Punjab Agricultural Produce Markets… Bare Act

The source publishes this enactment as a single document rather than provision by provision, so the whole text is below and there are no per-section pages for it. Nothing has been shortened.

Type	Rules
Year	1961
Jurisdiction	State of Punjab
Status	In force as published by the source
Text	Published as one document, as the source published it
Subjects	agriculture

45 THE PUNJAB AGRICULTURAL PRODUCE MARKETS (GENERAL) RULES, 1962 THE PUNJAB AGRICULTURAL PRODUCE MARKETS (GENERAL) RULES, 1962

1. Short title, extent and commencement These rules may be called the Punjab Agricultural Produce Markets (General) Rules,

1962.

(2) They shall come into force at once.

1[2. Definitions.- In these rules, unless the context otherwise requires,-

(1) “Act” means the Punjab Agricultural Produce Markets Act, 1961;

(2) ‘‘Assessing Authority” means the Secretary of the concerned committee who shall be an authority to make the assessment under these rules;

(3) "bale" means any pressed package of cotton of whatever size or density;

(4) “bye-law” means a bye-law made under sub-section (14) of section 3 or sub-section (1) of section 44, as the case may be;

(5) "certified seed" means the seed certified under the Seeds Act, 1966 (Central Act 54 of 1966);

(6) "cotton ginning and pressing factory" means any place where cotton is ginned or where cotton fibre is separated from cotton seed and separated cotton is pressed into bales;

(7) "cotton waste" means droppings, strippings, fly and other waste products of a cotton mill or of a cotton ginning factory or of a cotton pressing factory, but does not include yarn waste;

(8) “Director of Agriculture” means the Director of Agriculture, Punjab;

(9) “District Mandi Officer” means an officer appointed as such by the Competent Authority;

(10) “Deputy Commissioner” means the Deputy Commissioner of the District having jurisdiction over the notified market area or, if such area is situated in more than one 1 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 46 district, such Deputy Commissioner of one of these districts as may be specified by the State Government in this behalf;

(11) “Form” means a form appended to these rules;

(12) “incidental charges” means the charges payable by the seller in lieu of the services rendered in connection with the handling of agricultural produce prior to the finalisation of the bid at the auction, such as unloading, cleaning and dressing charges;

(13) “Kacha Arhtia” means a dealer who, in consideration of commission, offers his service to sell agricultural produce;

(14) “Licensing Authority” means the authority to whom applications for grant of license be made under section 9 and 10-B of the Act;

(15) “Licensee” means a person holding a licence issued under these rules or the rules hereby repealed;

(16) “maintenance” in relation to house shall include the payment of local rates and taxes and charges for electricity and water as also charges for telephone including trunkcalls made in connection with the affairs of the Board;

(17) “market charges” means all charges payable by the buyer in lieu of the services rendered in connection with the handling of agricultural produce after the finalisation of the bid at auction, such as the commission of kacha-arthtia, brokerage, auction charges, remuneration for palledari, filling, weighing sewing and loading;

(18) “Pacca Arhtia” means a dealer, who for himself or on behalf of any other person makes or offers to make a purchase or sale of any agricultural produce or does or offers to do anything for carrying out such purchase or sale;

(19) “Palledar” means a person who assists in loading, unloading, weighing, measuring, cleaning and dressing of agricultural produce;

(20) "Private Licensee" means a person to whom a license is granted under section 10-B of the Act;

(21) “Progressive Producer” means a producer who, in the opinion of the Director of Agriculture, carries on agricultural produce on improved lines;

(22) “Registrar” means the Registrar, Co-operative Societies, Punjab; and

(23) "Special Purpose Vehicle" means an entity or group created for performing or achieving a special task determined by the Government.".]

3. Constitution of the Board Sec 3 & 43(2)(1) 1[(1) For the purposes of enabling the State Government to nominate non-official members,

(i) under sub-clauses (i), (ii) and (iii) of clause (b) of sub-section (1) of section 3, the Secretary of the Board shall submit a panel of two names from each district;

1 Substituted vide Notification No. 11 (13)-H-III-83/9379 dated, 4.5.1988.

(ii) under sub-clause (iv) of clause (b) of sub-section (1) of section 3, the Director of Agriculture shall submit a panel of eight names;

(iii) under sub-clause (v) of clause (b) of sub-section (1) of section 3, the Director of Agriculture shall submit a panel of nine names, three from each division; and

(iv) under sub-clause (vi) of clause (b) of sub-section (1) of section 3, the Registrar shall submit a panel of eight names].

1[(2) The panel of names received under clause (i), (ii), (iii), (iv), (v) and (vi) of sub-rule (1) shall not be binding upon the State Government].

(3) The casual vacancies among non-official members of the Board shall be filled by calling a panel names in the manner indicated in sub-rule (1), consisting of such number as the State Government may in each case direct.

(4) The term of office of non-official members shall commence from the date on which the appointment is notified in the official Gazette.

2[3-A. Meetings of the Board A meeting of the Board shall ordinarily be held at least once in three months at a time and date and place fixed by the Chairman and he shall preside over such a meeting.]

3 [4. Functions and powers of Chairman of the Board Sec. 3 (II) & 43 (2 (ii)

(1) The Chairman of the Board shall-

(a) be responsible for the efficient administration of the organization and to carry out the provisions of the Act and the provision of those rules and to exercise general control over the employees of the Board and those of the 4[committees; and] 5[(b) ...........................................................................Omitted] (C) be responsible for the preparation of the annual budget of the Board.

(2) The Chairman of the Board shall preside over the meetings of the Board.]

1 Substituted vide Notification No. 11(7)-M-I-79/8388, dated 26.6.1984.

2 Added vide Notification No. G.S.R. 27/P.A. 23/61/Ss. 3 & 43/Amd. (57) /2001 dated 1.3.2001, published in the Gazette dated 9.3.2001.

3 Substituted vide Notification No. 11/13/93-M-3/5762 dated 27.8.2003.

4 Substituted vide Notification No. 11/16/06-M-3/4495 dated 24-7-2006, published in the gazette dated 4-8-2006.

5 Omitted vide ibid.

5. Matters on which Board may frame bye-laws Sec.3 (14) In addition to the matters specified in sub-section (14) of section 3, the Board may frame bye-laws regulating-

(a) better marketing of agricultural produce and marketing of agricultural produce on cooperative lines;

(b) the grading and standardization of agricultural produce;

1[(c –a) the incurring of expenditure on the construction and repair of the link roads and approach roads out of the Market Committee Fund];

(d) the maintenance and regulation of rest-house, staff quarters and other building of the Board;

(e) the procedure for giving aid to financially weak committees;

(f) the allowances payable to the members of the Board or Advisory committees;

(g) propaganda, demonstration, publicity and education for improvement of marketing and agriculture;

(h) the classification of the committees on the basis of their income for the purpose of fixing the grades of their Secretaries and other employees;

(i) the person or persons by whom, and the manner in which, a contract may be entered on behalf of the Board; and

(j) any other purpose which, in the opinion of the Board, is calculated to promote the interest of the Board or the committees, or to lead to improvement of marketing and agricultural in general.

2[(k) to fix quantity of agricultural produce for retail sale and domestic consumption;

(l) to fix the rate for levy of user charges;

(m) to setup assaying lab for the grading and standardization of agricultural produce and to fix charges thereof."] 1 Added vide No. Notification No. 11/13-M-III-83/9379 dated 4-5-1988.

2 Added vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 49 1[" 5-A. Public Private Partnership.- The Board or Committee or Group of Committees, as the case may be, can create, promote, manage and maintain any infrastructure for fruits, vegetable and livestock and its products through Public Private Partnership (PPP) mode on the terms and conditions approved by the Board on project to project basis, considering procedure, equity, capital, operations, management and viability."] 6 2[Budget of the Board] Sec.3 (13)

(1) The Board shall meet not later than first week of February every year to finalise the budget for the next financial year.

(2) The budget finalished by the Board shall be submitted to the State Government not later than the last week of February proceeding the year to which the budget relates.

(3) No expenditure shall be incurred by the Board unless there is a provision in the budget to meet the same.

(4) The Board may re-appropriate any amount under the Head of Account to another without prior approval of the State Government.

3[(5) ........................ommitted.]

4[6-A Budget of the Committee

(1) Each market Committee shall meet not later than the first week of February every year to pass the budget of the Committee for the next financial year and the budget shall be in consonance with the provisions of section 28 of the act and the rules made there under. The budget shall be passed in accordance with the guidelines issued by the Chairman of the Board from time to time.

(2) The Market Committee after passing the Budget, shall send the same to the Chairman of the Board, who may amend the budget according to the requirement of the Market Committee or as per the need of notified market area. The Committee shall implement the budget as approved by the Chairman of the Board. If the Market Committee does not receive the budget from the Chairman of the Board within a period of two months from the date of its receipt by him then the budget as passed by the Market Committee shall be deemed to have been approved by the Chairman.

1 Inserted vide ibid.

2 Substituted vide Notification No. G.S.R. 3/P.A.-23/61/s.43/Amd. (56)/2001, dated 5.1.2001.

3 Omitted vide Notification No. 11/16/06-M-3/4495 dated 24-07-2006, published in the Gazette dated 4-8-2006.

4 Inserted vide ibid 50

(3) If the Chairman of the Board finds that expenditure has not been incurred in accordance with the provisions of the Act and the rules made there under, he would refer the matter to the State Government along with his recommendations for taking necessary action under the Act and the rules made there under.]

7. Publication of notification under section 6 Sec.6(1)

(1) Copies of notification issued under section 6 shall be published under the orders and at the discretion of the 1[Chairman] of the board, in one or more of the modes specified below:-

(a) by publication in the regional language or in such other language and in such newspapers as in the opinion of the 2[Chairman of Board] of the Board will give due publicity among persons likely to be affected thereby;

(b) by affixing a copy of the notification in the regional language or in such other language as may be considered necessary by the 3[Chairman of the Board] in the office of every Municipal Committee, Notified Area Committee, Panchayat Samiti and Zila Parishad, if any, within whose jurisdiction the notified market area or any part thereof is situated, and at some conspicuous place in the existing market; if any;

(c) by affixing a copy of notification in the regional language or in such other language as may be considered necessary by the 4[Chairman of the Board] in the principal common meeting place, if any, of every village within the notified market area;

(d) by beat of drum in the villages within the notified market area.

(2) The time of publication under clause (a) to (c) and the time and frequency of the drum beating under clause (d) shall be determined by the 5[Chairman of the Board].

(3) The expenses of publication under sub-rule (1) of copies of the notification issued under section 6 shall be met out of the Marketing Development Fund.

8. Constitution of Committees for the first time Sec12(4) 43(2)(i) 6[(1) Where a Committee is to be constituted for the first time under sub-section(4) of section 12,the concerned District Mandi Officer shall send to the Secretary of the Board a panel 1 Substituted vide Notification No. 11/13/93-M3/5762, dated 27.8.2003 2 Substituted vide ibid 3 Substituted vide ibid 4 Substituted vide ibid 5 Substituted vide ibid 6 Substituted vide Notification No. 11(13)-M-III-83/9379 dated 4-5-1988.

51 of names equal to double the names of members to be nominated for onward transmission to the State Government for nomination].

1[(1-A) The panel of names received under sub-rule (1) shall not be binding upon the State Government].

(2) The members nominated under sub-section (4) of section 12 shall hold office till the election or appointment, as the case may be, of their successors is notified under subsection (3) of section 12 or for a period of two year, whichever may be earlier.

9. Term of Office of the Chairman & Vice-Chairman of Market Committee Sec 43(2) (iii)

(1) The term of office of the Chairman and Vice-Chairman of Committee shall be co-terminus with the term of office of the members who had elected them.

(2) A Chairman or a Vice-Chairman shall cease to function as such-

(a) on the termination of the membership; or

(b) on the acceptance of his resignation given in writing to the Board; or

(c) on the confirmation by the Chairman of the Board of the resolution passed by the members under sub-section (2) of section 16; or

(d) on his removal from the membership by the State Government under section

15.

10. Powers of Chairman & Vice-Chairman of Committee Sec 43(2) (iii) 2[(1) The Chairman of the committee shall be its chief executive officer and be responsible for proper management of the affairs of the committee in accordance with the provision of the Act, rules and bye- laws framed there under.

(2) The Chairman of the committee shall send report about the annual assessment of the work of the Secretary of the committee to the concerned District Mandi Officer who shall forward the same with his comments to the 3[Chairman of the Board] who shall record his opinion thereon.

(3) The report about the annual assessment of the work of other employees of the committee shall be written by the Secretary of the committee who shall send the same to the Chairman of the committee who shall record his opinion thereon. If the Chairman of the committee disagree with the opinion of the Secretary of the committee, he shall send a copy of his opinion to him].

1 Added vide Punjab Govt. Gazette Notification dated 8-12-1976.

2 Substituted vide Notification No. 11 (13)-M-III 83/9379 dated 4.5.1988.

3 Substituted vide Notification No. 11.13.93-M-3/5762 dated 27.8.2003.

(4) The Chairman shall forthwith report to 1[Chairman of the Board] in case any member or the committee dies or becomes subject to any of the disqualifications mentioned in subsection (5A) of section 3 read with sub-section (4) of section 12.

(5) The Chairman may by an order in writing delegate any of his powers to the Vice- Chairman or Secretary, generally, or for such period as may be determined by him and may, at any time and without assigning any reasons withdraw the delegation so made by a like order.

2[(6) The Chairman shall be the authority competent to grant casual leave to the Secretary of the Committee but other kinds of leave shall be granted to him by the 3[Chairman of the Board] or such other officer of the Board as may be authorised by him in this behalf:

Provided that the Secretary of the Committee shall intimate about his being on leave to the concerned District Mandi Officer before proceeding on leave or as early as possible after that.

(7) The Chairman shall ordinarily attend the office of the committee at least once in a week and if he is likely to be absent from the notified market area for more than a week or on account of illness or other circumstances is unable to perform his duties, he shall inform the Vice-Chairman in writing accordingly and send a copy of the same to the concerned District Mandi Officer and the Vice-Chairman shall thereupon act for the Chairman, and while so doing he shall have all the powers and privileges and be responsible for all the duties of the Chairman. In the event of death of the Chairman or in the event of resignation of the Chairman having been accepted or a no-confidence motion against him having been confirmed, the powers, privileges and responsibilities of the Chairman shall be exercised enjoyed and discharged by the Vice-Chairman who shall officiate as Chairman until a new Chairman is elected or nominated :

Provided that if the Chairman is absent from the notified market area for over a month or is unable to attend the office of the committee on account of illness or for other circumstances or for any other reason is unable to perform his duties and where the Chairman does not inform the Vice-Chairman about his absence in writing the 4[Chairman of the Board] shall direct the Vice-Chairman to officiate as Chairman till the Chairman resumes his duties].

11. Resignation of member of Committee Sec17& 1 Substituted vide ibid 2 Substituted vide Notification No. 11 (13)-M-III- 83/9379, dated 4.5.1988.

3 Substituted vide Notification No. 11/13/93-M-3/5762, dated 27.8.2003.

4 Substituted vide Notification No. 11/13/93-M-3/5762, dated 27.8.2003.

53 43(2)

(1) Any member of a Committee may resign his office by tendering resignation in writing to its Chairman and if, the member tendering resignation is himself the Chairman he shall submit it to the 1[Chairman of the Board].

Provided that if no Chairman of a committee has been elected the member may submit his resignation to the 2[Chairman of the Board].

(2) Every resignation received under sub-rule (1) shall forthwith be forwarded by the Chairman of the Committee along with his comments to the 3[Chairman of the Board] who shall, with the least possible delay, forward the same with necessary comments to the State Government.

(3) The acceptance of every resignation shall be notified by the State Government in the Official Gazette and the member shall cease to function as such from the date of such notification.

12. Language for transaction of business Sec.43(2)

(vi) The business at the meeting of the committee shall be transacted in the 4[Punjabi language].

13. Appointment of disputes sub-committee Sec19 & 43

(2) (xiii)

(1) A committee may appoint a sub-committee called the disputes sub-committee consisting of such number of members and other person as it may think fit, to arrange for the settlement by arbitration of any dispute between a buyer and seller of agricultural produce or their agents including disputes regarding quality or weight of the article, the price or rate to be paid, allowances for wrappings, dirt or impurities or deductions for any cost:

Provided that the Chairman of the committee shall not be a member of the disputes sub-committee.

(2) The disputes sub-committee shall, for each market yard, appoint a panel of not less than six person to act as arbitrators in the settlement of the aforesaid disputes. Every person included in the panel shall be either producer living in the notified market area, or a dealer doing business in the market yard for which that panels has been appointed.

(3) Where any such dispute arise the parties thereto may agree to the settlement thereof in accordance with the following provisions:- 1 Substituted vide ibid 2 Substituted vide Notification No. 11/13/93-M-3/5762, dated 27.8.2003.

3 Substituted vide ibid 4 Substituted vide Notification No. 11(7)-M-I-79/8388 dated 26.6.1984.

(a) The disputes shall be reported to the Secretary of the committee who shall try to settle the dispute. If he fails the dispute shall be settled in the manner provided in clause (b), (c), (d) and (e).

(b) Each party to the dispute shall select one arbitrator from the penal appointed for the purpose by the disputes sub-committee. The arbitrators shall, before entering upon the reference, appoint a person from the panel to act as Umpire in case they fail to agree.

(d) An appeal against the decision of the arbitrators or Umpire, as the case may be, shall lie to the disputes sub-committee and shall be filed within a period of fifteen days from the date of the award.

(e) The decision of the arbitrators or Umpire or, where an appeal has been made to the disputes sub-committee, the decision of such sub-committee shall be final.

14. Duties and powers of Secretary of Committee Sec.43(2)(ii)

(1) The Secretary shall be the executive officer of the Committee. All office establishment of the committee shall be under his control, and all orders to any member of the staff of the committee shall pass through him.

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

(3) The Secretary shall be entitled to attend all meetings of the committee or a 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 person concerned; and

(b) brother and sister of the father of the person concerned; and

(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 directions of the Board or of the 1 [Chairman of the Board] issued from time to time and previous decisions of the committee. His opinion shall be recorded in the proceedings of the committee.

(5) It shall be the duty of the Secretary to carry into effect the provisions of Act, rules and by-laws framed under the Act and instructions of the Board, and the decision of the committee and of 1 Substituted vide Notification No. 11/13/96-M-3/5762 dated 27.8.2003.

55 the Chairman of the committee consistent with the Act the rules and the bye-laws and instructions of the Board and of the 1 [Chairman of the Board] and to effect maximum improvement in the market.

(6) The Secretary shall see that communications addressed to the committee by the Chairman or Secretary of the Board are dealt with promptly and efficiently and all correspondence between the Chairman or Secretary of the Board and the committee is laid before the Chairman of the committee for information or action as the circumstances may require.

(7) Subject to sub-rule (5) the Secretary shall have immediate responsibility 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 safe custody of the cash, the common seal , the minute book & other records and assets of the committee.

(8) The Secretary shall make an annual assessment of the work of the employees of the Committee which he shall submit to the Chairman of the committee. The Chairman of the committee shall take his assessment into consideration while making final assessment of the work of the employees.

2[15. Allowances of members of Board and Committees Sec 43(2)

(1) For journeys undertaken by the members of the Board for attending meetings or for any other work of the Board for which they are specially deputed by it, they shall be paid travelling and daily allowances according to the scale fixed by the Government for Government employees of Grade I].

3 [Provided that in case of members of State Legislature they shall be paid travelling allowances and daily allowances according to the rates fixed for such members under the rule governing their allowances].

4[(2) For journeys undertaken the members of the committee including the Chairman and Vice- Chairman (other than official members) for attending meetings of the committee or sub committee or joint committee, they shall be paid a sitting allowance of 5[rupees five hundred] per day and for journeys undertaken by them for any other work of the committee for which they are specially deputed by it, they shall be paid travelling and daily allowance according to the scale fixed by the Government for Government Servant of Grade II]:

1Substituted vide ibid.

2 Substituted vide Notification No. 11 (7) M-I-79/8388, dated 26-6-1984.

3 Inserted vide Notification No.G.S.R./118/P.A./23/61/S43 Amd. (6)/64, dated 17-4-1964.

4 Substituted vide Notification No.G.S.R./23/PA23/61/S.4/AMD. (24) 86, dated 24.4.1986.

5 Substituted vide Notification No. G.S.R./43/P.A.-23/1961/S.43/Amd. (81)/2016, dated 10.06.2016 56 1[Provided that in case of the members of State Legislature they shall be paid travelling and daily allowances according to the rates fixed for such members under the rules governing such allowances].

2[(3) Omitted].

(4) If in the opinion of the Board the financial position of a committee does not warrant the payment of the travelling and daily allowances according to the scale prescribed above he may fix such scale of daily and travelling allowances in the case of that committee as he may think proper.

3[15-A. Other allowances of the Chairman of Board]

(1) There shall be paid to the Chairman of the Board a monthly allowance not exceeding rupees 1800/- (Rs. One thousand and eight hundred only) as the State Government may fix.

(2) The Chairman of the Board shall be provided with free furnished house, the maintenance charges thereof shall be borne by the Board subject to the condition that electricity and water charges payable by the Board shall not exceed Rs. 1500/- per annum. Any amount in excess shall be the responsibility of the incumbent. 4[He shall not retain the possession of the house after 14 days from the date he ceases to hold the office of the Chairman].

(3) The Chairman of the Board shall also be provided with a motor car, to be maintained by the Board. The expenses on the propulsion of the car incurred in connection with the affairs of the Board only shall be borne by the Board.

5[15-B. Other allowances of the Chairman and Vice-Chairman of the Committee There shall be paid to the Chairman and Vice-Chairman of a Committee monthly allowance as under :- 6[(i) Chairman of a Committee Rs. 10,000

(ii) Vice-Chairman of a Committee Rs. 7500 ]

16. References Sec.3(9) &43(1) References from Committee to any Government Department other than District authorities and local bodies shall be made through the Secretary of Board.

7["16-A. Establishment of Special Market Yard.- 1 Substituted vide Notification No. G.S.R./118/P.A.-23/61/S43/AMD. (24) 64, dated 17.4.1969.

2Omitted vide Notification No. G.S.R./92/P.A.-23/61/S43/AMD. (9) 66, dated 22.4.1966.

3 Inserted vide Notification No. G.S.R.24/P.A.23/61/S43 Amd. (15)/71 dated 18-3-1971.

4 Added vide Notification No.4651-RD-I-73/3549 dated 21.2.1974.

5Substituted vide Notification No. 11/16/06-M-3/4495 dated 24-7-2006, published in the Gazette dated 4-8-2006.

6Substituted vide Notification No. G.S.R./43/P.A.-23/1961/S.43/Amd. (81)/2016, dated 10.06.2016.

7 Inserted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 57 The State Government may, notify an enclosure or building as special market yard for a particular commodities notified by the State Government such as fish, fruits and vegetables, flower, wood or any other commodity and managed as provided in section 7-B on the following terms and conditions, namely:-

(i) the total revenue collected shall be shared as per the agreement or equity participation, as the case may be;

(ii) the special market yard shall be developed with all facilities and amenities as per detail project report.

16-B. Establishment and development of Private market yard.- The owner of private market yard shall develop the yard in an area not less than ten acres, by providing infrastructure facilities and amenities such as auction platforms, cover sheds, shops, shop-cum-flats, booths, shop-cum-offices, godowns, storages, pre-cooling chamber, cold storages, kissan rest house, labour dormitory, canteen, parking, ripening chambers, laboratory facilities to evaluate quality of produce, grading and packaging facilities, loading and unloading site, electronic display of market rates, electronic weighbridges, E-auctioning, internal roads, drinking water and sanitary facilities, or part thereof as required for different commodities as given in Detail Project Report and approved by the State Government from time to time or and shall have a clear title with possession or lease hold rights by an agreement for a period of not less than thirty years. In any notified market area where the Government and the private markets shall co-exist:

Provided that the above yard can be established only for the business relating to all crops other than wheat and paddy; and cannot be established within a radius of five kilometers from the existing notified principal or sub-market yards.

16-C. Establishment of producer and consumer market yard.- The owner of producer and consumer market yard shall develop a yard in not less than one acres having a clear title with possession or have lease hold rights by an agreement for a period of not less than thirty years. He shall provide infrastructure and amenities such as raised platform, parking, electronic display of market rates, electronic weighing scale, internal roads, drinking water and sanitary facilities or part thereof as given in detailed Project Report and approved by the State Government from time to time:

Provided that the above yard can be established only for the business relating to fruits, vegetables, and cannot be established within a radius of five kilometers from the existing notified principal or sub-market yards.

16-D. Establishment of Producer Market Yard (Kissan Mandi).- 58 The owner of Producer Market Yard (Kissan Mandi) shall develop a yard in not less than three acres having a clear title with possession or have lease hold rights by an agreement for a period of not less than thirty years. He shall develop market yard, by providing infrastructure and amenities such as raised platform, auction platforms, storage, parking, electronic display of market rates, electronic weighbridges, E-auctioning, internal roads, drinking water and sanitary facilities, or part thereof as given in Detail Project Report and approved by the State Government from time to time.

Provided that the above yard can be established only for the business relating to fruits and vegetables and cannot be established within a radius of five kilometers from the existing notified principal or sub-market yards.

16-E. Establishment of e-Trading Platform.- The owner or service provider can establish a e-trading platform for spot marketing of notified agricultural produce with such amenities as given in detail project report and approved by the State Government from time to time.

16-F. Duties and responsibilities of private licensee.-

(1) Duties of private licensee.-

(i) The private licensee shall submit his detailed project report in consonance with the provisions of the Act and the rules made there under including operational and working guidelines for the administration and regulation of trading activities in the market yards along with the application for grant of license. He shall also be responsible for providing any other information required by the State Government or any other officer authorized by it in this behalf;

(ii) The private licensee shall not permit evasion or infringement of any of the provisions of the Act, rules and bye-laws and shall report in writing to the competent authority any evasion or breach which comes to his knowledge;

(iii) The private licensee shall collect the user charges from the buyer on the sale proceed of agricultural produce. In case of the produce brought by the producer in packed condition and sold as such, in that case, he shall get the price of packing material in addition to the price of his produce;

(iv) The licensee shall comply with all the statuary provisions required by the Central Government, State Government or any regulatory authority and any instructions issued by the above authorities from time to time;

(v) In case of e-trading of agricultural produce for spot marketing, the owner of a e-trading platform shall stand as guarantor for the payment to the seller of the agricultural produce and shall be responsible to engage third party inspection agent at the origin and destination of the produce and also shall get the agriculture produce insured for unforeseen transit losses.

(2) Responsibilities of the private licensee. –

(i) to provide information of all infrastructures, facilities or any other place meant for the purposes of sale and purchase of agricultural produce or such other activities directly or indirectly connected with the sale and purchase of agricultural produce;

(ii) to keep copy of the operational and working procedure, number of person deployed available for inspection at his office to be made by the Officers of the State Government or any other officer authorized by it at all reasonable times:

Provided that the owner shall comply with all the liabilities specified in the Act, such as labour laws, employee's provident fund, Employee's State Insurance, etc.;

(iii) to comply with the procedure for the sale or purchase of agricultural produce specified in rule 24 of these rules by the State Government;

(iv) to submit quarterly and annual progress reports containing such information as may be required by the State Government or any other officer authorized by it from time to time;

(v) the provisions of the all the relevant Acts or any other amendments made from time to time shall be applicable to the private licensee's yard and bound to comply with it;

(vi) to get a copy of Form-I and Form-J regarding sale or purchase transaction held in his market yard;

(vii) to maintain a register in the prescribed Form H-3 showing the collection of user charges and other charges prescribed by the State Government and collected by him from the sellers and buyers, as the case may be, of the agricultural produce;

(viii) for the quotation quoted or bid made by a trader, buyer or commission agent in respect of any notified agricultural produce in private market yard shall be exclusive of the container or its packaging thereof;

(ix) to make ensure to issuance of Form I by the dealer prepared in triplicate out of which one shall be given to the owner of the private market yard, another to the buyer of the agricultural produce and one copy shall retain with himself mentioning therein the sale proceed and market charges admissible under the rules and bye-laws;

(x) to submit monthly return of arrival and price, sale and purchase of agriculture produce made by the licensee under sub-section (1) of section 10 of the Act carried out in his yard to the competent authority in Form-MM electronically alongwith the details of user charges or other charges failing which a penalty of rupees one hundred per day per return shall be levied for the late submission of return;

(xi) to ensure the payment of sale proceeds and issuing of Form-J to the farmer or seller before lifting of the agricultural produce, on the day of sale and allow only such allowances and deductions, collect market charges which are permitted under the rules in the notified market area and maintain such register and furnish such returns to the Competent Authority or any other officer authorized by it;

(xii) to ensure the payment of user charges, or additional fee or any other charges if any, payable by the buyers at the rates prescribed under the Act, before lifting of the agriculture produce;

(xiii) to provide the facility for storage for agricultural produce brought by the producer or seller which is not sold or when the producer or seller wishes to store the produce for want of better price, in its godown(s) and storage charges shall be charged on monthly basis as prescribed in the bye-laws and shall declare the complete address of godowns and storage places where agricultural produce to be stocked or stored;

(xiv) to keep proper accounts to be maintained manually or electronically as well of each transaction of purchase or sale of agricultural produce and payment thereof, in a format as specified from time to time. The information available on his web portal regarding entries relating to the transactions shall be accessible to the Board, committee and the concerned seller, buyer or commission agent, as the case may be:

Provided that, in case of the sale or purchase of agricultural produce in Producer and Consumer Market Yard or Producer Market Yard (Kisan Mandi), as the case may be, the above clauses from (vi) to (xiii) of rule 16-F (2) shall not apply.”.]

17. Licences to dealers Sec.10& 43 2(1) 1[(1) A person desirous of obtaining a licence under sub-section (1) of section 10 of the Act, for carrying on any business of the nature specified in sub-section (3) of section 6 ,in a notified area, shall apply in Form A (to be submitted in duplicate) to the Secretary of the Board or any officer authorized by it, through the Committee of the area in which he wishes to carry on his business and shall also deposit license fee of rupees one thousand, per year or any part thereof, to the committee. The license issued shall be valid for a maximum period of five years in a notified market area:

Provided that the applicant while applying under sub rule (1) shall furnish Know Your Client (KYC) documents like (a) adhaar card, (b) PAN Card, (c) bank authentication in case of partnership firm, the KYC of all the partners or directors shall be mandatory:

Provided further that the provisions of Know Your Client (KYC) documents shall not apply in the case of Government purchase agency notified by the Government from time to time.

(2) A person desirous of obtaining a licence under sub-section (1-A) of section 10 of the Act, for carrying on any business of the nature specified in sub-section (3) of section 6, shall apply in Form AA to the Secretary of the Board and also deposit license fee of rupees two thousand, per year or any part thereof, along with a bank guarantee of rupees twenty-five lakhs. The license issued in Form BB with such conditions as specified shall be valid for a period not exceeding ten years, which is renewable for a further period of five years every time on an application in Form FF on payment of requisite fee to the Board. The licence issued shall be for the whole of the State:

1 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 61

Provided that the applicant while applying under sub-rule (2) shall furnish Know Your Client (KYC) documents like (a) adhaar card, (b) PAN Card, (c) bank authentication in case of partnership firm, the KYC of all the partners or directors shall be mandatory.

(i) the aforesaid bank guarantee as furnished by a licensee under sub-rule (2), shall be liable to forfeiture by the Board for any default made by the licensee in payment of any money payable by him to the Board or committee or producer or seller, as the case may be, under the Act, or the rules or bye-laws made there under. The Board or committee shall have its first charge on the said bank guarantee;

(ii) the aforesaid bank guarantee furnished by the licensee under sub-rule (2) shall be unconditional and the amount guaranteed by the bank or a part thereof, as the Board may demand, shall be payable to the Board on demand; and

(iii) the aforesaid bank guarantee furnished by a licensee with the Board shall be released within six months from the date of his ceasing to be a licensee, on submitting trade account with the committee and on issuing of no due certificate by the committee or Board, as the case may be.

(3) While submitting an application for a license under sub- sections (1) and (1-A) of section 10 of the Act, the applicant shall specify the period for which he wants to obtain a license.

(4) If any person, who is not licensee, carries on his business as a dealer in a notified market area on the date of issue of notification under sub-section (1) of section 6 and fails to apply for a licence on or before the date specified therein for obtaining licence, the licensing authority may, before a licence is issued, imposed upon the applicant, a penalty according to the following scale :-

(i) if the application is made by him within thirty days of the date specified in the notification-one hundred rupee per day;

(ii) if the application is made after the expiry of thirty days of the date specified in the notification, but within a period of forty days of such expiry-one hundred rupee per day for the first thirty days and rupees two hundred per day for each day thereafter.

(5) Unless otherwise provided in the license, each license issued under the Act shall expire on the 31st day of March, in the financial year up to which it is granted keeping in view the total number of years as per request of the applicant.

Explanation.- If a license is issued on the 1st day of April, 2008 or any other day before the 31st day of March, 2009 and is issued for five years, it shall expire on the 31st day of March,

2013.

(6) The Secretary of the Board or Secretary of the committee, as the case may be or such other official as may be appointed by the said authorities, to receive such applications, shall, on receipt of the application, ensure that the necessary licence fee has been paid and shall, after verifying the correctness of the facts stated therein, forward the same to the competent authority, within three days of its receipt.

(7) On receipt of the application under sub-rules (1) and (2), the Secretary of the Board or the competent authority, as the case may be, may grant a licence to the applicant in Form B or Form BB respectively. The license shall be subject to the conditions mentioned therein.

(8) A record of licenses issued under sub-rules (1) and (2), shall be maintained by the Board as well as by the committee in Form C or Form CC respectively.”. ] 1[17-A. A Special provision with regard to licences upto 31st March, 1976]

(1) Every person holding a licence upto 31st March, 1976, in Form ‘B’ on the date of commencement of the Punjab Agricultural Produce Markets (General) (First Amendments) Rules, 1975, and carrying on the business of purchase or sale of any agricultural produce notified under section 6 shall, within a period of fifteen days of such commencement, apply to the authority specified in section 9 for an amendment in licence for the purpose of specifying such business therein and such amendment shall be made by the aforesaid authority without payment of any fee :

Provided that amendment in the licence may be allowed after the expiry of the aforesaid period if the application is made within a period of thirty days of such commencement and the applicant pays such penalty, not exceeding sixty rupees, as the aforesaid authority may specify in that behalf.

(2) Every amendment made in the licence under sub-rule (1) shall have effect from the date of commencement of the Punjab Agricultural Produce Markets (General) (First Amendment) Rules, 1975].

2[“17-B. Grant a licence or permission to the private licensee for establishment of Private Market Yard, Producer and Consumer Market Yard, Producer Market Yard (Kisan Mandi) and e-Trading Platform.- 1Inserted vide Notification No. G.S.R. 86/P.A.23/61/S.43/Amd. (16)/75 dated 26/8/75. Date of commencement of this rule is 26-8-1975.

2 Inserted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 63

(1) (i) Any person who is otherwise not declared ineligible by any State or Central Government to invest and conduct business in the country, as specified in section 7-C, desirous to establish a private market yard;

(ii) any person or group of producers, as specified in section 7-D, desirous to establish a producer and consumer market yard;

(iii) a group of producers or Farmer Producer Organization or Farmer Agri. business Consortium or Farmer Producer Company, as specified in section 7-E, desirous to establish a producer market yard (Kisan Mandi), in one or more market areas, may submit an application in Form A-3 for grant of licence or renewal in Form F-3 alongwith license fee specified in sub-rule (4) of this rule, to the competent authority or an officer authorized by it in this behalf. A record of licences issued in Form B-3 under this rule shall be maintained by the Board in Form C-3.

(2) Any licensee having registered under the Securities and Exchange Board of India (SEBI) or any commodity exchange, or any other entity or agency approved by the State Government or Government of India from time to time, as specified in section 7-F of the Act, who desirous to establish a private e-Trading Platform in one or more market areas may submit an application in Form A-4 for grant of permission or renewal in Form F-4 alongwith permission fee specified in sub-rule (4) of this rule, to the competent authority or an officer authorized by it in this behalf. A record of permissions issued in Form B-4 under this rule shall be maintained by the Board in Form C-4.

(3) The amount of licence or permission fee, as the case may be, shall be payable by electronic transfer in favour of the 'Marketing Development Fund' by the applicant and the said fee shall be refunded in case the licence is not granted or renewed for any reason, as the case may be, after deducting ten percent of the fees deposited on account of processing charges.

(4) The license or permission fee per annum for grant of licence or permission under this rule shall be as follows, namely- Sr. No. Type of License or permission licence or permission fee per annum ( in rupees) 1 Establishment of Private Market Yard five lakh 2 Establishment of Producer and Consumer Market Yard (Retail Market) two lakh 3 Establishment of Producer Market Yard (Kissan Mandi)/ Bulk Market five lakh 4 Permission for e-Trading Platform two lakh

Provided that in case of any entity or agency approved by the State Government or Government of India, the above fee shall not be payable for establishing e-trading platform.

(5) Each application shall be accompanied with the following, namely:- 64

(i) the applicant shall furnish Know Your Client (KYC) documents like (a) adhaar card, (b) PAN Card, (c) bank authentication etc. in case of partnership firm or a company, the KYC of all the partners or directors shall be compulsory;

(ii) a detailed project report showing the financial status of the applicant with the support of Income Tax returns for the previous three assessment years or permanent assets with valuation assessed by a registered assessor or evaluator, as may be decided by the State Government from time to time;

(iii) the detailed project report shall also contain details such as land in which the market is proposed to be established, locations thereof , and approximate amounts to be invested for setting up the market and facilities to be provided for purchase or sale and storage of fruits, vegetables, livestock and its products, woods and flowers including processing, grading, packaging, storing and for sale or export of the produce by way of value addition;

(iv) outlay earmarked for providing amenities and facilities such as resting place, canteen for farmers and other functionaries who bring produce or provide services in the private market, for establishing laboratory facilities to evaluate and determine the quality of the produce.

(6) The application received shall be scrutinized by the competent authority or any officer authorized by it in this behalf within thirty days of its receipt.

(7) The competent authority shall evaluate the project report submitted by the applicant and may issue within sixty (60) days from the date of receipt of application, may issue the letter of intent and a permission to the applicant for commencement of the project based on such evaluation. The applicant shall have to complete the project within the period specified in the letter of intent. On completion of the project, the applicant shall give intimation to the competent authority.

(8) On receipt of intimation regarding completion of the project, the competent authority shall get the same inspected through a committee to be consisting of following, namely :-

(i) Representative of the competent authority;

(ii) Secretary of the Board or its representative;

(iii) Deputy Commissioner of the district concerned or its representative;

(iv) Chief Agricultural Officer of the district concerned; and

(v) District Mandi Officer (Convener).

The Committee shall satisfy about the completion of the project consisting of all amenities and facilities as per the project report and shall submit the result thereof to the competent authority. In case of failure by the applicant to implement the project either within 65 stipulated period mentioned in the permission or within such extended period allowed by the competent authority which shall not be more than one year in any case from the date of issue of letter of intent may be extended upto one year.

(9) The competent authority may refuse to grant a licence for reasons to be recorded in writing and communicate in writing to the applicant. In case of rejection of application, the fee deposited with the application shall be refunded to the applicant, after deducting ten percent of the fee paid towards processing fee.

(10) On receipt of the completion from the committee, the competent authority shall grant a licence in Form B-3 on such terms and conditions specified for a period not exceeding fifteen years, which is renewable for a further period of fifteen years from time to time on a request and on payment of fee as specified in sub-rule (4).

(11) The State Government or any other officer authorized by it after providing an opportunity of hearing and reasons to be recorded in writing refuse to grant or renewal of licence to the applicant who is either insolvent or otherwise disqualified under the Act or the rules made thereunder:

Provided that no such order shall be passed without providing due opportunity to the applicant.

(12) The private yard licensee shall only be eligible to operate the market yard after obtaining the license from the competent authority. The licensee before operating the market shall deposit an irrevocable and continuous bank guarantee or cash security as specified below or a amount equal to two per cent of the annual turnover of the previous year whichever is more, with the State Government or any other officer authorized by it, namely:- TABLE OF BANK GUARANTEE OR CASH SECURITY 1 Establishment of Private Market Yard rupees twenty five lakh 2 Establishment of e-Trading Platform rupees fifty lakh 3 Establishment of Producer Market Yard (Kissan Mandi) rupees ten lakh

Provided that in the case of Government organizations and co-operative institutions, the bank guarantee shall be fifty percent of the specified amount. However, in case of markets established by the market committees or under its control the above clause shall not be applicable:

Provided further that the license of private market yard shall be non-transferable but the licensee of private market yard can engage a professional agency only for operation and 66 maintenance. In case of breach of this clause or any conditions of license, his license shall be liable to be cancelled after providing opportunity to him.

(13) A licence granted under sub-rule (10) shall, remain in force upto 31st March from the date of issue of the same.

(14) The private licensee should have not been adjudged or proved to be insolvent at any time and should not have compromise with creditors with less than full discharge of debts and should have not been any disciplinary action or suspended or expelled or declared defaulter by any registrar of co-operative societies, statutory authorities, etc. and should have never been convicted of any offence involving fraud or financial irregularities and should have never been involved in any litigations or suits or proceedings or any financial liability of contingent or uncertain nature.

17-C. Power to revoke bank guarantee. –

(1) The cash security or the bank guarantee given by the private licensee shall be entered in register maintained in Form U in the office of the competent authority or any other officer authorized by it.

(2) The competent authority or any other officer authorized by it, shall have the power to recover any amount of loss caused by the private licensee or his functionaries from the bank guarantee or cash security furnished by him.

(3) The bank guarantee furnished by the private licensee shall be unconditional and the amount secured by the bank shall remain with the competent authority or any other officer authorized by it and shall be encashed or released to the owner as decided by the competent authority or any other officer authorized by it.

(4) The bank guarantee shall be deemed to be held in trust for the purpose for which it is made and shall neither be used for any other purposes nor shall be liable for levy of attachment or execution by any court or other authority for any other purposes.

(5) In case of any amount realized out of bank guarantee by the competent authority or any other officer authorized by it, the private licensee shall be liable to recoup such amount within a period of one month from the date of intimation thereof, failing which his license shall be liable to be cancelled.

(6) The amount of security or bank guarantee furnished by the private licensee shall be deposited in the scheduled bank situated in the State of Punjab and shall be deemed to have been enhanced to the extent of the interest credited by the bank in respect of such security or guarantee, as the case may be.

17-D. Renewal, suspension and cancellation of licence.-

(1) An application for the renewal of licence shall be made at least thirty days before the date on which the licence is due to expire and the same shall be renewed for a period of fifteen years:

Provided that period of grace of thirty days shall be allowed for getting a license renewed and in case the licensee fails to renew the license, the same shall be deemed to be cancelled.

(2) If the private licensee desirous to close the market before the expiry of the license, he shall give six month prior notice to the competent authority. If the private licensee closes the market without prior notice, before the period of license, in this case a penalty of twenty-five percent amount of the bank guarantee shall be imposed.

(3) The State Government or any other officer authorized by it, after receiving the enquiry report conducted under sub rule (3) of 35-B, and after giving an opportunity of being heard to the private licensee, may pass orders of suspension or cancellation, as the case may be, of license under section 10-B of the Act. The license may be suspended up to fifty days, hundred days, hundred and fifty days, one year and two years for first, second, third, fourth and fifth breach respectively. After that if competent authority found the licensee a habitual defaulter, then the competent authority may consider for the cancellation of the license:

Provided that an appeal against the order passed by the competent authority shall lie to the State Government or any officer authorized by it and shall be preferred within sixty days from the date of communication of the order appealed against in the form of memorandum duly stamped with court fee of twenty rupees and signed by the appellant or his duly authorised agent.

17-E. Procedure for settlement of disputes.-

(1) Any person aggrieved by an order passed by licensing authority under section 10-B and 10-C of the Act may, at any time within one month from the date of passing the order, appeal to the authority as notified by the State Government from time to time.

(2) Any dispute relating to-

(i) the payment to be made to the farmers for the purchase of agricultural produce;

(ii) the jurisdiction (area of operation);

(iii) the weight, quality and price of agricultural produce, and any other statuary charges;

(iv) any other provisions of the Act and the rules made there under ;

arises between the buyer, seller, commission agent , any market functionaries or owner of the yard and the market committee, a complaint shall be filed in writing along with necessary documents in the office of the District Mandi Officer concerned, which shall be referred to the Dispute Settlement Committee constituted by the Government, consisting of the following members, namely:-

(i) Sub-Divisonal Magistrate of the area concerned;

(ii) District Mandi Officer as convener;

(iii) Chief Agricultural Officer or his representative;

(3) The committee referred to in sub-rule (2), after giving due opportunity to the parties of dispute, shall decide the same within a period of sixty days from the receipt of the complaint.

17-F. Registration of Ad-hoc buyer.-

(1) The registration of adhoc buyer shall be made by the Market Committee online in Form A-5 and and shall also deposit registration fee of rupees five hundred to the committee.

The registration number shall be granted at the State level in Form B-5, which shall be valid upto the last day of the applied month. A record of licences issued under this rule shall be maintained by the Board in Form C-5. The information about the ad-hoc buyer and the number of purchases made by him, shall be available in the Board and Market Committee portal and the particulars of such buyer and purchases made by him, shall be maintained in Form M.

(2) The registration of ad-hoc buyer shall be linked up with Adhaar number, PAN Card and bank account detail. In case of Hindu Undivided Family, Company, Co-operative Society, Government Agency, Public Sector Unit or Corporation, as the case may be, the GST Number shall be required to be mentioned.

(3) The ad-hoc buyer shall furnish bank guarantee equal to twenty-five percent of the tentative value of agricultural produce intended to be purchased. The bank guarantee shall be released immediately after payment of all the dues relating to sale proceeds of the produce.

(4) The ad-hoc buyer shall make payment to the seller through electronic transfer after the weighment is over and shall be liable to pay all the fees or dues relating to sale proceeds of the agricultural produce before lifting the same.

(5) In case of any breach of any provision of the act, rules and bye-laws made thereunder, the bank guarantee of ad-hoc buyer shall be forfeited.

(6) The Market Committee shall maintain the record of such transactions in separate Form H and shall upload the same on the Board portal on the same day.”.]

18. Persons exempt from taking licences under section 6 Sec.6 Under sub-section (3) of section 6 the following persons shall be exempt from taking licences for the purchase of agricultural produce :

(a) confectioners and purveyors of parched, fried or cooked food;

(b) persons using kuhlus, provided that the number of kuhlus installed by them in the notified market area is not more than two;

(c) hawkers and petty retail shop-keepers who do not engage in any dealing in agricultural produce other than such hawking or retail purchases ;

69 1[Explanation – For the purposes of this clause and clause (b) of sub-rules (2), a person whose turnover of sales and purchases of agricultural produce does not exceed 2[three lakhs] rupees during a year shall be treated as a petty retail shop-keeper :

Provided that a dealer importing agricultural produce from outside the State of Punjab shall not be treated as a hawker or a petty retail shop-keeper].

(d) officials of the State Government and the Central Government when making purchases on behalf of the Government :

Provided that in the case of persons mentioned in clauses (a) and (b) the purchases made for meeting the vocational needs of the persons concerned.

(e) Tanners when making purchases or raw hides and skins :

3[(f) Omitted] ;

4[(g) The Punjab Khadi Gram Udyog Sangh when making purchases of wool for manufacturing purposes], 5[(h) The spinning mills when purchasing or storing of ginned and fully pressed cotton bales, for which fee has been paid, for manufacturing thread.

Provided that a spinning mill which purchases, stored or processes unginned cotton or resells unginned or ginned cotton, shall not be eligible for this exemption.”]

2. The following shall be exempt from taking a licence for the sale of agricultural produce :-

(a) The Scheduled banks when proceeding against any agricultural produce belonging to a producer or a licensee under section 10 of the Act to whom money has been advanced against the security of such agricultural produce ;

(b) Hawkers and petty retail shop-keepers who do not engage in any dealing in agricultural produce other than such hawking or retail sales ;

1 Substituted vide Notification No. 11(13)-M-III-83/9379 dated 4.5.1988.

2 Substituted vide Notification No. G.S.R 46/P.A. 23/61/S.43/Amd. (45) 62/98 dated 11.6.1998.

3 Omitted vide P.A.P.M (General) (Third Amd.) Rules, 1964, dated 3.9.1964.

4 Added vide Notification No.G.S.R. 291/P.A. dated 28.11.1963.

5 Substituted vide Notification No. G.S.R. 24/PA-23/61/S-43/Amendment (63)/2010 dt. 14-06-2010 70

(d) Persons licenced under the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 and the Punjab Warehousing Act, 1957, who carry on exclusively warehousing business, when selling out agricultural produce belonging to any person to whom money has been advanced against security of such agricultural produce.

(e) Tanners when making sales of cured, tanned and processed hides and skins.

1[(f) Omitted].

2[(2-A) The following shall be exempt from taking a licence for processing of agricultural produce, namely :- 3[(a) Chakkiwalas and Arewalas who do not make any sales or purchases of agricultural produce but have installed their chakkis and Aras (Saw Mills) only for grinding of agricultural produce or for sawing of timber for using it as fire-wood as the case may be].

(b) Persons engaged in hand pounding of paddy only.

4[(3) The official of the State Government and Central Government exempted form taking licence under sub-rule (1) (d) and (2) (c) and the Punjab Khadi Gram Udyog Sangh exempted from taking licence under sub-rule (1)

(a) shall be bound to comply with the provisions of the Act, Rules and bye-laws made there under, when making purchases or sales, otherwise than through the agency of a licencee].

5 [(4) A person licenced under the Agricultural produce (Development and Warehousing) Corporation Act, 1956, or the Punjab Warehousing Act, 1957 and the scheduled banks storing agricultural produce pledged with them by a producer or a licencee under section 10 of the Act to whom money has been advanced against the security of such agricultural produce shall be exempt from taking licence in storage business].

(5) If a question arises whether a person is entitled to exemption under sub-rule (1)(c) or 2(b), the 6[Secretary] of the Board shall assess the turnover of the person concerned after giving him an opportunity of being heard. His decision shall be final and conclusive.

1 Omitted vide P.A.P.M (General) (Third Amd.) Rules, 1964, dated 3.9.1964.

2 Added vide Notification No.P.A.P.M. (General) (Third Amd.) Rules, 1964, dated 3.9.1964.

3 Substituted vide Notification No. 11(13)-M-III-83/9379 dated 4.5.1988.

4 Substituted vide Notification No.GSR 291/P.A dated 28-11-1983.

5 Substituted vide Notification No. P.A.P.M (General) (Second Amendment) Rules, 1963, No. GSR 219/P.A. 23/61/S.43/ Amd.(2). 63 dated 10.9.1963.

6Substituted vide Notification No. 11(13)-M-I-83/21424 dated 13/14-10-1987/Corrigendum 11 (13)-M-1-83/25831 dated 9.12.87, published in the Gazette dated 9.12.87.

19. Licences to brokers, weighmen, measurers, surveyors, godown-keepers and palledars Sec.13 & 43

(2) (viii)

(1) A person desirous of obtaining a licence under sub-section (3) of Section 13 shall make an application in Form D to the 1 [Secretary of the committee] of the notified market area concerned after depositing with the committee the requisite licence fee. 2[............. Omitted]:

3[Provided that in case of palledar no such application in Form D, shall be necessary. The dealer shall intimate to the 4[Secretary of the committee] in writing full particulars such as name, parentage, residence and full address of the palledar engaged by him and such intimation shall be treated as an application for the grant of a licence].

(2) On receipt of application the 5 [Secretary of the committee] or any other officer duly authorised by the committee in this behalf may after making such enquiries regarding the conduct and business of the applicant, as he may deem necessary, grant a licence in Form E.

The licence shall be subject to the conditions mentioned therein.

(3) The committee shall maintain a record of licences issued under sub-section (3) of section 13 in Form C.

6[(4) The licence fee for licence issued under this rule shall be as follows :

Category of licence Licence fee for three years Weighman or Measurer or Surveyor Twenty rupees Broker or Godown-Keeper one hundred rupees]

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

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

20. Change in style and membership of firm Sec.10 & 13 1 Substituted vide Notification No. 11 (13) M-III-83/9379 dated 4.5.88.

2 Omitted vide ibid.

3Inserted vide Notification No. GSR/219/P.A. 23/61/S.43 AMD (2)/63 dated 10.9.63.

4 Substituted vide Notification No. 11 (13) M-III-83/9379 dated 4.5.88.

5 Substituted vide bid.

6 Inserted vide Notification no. G.S.R. 86/PA-23/61/S.43 Amd. (28)/89 dated 1.12.89. Published in the Gazette dated 08.12.89.

(1) (a) Where the licensee, holding a licence under section 10, is a firm, any change occurring in the membership of such firm otherwise than through inheritance, shall mean the constitution of new firm and shall necessitate a fresh licence :

Provided that in the case of Hindu Joint Family firm, any addition on account of the birth of any 1[male member or deletion on account of death of any male member] shall not be treated as bringing about any change in the membership of the firm.

(b) Where a change, not necessitating a fresh licence under section 10 takes place in the membership of a firm, or the firm changes its name without any change in membership thereof, and intimation thereof shall within 2[Sixty days] from the date of such change, be given to the 3[Secretary] of the Board through the Chairman of the committee. The Chairman of the committee shall, after making such enquiry as he may deem necessary, forward the application to the 4[Secretary] of the Board with his comments.

The 5[Secretary] of the Board, on being satisfied about the correctness of the intimation shall order necessary corrections to be made in the licence. Intimation of such order shall also be given to the committee concerned, and necessary corrections shall be made in the Register in Form C maintained in the office of the Board and the committee.

(c) If in a case covered by clause (b) the firm fails to give necessary intimation to the 6[Secretary] of the Board within the specified time, the change in the membership or the name of the firm, as the case may be, shall be deemed to result in the constitution of a new firm necessitating the grant of a fresh licence.

(d) The licensee may apply to the licensing authority for making an addition or deletion in the particulars of the business for which a licence has been issued to him, by paying a fee of one rupee. The licensing authority may by an order allow such an addition or deletion whereupon the licence shall be amended accordingly.

(2) (a) Where the licensee, holding a licence under section 13 is a firm, any change occurring in the membership of such firm otherwise than through inheritance shall mean the constitution of a new firm and shall necessitate a fresh licence :

Provided that in the case of a hindu-joint-family firm, any addition on account of the birth of any male member 7[or deletion on account of death of any male member] shall not be treated bringing about any change in the membership of the firm.

1 Substituted vide Notification No. 11 (13) M-III-83/9379 dated 4.5.88.

2 Substituted vide ibid.

3 Substituted vide Notification No. 11 (13) M-I-83/21424 dated 13/14-10/1987.

4 Ibid.

5Substituted vide Notification No. 11 (13) M-I-83/21424 dated 13/14-10/1987.

6Ibid.

7Substituted vide Notification No. 11 (13) M-III-83/9379 dated 4.5.88.

(b) Where a change, not necessitating a fresh licence under section13, takes place in the membership of a firm, or the firm changes its name without any change in the membership thereof, and intimation thereof shall, within 1[Sixty days] from the date of such change, be given to the committee concerned, who if satisfied, after such enquiry as it may consider necessary, about the correctness of such intimation, shall order necessary corrections to be made in the licence. The Register in Form C shall also then be corrected accordingly.

(c) If in a case covered by clause (b), the firm fails to give necessary intimation to the committee within the specified time, the change in the membership or the name of the firm, as the case may be, shall be deemed to result in the constitution of a new firm necessitating the grant of a licence.

2[(3) Nothing in this rule shall apply in the case of a licence granted to a Co-operative Society].

21. Renewal of licence and issue of duplicate thereof Sec.43(2)

(viii)&(ix) 3[(1) A licence granted under sub-sections (1) and (1-A) of section 10 or section 13 of the Act shall be valid for the period for which it is granted and shall, subject to any order passed under subsection (2) of section 10 of the Act or sub-rule (5) of rule 19, be renewable by the authority granting it, on payment of the annual fee specified for the issue of such licence. The application for renewal of license shall be made in Form F or Form FF for licences under subsections (1) and (1-A) of section 10 respectively and in Form G for license under section 13:

Provided that the licence granted under sub-sections (1) and (1-A) of section 10 shall deemed to cancelled if the licensee does not conduct any business for two years continuously.

(2) If any area is excluded from any notified market area and included in another market area, the licences issued under sub-sections (1) and (1-A) of section 10 or section 13 for the area so excluded shall be deemed to have been issued by the committee of the notified market area in which the area is included and shall be renewable by the committee of that area.

(3) An application for the renewal of licence shall be made at least thirty days before the date on which the licence is due to expires:

Provided that the period of grace of thirty days shall be allowed for getting an annual license renewal;

Provided further that the authority competent to renew a licence may, on the applicant’s paying a penalty equal to the amount or annual licence fee, grant an application for renewal made within thirty days after the date of expiry of the licence or in the case of an annual licence with in thirty days of the expiry of the period of grace. The authority competent to 1 ibid 2 Substituted vide Notification No. 11 (13)/M-III-83/9379 dated 4.5.1988 3 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 74 renew a lilcence may remit the penalty in whole or in part if it is satisfied that the delay was for the reasons beyond the control of the applicant:

Provided further that no licence shall be renewed for a part of the year:

Provided further that the authority competent to renewal of license shall decide for the renewal within thirty days from the receipt of the application, failing which the licence shall deemed to be renewed for which it is applied for.";]

1[(3-A) …Omitted.]

(4) Every renewal of a licence granted under this rule shall be deemed to take effect from the date following that on which the licence expired.

(5) Except as provided in sub-rule (3), every application for renewal of a licence made after the date of expiry thereof shall be treated as an application for the grant of a fresh licence.

2["(6) If a licence granted under sub-sections (1) and (1-A) of section 10 or section 13 of the Act, or renewed under sub-rule (1) is lost, a duplicate license shall be issued by the authority which issued the original, on payment of a fee of one hundred rupees.

(7) The fee payable for the renewal of a licence under sub-section (1) and (1-A) of section 10 or section 13 for the issuance of duplicate license shall be paid to the committee concerned.".]

22. Prohibition against grant of certain licences Sec10.13 & 43(2)

(viii)&(ix)

(1) Except as hereinafter provided, no person shall at the same time hold a dealer’s licence under section 10 as well as a licence under section 13 or hold more than one licence under section 13 to act as a -functionary in more than one capacity:

Provided that nothing in this shall apply to persons dealing in vegetable and fruits. (2) Nothing in sub-rule (1) shall be deemed to prohibit person licenced as weighman, surveyor or measurer to act in all the three aforesaid capacities.

23. Employing a broker Sec.43(2)

(xii) & (xiv)

(1) No person shall 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 broker when none has been employed.

1 Omitted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 2 Substituted vide ibid.

(2) Where any person enters into any transaction for the purchase or sale of any agricultural produce through a commission agent, and the commission agent, without a written authority from his principal, employs a broker in connection, with such transaction, the broker’s commission shall be payable by, and may be paid out of the remuneration due to, such commission agent.

(3) The same person shall not act as a broker both for the buyer and the seller of an agricultural produce in the same transaction.

24. Sale of agricultural produce Sec. 43(2) (v) 1[" (1) All agricultural produce brought into the market for sale shall be sold by open auction or etrading in the principal market yard, sub-market yard or any other market yard notified under the Act.

(1-A) The Chairman of the Board on the behalf of the State Government, may grant permission to a licensee for purchase of the agricultural produce directly from the producer through bilateral transaction at any place within the notified market area of a committee on the terms and conditions as may be specified by the Board. Any licensee applying for the permission of direct purchase, shall apply in Form A-6 and also deposit fee of rupees ten thousand per year or a part thereof with the Board. Permission shall be granted in Form B-6 by the competent authority and record of permissions issued under this rule shall be maintained by the Board in Form C-6:

Provided that if any licensee entered into a contract with a producer for standing crop of fruit and vegetable in the notified market area of the committee, such transaction shall be deemed sale and purchase of agricultural produce. The buyer shall maintain a register in Form ‘R’ and furnish information in Form R-I to the committee alongwith return in Form 'M'.”;]

(2) Nothing in sub-rule (1) shall apply to a retail sale as may be specified in the bye-laws of the committee.

(3) A committee may, and on being directed by the 2[Chairman of the Board or an officer authorised by him] shall fix timings for the starting and closing of the auction in respect of any agricultural produce, other than fruits and vegetables.

(4) The price of agricultural produce shall not be settled by secret signs or secret bid and no deduction shall be made from the agreed price of the consignment.

3["(5) The auction shall not be conducted by any person other than the person engaged by the committee:

1 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 2 Substituted vide Notification No. 11/13/93-M 3/5762 dated 27.8.2003 3 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 76

Provided that under special circumstances the Chairman of the Board or an officer authorized by him may, allow a committee to make or permit any alternative arrangement;

Provided further that nothing in this sub-rule shall apply to the auction of vegetables and fruits;

Provided further that in case of licensee under section 10-B, shall made necessary arrangement for auction of the agricultural produce in the said yard.”;]

(6) The highest bid offered by a buyer at an auction and at which the seller of the produce gives his consent to sell his produce, shall be sale price of the produce.

(7) The buyer shall be considered to have thoroughly inspected the produce for which he has made a bid and he shall have no right to retract it.

(8) As soon as the auction for a lot is over the auctioneer shall fill in the particulars in a book to be maintained in Form H and shall secure of the both the buyer and the seller or their respective representatives, whoever may be present at the spot.

1[(8-A) A register in form HH shall be maintained by the committee wherein the agricultural produce which remained unsold during the course of auction shall be entered and it shall be obligatory for every dealer or Kacha Arhtia or commission agent, as the case may be, to report about the unsold produce to the committee as soon as his agricultural produce is sold].

(9) The buyer shall be responsible to get the agricultural produce weighed immediately after the auction or on the same day the produce is purchased by him 2[and the seller or the buyer shall be liable for any damage to, or loss of, or deterioration in, the produce after the auction according to the 3[local usage or custom or as per provision of rule 13].

(10) A person engaged by a producer to sell agricultural produce on his behalf shall not act as a buyer either for himself or on behalf of another person in respect of such produce 4[without the prior consent of the producer]:

Provided that a Co-operative Society shall be exempt from the operation of this rule.

5[("11) (a)The Kacha arhtia shall make payment to the seller through electronic transfer after the weighment is over. If payment is not made by the Kacha Artia in the manner, as stated above, then the same shall be recovered by the market committee concerned from him as an arrears of land revenue and the first lien shall be of seller's right and it shall be made to the seller concerned:

Provided that over trading shall only be allowed in the case of buyer or kacha Arhtia, as the case may be, who provides security deposit or bank guarantee equal to the amount of 1 Substituted vide Notification No. 11(13) M-III-83/9379 dated 4.5.1988.

2 Substituted vide Notification No. GSR 167/ PA dated 3.7.66.

3 Substituted vide Notification No. 11(13) M-III-83/9379 dated 4.5.88.

4 Substituted vide Notification No. GSR 167/PA dated 3.7.66.

5 Substituted vide Notification No.01/02/2018-M3/1720 /S 43 dated 8.4.2020 77 agriculture produce to be purchased at any point of time, not exceeding twenty-five percent of the security deposit or bank guarantee furnished by him:

Provided further that that the seller shall be at liberty to receive payment up to rupees ten thousand in cash in a calendar month for the agricultural produce sold by him during that month.

(b) When the agricultural produce is sold by the farmer through Kacha Arhtia, in that case the buyer shall make payment to the concerned Kach Arhtia within two days positively or the purchase of Agricultural produce and after that, the Kacha Arhtia shall make payment to the seller within two days positively.

(bb) Notwithstanding anything contained in clauses(a) and (b) above, the buyer shall make payment to seller for his agricultural produce by electronic transfer, subject to the conditions that such seller shall give his option of the same in Form 'S', within a period of forty five days in advance before the start of the procurement season of wheat or paddy crop, as the case may be.

(c) The incidental and market charges, payable to different market functionaries, shall be paid as provided in the byelaws.”;]

(12) Every Kacha Arhtia shall execute a memorandum in 1[Form 'I', in case, the payment is to be made by him, i.e. Kacha Arhtia, to the seller or in Form 'III', in case the payment is to be made directly by the buyer to the seller, immediately] after the weighment is over, and deliver the same along with the agricultural produce to the buyer, mentioning therein the sale proceeds and market charges admissible under the rules and byelaws;

Provided that nothing in this sub-rule shall apply where agricultural produce, being vegetable or fruit, not exceeding one quintal in weight is delivered after the weighment is over.

2[12(A) The buyer shall issue the delivery receipt in Form II to the Kacha Arhtia, while accepting the delivery of the agricultural produce".]

(13) 3(………..)

4["(14) Delivery of agricultural produce after sale shall not be made or taken unless and until the Kacha Arhtia or, if the seller does not employ a Kacha Arhtia, the buyer have to give to the seller a sale voucher in Form J mentioning the payment mode and its authentication, the counterfoil of which shall be retained by the Kacha Arhtia or the buyer, as the case may be:

Provided that a licensee entered into a contract with a producer under sub-rule (1-A), shall issue sale voucher in Form-J for the contract value of the agricultural produce.

1 Substituted vide Notification No. GSR 44/P.A.23/1961/S.43/Amd.(71)/2013 dated 17.07.2013 2 Inserted vide Notification No. GSR 43/P.A. 23/1961/S.43/Amd.(70) 2012 dated 8.8.2012.

3 Omitted sub rule (11)(12) and (13)into sub rule (11)(12) vide Notification No. No. GSR 32/PA-23/61/S-43/Amendment (65)/2010 dated 10-09-2010 4Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 78

(15) Any person desirous to make purchase of agricultural produce for his domestic consumption shall be allowed to purchase directly from the producer up to such quantity as may be prescribed in bye-laws for each agricultural produce notified in the Schedule under the Act.".]

24-A. Commission of Kacha Arhtia 1[The commission of Kacha Arhtia for services rendered in connection with the sale, purchase, storage and processing of agricultural produce mentioned below shall be paid at upto the following rates, namely:- Name of Agricultural Produce Rate of Commission

(i) cereals i.e. Wheat (Kanak), Barley (Jau), Maize (Makki), Great Millet (Jowar), Spiked Millet (Bajra), Paddy and Rice (Dhan and Chawal).;

Two and a half percent

(ii) all fruits and vegetables except Chillies (dry and green); Five percent

(iii) Chillies (dry and green) ;

One and a half percent

(iv) dry and green fodder; three percent

(v)Timber and Firewood; and four percent

(vi) all other items (other than those specified in items (i) to (v) mentioned in the Schedule of the Act.

Two and a half percent 2[24-B. Seizure of the agricultural produce

(1) The agricultural produce belonging to a person trading without a valid licence shall be liable to be confiscated.

(2)(a) The Secretary of the Committee shall seize the agricultural produce referred to in sub-rule (1) and henceforth he shall prepare a seizure memo of the agricultural produce so seized giving such of the following particulars as may be available the spot:

(i) Name of the agricultural produce;

(ii) Weight or available description of the vehicle;

(iii) Name of the driver of the vehicle;

(iv) Bilty or consignment No.;

1 Substituted vide ibid.

2 Inserted vide Notification No. 11/13-M-III-83/9379 dated 4.5.1988 79

(v) Name of the consignee or consigner;

(vi) Place from where the agricultural produce is seized; and

(vii) Such other particulars as may be considered necessary.

(b) The seizure memo shall be signed by the Secretary of the Committee, the driver of the vehicle or the person from whose possession the agricultural produce is seized and if the driver or the person from whose possession the agricultural produce is seized does not sign the seizure memo. It shall be signed by two witnesses along with the signatures of the Secretary of the Committee.

(3) The Secretary of the Committee shall inform the Chairman of the Committee about the seizure referred to in sub-rule (2) for convening a meeting of the committee or of the subcommittee, as the case may be, for taking a decision regarding its confiscation and the meeting of the committee of the sub-committee, as the case may be, shall be convened within forty-eight hours of the seizure of the agricultural produce:

Provided that the order to confiscate the agricultural produce shall not be made without giving the person concerned an opportunity to show cause as to why such an order should not be made.

(4) The confiscated agricultural produce shall be disposed of in an open auction or in such other manner as may be decided by the committee and the sale proceeds thereof shall be deposited in the Market Committee Fund].

25. Weighment Sec. 43(2)(x)

(1) The Board shall fix standards of net weight of agricultural produce to be filled in a packing unit such as bag, a half bag or a palli within each notified market area.

(2) No person shall fill or cause to be filled any agricultural produce except in accordance with standards fixed under sub-rule (1).

(3) All transactions in a market in terms of packing units shall be deemed to have been entered into accordance with standards fixed under sub rule (1)

(4) Immediately on the completion of weighment of a lot of agricultural produce within a notified market area, either party to the contract may cause a test weighment of ten percent of the units of packing in a lot or two packing units whichever is more. The test –weighment shall be carried out at the site of weighment and if no test weighment is held at the site, the produce shall be deemed to have been correctly weighed.

(5) Test weighment under sub-rule (4) shall be carried out in the presence of both the parties to the contract. In case any of the parties refuses or otherwise evades presence, the other party may report in writing to the Secretary of the committee or any employee of the Board not lower in rank to that of 1[the Secretary of the committee] who, after satisfying himself as to the correctness of the report, shall cause the test weighment to be made in his presence or in the presence of any other official of the committee authorised by him in this behalf, and the result of such test weighment shall be final, conclusive and binding on both the parties.

(6) Before any agricultural produce weighed in pursuance of a contract of sale or purchase within a notified market area is removed from the place of its weighment, the Chairman, the Secretary of the Committee or any employee of the Board not lower in rank to that of 2[the Secretary of the Committee or Agricultural Inspector (Market) or Assistant Marketing officer of the Marketing section of the department of Agriculture & Forests (Agri. Wing)] shall, with a view to satisfying himself that such weighment has been correctly made or is filled in accordance with standards fixed under sub-rule (1), be entitled at any time and without any previous notice, to check the weighment by means of weights and instruments kept by the Committee or any other agency in the presence of the purchaser and the seller and if either or both of them evade presence, test weighment may be carried out in the presence of any two persons present there.

(7) If the weighment checked under sub-rule (6) is found to be defective, the persons checking the weighment may order the lot, to be reweighed. The reweighment shall be made at the cost of the buyer, if it is not filled in accordance with the standards fixed under sub-rule(I), and at the cost of the weighman concerned, if the weighment is otherwise defective. Such orders shall be final and the buyer or the weighman, as the case may be, shall immediately comply with the order. This sub-rule shall operate without prejudice to any other punishment that may be awarded under the Act, these rules or bye-laws made there under.

26. Use of weighing instruments, weights and measures, their inspection and seizure Sec.43 (2)

(x)&(xi) 3[" (1) Only such weighing instruments, as satisfy the requirements of, and such weights and measures as are prescribed by the Punjab Weights and Measures Act, 1958, and the rules made there under shall be used for weighing or measuring agricultural produce in a notified market area:

Provided that in the transactions of sale and purchase of a agricultural produce in the principal market yard and sub-market yards of the notified market area the electronic weighing scale shall only be used.".]

1 Substituted vide Notification No. GSR 25/P.A 23/61/S.43/AMD (26)/89 dated 15.2.1989, published in the Gazette dated 24.2.89 .

2 Substituted vide Notification No. GSR 7/P. A. 23/61/S43 AMD (29)/90, dated 2-2-90, published in the Gazette dated 6-2-90.

3 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 81

(2) Every committee shall keep in the market yard at least one weighing instrument of the capacity of one quintal and two sets of weights, and in places where measures are used two sets of measures, verified and stamped in accordance with the provisions of the Punjab Weights and Measures Act, 1958, and the rules framed there under. The committee shall cause such weights and measures to be tested and verified once in the course of each calendar year through the agency appointed and in accordance with the requirements of the said Act and rules.

(3) The Chairman of a committee shall allow any person to check free of charge any weight or measure in his possession against the weights and measures maintained under this rule.

(4) Weighing instruments, weights and measures kept by a committee under this rule may at any time be inspected, examined and checked by the Chairman or the Secretary of the Board or by any other employee not lower in rank than that of an Inspector authorised in this behalf by the 1 [Secretary] of the Board. After inspection the inspecting authority may give such directions as it may deem proper. The committee shall be bound to comply with such directions.

(5) The Chairman or the Secretary of the Board or the committee, and any other person authorised in this behalf by the 2[Secretary] of the Board shall be entitled at any time and without previous notice to inspect, examine and test any weighing instrument, weight or measure used, kept or possessed within a notified market area by a licensee under section 10 or 13 of the Act, and every such, licensee in possession of any such weighing instrument, weight or measure shall, when required, be bound to produce the same before the person entitled so to inspect, examine and test it.

(6) Any person authorised to inspect, examine and test any weighing instrument, weight or measure under sub-rule (5) shall, while so acting, have all the powers of an Inspector, Weights and Measures, appointed under section 15 of the Punjab Weights and Measures Act,1958.

27. Weigh-Bridge, measuring yards and certificates of weighment or Sec. 43 measurement

(x) & (xi)

(1) The committee may erect in the market a weigh bridge for the weighing of agricultural produce on payment of such fees as may be prescribed by its byelaws 1 Substitute vide Notification No.11(l3)-M-I-83/21424 dated 13/14-10-1987.

2 ibid 82

(2) In places where it is customary for any agricultural produce to be measured instead of being weighed, the committee may specify a place within the market for that purpose and make arrangement for the measuring of such produce on payment of such fees as may be prescribed by its bye-laws.

(3) The committee shall be responsible for maintaining such weigh bridges or measuring yard in proper condition, and for issuing free of cost certificate of weighment and measurement, as the case may be, in such forms as may be prescribed by its bye-laws.

(4) A certificate issued under sub-rule (3) above shall be accepted as final by all persons transacting business in the notified market area, unless it is proved, to the satisfaction of the Chairman of the committee or his authorized representative that the weighment or measurement was done on a defective weigh-bridge or measuring yard or by means of an incorrect scale or weight or measures.

28. Places at which agricultural produce shall be weighed or measured Sec.43(2) (x)

(1) In any notified market area for which tobacco or chillies has been notified as agricultural produce under section 6, the committee may prescribe the places at which the aforesaid commodities may be weighed, measured or sold.

(2) Subject to the provisions of sub-rule (1), weighments and measurements of agricultural produce intended for sale, shall be made through licensed weighmen or measurers in the principal or a sub-market yard.

1["28-A.Establishment of Assaying Laboratory.- Assaying lab can be operated, managed or leased out by the committee on the terms and conditions prescribed by the Board from time to time. The competent authority can authorize private assaying lab for issuing the assaying certificate as per prescribed parameters.".]

29. Levy and collection of fees on the sale and purchase of agricultural Sec. 23 & produce 43 (2) 2[(1) Under section 23 a committee shall levy

(i)fees on the agricultural produce bought or sold by licensee; and

(ii) also additional fees on the agricultural produce when sold by a producer to a licensee;

In the notified market area at the rate fixed by the Board from time to time].

1 Inserted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 2 Substituted vide Notification No. GSR 154/P.A./23/61/3-43/ Amd. (22)/82 dated 29.11.1982.

83 1[Provided that no fee shall be levied on the agricultural produce bought or sold in respect of which fee has already been paid in the same or other notified market area within the State. The licensee dealer who claims exemption from payment of fee shall make declaration and give certificate to that effect in Form ‘KK’ within a period of 2[sixty days of the transaction] of agricultural product in question to the Committee from where the exemption is claimed]:

The certificate in Form ‘KK’ shall be prepared in quadruplicate from the book-let, duly attested and issued by the Secretary of the concerned committee or its authorized officer, against the payment, fixed by the committee. It shall be the duty of the dealer, claiming exemption from the payment of fee to send the original copy of Form ‘KK’ to the committee within whose market area the agricultural produce is brought. The second copy shall be sent to the office of the committee within whose market area such agricultural produce is bought and the third copy shall be retained by the dealer, who purchased the agricultural produce and the fourth copy shall be retained by the dealer who sold the agricultural produce and the same shall be kept as a part of their accounts, maintained in respect of payment of the fee.

3[In case, the dealer fails to present the certificate referred to above within a period of sixty days, then the Assessing Authority shall impose penalty equal to the amount of ten percent of market fee for the next month twenty percent of the market fee for further next month, thirty percent of the market fee for the subsequent next month, forth percent of the market fee for further next month and fifty percent of the market fee for the subsequent next month. If the dealer fails to submit the aforesaid certificate within the stipulated period, then the penalty equal to the amount of the market fee due, shall be imposed upon him.”].

Provided further that the dealer claiming exemption from the payment of fee under subrule (1), shall also produce a copy of the railway receipt, forwarding note, bill, bilty or challan, as the case may be, duly signed by him or his authorised agent in the office of the committee where the agricultural produce is bought before it is loaded the second copy shall be produced by the said dealer in the office of the committee, within whose market area the agricultural produce is brought before it is unloaded and the third copy shall be retained by him. In case no such copy is produced by the dealer in the office of concerned committee, no claim for exemption shall be entertained.

4[" Provided further that no such fee shall be levied on the certified seeds only."; ] 1 Substituted vide Notification No. 11/12/2002-M/3/7394 dated 15-11-2002 2 Substituted vide Notification No. 11/12/2006-M-3/7338 dated 17.11.2006. Published in the gazette dated 15.12.2006 3Substituted vide Notification No. 11/12/2006-M-3/7338 dated 17.11.2006. Published in the gazette dated 15.12.2006 4 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 84

(2) 1 [The responsibility of paying the fees specified under sub-rule (1) shall be of the buyer and if he is not a licensee then the seller who may realize the same from the buyer. Such fees shall be leviable as soon as an agricultural produce is bought or sold by a licensee:

Provided that a person licensed under sub-section (1-A) of section 10, shall deposit fee specified under sub-rule (1) along with return in Form MM within seven days from the date of transaction of agricultural produce, through RTGS or NEFTor IMPS or electronic payment gateway via website of the Board.".]

2[(2-A) The additional fees shall be realised from the producer by the licensee through whom the producer sells the agricultural produce and if the sale is made by the producer direct to a licensee the additional fees shall be realised by the licensee from out of the sale proceeds of the agricultural produce; and] 3 ["(3) The fees including additional fee shall be paid to the Committee or a paid officer duly authorized to receive such payment within seven days of the day of transaction but before the resale or processing or export of such agricultural produce out of the notified market area:

Provided that in case any notified agricultural produce is found resold or processed or dispatched outside the notified market area without paying market fee shall be levied with such penalty as has been provided in sub-rule (9) of the rule 31.

Explanation:- In computing the period of seven days specified in sub-rule (3) of rule 29 and sub-rule (1) of rule 31, the day of transaction shall be included."]

(4) A receipt in Form K shall be granted forthwith to the person making payment in respect of any fees paid under these rules.

(5) Every officer or servant employed by a Committee for the collection of fees shall be supplied by the committee with a badge of office in such form as may be prescribed by it. The badge shall be worn by the officer or servant concerned while discharging his duties.

(6) Every such officer or servant shall before entering on his duties furnish such security as may be prescribed by the bye-laws of the committee concerned.

(7) For the purpose of this rule agricultural produce shall be deemed to have been bought or sold in a notified market area.

(a) If the agreement of sale or purchase thereof is entered into in the said area; or

(b) If in pursuance of the agreement of sale or purchase the agricultural produce is weighed in the said area; or

(c) If in pursuance of the agreement of sale or purchase the agricultural produce is delivered in the said area to the purchaser or to some other person on behalf of the purchaser.

1 Substituted vide ibid.

2 Inserted vide Notification No. GSR-154/PA-23/61-S.43/Amd. (22)/82 dated 29-11-82.

3Substituted vide Notification No. G.S.R. 35/p.A. - 23/1961/S.43/Amd. (67)/2011 dated 30.05.2011.Published in the gazette dt. 02.06.2 85 1 [(d) If the agricultural produce sold or bought otherwise than in pursuance of an agreement of sale or purchase and is delivered in the said area to the purchaser or to some other person on behalf of the purchaser].

(8) If in the case of any transaction any two or more of the acts mentioned in sub – rule (7) have been performed within the boundaries of two or more notified market areas the market fee shall be payable to the committee within whose jurisdiction on the agricultural produce has been weighed in pursuance of the agreement of sale or, if no such weighment has taken place to the committee, within whose jurisdiction the agricultural produce is delivered.

2[29-A. Power to lease for collection of fee A committee may subject to the previous approval of the Secretary of the Board, lease out on contract basis the collection of fee levied under section 23 of the Act read with sub rule (1) of rule 29 of the rules in the notified market area of the committee on such terms and conditions as may be prescribed in the bye-laws of the committee for any period not exceeding one year.

The contractor and other persons employed by him for the management and collection of fee, shall:-

(i) be bound by the provisions of the Act, rules and bye-laws and any other order passed by the committee for their guidance and for performing their duties.

(ii) have such powers exercisable by employee of a committee under the Act, rules or bye-laws as the committee may confer upon them from time to time: and

(iii) be entitled to the same remedy and be subjected to the same responsibility as if they were employed by the committee for the management and collection of fee.]

3["29-B.Levy and collection of User charges.-

(1) Under sub-section (4) of section 23 of the Act, the owner of private market yard, private producer and consumer market yard, private e-trading platform, private producer market yard (kisan mandi) shall charge user charges upto the rate of market fee levied in the State for the use of infrastructure provided in the yard.

(2) Under section 23-B of the Act, the Board or a committee, as the case may be, shall collect user charges in principal market yard, sub-market yard, special market yard, seasonal market yard, as the case may be, at the rate specified by the Board for the use of infrastructure.

29-C. Levy and collection of Price Stabilization Fund.- 1 Substituted vide Notification No. 11(13)-M-111-83/9379 dated 4.5.88 2 Added vide notification No. 11/13/203 M-3/7738 dated 19-11-2003.

3 Inserted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 86 The Board shall levy price stabilization fund on the sale of agricultural produce, which shall be collected by the market committee or the Board, as the case may be, from producer or seller, buyer, kacha arhtias in all the market notified under sections 7 to 7-F at the rates notified by the State Government from time to time. This fund shall not be utilized for the purpose other than the stabilization of prices of specified agricultural produce by the State government.

29-D. Contribution to Board by the private licensee.-

(1) The owner of private market yard, producer and consumer market yard and private producer market yard (Kissan Mandi) shall pay as contribution to the Board at the rate of twenty-five percent of the total collection of the user charges and shall deposit the same, into the "Marketing Development Fund" of the Board, during first week of next month.

(2) In case of e-trading platform, the owner of the same shall pay as contribution to the Board at the rate of twenty-five percent of total market fee collected from the agricultural produce mentioned in the Schedule of the Act, and shall deposit the same into the "Marketing Development Fund" of the Board, during first week of next month.".]

30. Exemption from payment of fees Sec.23& 43(2)(vii) 1[(1) No market fee shall be levied on the sale or purchase of any agricultural produce, manufactured or extracted from the agricultural produce in respect of which such fee has already been paid in the same notified market area or in another notified market area within the state].

2[(1-A) The dealer who claims exemption from the payment of market fee levied in any agricultural produce manufacturing or extracted from the agricultural produce in respect of which the market fee has already been paid in another notified market area, shall make declaration and give certificate in Form K-1 to the committee from where exemption is claimed and a copy of the same shall be delivered to the committee to which the fee has already been paid. The counterfoil shall be retained by the dealer. The book containing K-1 form shall be got attested by the dealer from the secretary of the concerned market Market Committee or his authorized officer before giving the requisite certificate. The dealer shall produce the certificate within a period of sixty days from the date of transaction to the committee from where exemption is claimed. In case, the dealer fails to present the certificate referred to above within a period of sixty days, then the assessing authority shall impose penalty equal to the amount of ten percent of market fee for next month, twenty percent of the market fee for the further next month, thirty percent of the market fee for further next month, forty percent of the market fee 1 Substituted by PAPM(General) (third Amendment) Rules 1963 vide Notification dated 5-10-1963 2 Substituted vide Notification No. 11/12/2006-M-3/7338 dated 17.11.2006. Published in the gazette dated 15.12.2006 87 for the further next month and fifty percent of the market fee for the subsequent next month. If, the dealer fails to submit aforesaid certificate within the stipulated period, then the penalty equal to the amount of the market fee due, shall be imposed upon him.”] 1[(1-B) A dealer claiming exemption from the payment of fee under sub-rule (1), shall produce a copy of the railway receipt, forwarding note, bill, bilty or challan, as the case may be, duly signed by him or his authorised agent, in the office of the committee where the agricultural produce is bought before it is loaded, the second copy shall be produced by the said dealer in the office of the Committee within whose market area the agricultural produce is bought before it is unloaded and the third copy shall be retained by him. In case no such copy is produced by the dealer in the office of concerned Committee, no claim for exemption shall be entertained].

(2) The dealer concerned in the sale or purchase of any quantity of agricultural produce from which he manufacturers or extracts any other agricultural produce shall maintain in Form-L true and correct accounts of the sale or purchase as the case may be of the said agricultural produce and of any agricultural produce manufactured or extracted from it.

(3) No market fee shall be leviable on purchase of raw hides and skins and sale of cured tanned and processed hides and skins from the persons who themselves are tanners and are residing in the State.

2[(4) No market fee shall be levied on paddy, cotton, timber, firewood and groundnut taken from one notified market area to another notified market area for the purpose of processing on sawing as the case may be].

(5) No market fee shall be levied during the financial year 1992-93, on the purchase of wheat by the national committee for solidarity with Cuba for the purpose of export to Cuba as a gift.

3[(6) No market fee shall be levied on the sale or purchase of 4 […..] Gram and Kabli Gram (Channa Kala and Safaid, Cotton Seed (Banaula), Ground Nut (Shelled and unshelled), Cluster Bean (Guara), Turmeric (Haldi), Heena (Mehndi) Goat Hair, Camel Hair, Indian Clover (Senji), Cress/Gardenress (Hallon), 5 [….] Gur, Shakkar, Khandsari, Green Gram (Mung), Black Gram (Mash), Phaseolus aconitifoetius (Moth), Lentil (Massur), Pigenopea (Arhar), Rajmaha, Soya Bean, Indian Colza (Sarson), Indian Rape (Toria), 6[…..],7[.....,8[…..], sunflower] in a notified marked area within the State of Punjab).

1 Inserted vide Notification No. GSR 64/P.A. 23/61/S.43/AMD (49) 98 dated 4.9.1998 2Substituted vide Notification No. GSR 45/PA-23/61/S.43/Amd. 35/93, dated 7.5.1993.

3 Substituted vide Notification No. GSR 19/P.A. 23/61/S. 43/ Amd. (61)/2004 dated 27.2.2004.(Added Ground nut unshelled,Indian Colza(Sarson), Indian Rape (Toria), Maize(Makki),Barley(Jau) and Spiked Millet (Bajra).

4[Great Millet (Jowar), Oats(Javi), Barley(Jau) and Spiked Millet(Bajra)] Omitted vide Notification No G.S.R. 37/P.A.23/1961/S.43/Amd.(82)/2018 date 28-5-2018 5 ibid 6[Maize (Makki) ] Omitted vide Notification No G.S.R. 26/P.A.23/1961/S.43/Amd.(64)/2010 date 22-7-2010 7For the words and bracket "Spiked Millet (Bajra), the word and bracket "Spiked Millet (Bajra) and Sunflower" substituted vide Notification No. 11 / 12/2004-M-3/7237 dated 10.11.2006. Published in the gazette dated 24.11.2006 8 [Great Millet (Jowar), Oats(Javi), Barley(Jau) and Spiked Millet(Bajra)] Omitted vide Notification No G.S.R. 37/P.A.23/1961/S.43/Amd.(82)/2018 date 28-5-2018 88

(7) No market fee shall be levied on Indian Colza (Sarson) Indian Rape (Toria), Rochet (Tara Mira), Linseed (Alsi), Indian Mustard (Raya), Sesamus (Til), Groundnut (unshelled) and Sunflower Seed imported from out side the State of Punjab for the purpose of processing and which is not bought or sold as such in the notified market area.

1[(8) Omitted ..............]

2[(9) No market fee shall be levied on paddy and rice (Basmati) imported from outside the state of Punjab: Provided that the proof of making payment of market fee in the state from which paddy and rice (Basmati) has been imported along with the purchase bill, documents relating to transaction and Form K-2, is furnished by the dealer to the concerned committee within a period of sixty days from the date of transaction. In case, the dealer fails to furnish the particulars referred to above within a period of sixty days, then the Assessing Authority shall impose penalty equal to the amount of ten percent of market fee for the next month, twenty percent of the market fee for the further next month, thirty percent of the market fee for further next month, forty percent of the market fee for the further next month and fifty percent of the market fee for the subsequent next month. If, the dealer fails to submit aforesaid particulars within the stipulated period, then the penalty equal to the amount of the market fee due, shall be imposed upon him.”] 3["(10) No market fee shall be levied on fruits and vegetables, when exported to any other country from any notified market area in the State of Punjab.

Any dealer, who exports such fruits and vegetables, to any other country, shall submit return relating to the said exports in Form 'M', bilty or any other documents, such as transportation bills, clearance by the Customs Department etc., as a proof of such export.

Such dealer shall also furnish a declaration certificate in Form K-3, to the Market Committee concerned, within a period of ten days from the date of such export. If a dealer fails to furnish the said information within the specified time, then the Assessing Authority, shall recover the due market fee with a penalty, which shall be ten time of the aforesaid due fee. "] 4[(11) Omitted ] 5[(11-A) A Committee, shall refund the Market fee deposited by a dealer of 6[ … ] rice or paddy, when processed, extracted rice there from and then exported by him to other countries, from within the State of Punjab, Subject to,-

(a) Production of,- 1 Omitted vide Notification No. GSR 30/P.A. 23/61/S.43/AMD (43)/1998, dated 17.4.1998 2 Substituted vide Notification No. 11/12/2006-M-3/7336 dated 17.11.2006. Published in the gazette dated 15.12.2006 3 Substituted vide Notification No. G.S.R. 61/P.A.23/1961/S.43/Amd. (74)/2013 dated 15/11/2013.

4 Omitted vide Notification No. G.S.R. 6/P.A.23/1961/S.43/Amd. (76)/2014 dated 3-3-2014 5 Inserted vide Notification No. G.S.R. 6/P.A.23/1961/S.43/Amd. (75)/2014 dated 30-1-2014 6 Omitted vide Notification No. G.S.R. 49/P.A.23/1961/S.43/Amd. (79)/2015 dated 30-9-2015 89

(i) export documents;

(ii) clearance by the custom authorities, if any; and

(iii) Form K-4; and

(b) fulfillment of other terms and conditions as specified by the Secretary of the Board from time to time.]

1[(12) No market fee shall be levied on the sale or purchase of flowers and Sericulture (raw-silk) in the notified market areas within the State of Punjab].

2[(13)(i) No market fee shall be levied on wheat and maize, which is purchased by a processing unit for manufacturing the different products there from, within the State of Punjab.]

3[(ii) No Market fee shall be levied on fruits and vegetables, when purchased by a licensee from any notified market area, for the purpose of processing within the State of Punjab.

(iv) Omitted.]

4[(14).No market fee shall be levied on:

(a) the organic produces grown under organic practices whether under contract farming or otherwise which are certified by the Punjab Agricultural Export Corporation Limited; and

(b) The durum wheat grown under the contract farming by the farmers or the dealers, as the case may be, who are registered with the Punjab Agro Food grains Corporation.]

5[30A. Sale and purchase of agricultural produce for export out of the State

(1) Where any sale or purchase of agricultural produce is made for the purpose of export outside the State of Punjab, the dealer shall make a declaration and give certificate to that effect in form ‘Q’ in triplicate. The dealer shall along with other documents furnish one copy of the declaration to the Committee within the notified market area of which the sale or purchase of agriculture produce was made, against stamped receipt, where any market fee has been paid 6 [as applicable.] The second copy shall be delivered by the dealer at the inter-state barrier and the third copy shall be retained by him. When the agricultural produce is dispatched by rail, one copy of the declaration shall be furnished by the dealer to the officer or the official of 1 Added vide Notification No. GSR 4/P.A. 23/61/S43/Amd. (50)/99 dated 21.1.1999.

2 substituted vide Notification No. G.S.R. 49/P.A.23/1961/S.43/Amd. (79)/2015 dated 30-9-2015 3 Substituted & clause (iii) Omitted vide Notification No. G.S.R. 6/P.A.23/1961/S.43/Amd. (76)/2014 dated 3-3-2014 4Add vide Notification No. 11/19/2004-M-3/759 dated 1-2-2005 5 Inserted vide Notification No. 11/9/2000-M-3/1663 dated 20.3.2002.

6 Substituted vide Notification No. G.S.R. 35/p.A. - 23/1961/S.43/Amd. (67)/2011 dated 30.05.2011. Published in the gazette dt.02.06.2011.

90 the Board or the Committee, as the case may be posted at the concerned railway station.

(2) If a dealer fails to comply with provisions of sub-rule(1), the agricultural produce shall be deemed to have been bought or sold in the notified market area of the place where the vehicle or other conveyance carrying the agricultural produce is checked. If the defaulting dealer is not a licensee of that notified market area, the transaction of the agricultural produce shall be deemed to have been made without a valid licence and the agricultural produce shall be liable to be confiscated as provided in rule 24-B.

1["30-AA. Sale or purchase of any agricultural produce brought into the State of Punjab from outside.- Any agricultural produce, which is notified by the State Government, by notification in the Official Gazette, from time to time, when brought into the State of Punjab from outside the State, shall be deemed to have been purchased or sold in the notified market area, where it has been brought. No exemption shall be given to such produce, from the payment of the market fee under rules 29, 30 and 30-C or any other rule, and the dealer, who has brought such purchase in any6 notified market area of the State of Punjab shall be liable to pay due market fee, under the rules."] 30-B Powers to exempt The State Government may for reasons to be recorded in writing, exempt any class or category of dealers from the provisions of rule 30-A] 2[30-C Power to exempt from payment of Market fee:- Not withstanding anything contained in these rules, where the State Government considers it necessary or expedient to do so in public interest, it may for the reasons to be recorded in writing exempt any dealer or category of dealers or any transaction or category of transactions from the payment of market fee leviable under these rules.]

31. Account of transaction and of fees to be maintained Sec.23 &43(2) 3["(1) Every licensed dealer and every dealer exempted under rule 18 from obtaining a license shall submit to the committee a return in Form "M" showing his purchases and sales of each transaction of agricultural produce within seven days of the date of the transaction but before the resale or processing or export of such agricultural produce out of the notified market area, failing which a penalty of rupees one hundred per day per return shall be imposed.

1 Inserted vide Notification No. G.S.R. 57/P.A.23/1961/S.43/Amd. (73)/2013 dated 31/10/2013 2 Inserted vide Notification No. 11/19/04-M-3/8095 dated 11-11-2005 3 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 91 (1-A) The owner of cotton ginning and pressing factory shall submit monthly returns to the committee showing the quantity of cotton ginned in the factory during the preceding month within first week of next month in form L-1, failing which a penalty of rupees one hundred per day per L-1 return shall be imposed." ;]

(2) The Committee shall maintain a register in Form ‘N’ showing the total purchases and sales made by dealers and fees recoverable and recovered from them.

1[(3) The assessing authority shall determine the rate of fee to be levied by the Committee under section 23 of the Act on the basis of return furnished under sub-rule (1) by the dealer]

(4) If any dealer fails to submit a return as prescribed in sub-rule (1) or 2[the assessing authority] has reason to believe that any such return is incorrect, it shall, after giving a notice in form ‘0’ to the dealer concerned and after such enquiry as it may consider necessary, proceed to assess the amount of the dealer’s business during the period in question.

(5) If a dealer habitually makes default in the submission of returns or if in the opinion of 3 [the assessing authority] the dealer habitually submits false returns, the committee may order for the inspection of the dealer’s accounts.

(6) After an order under sub-rule (4) is made, 4[the assessing authority] shall inform the dealer of the date and place fixed for the inspection:

Provided that if the dealer so desires and pays such fee as the committee may fix in this behalf, the inspection shall be made at the dealer’s premises.

5["(7) The assessing authority may, after inspection, prepare a return or may amend the return already furnished, on the basis of transactions, appearing in the dealer’s account books, and the assessing authority may determine or, as the case may be, an additional fee levied under section 23 on the basis of such return or amended returns, but if the account books are reported to be unreliable, or as not providing sufficient material for proper preparation or amendment of the return or if no such books are maintained or produced, the assessing authority may assess the amount of the dealer’s business on such information as may be available or on the basis of best judgment, and determine fee due on the basis of such assessment not later than six years from the financial year of transaction.".]

6[8. Omitted ] 1 Substituted vide Notification No. GSR 19/ P.A. 23/61/S.43/Amd. (51)/99 dated 15.3.1999 published in the Gazette dated 16.3.99 2 Inserted vide ibid.

3Substituted vide Notification No. GSR 19/ P.A. 23/61/S.43/Amd. (51)/99 dated 15.3.1999.

4Inserted vide ibid.

5Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 6Omitted vide Notification No. GSR 19/ P.A. 23/61/S.43/Amd. (51)/99 dated 15.3.1999 92 1[(9) In addition to the fee or additional fee levied or determined under sub-rule (3) or sub-rule (7) the assessing authority may recover from the defaulter penalty 2[ ten time of ] the fee or additional fee found due to be payable.]

(10) Habitual default in the submission of returns and habitual submission of false return shall be a sufficient ground for suspension or cancellation of or refusal to renew, a licence, and the provisions of this rule shall apply in addition to and not to derogation of any other law, penal or otherwise, applicable to non-compliance, or defective compliance with any duty imposed upon a dealer by the Act or by these rules, or by any bye-law or order of a committee.

(11) An assessment order made under 3[sub rule (7)] and (9) shall be communicated to him by means of a demand notice in form P and a copy thereof shall be granted to the dealer on this making a written application, and paying a sum of two rupees as copying fee to the committee. Every Committee shall maintain a register of copying fees.

(12) The copy shall be prepared in the office of the committee and certified to be correct by the 4[assessing authority or in his absence by any other person appointed in this behalf by him].

Such certificate shall give the dates on which application was received and the copy prepared and delivered to the applicant, and shall be conclusive evidence of the correctness of these dates.

(13)(i) 5[An appeal against the assessment order made under 6[sub-rules (7) and (9)] shall lie to the Secretary of the Board and shall be preferred within sixty days from the date of communication of the assessment order appealed against in the form of memorandum duly stamped with court fee of twenty rupees and signed by the appellant or his duly authorised agent and shall be presented to the Secretary of the Board or to an officer authorised by him.

(ii) If the appellant fails to prefer the appeal within the period specified in clause (i) the appellate authority may for reasons to be recorded in writing condone the delay for filing the appeal if the delay was for reasons beyond the control of the appellant:

7[Provided that no appeal shall be entertained unless the appellant has deposited with the assessing authority concerned an amount equal to twenty-five percent of the amount of the fee assessed or rupees twenty five lac, which ever is less.]

Explanation :- In computing the period of limitation for filing an appeal, the period spent in obtaining a certified copy of the assessment order shall be excluded.

1Substituted vide ibid.

2Substituted vide Notification No. 11/12/2006-M-3/7336 dated 17.11.2006. Published in the gazette dated 15.12.2006 3Substituted vide Notification No. GSR 19/P.A 23/61/S.43/ Amd. (51 )/99 dated 15.3.99 published in the Gazette dated 16.3.99.

4Inserted vide Notification No. GSR 19/P.A 23/61/S.43/ Amd. (51 )/99 dated 15.3.99 published in the Gazette dated 16.3.99.

5Substituted vide Notification No. GSR 79/P.A. 23/61/S.43/Amd (33)/92 dated 11.11.1992 published in the Gazette dated 12.11.1992 6Substituted vide Notification No. GSR 19/P.A 23/61/S.43/ Amd. (51 )/99 dated 15.3.99 published in the Gazette dated 16.3.99.

7Substituted vide notification No. 11/14/2003/654 dated 27-1-2005 93 1[(ii-a)] The 2[Secretary of the Board or an officer authorised by him] after hearing the appellant and also the 3[ assessing authority] making the assessment, or, if he deems necessary, after such enquiry as he think proper, may accept, modify or reject the assessment order appealed against

(iii) The 4[Secretary of the Board or an officer authorised by him] may waive the whole or a part of the penalty imposed under sub-rule (9), in a case where such penalty, would, in his judgement mean undue hardship to the appellant.

(iv) The order passed by the 5[Secretary] shall be final and conclusive.

32. Books to be kept by licensed brokers and godown-keeper Sec.43(2) (xxxi) Every broker and every godown-keeper licensed under these rules shall –

(a) keep such books in such form as the Committee granting the licence may, from time to time, prescribed by its bye-laws;

(b) render such return at such times and in such forms as the Committee may prescribe; and

(c) render such assistance as may be required by the committee, in the collection of fees under the Act or under the rules or bye-laws made there under, in preventing evasions of payment thereof, and generally in the prevention of breaches of the Act or of these rules or of any bye-laws made there under.

6[" 32-A.Marking of bales by cotton ginning and pressing factory.-

(1) The owner of every cotton ginning and pressing factory shall cause every bale pressed in the factory to be marked with a Press mark ("P" mark), prescribed for the factory, duly issued by the committee in the manner specified in Form T.

(2) If any bale is removed from the press- house of any cotton pressing factory without having been marked as required by sub- section (1), it shall be deemed as unaccounted transaction.".]

33. Refund of certain amounts Sec.43(2)

(vii)(viii) & (ix)

(1) When –

(a) any sum has been deposited for the grant of a license which has in fact not been issued; or 1 Substituted vide Notification No. G.S.R. 19/P.A. 23/61/S.43/Amd. (51)/99 dated 15-3-1999 published in the gazette dated 16-3-1999.

2 Substituted vide Notification No. 11 (l3)-M-I-83/21424 dated 13/14.10.1987.

3 Substituted vide Notification No. GSR 19/P.A. 23/61/S.43/ Amd. (51)/99 dated 15.3.1999 published in the Gazette dated 16.3.1999 4 Substituted vide Notification No. 11(l3)-M-I-83/21424 dated 13/14.10.1987.

5 Substituted vide ibid.

6 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 94

(b) a person has wrongly applied and paid for and been granted two or more licences of the same nature for the same notified market area; or

(d) any market fee has been recovered on a transaction which is exempted under these rules; or

(e) any money has been paid by mistake; the 1[Chairman of the Board or Chairman of the Committee] as the case may be, shall, on a written application being made within 2[one year] of such deposit and after such enquiry as he or it may consider necessary, order the refund of the appropriate amount, which shall be repaid to the person concerned, after preparing a refund bill, out of the Marketing Development Fund or the Market Committee Fund, according as it was credited in the first instance to the Marketing Development Fund or the Market Committee Fund.

(2) The powers conferred on the 3[Chairman of the Board] by sub-rule(1) may also be exercised by such officer subordinate to him as he may appoint in this behalf.

(3) The application for refund shall contain such particulars as are necessary to enable the amount for which refund is claimed to be traced.

34. Prevention of adulteration of agricultural produce Sec.43(2) (xxxiii)

(1) No person shall adulterate agricultural produce, or place or offer agricultural produce for sale, in a notified market area.

(2) It shall be the duty of a committee to prevent adulteration of agricultural produce in the notified market area. The Chairman or Secretary of the committee may take all or any steps within his power to stop, prevent or discourage such adulteration.

Explanation : For the purposes of this rule adulteration of agricultural produce shall include mixing of inferior stuff with superior produce, mixing of different varieties or different qualities, mixing of sieved remains of the agricultural produce with agricultural produce and mixing of earth, dirt and stones or any other extraneous matter with any agricultural produce.

35. Preservation of the prescribed form and production thereof and inspection of the accounts books Sec.43(2)

(xxxi) 1["(1) The counter foils of Form I, J, M, L and L-1 shall be preserved by the dealer concerned for a period of six years from the date of issue of the foil to which the counter foils relate.".]

1 Substituted vide Notification No. 11/l3/93-M3/5762 dated 27.8.2003.

2 Substituted vide Notification No. 11/l3-M-Iil-83/9379 dated 4.5.1988.

3 Substituted vide Notification No. 11/l3/93-M-3/5762 dated 27.8.2003.

95 2[(2) ................Omitted]

(3) Every licensee and dealer exempted under rule 18 from taking a licence working within the notified market area, shall on demand by Secretary or Chairman of the committee or any officer of the Board authorised by the 3[Chairman of the Board or an officer authorised by him] in this behalf, produce all or any of the forms preserved under sub-rule (1) above or the account books maintained in respect of the sale, purchase, storage, transportation or processing of agricultural produce by him for inspection and examination at such time and at such place as he may be required and shall, if required by any of the inspecting officers, hand over any or all of the said forms, or books against a receipt.

35-A. Power to order production of accounts, powers of entry inspection, seizure and stopping vehicles] 4["(1) Any officer of the Board not below the rank of the Secretary of the committee or any other officer empowered by the State Government in this behalf, may require any dealer to produce before him, the books, bank statements and other documents maintained by him and to furnish any information which includes softcopies of data electronically stored relating to the purchase, sale, storage or processing of agricultural produce and the payment of the market fee or other financial transactions done by him as may be required necessary.

(2) All accounts, registers and electronic devices maintained by any dealer and documents relating to the purchase, sale, storage or processing of agricultural produce, in his possession, and his office, establishment, godown or vehicles shall be open to inspection at all reasonable times by any of the officer specified in sub-rule (1).

(3) If such an officer has reasons to believe that any person is attempting to evade the payment of market for due from him under section 23 or that any person has purchased agricultural produce in contravention of any of the provisions of the Act or the rules or bye laws in force in any market area, he may, for reasons to be recorded in writing, seize such accounts, registers, electronic devices or documents of such person, as may be necessary, and shall grant a receipt for the same and shall retain the same only so long as they may be necessary for examination thereof or for the prosecution of the person concerned.".]

(4) For the purpose of sub-rules (2) and (3) such officer may enter and search any place of business, warehouse, office, establishment, godown or vehicle where he has reason to believe that the dealer keeps or is for the time being keeping any accounts, registers, documents relating to his business or stock of agricultural produce.

1 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 2 Omitted vide Notification No. GSR 10/P.A. 23/61/S. 43/Amd. (1)/63 dated 3.1.1963.

3 Substituted vide Notification No. 11/13/93-M-3/5762 dated 27.8.2003.

4 Substituted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 96

(5) The provisions of Sections 100 and 102 of the Code of Criminal Procedure (1973) shall, so far as may, be apply to search and seizure under sub-rules (3) and (4).

(6) At any time, when so required by the Government or by any officer of the Board not below the rank of 1[The Secretary of the Committee] or any officer authorised by the Government in this behalf, the driver or any other person in charge of any vehicle or other conveyance which is taken or proposed to be taken out of the market area shall stop the vehicle or other conveyance, as the case may be keep it stationary as long as may reasonably be necessary and allow such officer to examine the agricultural produce carried in the vehicle or other conveyance, and to inspect all records relating to such agricultural produce, and furnish his name and address and the name and address of the owner of the vehicle or other conveyance and owner of the agricultural produce carried in such vehicle or other conveyance.

2 ["35-B.Powers of the Government to inspect the market yard of private licensee and enquire the record relating to it.-

(1) The State Government or any other officer authorized by it, shall have the power to inspect the market yard of private licensee and enquire the record relating to it, on any working day of the market.

(2) In case of any complaint, violation and enquiry, the State Government or any other officer authorized by it shall have the power to enquire and inspect the affairs within a period of sixty days.

(3) If the inquiry or inspection cannot be completed within the period specified in sub-rule (2), the person conducting the inquiry or inspection shall submit an interim report stating the reasons for not completing inquiry or inspection in time and the State Government or any other officer authorized by it may grant such extension of time for the completion of the inquiry or inspection, he deems necessary or may withdraw the inquiry or inspection from the person to whom it is entrusted and hold the inquiry or inspection by himself or entrust it to such other person as he deems fit.

(4) On receipt of the order referred to in sub-rule (3), the person authorized to conduct the inquiry or inspection shall proceed to examine the relevant books of accounts and other documents in possession of the private licensee and or any of its officers, members, commission agents or servants or any person operating therein and obtain such information or explanation from any such persons in regard to the transactions and working of the respective private licensee, as he deems necessary for the conduct of such inquiry or inspection.

The officer authorized to conduct an inquiry or inspection shall submit the report to the State Government or any other officer authorized by him on all the points mentioned in the 1 Substituted vide Notification No. G.S.R. 85/P.A. 23/61/S. 43/Amd. (36)/93 dated 4.11.93 published in the gazette dated

5.11.1993.

2 Inserted vide Notification No. G.S.R.01/P.A. 23/1961/S.43/Amd (84)/2020 dated 8.1.2020 97 order referred to in sub-rule (3) and the report shall contain his findings and the reasons therefore supported by such documentary or other evidences as recorded by him during the course of his inquiry or inspection.".]

36. Composition Sec.46,43 (1 )&43(2) (vi)

(1) In case the Chairman of the Committee accepts a sum, by way of composition in accordance with the provision of section 46, he shall report the matter in next meeting of the Committee, placing before the meeting all relevant papers in that behalf.

(2) The amount so realised by way of composition shall be in addition to any amount due from the offender under the Act or the rules or the bye-laws.

37. Publication of marketing information Sec.28(vii) & 43(1)

(1) A Committee may, and when required by the 1[Chairman of the Board or an officer authorised by him] shall, for the benefit of the persons using the market exhibit in a suitable place outside its office and at such other place or places as may be determined by it, bulletins of information on such matters as the prices of agricultural produce ruling at the principal marketing centres in the State and the ports serving the State and the stocks held by mills and the like.

(2) The daily rates of all important agricultural commodities authenticated by a person authorised by the committee in this behalf shall be exhibited in the regional language in conspicuous places.

(3) Such bulletins shall be signed by the Chairman or other person as may be appointed by him in writing and a copy of each such bulletin shall be kept for record in the office of the Committee

38. Storage accommodation Sec. 43(2)(xv)

(1) A Committee may arrange when necessary, accommodation for the temporary storage or stocking of agricultural produce.

(2) The committee shall charge such fees for such storage and stocking as may be prescribed by its bye-laws.

2[39. Penalties Sec. 43(3) 1 Substituted vide Notification No. 11/13/93/M 3/5762 dated 27.8.2003.

2 Substituted by G.S.R. 10/ P.A/23/61/S.43/Amd. (1) 63 dated 3.1.1963.

(1) Any person committing a breach of any of the provisions of these rules or any of the conditions of his licence shall be punishable with fine which may extend to five hundred rupees:

Provided that no person shall be prosecuted under these rules without affording him an opportunity to show cause].

40. Procedure for appeals Sec. 43(2)(xxii)

(1) Every appeal preferred under sub-section (4) of section 10, sub – section

(3) of section 29 and section 40 shall bear a Court fee stamp of 1[ten rupees] and shall be presented to the appellate authority in the form of a memorandum by the appellant or his duly authorised agent. The memorandum shall set forth concisely the grounds of objection to the order appealed from and shall also be accompanied by a copy of such order.

(2) The limitation for filing an appeal under section 40 shall be one month from the date of order appealed from.

(3) In computing the period of limitation for filing an appeal under the Act the period spent in obtaining a copy of the order shall be excluded.

(4) The appeal shall be decided after notice to and hearing the parties concerned, if they so desire, and after making such further enquiry as the appellate authority may consider necessary.

(5) A copy of the decision on the appeal shall be supplied to the Board or the committee concerned free of charge, and on demand to the appellant on the payment of 2[one rupee] per page or a part thereof subject to a minimum of 3[ten rupees] 441 ........................... (Omitted)]

42. Preservation of records The respective records of the Board and the Market committees shall be preserved for the period noted against each in the schedule here to annexed :- 1 Substituted vide Notification No. 11 (13)- M-III-83/9379 dated 4.5.1988.

2 Substituted vide Notification No. 11 (13)- M-III-83/9379 dated 4.5.1988 3 ibid 4 Omitted vide Notification No.10/P.A.23/61/S.43/ Amd. (1) 63 dated 3.1.1963.

99 100 Schedule Description Period Budget 5 years General Cash Book Permanently Establishment Bill 35 years General Bills 3 years Balance Sheet 10 years Ledger 10 years Register of deposits Permanently Application form Permanently Application form 3 years Returns of daily purchases and sale One year after audit Receipt 3 years Register of sale and purchase of agricultural produce 10 years Register of licences 10 years Provident Fund Register 10 years or till all accounts to which it relates are closed Service books of the employees 5 years after retirement or death (Whichever is earlier) Register of proceedings of the Board or committee or Subcommittee Permanently Register of correspondence Permanently Cheque Books 10 years Pass Books 10 years Travelling allowance bills 3 years Lease Deeds Allowance Bills 10 years from the date they cease to have effect.

Security Bonds ditto Treasury Challans 3 years Imprest Account Register 3 years Attendance Register 1 year Movable Property Register 10 years Library Register 10 years Demand and Collection Register 10 years Register of Stamps 3 years Stock Register 10 years Register of Court cases 10 years 101 Investment Register Permanently Files about the appointment, removal and dismissal of employees 35 years Such period (not less than 10 years).

Other Record which the Board or committee may decide to preserve for more than three years As may prescribed by the Tree Board or the Committee 1[42-A. Accounts and audit The accounts of the Board shall be post audited by the Accountant General, Punjab or such other authority, which the State Government may notify in the official gazette and the report of accounts so audited shall be submitted to the Board and a copy thereof shall be forwarded to the State Government.]

43. Repeal and savings The Punjab Agricultural Produce Markets Rules, 1940, and the Patiala Agricultural Produce Markets Rules, 2004 B.K., are hereby repealed:

Provided that such repeal shall not affect –

(a) the previous operation of any rule so repealed or anything duly done or suffered there under; or

(b) any right, privilege, obligation or liability, acquired or incurred or any licence issued under any rule so repealed; or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, licence, penalty, forfeiture or punishment as aforesaid;

and any such investigation, legal proceeding or remedy may be instituted continued or enforced, and any such penalty, forfeiture or punishment may be imposed, as if these rules had not been passed:

Provided further that anything done or any action taken under these rules so repealed shall be deemed to have been done or taken under these rules, and shall continue to be in force accordingly, unless and until superseded by anything done or any action taken under these rules.

1 Added vide Notification No.15-3-2001-M-3/5938, dated 24-9-2002.

The Punjab Agricultural Produce Markets (General) Rules, 1962

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