contract, account, voucher, receipt or other document, the perusal or examination of which he considers necessary ;

(b) by summons in writing, require any person having the custody or control of any such document or accountable for it to appear in person before him ;

(c) require any person so appearing to make and sign a declaration with respect to such document or to answer any question or to prepare and furnish any statement relating thereto

(2) Whoever fails to comply with any requisition lawfully made upon him under this rule, shall be punishable with fine which may extend to fifty rupees.

Rule 90 Auditor to report Material Impropriety or Irregularities, Loss, Waste or Misapplication

(1) The auditor shall report to the market committee any material impropriety or irregularity which he may observe in the expenditure or in the recovery of money due to market committee or in the accounts of the market committee.

(2) The Auditor shall report to the market committee any loss, waste, or misapplication of money or other property owned by or vested in the market committee, if such loss, waste or misapplication is a direct consequence of neglect or misconduct, with the names of any person directly or indirectly responsible for such loss, waste or misapplication.

Rule 91 Duty of the Secretary to remedy the defects or irregularities

The Secretary shall forthwith remedy any defects or irregularities that may be pointed out by the auditor and report the same to the market committee.

Rule 92 Powers of auditors to disallow and surcharge

(1) The auditor may disallow every item contrary to law and surcharge the same on the person making or authorising the making of the illegal payment and may charge against any person responsible therefor the amount of any deficiency, loss or unprofitable outlay incurred by the negligence or misconduct of that person or of any sum, which ought to have been, but is not brought to account by that person and shall in every such case, certify the amount due from such person. Explanation : It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct, the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person.

(2) The auditor shall state in writing the reasons for his decision in respect of every disallowance, surcharge or charge and furnish by registered post a copy thereof to the person against whom it is made.

(3) If the person to whom a copy of the auditor decision is so furnished refuses to receive it, he shall nevertheless be deemed to have been duly furnished with a copy of such decision within the meaning of sub rule (2). The period of fourteen days referred to in Rules 93 and 94 shall be calculated from the date of such refusal.

Rule 93 Appeals

Any person aggrieved by disallowances, surcharge or charge made may, within fourteen days after he has received or been served with the decision of the auditor, appeal to the Government in Food and Agriculture Department. Any order passed on such appeal by the Government shall be final.

Rule 94 Payment into treasury

Every sum certified to be due from any person by the auditor under these rules, shall be paid by such person into the Market Committee Fund, within fourteen days after the intimation to him of the decision of the auditor, unless within that time such person has appealed to the Government against such decision, and such sum, if not paid, or such sum as the Government shall declare to be due, shall be recoverable on an application made by the Director to the court in the same way as an amount decreed by the said court.

Rule 95 Power to waive recovery of the amount due

Notwithstand anything in these rules, the Government may, at any time, direct that recovery of the whole or any part of the amount certified to be due from any person by the auditor under these rules, shall be waived if in their opinion such a course is necessary and proper after considering all the circumstances of the case.

Rule 96 Returns

In order to enable the auditor to watch the timely recovery of all amounts covered by the surcharge certificate issued by him, a half yearly return in the form given below shall be sent by the Market Committee to the auditor. The action taken to effect the recoveries for which the Market Committee is responsible shall be specified in the return. The return for each half year shall include all surcharges outstanding at the end of the half year and shall be sent to the auditor by the 10th of the month succeeding the half year to which the return relates. The return shall contain detailed information regarding the stage of recovery of amounts due and they shall be sent with a certificate that the recovery of the amounts has not become time barred. Where no amount is pending recovery, a return shall be sent. As soon as an amount is completely recovered, the market committee shall report the fact to the auditor.

CHAPTER 10 Financial Rules

Rule 97 Procedure for maintenance of accounts

The procedure laid down in the Andhra Pradesh Financial Codes, Account Codes. Treasury Codes and instructions, if any, issued from time to time, shall mutatis mutandis apply, in regard to maintenance of accounts, registers and forms, etc., by the market committees.

Rule 98 Vouchers

Vouchers for payment shall be in the relevant form in the Andhra Pradesh Treasury Code, Volume II and care shall always be taken to keep a sufficient stock of those forms on hand. In the case of miscellaneous purchases, the payment shall be made on the suppliers bills. When such payments are made from the permanent advance, the suppliers bills shall be attached to the recoupment bill as sub voucher. If they are in an Indian language, an English abstract of them shall always be inserted in them under the initials of the Secretary or the drawing officer of the market committee.When party payments are made from the permanent advance and no separate receipts can be obtained, a memorandum shall be drawn up showing the nature and amount of the expenditure and this shall be passed by the drawing officer. After payment is made, this shall be treated as sub voucher for the payment. Voucher passed for payment by an officer subordinate to the Secretary shall, as soon as possible and not later than the end of the month in which payment is made, be submitted to the Secretary who shall scrutinise them and countersign them if they are in order in all particulars.

Rule 99 Presentation of Bill

(1) Every person having any claim against market committee fund shall present a bill at the office of the market committee. Wherever possible, such bill shall be in the form, if any, provided for the purpose and the claimant shall duly date and sign the same and stamp it, where necessary.

(2) Whenever possible, printed forms shall be used in preparing bills.

(3) Where a claimant presents a bill in a form different from that, if any, provided for the purpose, a separate bill in the proper form shall be prepared by the office incurring the expenditure and the claimant bill shall be attached thereto as a sub voucher.

Rule 100 Payment of Bills

Every bill shall be presented to the Secretary who shall make it over to the Accountant of the market committee. The Accountant shall enter it in a register of bills and then check and examine the bill as regards its admissibility with reference to sanction of other documents, the propriety of the claim and the arithmetical accuracy. If on such check and examination the bill is found to be correct and in order it shall be placed before the Secretary for signing the payment order in the bill which shall be in the following form;

Rule 101 Acknowledgment and receipt of the Bill

(1) Separate acknowledgment (stamped where necessary) shall be taken when disbursements are made in the office of the market committee in the last column of the bill and in other cases in the acquittance register from each officer or servant to whom any salary or allowance is paid except where the drawer of the bills is the sole payee and has already furnished a receipt (stamped where necessary) on the bill itself.

(2) Where any officer or servant of the market committee makes any payment from any sum drawn by him he shall, unless a receipt (stamped where necessary) has been furnished on the bill itself, obtain and attach to the bill a separate receipt (stamped where necessary).

Rule 102 Authority to sanction bill

Whenever any item of expenditure requires the sanction of any authority higher than the officer of servant drawing the bill, such sanction shall be obtained and the terms thereof shall be quoted on the bill. A copy of the order conveying such sanction shall be communicated to the Audit Officer authorised or appointed in this behalf.

Rule 103 Sanction of bill

(1) No item of expenditure shall be sanctioned by the market committee unless a certificate in the following form has been furnished in respect thereof.

(2) If there is no budget provision under the head concerned and the market committee decided to find the amount by re appropriation from another head, the words "by re appropriation" shall be added after the word "met".

(3) The certificate shall be entered in the agenda, circulated before the meeting and if accepted by the market committee, it need not be written again as part of the resolutions in the minutes book. If, however, the market committee makes any alteration either in the amount of expenditure or in the head from which the expenditure is to be made, the certificate as amended shall form part of the resolution of the market committee and be entered as such in the minutes book.

Rule 104 Period of bill for payment

No claim against the market committee shall be paid when the bill in respect thereof is presented more than six months from the date on which the claim became due without the specific sanction of the market committee in that behalf.

Rule 105 Over payment of the Bill

The responsibility for an over payment shall rest primarily with the drawer of the bill who shall be required to make good the over payment and failing recovery from him, the over payment shall be recovered from the countersigning or passing officer only in the event of culpable negligence by either of them :

Provided that the Secretary shall neither admit a bill nor issue a cheque on any account which is not in consonance with the rules or the bye laws or the orders of either Government or the Director issued, from time to time.

Rule 106 Defalcation or loss of moneys or stamps

(1) Any defalcation or loss of moneys or stamps belonging to the market committee shall be reported immediately after discovery to the Director and also to the Assistant Director of marketing in whose jurisdiction the market committee is situated. A further and complete report shall also be submitted to him, as soon as may be after the matter has been fully enquired into, setting forth the nature and extent of the defalcation or loss, the errors or neglect of rules by which such defalcation or loss was rendered possible, and the prospects of effecting a recovery.

(2) Loss by theft or otherwise of other property belonging to the market committee shall be reported to the Audit Officer, if the value of the property is loss exceeds one hundred rupees.

(3) The submission of the reports under sub rules (1) and (2) shall not be deemed to debar the committee concerned or its Secretary from taking such further action as may be considered necessary.

Rule 107 Custodian of cheque books

The cheque books shall be kept in the personal custody of the drawing officer or the Accountant and when a transfer of charge takes place, a note shall be recorded in the cash book over the signature of both the relieved and the relieving officers showing the number of unused cheques and cheque books made over and received by them respectively.

Rule 108 Precautions to be observed in the maintenance of cheque books

The cheque book in use may be made over to the Accountant whenever required but it shall be returned before the office is closed for the day. The officer in whose custody it is to remain shall satisfy himself then and there that all unused pages are in the book and that none has been surreptitiously extracted.

Rule 109 Signing of cheques

No cheque shall ordinarily be signed unless required for immediate delivery to the person to whom the money is to be paid.

Rule 110 Writing up of cheques

The amount of every cheque drawn shall be written in words as well as in figures both on the cheque itself and on the counterfoil and the counterfoil shall be initialled by the person who signs the cheque.

Rule 111 Authority to sign cheques

Cheques of the value of rupees one hundred and below drawn on behalf of the market committee shall be signed by the Secretary. All other cheques drawn on behalf of the market committee shall be signed by the Secretary and countersigned by the Chairman or by the Vice Chairman in the absence of the Chairman. No payment shall be made from any Government treasury or bank on any cheque purporting to be drawn on behalf of the market committee, unless it is signed or signed and countersigned as the case may be, as aforesaid. Whenever a person who is empowered to sign or countersign hands over charge of his office whether temporarily or permanently, he shall send a specimen of the signature of the relieving officer together with a certificate in the form given to the Treasury Officer or the Bank, as the case may be :

Rule 112 Cancellation of cheques

When a signed cheque is cancelled, it shall be effaced or stamped "cancelled" by the Secretary and shall be destroyed by the Director at the time of audit. The fact of cancellation shall be noted in red ink under the initials of the drawer of the cheque upon the counterfoil and also across the pass order on the voucher.

Rule 113 Cancellation of cheque and the cash book

If the cheque is cancelled before the cash transaction of the month in which it was issued have been totalled, the entry in the Cash Book shall be struck out in red ink under the initials of the Secretary with a note that the cheque has been cancelled.

Rule 114 Issue of cheque and cash book

If, however, the cash book has been totalled, and the correction is required to be made in a year subsequent to that in which the cheque was issued, the amount of the cheque shall be credited in the cash book in the treasury column under the head "Refunds, of expenditure of the previous year". If, however, the correction is made in the year in which the cheque was issued, it should be posted on the payment side of the cash book in the treasury column as a minus entry under the head of expenditure to which it was originally charged.

Rule 115 Preparation and drawal of establishment bills

The pay bill shall be prepared in such form as may be specified by the Government. Cheques in payment of establishment bills shall be drawn in favour of the Secretary or the Supervisors of market yards, as the case may require.

Rule 116 Monthly pay bills

The monthly pay bills of the establishment of the market committee shall be supported either by an absentee statement in such form as may be specified by the Government or by a certificate in that bill that no leave has been granted to any member of the establishment.

Rule 117 Increment and the pay bills

To the first pay bill in which a periodical increment is drawn, an increment certificate, in such form as may be specified by the Government, shall be attached.

Rule 118 Pay of officer or servant lent by Government or other market committee

The pay of an officer or servant lent by the Government to the market committee or transferred to it from any other market committee shall be drawn only after the receipt of a last pay certificate (which shall be in such form as may be specified by the Government, from time to time) granted by the head of his former office. Such certificate shall be attached to the first pay bill drawn after such loan or transfer.

Rule 119 Pay, leave salary and allowances to deceased officer and servant

Pay, leave salary and allowance may be drawn for the day of mans death ; the hour at which death takes place does not affect the claim.

Rule 120 Payments due to a deceased officer or servant

The payments due to a deceased officer or servant of the market committee shall not be made except on the production of an authority of the nature specified in clauses (i), (ii), (iii), (iv), or (v) of sub section (1) of Section 214 of the Indian Succession Act, 1925.

Provided that payments may be made without the production of such authority :

(i) to the extent of three hundred rupees under the orders of the Secretary if he is satisfied, after such enquiry as he may consider sufficient about the right and title of the claimant ; and

(ii) above three hundred rupees under the orders of the market committee on the execution of an indemnity bond with such surety or sureties as it may require, if it is satisfied, after such enquiry as it may consider sufficient about the right and the title of the claimant and considers that undue delay and hardship would be caused by insisting on the production of such authority.

Rule 121 Last payment of employee pay and allowances

The last payment of an employee pay and allowances or, in case he is finally quitting the service of the market committee at the end of any leave granted to him the last payment of his leave salary shall not be made until it has been ascertained that there are no demands outstanding against him. A certificate to this effect signed by the secretary shall be attached to the bill in which such pay and allowances, or leave salary is claimed.

Rule 122 Arrears of pay

Arrears of pay shall be drawn not in the monthly bill but in a separate bill which shall quote the bill from which the charge was omitted or withheld or in which it was refunded by deduction.

Rule 123 Signing of pay bills

The pay bills shall be signed and passed by the Secretary who shall be the Pay Drawing Officer for himself and all other employees of the market committee.

Rule 124 Cheques in respect of payment of salary and fixed allowances

The cheques in respect of payment of salary and fixed allowances shall not be issued before the first working day of the month following that to which the payment relates: Provided that in the event of an officer or servant finally quitting the service of the market committee or being transferred to the service of another market committee or the Government, cheques may be issued on the date of such event : Provided further that when the first six days of a month are public holidays on which payments are not made at the treasury or bank concerned, cheques may be issued on the last working day before the holidays.

Rule 125 Responsibility of drawer of bill

The drawer of a bill for salary and allowances shall be personally responsible for the amount so drawn until it has been disbursed to the proper person or persons and their acquittances (stamped where necessary) have been obtained. If the payee does not present himself within thirty days from the date of the drawal of money, the amount drawn for him shall be refunded by a short drawal in the next bill. The amount of salary and allowance drawn shall not in any circumstances be placed under deposit.

Rule 126 Checking of monthly bills

In order to facilitate the check of the monthly bills for recurring charges, such as pay of establishment, house rent and fixed travelling and conveyance allowances, an audit register shall be maintained in the office of the market committee.

Rule 127 Refund of revenue

Whenever any refunds of revenue already collected are made with the sanction of the market committee, the fact of the refund shall be noted in the register concerned against the entry for the receipt of the item concerned.

Rule 128 Stamp Account

A register of stamp account shall be maintained in such form as may be specified by the Government either by general or special order. When any charges are incurred in a contingent bill on account of purchase of stamps for postage, the Secretary or the Officer in charge in the case of subordinate offices shall, before signing the contingent bill, satisfy himself that the stamps have been actually brought to account in the register maintained under this rule and should initial the entries in question. Care shall also be taken to see that the issue entries on account of postage are fully supported by the corresponding entries in the despatch register. The balance shall be struck in the register and verified at the end of each month by the Secretary or by an Officer in charge in the case of subordinate offices who shall certify to the verification in the register.

Rule 129 Stationery Account

The market committee shall maintain the stationery account in such form as may be specified by the Government. The purchase shall be made annually on indents duly sanctioned by the market committee and showing the stock in hand at the time, the actual consumption of the previous year and the quantity required. The issues should be acknowledged in the register by the recipients concerned. The balance should be struck at the end of each quarter and verified with the actual stock by the Secretary, who shall certify to the verification in the register.

Rule 130 Purchase of books and periodicals

The market committee may purchase books, periodicals and maps relating to matters concerning the market committee's activities subject to provision in the budget for the year.

Rule 131 Law charges

(1) In respect of all cases leading to disputes, civil or criminal, where legal advice or representation in courts is necessary, the Market Committee shall seek advice or entertain the services of Government Pleaders, Public Prosecutors, Additional Public Prosecutors, Pleaders doing Government work or other Law Officers having jurisdiction and appointed by the Government for the various courts. In case where there are more than one Law Officer having jurisdiction over the particular court where the case is filed, the market committee may seek the advice or entertain the services of such law officer as may be decided by the Collector.

(2) The market committee may pay fees to counsel without the sanction of the Government in accordance with the following scale

(i) in civil cases, the regulation fee or the fee allowed by the court, whichever is higher; and

(ii) in criminal cases the fee to be fixed with reference to the amount and the nature of the work involved, but subject to a maximum of Rs. 35 for each day during which the counsel is engaged in court in connection with the case for not less than three hours but at station different from that where he usually practises and Rs. 15 for each day in all other cases :

Provided that where the counsel is engaged in court in more than one case on the same day, the total fee payable to him for that day for the cases shall not exceed Rs. 50.

Rule 132 Authority to sanction the payment of fees

(1) Whenever the market committee proposes to pay fees in a civil case exceeding the regulation fee or that allowed by the Court, but not exceeding Rs. 500 the sanction of the Director shall be obtained.

(2) A market committee may with sanction of the Director pay fees upto Rs. 100

(i) in each case for work done in examining the records and for services rendered out of court, provided that no suit or case is instituted or defence entered in continuation of such examination or of such services. Where such suit or case is instituted or defence entered the provisions in Rule 131 and sub rule (1) shall apply ; and

(ii) in each case in which the subject matter of claim does not admit of valuation.

Rule 133 Permission to pay smaller fee

Where an application is made under Rule 132 for sanctioning any fee, the Director may, instead of granting or, refusing his sanction permit the payment of such smaller fee as he may think fit.

Rule 134 Savings

Nothing in Rules 131 and 132 shall be deemed to restrict the amount payable, in special cases, but when the limits fixed in the said rules are proposed to be exceeded, the sanction of the Government shall be obtained.

Rule 135 Payment of fees to pleaders

The provisions of Rules 131 to 134 shall also apply in respect of payment of fees to Pleaders to obtain legal advice and assistance.

Rule 136 Appointment of a Standing Counsel

The market committee may, with the previous sanction of the Government, appoint a standing counsel for a period not exceeding one year at a time on a fixed retainer for giving legal advice and for rendering service out of court in connection with the legal affairs of the market committee in civil and criminal matters. If the standing counsel is appointed to conduct cases in the Court, he shall be paid regulation fee or fees allowable by the Court.

Rule 137 Persons not eligible to continue as Standing Counsel

No person who has been appointed by the market committee as its standing counsel on a fixed remuneration shall be retained in its service after he has attained the age of sixty years or if he accepts employment elsewhere as a legal adviser against the market committee.

Rule 138 Appeal against the decision of the Civil Court

Whenever a market committee proposes to prefer an appeal against the decision of a civil court, the market committee shall

(i)where the Government are not a party or where they are a party and their interests are not adverse to those of the market committee, obtain the opinion of the Government Pleader of the district if the appeal is to muffusal court or the Government Pleader, High Court, if the appeal is to the High Court ; and

(ii) where the Government are party and their interests are adverse to those of the market committee, obtain the opinion of any pleader other than the Government Pleader of the District, or the Government Pleader High Court, as to whether there are sufficient grounds for preferring the appeal and it shall not file the appeal unless so advised by the Government Pleader, or other Pleader, as the case may be.

Rule 139 Payment of fees to the Government Pleader

With the sanction of the Director, the market committee may pay fees to the Government Pleader or other pleader, as the case may be, upto Rs. 100 in each case for the opinion referred to in Rule 138 and may, in special case with the previous sanction of the Government, pay a higher fee. If the Government Pleader or other Pleader is entrusted with the filing and the conduct of the appeal in court, the total fee payable to him for the opinion and for the filing and conduct of the appeal shall not exceed Rs. 100 or the regulation fee whichever is higher except with the previous sanction of the Government.

Rule 140 Suits for recovery of dues

The market committee shall maintain a register in such form as may be specified by the Government either by general or special order wherein the suits instituted, costs incurred, suits disposed off in favour of or against the market committee and costs awarded by the courts shall be recorded. The undisposed cases at the close of the year or suits the cost of which have not been or have been only partially recovered shall be transferred to the register for the ensuing year. The register shall be written up as suits are instituted and charges paid with reference to payment vouchers. It shall be periodically reviewed by the Secretary to see that necessary action for recovering any dues is taken in time.

Rule 141 Limits of expenditure on items of special nature

(1) The market committee, with the sanction of the Government, may

(a) contribute a sum not exceeding rupees five hundred towards the opening ceremony of the market committee, constituted for the first time or of an institution under the control of the market committee ;

(b) defray any other extraordinary charges ; Provided that the extraordinary charges so incurred shall not exceed Rs.500 .

(2) A market committee may incur expenditure towards preparation of address to the Governor, or a Minister, of an amount not exceeding Rs. 100 :

Provided that no charges shall be incurred on entertaining any Minister or any other V.I.P. or on the purchase of any casket for the presentation of address to him.

Rule 142 Works

Invitation and disposal of tenders in respect of store and printing and for execution of works

(1) The instructions issued by the Government from time to time in regard to the invitation and disposal of tenders for the execution of work and in respect of stores and printing shall be followed.

(2) The market committee shall be the authority to invite and accept tenders for the works and in respect of stores and printing. The market engineer shall be the authority to sanction estimates:

Provided that the market committee may authorise its Secretary to invite and accept the tenders in specific cases.

Rule 143 Acquisition of lands and execution of works thereon

(1) The land required for the market committee's purposes shall not be acquired otherwise than under the Land Acquisition Act, 1894, unless the land is to be purchased at a rate negotiated by a Committee consisting of Revenue Divisional Officer or the Special Deputy Collector, if there is such a Special Deputy Collector for the land acquisition of the Market Yards, the Assistant Director of Marketing and the Chairman of the Agricultural Market Committee concerned, and the rate which has been so negotiated has been finalised with the prior approval of the Director of Marketing. In every case, where the consideration for the property is not less than Rs. 75 an encumbrance certificate shall be obtained from the registration office in respect of such property and examined by the legal adviser of the Market committee unless the nature of the transaction is such as will, by law, pass the property free of all encumbrances. No work shall be commenced on the land which has not been duly made over to the market committee. A register of immovable properties shall be maintained in such form as may be specified by the Government either by general or special order.

(2) Further, the acquisition, purchase and disposal of movable or immovable property shall be in a manner specified from time to time by Government.

Rule 144 Register of estimates and allotments

All estimates and allotments shall be in such form as may be specified by the Government either by general or special order. When a revised estimate is sanctioned, the entry relating to the original estimate shall be neatly scored through in red ink and entries pertaining to the revised estimate made.

Rule 145 Deposits

(1) The Deposits of a market committee shall be of the following kinds, namely:

(a) wieghment's deposits,

(b) contractor's deposits for the due fulfilment of contracts,

(c) security deposits of market committee servants,

(d) unclaimed dues,

(e) election deposits,

(f) other miscellaneous items.

(2)The deposits shall be in cash or in such kind of securities as the Government may specify in this regard.

Rule 146 Items not to be credited to deposit head of account

(1)The following items shall not be credited to any deposit head of account:

(a) sums that can be clearly brought to account under any revenue head.

(b) pay, pension, leave salary or other allowances; and

(c) fines.

(2) No item shall be credited to any deposit head of account except under the written order of the Secretary.

Rule 147 Register of deposits

(1)

(i)A register of deposits should be maintained in such form as may be specified by the Government either by special or general order and separate pages should be allotted for each class of deposits.

(ii) A certificate to the effect that entries in the register are maintained upto date shall be recorded therein at the end of each quarter by the Secretary.

(2) A register of security deposits shall be maintained in such form as may be specified by the Government either by general or special order to show the amount of security required for each servant or officer and the amount furnished by each.

Rule 148 Refund of deposit

No deposit shall be refunded except under the written orders of the Secretary. The orders for refund shall be made on a deposit refund voucher in the specified form after the Secretary has satisfied himself by a reference to the appropriate register of deposits that the deposit is actually outstanding and that the Accountant has certified to that effect.

Rule 149 Refund of election deposits

The election deposits received at the time of filing of nominations shall be refunded only under the order of the Election Authority.

Rule 150 Credit of deposit to a revenue head of Account

At the end of each year, any deposit or balance thereof shall be credited to a revenue head of account if it has remained unclaimed for a period of three years from the date on which it became repayable or, in case the deposit has been received in cash and the deposit or balance thereof does not exceed one rupee, if it has remained unclaimed for a period of one year from the date on which it became payable.

Rule 151 Authority to sanction refund of deposit

No deposit credited to a revenue head under Rule 150 shall be refunded except with the sanction of the market committee obtained on an application preferred by the person entitled to the refund.

Rule 152 Register of investments

The market committee shall maintain a register of investments in such form as may be specified by the Government showing the Government and other securities as well as any other investments held by it as its property.

Rule 153 Writing off of security and other investments

No security or other investments entered in the register shall be written off unless and until it has been disposed off by sale or otherwise.

Rule 154 Verification of security and other investments

The amount of every such security and other investments shall be verified annually

(a) by the Secretary as soon as practicable after the close of the year and a certificate of verification recorded in the register of investments; and

(b) by the auditors at the time of audit.

Rule 155 Loans

The market committee shall maintain, in such form as may be specified by the Government either by general or special order, the following accounts in respect of loans raised by it

(i) an account showing the receipt from the loans, the repayments thereof and the payments of interest, if any, thereon;

(ii) an account showing the manner of appropriation of the loans and

(iii) a sinking fund account, where a sinking fund has been created for the liquidation of any non Government loan.

Rule 156 Diversion of earmarked funds

Where for a specific purpose, any loan has been raised any contribution has been received or any fund has been earmarked, such loan,. contribution or fund shall not be diverted permanently or temporarily to any purpose other than that for which the same has been raised, received or earmarked, as the case may be, without the previous sanction of the Government.

CHAPTER 11 Service Rules for Secretaries of Market Committee

Rule 157 Constitution

(a) The Service of the Secretaries to the Market Committee shall consist of the following two classes, namely Class I and Class II.

(b) Class I shall consist of the posts of Secretaries of the following grades namely.

(i) Selection Grade Secretary to be appointed for a Market Committee with an annual income of thirty lakhs of rupees or above.

(ii) Special Grade Secretary to be appointed for a Market Committee with an annual income of fifteen lakhs of rupees or above but less than thirty lakhs of rupees.

(iii) the Selection Grade Secretary and special Grade Secretary shall be in the scales of Rs.2410-90-2950-100-4050 and Rs.1980-80 2780-90-3500

(c) Class II shall consist of the posts of Secretaries of the following grades namely;

(i) Secretary Grade I to be appointed for a Market Committee with annual income of ten lakhs of rupees or above but less than fifteen lakhs of rupees.

(ii) Secretary Grade II to be appointed for a Market Committee with annual income of five lakhs of rupees or above but less than ten lakhs of rupees and for assisting the Selection Grade Secretary.

(iii) Secretary Grade III to be appointed for a Market Committee with an annual income of two lakhs of rupees or above but less than five lakhs of rupees and for assisting the Special Grade Secretary.

(iv) Assistant Secretary to be appointed for a Market Committee with an annual income of less than two lakhs of rupees and for assisting Secretary Grade I.

(v) The pay scales of the Secretary Grade I, Secretary Grade II, Secretary Grade III and Assistant Secretary shall be Rs. 1810-70-2510-80-3230, Rs. 1550-70-2250-80-3050, Rs. 1330-60-1930 70-2630 and Rs. 1150-40-1510-50-2110 respectively.

Explanation :- In computing the income, the average annual income of the Market Committee for preceding three years shall be taken into account.

The holders of the above posts shall be eligible for revision of scales of pay and selection grade scales of pay at the scales fixed in the case of officers and servants of the Government holding corresponding posts of corresponding scale of pay and in accordance with the orders issued by the Government from time to time, in that behalf".

Rule 158 Method of appointment

Appointment to the service shall be made as follows:

Class I (1) Selection Grade Secretary

(a) by promotion from among the Special Grade Secretaries with a minimum service of not less than three years ; or

(b) by deputation from among the Deputy Directors of Marketing.

(c) The appointment by promotion and deputation shall be in the ratio of 9:1

(2) Special Grade Secretary

(a) by promotion from among the Secretaries Grade I with a minimum service of not less than three years ; or

(b) by deputation from among the Assistant Directors of Marketing.

(c) The appointment by promotion and deputation shall be in the ratio of 9:1

Class II - (1) Secretary, Grade I:

(a)by promotion from among Secretaries Grade II with a minimum service of three years Grade II:or

(b) by deputation of Key Marketing Superintendents, Marketing Assistants with a minimum service of three years:

(2) Secretary Grade II

(a) by promotion from among the Secretaries, Grade III and office Superintendents with a minimum service of two years in Grade III and or office Superintendents or by transfer of Senior Market Superintendent.

(3) Secretary Grade III.

(a) by direct recruitment through the Employment Exchange:or

Provided that the temporary employees working in the Agricultural Market Committees shall be allowed to register their names in the Employment Exchange as "employed persons" by producing no objection certificates from the appointing authorities concerned and seek direct recruitment to this post in the same Agricultural Market Committee or any other Agricultural Market Committee within the Zone concerned. Their names shall be sponsored by the Employment Exchanges subject to the rules governing such sponsoring.

(b) by promotion from among the Assistant Secretaries and or the Accountants with a minimum service of three years as Assistant Secretary and or Accountants.

(c) by transfer from the category of Upper Division Clerks, Price Reporters, Grade II, Grading Supervisors (Pre revised scale of Rs. 125-200) of the Marketing Department and the employees of the Market Committees presently working as Assistant Secretaries in the pre revised scale of 180 375.

(4) Assistant Secretaries.

(a) by direct recruitment through the Employment Exchange; "Provided that the employees working in Agricultural Market Committees shall be allowed to register their names in the Employment Exchanges as "employed persons" by producing no objection certificate from the appointing authorities concerned and seek direct recruitment to this post in the same Agricultural Market Committee or any other Agricultural Market Committee within the Zone concerned. Their names shall be sponsored by the Employment Exchange subject to the rules governing such sponsoring." or

(b) by promotion from among the panel of Market Committee employees prepared for this purpose by the Director of Marketing from the Categories of Upper Division Clerks, Supervisors and other equivalent posts :

Provided that there shall be no direct recruitment till the existing incumbents appointed prior to 1st January, 1965 in the categories mentioned in (b) above have been promoted to the post of Assistant Secretary from the panel already prepared;

(c) by transfer or deputation from the category of Assistant Market Superintendents and Junior Market Superintendents.

Rule 159 Unit for Appointments

(a) For the purpose of recruitment by transfer or promotion from among the employees of the Agricultural Market Committees to Assistant Secretaries and for purpose of promotion from Assistant Secretaries and Accountants to Secretary Grade III and {Office Superintendents and for promotion of office Superintendents and Secretary, Grade-III to Secretary Grade-II the following Zones comprising of districts specified against them shall form separate and independent unit. Zone No.

District

Zone I

(1) Srikakulam (2) Vizianagaram (3) Visakhapatnam, (4)

East Godavari (5) West Godavari, (6) Krishna (7) Guntur and (8) Prakasam.

Zone II

(1) Nellore, (2) Cuddapah, (3) Kurnoor, (4) Anantapur

and (5) Chittoor.

Zone III

(1) Hyderabad, (2) Ranga Reddy, (3) Warangal, (4)

Khammam (5) Mahboobnagar, (6) Medak, (7) Adilabad

(8) Nalgonda (9) Karimnagar and (10) Nizamabad.

(b) The entire State shall form one unit in respect of appointment by promotion or deputation to the post of "Selection grade Secretary, Special Grade Secretary " and Secretary Grade I.

Provided that all apointmentsmade earlier in the category of Secretary Grade-II shall be deemed to have been made in accordance with these rules.

Rule 160 Appointing Authority

The appointing authority shall be :

(a) the Government in respect of the posts of Selection Grade Secretaries and Special Grade Secretaries.

(b) the Director in respect of other posts:

Provided that in respect of direct recruitment to the Category of Secretary, Grade III and Assistant Secretary, the Director of Marketing shall appoint persons selected by a selection committee consisting of Secretary to Government, Food and Agriculture and the Director of Marketing.

Rule 161 Qualifications

(1) No person shall be eligible for appointment to the post mentioned in column (1) of the Table below by the method specified in column (2) unless he possesses the qualifications specified in the corresponding entry in column (3) thereof: Category

Method of

Recruitment

Qualifications

(1)

(2)

(3)

1.

Selection

Grade

Secre

tary.

By promotion

or

Deputation

(i)

Degree of University in India established or incorporated by or under Central Act, Provincial Act or a State Act and Institutions recognised by the University Grants Commission.

(ii)

Pass in Accounts Test for Subordinate Officers, Part I conducted by the Andhra Pradesh Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective four years from the date the first test is held by the Andhra Pradesh Public Service Commission.)

2.

Special

Grade

Secre-

tary

By Promotion

or

Deputation

(i)

Degree of University in India established or incorporated by or under Central Act, Provincial Act or State Act and Institutions recognised by the University Grants Commission.

(ii)

Pass in Accounts Test for Subordinate Officers Part I conducted by the Andhra Pradesh Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective four years from the date the first test is held by the Andhra Pradesh Public Service Commission.)

2.

Special

Grade

Secre-

tary

By Promotion

or

Deputation

(i)

Degree of University in India established or incorporated by or under Central Act, Provincial Act or State Act and Institutions recognised by the University Grants Commission.

(ii)

Pass in Accounts Test for Subordinate Officers Part I conducted by the Andhra Pradesh Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective for four years from the date the first test is held, by the Andhra Pradesh Public Service Commission.)

3.

Secre-

tary,

Grade I

By promotion

or transfer

Degree of a University in India established or incorporated by or under a Central Act, Provincial Act or a State Act and institutions recognised by the University Grants Commission.

4.

Secre-

tary,

Grade II

(i) by promo

tion

(i)

Pass in S.S.L.C. or equivalent examination.

(ii)

Pass in Accounts Test for Subordinate Officers Part I conducted by the Andhra Pradesh Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective for four years from the date the first test is held by the A.P. Public Service Commission).

(ii) by deputa-

tion or

transfer

(i)

Degree of a University in India established or incorporated by or under a Central Act, Provincial Act or a State Act and institutions recognised by the University Grants Commission.

(ii)

Pass in Accounts Test for Subordinate Officers Part I conducted by the A.P. Public Service Commission ; and

(iii)

Pass in Marketing Departmental Test (effective four years from the date the first test is held by the A.P. Public Service Commission.)

(iv)

Must have put in 3 years of service as Key Market Superintendent or

Senior Market Superintendent or Marketing Assistant or Statistical Assistant or Gr. I Price Reporter. In the case of Office Superintendent in the Marketing Department, service for not less than five years is required.

5.

Secre-

tary

Grade III

(i) by direct

recruitment

(i)

Degree in Agriculture, Economics, Mathematics, Statistics or Commerce of a University in India established or incorporated by or under a Central Act, Provincial Act or a State Act and institutions recognised by the University Grants Commission.

(ii)

Age limit not to exceed 28 years on the date of appointment.

(ii) by promo-

tion

(i)

Pass in S.S.L.C. or its equivalent examinations

(ii)

Pass in Accounts Test for Subordinate Officer Pt 1 conducted by the A.P. Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective four years from the date the first test is held by the Andhra Pradesh Public Service Commission.

(iv)

Experience of atleast three years in Agricultural Marketing.

(iii) by transfer

(i)

Degree in Agriculture, Economics, Mathematics, Statistics or Commerce of a University in India established or incorporated by or under a Central Act, Provincial Act or a State Act and institutions recognised by the University Grants Commission.

(ii)

Pass in Accounts Test for Subordinate Officers Part I conducted by the Andhra Pradesh Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective four years from the date the first test is held by the A.P. Public Service Commission.)

(iv)

Must have put in not less than three years of service as Upper Division Clerk, Price Reporter Grade II or Grading Supervisor (pre-revised Scale of Rs.125-200) of Marketing Department.

6.

Assistant

Secretary

(i) by direct

recruitment

(i)

Degree of a University in India established or incorporated by or under a Central Act, a Provincial Act or a State Act and institutions recognised by the University Grants Commission.

(ii)

Age limit not to exceed 28 years on the date of appointment.

(ii) by promotion,

tranfer or

deputation.

(i)

Pass in S.S.L.C. or its equivalent examination.

(ii)

Pass in Accounts Test Part I conducted by the Andhra Pradesh Public Service Commission.

(iii)

Pass in Marketing Departmental Test (effective four years from the date the first test is held by the A.P. Public Service Commission.)

(iv)

Must have put in at least three years of service in Market Committee Service.

(2) Nothing contained in this rule shall operate to the disadvantage, in so far as first promotion after the date of issue of these rules is concerned, of those already in service on the said date provided they hold such qualifications as were necessary under the rules in existence before the coming into force of these rules.

Rule 162 Probation

Every person appointed to the service shall, from the date of his joining duty, be on probation for a total period of one year on duty within a continuous period of two years.

Rule 163 Suspension or termination or extention of probation

(1) At any time before the expiry of the prescribed period of probation or the extended period of probation, as the case may be, the appointing authority may :

(i) Suspend the probation of a probationer and discharge him from service for want of vacancy ; or

(ii) At its discretion, by order, either extend the period of probation of the probationer in case it has not been extended under Rule 165 or terminate the probation and discharge him from service after giving him a reasonable opportunity of showing cause against the action proposed to be taken in regard to him:

Provided that where a probationer has been given a reasonable opportunity of showing cause against the imposition on him of any of the penalties in Clauses (iv)(vi)(vii), of Rule 171 and at the conclusion of the disciplinary proceedings, a tentative conclusion is arrived at to terminate his probation, further opportunity of showing cause specially against termination of his probation need not be given to him.

Explanation :- An opportunity to show cause may be given after the appointing authority arrives at a provisional conclusion of the suitability or otherwise of the probationer for the full membership of the service, either by such authority by himself or by the Secretary authorised in this behalf.

(2) Any person who is discharged from the service under sub rule (1) shall, if he was appointed to the service by promotion from any post in the service or by transfer from another service, be reverted to such post or service.

Rule 164 Probationer's suitability for full membership

(1) At the end of the prescribed or extended period of probation, as the case may be, the appointing authority shall consider the probationer's suitability for full membership of the grade for which he was selected.

(2) If the appointing authority decides that a probationer is suitable for such membership, it shall, as soon as possible, issue an order declaring him to have satisfactorily completed his probation. On the issue of such order, the probationer shall be deemed to have satisfactorily completed his probation on the date of expiry of the prescribed or extended period of probation.

(3) If the appointing authority decides that the probationer is not suitable for such membership, it shall, unless the period of probation is extended under Rule 165. by order, discharge him from the service or revert him to original post.

Explanation (1) :- The decision of the appointing authority that the probationer is not suitable for full membership may be based also on his work and conduct till the date of the decision, inclusive of the period subsequent to the prescribed or extended period of probation.

Explanation (2) :- An opportunity to show cause may be given after the appointing authority arrives at a provisional conclusion on the suitability or otherwise of the probationer for full membership of the service, either by such authority itself or by a subordinate authority which is superior in rank to the probationer.

Rule 165 Extension of Probation

At any time before the expiry of the prescribed period of probation or at the end of it, the appointing authority may extend the probation of a probationer to decide whether he is suitable for full membership or not. Such extended period of probation shall terminate at the latest whether probationer has, after the date of expiry of the period of probation prescribed for the category in which he is on probation, completed one year of duty in such category. In case where the probation of a probationer is extended, a condition shall, unless there are special reasons to the contrary, be attached to the order of extension of probation that the probationer's increment shall be stopped until he is declared to have satisfactorily completed his probation. Such stoppage of increment shall not be treated as penalty but only as a condition of extension of probation and shall not have the effect of postponing future increments after he is declared to have satisfactorily completed his probation.

Rule 166 Increment

A probationer in the service may be sanctioned the first increment and the next increment may be sanctioned only after he is declared to have satisfactorily completed his probation. The Assistant Director of Marketing concerned shall be the authority to sanction the annual increment.

Rule 167 Seniority

The seniority of a member of the service in each grade or class shall be determined by the date of his first appointment to the grade or class. When the date of appointment to the grade or class is the same for two or more members, their seniority inter se shall be according to their seniority in the immediately lower category from which they are promoted and if they are promoted from different categories, it shall be determined by the appointing authority.

Rule 168 Posting and Transfers

(1) Secretaries, Grade I and II, shall be liable for transfer to any part of the State of Andhra Pradesh and posting and transfer shall be made by the Director.

(2) Secretaries, Grade III, and Assistant Secretaries shall be liable for transfer to any part of the Zone in which they are employed.

Provided that the Director may, for special reasons, transfer them to any part of the State on administrative grounds.

Rule 169 Travelling and other allowances

The travelling allowances and other allowances and conditions of their payment shall be the same as those for Government servants on the corresponding scales of pay except in cases where they are fixed differently by special order of the Government in particular cases for different market committees.

Rule 170 Provident Funds

The members of the service may subscribe to a provident fund under the provisions of the Provident Fund Rules.

Rule 171 Penalties

The following penalties may, for good and sufficient reasons, be imposed on the members of the service, namely;

(i) censure.

(ii) withholding of increments or promotion,

(iii) reduction to a lower rank in the seniority list or to a post or time scale, or to a lower stage in a time scale,

(iv) recovery from pay of the whole or part of any pecuniary loss caused to the market committee or to Government by negligence or breach of orders

(v) removal from service.

(vi) dismissal from service.

Explanation:- The discharge of a person appointed on probation during or at the end of the period of probation does not amount to removal or dismissal within the meaning of this rule. The penalties referred to in items (i),(ii) and (iv) may be imposed by the Director, or by any officer not below the rank of an Assistant Director of Marketing as may be authorised by him in this behalf and those referred to in items (iii), (v) and (vi) shall be imposed by the Director or the Government, as the case may be, whoever is the appointing authority.

Rule 172 Reasonable opportunity

(1)

(a) In every case where it is proposed to impose on a member of the service any of the penalties mentioned in items(iii), (v) and (vi) of Rule 171, the grounds on which it is proposed to take action shall, except where such action is proposed to be taken on the facts which have led to his conviction in a criminal court, be reduced to writing in the form of a definite charge or charges which shall be communicated to the person charged together with a statement of the allegations on which each charge is based and any other circumstance which is proposed to take into consideration in passing order on the case. He shall be required within a reasonable time to put in a written statement of his defence and state whether he desires an oral enquiry or only to be heard in person. At that enquiry oral evidence shall be heard on such of the allegations as are not admitted and the person charged shall be entitled to cross examine witnesses, to give evidence in person and to have such witnesses called as he may wish, provided that the officer conducting the enquiry may, for special and sufficient reasons to be recorded in writing, refuse to call a witness. After the enquiry has been completed the person charged shall be entitled to put in, if he so desires, any further written statement of his defence. If no oral enquiry is held and he had desired to be heard in person, a personal hearing shall be given to him. The proceedings shall contain a sufficient record of the evidence and a statement of the findings and grounds thereof.

(b) After the enquiry referred to in clause (a) has been completed and after the appointing authority has arrived at a provisional conclusion in regard to the penalty to be imposed, the person charged shall be supplied with a copy of the report of the enquiring authority and shall be called upon to show cause, within a reasonable time not ordinarily exceeding one month, against the penalty proposed to be inflicted. Any representation in this behalf submitted by the person charged shall be duly taken into consideration before final orders are passed.

(2) In every case where it is proposed to impose on a member of the service any of the penalties mentioned in items (i,(ii) and (iv) of Rule 171, he shall be given a reasonable opportunity of making any representation that he may desire to make and such representation, if any, shall be taken into consideration before the order of imposing the penalty is passed.

(3) The requirements of sub rules (1)and (2) shall not apply when the person concerned has absconded or where it is for other reasons impracticable to communicate with him.

(4) The appointing authority may place under suspension any member of the service pending enquiry into grave charges where such suspension is necessary in public interest.

Rule 173 Appeals

A member of the service shall be entitled to appeal to the Government against any order imposing punishment under Rule 172 and such appeal shall be preferred by him, within two months of receipt of the orders, through the Director giving all material particulars.

Rule 174 Service and confidential records

(1)

(a) The Director shall maintain the service records of non gazetted Government servants, and employees, of Market Committees appointed as Secretary Grade I,Grade II, Grade III, Office Superintendents, Assistant Secretaries and Accountants.

(b) The service records of gazetted employees of a Government service appointed as Secretaries Grade I of Market committees shall be maintained by the Accountant General, Hyderabad.

(2)

(a) The confidential reports of the Secretaries and Assistant Secretaries of market committees mentioned in clause (a) of sub rule (1) shall be written by the Chairman of the Market Committee concerned. The reports written by the Chairman of the Market Committee shall be countersigned by the Director who shall add his own observations and maintain them.

(b) The confidential reports of the Secretaries of market committees mentioned in clause (b) of Sub rule (1)shall be written by the Chairman of the market committee concerned. The reports written by the Chairman shall be countersigned by the Director who shall add his own observations and the reports maintained by the Government.

Rule 175 Leave

(1) The rules relating to casual leave applicable to Government servants and the Andhra Pradesh Leave Rules, 1933 applicable to Government servants shall, in so far as they are applicable, govern the members of the service.

(2) The Chairman shall be the authority competent to grant casual leave to the Secretary and the Director or any officer authorised by him in this behalf shall be the authority competent for the grant of other kinds of leave but shall consult the market committee in such cases. Whenever a short vacancy in the post of Secretary arises, the Director may direct any member of the staff of the market committee to hold additional charge of the post.

Rule 176 Savings

(1)The existing four categories of Market Superintendents in Telangana area will continue in the Department in the additional posts to be created in the Department of Marketing for showing their liens in the Department and shall work in the posts of market committees on deputation in the category noted against each: Key Market Superintendents :- On deputation as Grade II Secretary . Senior Market Superintendents :- On deputation as Grade III Secretary. Junior Market Superintendents, Assistant Market Superintendents :- On deputation as Assistant Secretary.

(2) The resultant vacancies arising in the market committees in Zone III due to promotion of the existing market superintendents in different cadres shall be filled in only by promotion of lower category of market superintendent to higher category and there shall be no direct recruitment or recruitment by transfer from any other category to such vacancies.

(3) The following posts under the market committees (carrying the pay scale of Rs.180 375 and Rs.150 300, Rs.150 270,Rs.130 250,and R.125 220) are equated with the posts noted against each: Existing Post

Post with which equated

1.

Asst. Secretary (Rs. 180-375)

2.

(a) Senior Inspector of Licensed

premises at Guntur Market

Committee (Rs. 150-300)

(b) Inspector of licensed premises

at Guntur Market Committee

(Rs.150-300)

Grade III Secretary

(Rs. 200-12-320-16-400)

3.

Market Inspector at Market Com-

mittee, Hyderabad (Rs. 150-300)

4.

Superintendent in Market Commit-

tee in Andhra (Rs. 125-220)

5.

Head Clerk, Head Accountants in

the Market Committees in Andhra

(Rs.125-220)

Assistant Secretary

(Rs. 160-10-260-12-320)

6.

Inspector of Licensed Premises at

Adoni (Rs. 125-220)

7.

Manager, Information Bureau at

Guntur (Rs. 130-250)

8.

Market Inspectors in Telangana

Region (Rs.125 220)

Assistant Secretary

(Rs. 160-10-260-12-320)

9.

Accountants and Internal Auditors