1[(1) Every Market Committee shall be constituted in the manner prescribed and shall consist of seventeen members, of whom–
(i) four shall be persons elected by the licensed traders from among themselves;
(ii) eight shall be persons elected by Organisation of agriculturists in the market area recognised by the State Government for the purpose and where no such Organisation exists, they shall be nominated by the Collector of the district ;
(iii) two shall be persons elected by the local authorities within whose limits the market area is situated, of whom-
(a) one shall be elected by the Councillors of the Municipality; and
(b) the other shall be elected by the members of the Gram Panchayat :
Provided that where the market area comprises areas included within more than one Municipality or, as the case may be, Grama Panchayat such member shall be elected by the Councillors of the Municipalities or, as the case may be, members of the Grama Panchayats, concerned, in the prescribed manner :
Provided further that where the market area is only within the limits of a Municipality or Municipalities of , as the case may be, of a Grama Panchayat or Grama Panchayats both such members shall be elected by the Councillors of the Municipality or Municipalities or, as the case may be, by the members of the Grama Panchayat or Grama Panchayats, concerned, in the prescribed manner :
Provided also that a person to whom a license has been granted under Subsection (6) of Section 4 shall not be eligible for being elected under this clause;
(iv) the remaining members shall be persons nominated by the State
1. Substituted vide Act No. 27 of 1984, Section 4 (1).
7 Government of whom one shall be person from amongst the members of the local Co-operative organisations; and the Collector of the district or such other Revenue Officer as the State Government may deem proper, to nominate.
(2) Notwithstanding anything contained in Sub section (1) -
(a) on the failure of the licensed traders, any Organisation or authority to elect a member under Sub-section (1) within a period of three months from the date of the occurrence of the vacancy, the State Government shall give notice in writing to the licensed traders, Organisation or authority concerned to elect a member within a month from the date of such notice and on the failure of the said traders, Organisation or authority again to elect a member within the said period, the State Government shall nominate a person on behalf of such traders, Organisation or authority as a member of the Market Committee ; and
(b) wen a Market Committee is constituted for the first time, all the members of the Market Committee shall be person nominated by the State Government.]
(3) Every member of a Market Committee first constituted shall hold office for a term of two years from the date of the first general meeting of the Market Committee and every member elected or nominated thereafter shall hold office for a term of three years :
Provided that notwithstanding the expiry of his term of office every member of the Committee shall continue to hold office until the date of the general meeting of the Committee next following the date of such expiry.
(4) A member elected under Sub-Section (1) shall cease to hold office as such member if he ceases to be a member of the electorate by which one of the persons by whom he was elected, and in the case of a member elected under Clause (iii) of the said Sub-section, if he is granted a licence under 1[ Sub-section (6)] of Section 4.
(5) If at any time a vacancy occurs through the non-acceptance of office by a person elected or nominated or through the death, disqualification or resignation of a member or in the event of his ceasing to be a member before the expiry of his term of office, the vacancy shall be filled up by the election or nomination, as the case may be, of a person thereto in the manner specified above. Every such person shall hold office so long only as the member in whose place he is elected or nominated, would have held it if the vacancy had not occurred.
(6) There shall be a Chairman and a Vice-Chairman for every Market Committee, who shall be nominated by the State Government.
(7) No act done by a Market Committee shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of the Committee.
1. Substituted vide Act No. 27 of 1984, Section 4 (ii).
8 1CHAPTER - II-A ESTABLISHMENT OF PRIVATE MARKETS 6-A. Grant of licence for establishment of private markets :– (1) Notwithstanding anything contained in this Act or any other law for the time being in force, any person or body of persons like company registered under the Companies Act, 1956 or a Cooperative society registered under the Orissa Co-operative Societies Act, 1962 or a Cooperative registered under the Orissa Self - Help Co-operative Act, 2001, may, after obtaining a licence from the State Government, establish a private market for the purpose of sale or purchase of any agricultural produce within such area as the State Government may, by notification, declare and subject to such conditions and restrictions as may be specified therein :
Provided that, no licence shall be granted for the purpose of sale or purchase of common varieties of paddy and rice, and for the establishment of any private market within a radius of one kilometre from an existing market yard.
(2) Any person or body of persons mentioned in Sub-section (1) may apply to the State Government for grant of a licence to establish a private market within the area notified under the said sub-section, in such form, in such manner and with such fees, as may be prescribed.
(3) Subject to such conditions and restrictions as may be prescribed, the State Government may grant a licence in the prescribed manner;
Provided that the licence shall not be granted if the applicant,
(a) is a minor;
(b) is in arrear of dues payable under this Act or Rules or Bye-laws made thereunder;
(c) has been convicted and sentenced by a Court; or
(d) is disqualified for any other reasons as may be prescribed.
(4) Every licence granted under Sub-section (3) shall remain valid for a period of three years from the date of its issue and it may be renewed, from time to time, for a further period of one year on payment of such fee, in such manner and on fulfilment of such conditions as may be prescribed.
(5) If the State Government refuse to grant or renew a licence under this section, it shall record the reasons for such refusal in writing and communicate its order to the applicant.
(6) Every application made under this Section shall be disposed of by the State Government, within a period of sixty days from the date of receipt of such application.
6-B. Power to cancel or suspend a licence :– (1) The State Government may suspend or cancel the licence if,–
(a) the licensee has obtained the licence by means of fraud or misrepresentation of facts;
1. Inserted vide Orissa Act No. 5 of 2006 O.G.E. No. 660 dated 17.5.2006 (w.e.f. 6.6.2006).
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(b) the licensee or any servants or anyone acting on his behalf, has violated any of the terms and conditions of licence;
(c) the licensee in combination with other licensee wilfully commits any act or abstains from carrying his normal business in the market area, with an intention of obstructing, suspending or stopping the marketing of agricultural produce in the market and in consequence whereof the marketing of any such agricultural produce has been obstructed, suspended or stopped;
(d) the licensee has been adjudicated as an insolvent or is an undischarged insolvent; or
(e) the licensee incurs any disqualification, as may be prescribed.
(2) Before passing orders under Sub-section (1) the State Government shall intimate to the licensee the grounds on which it is proposed to pass such orders and give him a reasonable opportunity of showing cause against it.
(3) The State Government may suspend the licence pending the passing of an order for its cancellation under Sub-section (1).
(4) A copy of every order passed under Sub-sections (1) and (3) shall be communicated to the licensee.
CHAPTER - II-B CONTRACT FARMING 6-C. Definitions :– In this chapter, unless the context otherwise requires,–
(a) "Contract Farming" means farming by a person or a firm, registered under the Indian Partnership Act, 1932, or a Company registered under the Companies Act, 1956 or a Co-operative Society registered under the Orissa Co-operative Societies Act, 1962 or a Co-operative registered under the Orissa Self-Help Co-operatives Act, 2001 or a Government Agency called the Contract Farming Producer under a written agreement with another person or body of persons called Contract Farming Sponsor to the effect that produce of such Contract Farming Producer shall be purchased as specified in the agreement, by the Contract Farming Sponsor.
(b) "Contract Farming Agreement" means the agreement made for contract farming between the Contract Farming Producer and the Contract Farming Sponsor; and
(c) "Contract Farming Producer" means a person, firm, company, cooperative society, co-operative or Government agency as mentioned in Clause (a).
6-D. Contract Farming Agreement :– Contract Farming Agreement shall be governed in the manner laid down hereinafter.
(1) Contract Farming Sponsor shall register himself or itself with the Market Committee in such manner and with such fee payable to the Market Committee as may be specified by the State Government.
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(2) The Contract Farming Sponsor shall get the Contract Farming Agreement recorded with the concerned Market Committee and the Contract Farming Agreement shall be in such form containing such particulars and terms and conditions as may be specified by the State Government.
(3) Dispute arising out of the Contract Farming Agreement may be referred to the Director for settlement and the Director shall decide the dispute in a summary manner within thirty days from the date of reference, after giving the parties a reasonable opportunity of being heard in the manner prescribed.
(4) The party aggrieved by the decision of the director under Sub-section (3) may prefer an appeal to the Secretary to Government, Co-operation Department within thirty days from the date of the decision and the appeal shall be disposed of within thirty days, after giving the parties a reasonable opportunity of being heard and the decision shall be final.
(5) The decision under Sub-section (3) or (4) shall have the force of a decree of a Civil Court and the decretal amount shall be recovered as an arrear of land revenue.
(6) The Agricultural produce covered under the Contract Farming Agreement may be sold to the Contract Farming Sponsor outside the market yard and in such a case, no market fees shall be leviable.
(7) Notwithstanding anything contained in the Contract - Farming Agreement, no title, right, ownership or possession shall be transferred or alienated or vested in the Contract Farming Sponsor or his successor or his agent or his assignee, as the case may be.]
CHAPTER - III INCORPORATION OF MARKET COMMITTEE - ITS POWERS AND DUTIES