TAMIL NADU AGRICULTURAL PRODUCE MARKETING (REGULATION)

RULES, 1991
G. O. Ms. No. Agriculture Department Dt: 23.1.1991
Contents
1. Short title 24. Application for licence.
2. Definitions 25. Grant of licence
3. Publication of Notification 26. Renewal of licence
4. Copy of the Act, Rules, etc to be 27. Licence fee.
kept in the Office. 28. Fee for renewal of licence
5. Term of office to the Chairman 29. Issue of duplicate licence
and Vice-Chairman 30. Suspension or cancellation of licence
6. Election of the Chairman and 31. Appeal
Vice-Chairman of the Market 32. Submission of periodical return
Committee.
7. Election of the Vice-President of 33. Levy of fee on notified Agricultural
the Board produce.
8. Cessation of Office of the 34. Person authorized to collect fee and
Chairman and Vice-Chairman charges.
9. Cessation of Office of the Vice- 35. Subscription for supply of market report.
President of the Board.
10. Registration of members etc. 36. Exemption.
11. Special Allowances 37. Person to abide the instructions of the
Head of market
12. Powers and functions of the 38. Receipt of deposit of Agricultural
Chairman produce.
13. Powers and function of the Vice- 39. Storage and Charge for Storage
Chairman
14. Notice of the meeting of the 40. Storage after sales and charge therefor.
Market Committee
15. Preparation of Agenda 41. Weighing of Agricultural Produces
16. Presidency of the Meeting 42. Returns by weighmen, Broker, measurer,
warehouseman.
17. Quorum 43. Engaging a Broker
18. Subject and motion in the 44. Exposure of Agricultural Produce for sale
meeting
19. Meeting of the Board 45. Regulation of purchase and sale in the
market.
20. Conditions for association of 46. Inspection
person with the Board.
21. Motion by member to associate 47. Accounts
any person with the Board.
22. Appointment of the Chief 48. Audit
Executive Officer
23. Function of the Executive 49. Submission of Audit report
Authority of the Board and
market committee
50. Payment of cost of Audit. 85. Contribution to the Market Development
Fund.
51. Check on receipts and expenditure 86. Payment of travelling allowance and Daily
allowances.
52. Daily crediting of money. 87. Use of Motor Vehicle
53. Payment to be made by cheque. 88. Use of telephones.
54. Drawing of cheque 89. Taking building for rent
55. Passing of a Bill 90. Repayment of salaries of the Officers and
56. Pass Book servants
57. Cash Book 91. Acquisition of immovable property etc.
58. Budget
59. Investment of surplus fund. Administrative approval for purchase of
92.
60. Permanent advance immovable property
61. Payment 93. Preparation of plan and Estimates.
62. Passing for Payment 94. Technical sanction
63. Acknowledgement of receipt 95. Payment of centage charge
64. Sanction of expenditure 96. Administrative approval for work
65. Incurring of expenditure 97. Maintenance of Registers, forms and
66. Time limit for prosecution of bill statements
67. Over Payment 98. Check measurement, inspection and test-
check
68. Defalcation or loss of money or 99. works in respect of which quotations have
valuable to be called for
69. Cheques 100. Works in respect of which tenders have to
70. Signing of cheque. be called for.
71. Writing of cheque 101. Exercising the power of the Chief Engineer
72. Cancellation of cheque by the Superintending Engineer of the
73. Refund of revenue Board

74. Stamp Account 102. Entrustment of work to other authority or

agency
75. Purchase of stationary and stores 103. Payment to Contractor
76. Purchase of books, maps, 104. Completion Certificate
periodicals
77. Deposits. 105. Entrustment of work.
78. Authority to sanction refund of
deposits
79. Diversion of loan amount, etc 106. Handing over of the Building etc. by the
Board
80. Checking the registers, etc, of the
Board and market committee
81. Purchase etc, by calling for 108. Quantum of fees payable to the Counsel
tenders and the Law officers
82. Printing 109. Appeal against the decision of a Court
83. Power to condemn
84. Payment of by the market 110. Initiation or continuation of litigation
committee to the Board against the interest of the Government
111. Maintenance of suit Register 116. Power of Authority to disallow and
surcharges.
112. Submission of Documents 117. Submission of the disallow
113. Power to summon documents 118. Recovery
114. Authority to report material 119. Returns
impropriety or irregularity, loss,
waste or misapplication.
115. Duty of the Secretary, Chief
Executive Officer to remedy the
defects of irregularities

No.SRO A -9(b)/91

In exercise of the powers conferred by Section 52 of the Tamil Nadu

Agricultural Produce Marketing (Regulation) Act 1987 (Tamil Nadu Act 27 of
1989) the Governor of Tamil Nadu hereby makes the following rules:-

CHAPTER I
PRELIMINARY
1. Short title. – (1) These rules may be called The Tamil Nadu Agricultural
Produce Marketing (Regulation) Rules, 1991.
(2) They shall come into force on and from 1st February 1991.
2. Definitions. – In these rules, unless the context otherwise requires, -
(i) “Act” means the Tamil Nadu Agricultural Produce Marketing
(Regulation) Act, 1987 (Tamil Nadu Act 27 of 1989)
(ii) “Auditor” means the Examiner of Local Fund Accounts in respect of
matters relating to the Board and Assistant Examiner of Local Fund Accounts
concerned in respect of the market committee;
(iii) “Executive Authority” means the Secretary in respect of a market
committee and the Chief Executive Officer in respect of the Board;
(iv) “Head of market” means any officer not below the rank of Junior
Assistant posted so, by the market committee;
(v) “Law officer” means and includes, -
(a) in respect of matters relating to the High Court, the Government
Pleader, Additional Government Pleader, Special Government Pleader,
Government Advocate, Public Prosecutor, Additional Public Prosecutor,
Government Advocate (Criminal) in the High Court, Madras:
(b) in respect of matter relating to the Tamil Nadu Administrative
Tribunal, the Senior Standing Counsel, Standing Counsel and Government
Advocates;
 (c) in respect of the city of Madras, the City Government Pleader,
Additional City Government Pleader, City Public Prosecutor, Additional City
Public Prosecutor, and
(d) in respect of districts other than the City of Madras, the Government
Pleader of the district, Additional Government Pleader, Government Pleader – cum
– Public Prosecutor, Additional Government Pleader – cum- Additional Public
Prosecutor, Pleader doing Government work, the Public Prosecutor, Additional
Public Prosecutor and Assistant Public Prosecutor.
3. Publication of Notification. – Copies of every notification under
sections 3, 4, 7 and 9 shall be published,-
(i) in the Tamil Nadu Government Gazette in English and in Tamil;
(ii) in the Village supplement to the District Gazette in the language or
languages of the district; and
(iii) in not less than two Tamil Dailies having wide circulation in the
notified area
4. Copy of the Act, Rules, etc, to be kept in the Office –The Board or
market committee shall keep up-to date copies of the Act, all the Rules, regulations,
bylaws and notifications, made or issued thereunder for perusal at the office of the
Board or market committee, as the case may be, free of charge and another set
thereof, in the safe custody for reference in the Office.
CHAPTER II
5. Term of Office to the Chairman and Vice-Chairman – The term of
office of the Chairman and Vice-Chairman of a market committee shall be co-
existensive with his membership in that committee.
6. Election of the Chairman and Vice-Chairman of the market
committee. – (1) The election to the office of the Chairman or Vice-Chairman shall
take place at a meeting of the members of the market committee convened for the
purpose by the Director or any officer authorized by him in that behalf.
(2) The Director or the person authorized by the Director shall be the
Presiding Officer.
(3) A candidate for the office of the Chairman or Vice-Chairman, as the
case may be, must be proposed by one member and seconded by another. The
names of all the candidates proposed and seconded shall be read out by the
Presiding Officer of the meeting.
(4) If there is only one duly proposed he shall be declared to have been
elected.
(5) If there are two or more such candidates, the votes of the members
present at the meeting shall be taken by secret ballot system.
(6) Every member wishing to vote shall be supplied with a ballot paper
containing the names of all candidates in Tamil and in English. Every ballot paper
shall be signed on its back by the Presiding Officer before it is supplied to the
member.
 (7) The ballot box shall be locked and sealed in the presence of the
candidates immediately before the commencement of the election. The voter shall
place a “ ” mark against the name of the candidate for whom he wishes to vote,
fold up the ballot paper and deposit it in a ballot box, placed before the Presiding
Officer.
(8) After the completion of the election, the Presiding Officer shall open the
ballot box and count the votes and declare the member who secures the largest
number of votes to have been elected as the Chairman or Vice-Chairman as the
case may be. In the event of there being an equality of votes among two or more
candidates, the Presiding Officer shall draw lots and the person whose name is first
drawn shall be declared to have been elected. Every candidate or one of his
representatives shall be allowed to be present during the counting of votes or
drawing the lots.
(9) Any voting paper which contains the signature or any writing of the
voter or on which the mark is placed against more than one name or back side of
which does not contain the signature of Presiding Officer shall be invalid.
(10) Immediately after the counting of votes, the presiding Officer shall
publish in the office of the market committee the name or names of the person or
persons so elected.
(11) After the election is over, the Presiding Officer shall hand-over the
election records, including ballot papers to the Director under acknowledgement.
The Director shall preserve the same for a period of one year from the date of
election, if no election dispute arises or till the date of disposal of the election
dispute, if an election dispute is raised.
(12) The election records including the ballot papers shall be destroyed
after the period specified in sub-rule (11)
7. Election of the Vice-President of the Board. – The Provisions relating
to the election of the Chairman shall mutatis-mutandis apply to the election of the
Vice-President of the Board also.
8. Cessation of office of the Chairman and Vice-Chairman. – (1)
Subject to the provisions of the Act, the Chairman or Vice-Chairman, as the case
may be, shall, cease to hold office, as such on his ceasing to be a member or in his
resignation.
(2) The Vice-Chairman shall cease to hold office as such on his election as
the Chairman.
9. Cessation of office of the Vice-President of the Board – Subject to the
provision of the Act, the Vice-President of the Board shall cease to hold office as
such on his ceasing to be a member or on his resignation.
10. Resignation of members. etc– (1) Any member nominated by the
Government under clause (a), (b) and (c) of sub-section (2) of section 10, or the
President appointed by Government under clause (a) of Sub-Section (1) of Section
36 of the Act may tender his resignation to the Government and such resignation
shall take effect with effect from the date of its acceptance by the Government.
 (2) The Chairman or Vice-Chairman of the market committee or Vice-
President of the Board, as the case may be, may tender his resignation to the market
committee or Board, as the case may be, and such resignation shall take effect from
the date on which it is accepted by the market committee or Board, as the case may
be.
11. Special Allowances. - A non-official President of the Board shall be
paid a monthly special allowance of Rs. 1,500 (Rupees one thousand and five
hundred only) and the Chairman of the market committee shall be paid a monthly
special allowance of Rs. 750 (Rupees seven hundred fifty only)
12. Powers and functions of the Chairman – Subject to the provisions of the
Act and rules, the Chairman shall –
(1) convene and conduct the meeting of the market committee including
sub-committee and special committee;
(2) inspect the transaction of business in the office, markets etc, with a
view to see that they are administered properly and they serve the
agriculturists efficiently and issue inspection notes and report to the
committee on the defects observed and improvements deemed
necessary;
(3) conduct periodical review of various work, schemes, etc with a view
to improve the functioning of markets;
(4) see that no wasteful or unnecessary expenditure is incurred from the
Market Committee Fund and all dues to the Government are paid
promptly;
(5) plan and execute general or special propaganda regarding ameliorative
work of market committee and markets; and
(6) plan for the rational development of markets
13. Powers and functions of the Vice-Chairman – Subject to the
provisions of the Act rules, orders and directions of the Chairman, the Vice-
Chairman shall exercise the powers and function of the Chairman in the absence of
the Chairman.
14. Notice of the meeting of the market committee – (1) The meeting of
the market committee shall be held at any place within the area of the jurisdiction
of market committee.
(2) The notice of meeting along with agenda thereof shall be sent by the
Chairman to the members of the market committee not less than seven days before
from the date of meeting.
15. Preparation of Agenda –The agenda for the meeting shall be prepared
by the Secretary in consultation with the Chairman. The Secretary may include in
the agenda any subject which in his opinion or in the opinion of higher authorities
shall be considered by the market committee and shall include therein any subject
specified by the Chairman.
16. Presidency of the meeting – (1) The Chairman or in his absence, the
Vice-Chairman or in the absence of both, a member chosen by the members present
shall preside over the meeting of the market committee.
 (2) A Vice-Chairman or member presiding for the occasion shall for that
meeting and during the period he presides over it, have all the powers of the
Chairman.
(3) All questions which may come before the market committee at any
meeting shall be decided by the majority of the members present at the meeting and
voting at the meeting and in the case of equality of votes, the Chairman or the Vice-
Chairman or presiding member, as the case may be, shall have and exercise a
second or casting vote and the same shall be taken into consideration for
ascertaining the majority:
Provided that in respect of a no confidence motion against the Chairman
or Vice-Chairman the motion shall be passed by not less than two-third of the
members present at the meeting.
17. Quorum –The quorum for a meeting of the market committee shall be
50 per cent plus one of the existing members:
Provided that there shall be no quorum for the meeting adjourned for want
of quorum, if no new subject has been included in the agenda for such meeting.

18. Subject and motion in the meeting – (1) No subject which has not
been included in the agenda shall be taken up for discussion at the meeting except
with the consent of the Chairman.

(2) Any amendment may be suggested to any proposal and such

amendment shall be proposed by one member and seconded by another, Such
amendment shall be recorded in the minutes before the same has been taken up for
discussion.

(3) No member shall address without the permission of the Chairman. The
decision of the Chairman in granting such permission is final
(4) Every member is entitled to call the attention of the Chairman on
appoint of order. The Chairman shall decide on all points of order and his decision
thereon shall be final.

(5) After discussion on a motion, the matter shall be put to voting. The
voting shall be by voice, or by raising of hands, or by ballot, as may be decided by
the Chairman.

(6) The motion or the amendment to the proposal shall be put to vote one
after another in the order as indicated in the agenda.

(7) The Chairman shall at his discretion adjourn any meeting. If the
meeting is adjourned to any day other than the next working day, fresh notice shall
be issued to the members.

(8) The minutes of the proceedings of each meeting shall be drawn up and
duly recorded in a book to be kept for that purpose and signed by the Chairman.
 Explanation – ‘Chairman’ in this rule includes a Vice-Chairman or
member presiding the meeting, for the occasion.

(9) Within three days of the date of meeting, an attested copy of the
minutes of the proceedings of such meeting shall be sent to the Director, the Board
and Government.

(10) Similarly the minutes of the proceedings of every sub-committee and

special committee appointed by the market committee shall be recorded in writing
and submitted to the market committee.

(11) The Secretary shall have the custody of the Book of the minutes of the
proceedings of the meetings.

(12) The Secretary may attend every meeting of the market committee
including sub-committee or special committee and take part in the discussion there
at; but shall not have the right to move any resolution or amendment to resolution
or to vote.

19. Meeting of the Board – The provisions relating to the meeting of the
market committee shall mutatis-mutandis apply to the meeting of the Board also.

20. Conditions for association of person with the Board – Association of

a person with the Board shall be by virtue of his office and with the consent of the
holder of his office.

21. Motion by member to associate any person with the Board. – Any
member of the Board may bring in a motion at any meeting of the Board under
clause (b) of sub-section (1) of section 36 for association of a person with the
Board for any specific purpose:

Provided that before bringing such a motion, notice shall be given to the
President seven days before the meeting of the Board at which the proposal is to be
considered.

22. Appointment of the Chief Executive Officer – The Government shall

appoint, any officer whom they deem fit, as Chief Executive Officer to the Board:

Provided that the Joint Secretary of Board shall act as Chief Executive
Officer till a Chief Executive Officer is appointed.

23. Function of the executive authority of the Board and market

committee. - Subject to the functions entrusted under the Act and rules, the
executive authority concerned shall.

(1) carry into effect the resolution of the market committee or Board, as
the case may be;
 (2) Furnish to the market committee or Board, as the case may be, the
progress made in carrying out the resolutions;

(3) bring forward in time all matters to the notice of the market
committee or Board for which approval or sanction of the market committee or
Board, as the case may be, is necessary;

(4) report to the market committee or Board as the case may be,
monthly receipt and expenditure and the financial position including the audit
objection;

(5) conduct all official correspondence with the authorities subordinate

to the Government and correspondence with the Government through the Chairman
or President, as the case may be;

(6) check and inspect periodically the cash and accounts of subordinates
who collects fees or other charges;

(7) supervise the day–to–day administration and the work of his

subordinates; and

(8) keep the account of the market committee or Board. As the case may
be, in accordance with the law and instructions issued from time to time and to
produce them before audit or other authorities who are empowered to inspect or
check the same.

CHAPTER III

REGULATION OF MARKETS

24. Application for licence – (1) Every application for grant or renewal or
duplicate of a licence under section 8 of the Act shall be in Form 1 and to operate
as a broker, weighman, measurer, trader and warehouseman in Form 2 and subject
to the conditions specified therein.

(2) The application for grant or renewal or duplicate of a licence under this
rule shall be accompanied by a copy of receipt for payment of fee specified in rule
27 and sent to the market committee through the concerned Head of market

25. Grant of licence – (1) The market committee may grant or renew a
licence under section 8 of the Act in the Form 3 and 4 to a place and to broker,
weighman, measurer, trader and warehouseman respectively and subject to the
conditions specified therein.

(2) Every market committee shall maintain separate permanent register of

licences in Form 5 and a register of individual licence holders in Form6.
 (3) Every Head of market shall maintain separate permanent registers for
different licences under the Act, pertaining to the area of jurisdiction of the market
in Form 7 and a Register on demand and collection of licence fee in Form 8.

26. Renewal of licence. – (1) Every application for renewal shall be made
not less than one month before the date of expiry;

Provided that for good and sufficient reasons to be recorded in writing, the
market committee may condone the delay in submitting the application for renewal
for a period not exceeding one month from the date of expiry of the licence on
payment of RS.10 (Rupees ten only)

(2) Where an application is made under rule 24, the licence or renewal shall
be deemed to have been granted until specific orders granting or renewing the
licence are passed by the market committee on the application made

27. Licence fee – (1) A licence fee of Rs.300/- (Rupees three hundred only)
shall be payable in respect of a licence for three years for wholesalers specified in
clause (a) of sub-section (7) of section 8 of the Act.

(2) A licence fee of Rs.75 (Rupees seventy five only) shall be payable in
respect of a licence for one year for other traders specified in clause (b) of sub-
section (7) of section 8 of the Act;

Provided that the licence fee payable by small and petty traders shall be
Rs.25 (Rupees twenty-five only) in cases where licence is granted under clause (b)
of sub-section (7) of section 8 of the Act;

Provided further that no fee shall be payable by country chekku owners.

(3) A licence fee of Rs.25 (Rupees twenty five only) shall be payable in
respect of a licence for one year for broker, trader, weighman, measurer and
warewhouseman.

Explanation – for the purposes of this rule:- the expression ‘wholesaler’

means a person whose annual transaction of agricultural produce is Rs. 5,00,000
(Rupees five lakhs only) and above;

the expression ‘other trader’ means a person whose annual transaction of

agricultural produce is Rs. 2,00,000 (Rupees Two Lakhs) and above but does not
exceed Rs. 5,00,000 (Rupees Five lakhs); and

the expression ‘small and petty trader’ means a person whose annual
transaction of agricultural produce is below Rs.2,00,000 (Rupees two lakhs)

(4) A fee of Rs.10 (Rupees ten only) shall be payable for every amendment
to a licence and a certified copy of it.
 (5) Separate licence shall be obtained in respect of each person through the
same place is used by more than one person.

(6) It shall not necessary to obtain a licence when there is more than one
place of business in the same notified area for the same agricultural produce.

28. Fee for renewal of licence – The fee for renewal of a licence shall be
the same as that of granting of a licence under rule 27.

29. Issue of duplicate licence. – If the licensee establishes to the

satisfaction of the licensing authority that licence granted to him has been lost or
destroyed beyond recovery, the market committee may issue a duplicate licence on
payment of fee of Rs.10 (Rupees ten only) on an application made in Form 1 or 2
as the case may be.

30. Suspension or cancellation of licence. – The market committee may, if

it is satisfied that a licensee has violated any of the conditions or provisions of the
Act, Rules or by-law framed thereunder, suspend or cancel the licence granted to
him by recording the reasons therefor:

Provided that no licence shall be cancelled or suspended without giving an

opportunity to the licensee to make his representation in writing against the
proposed cancellation or suspension of the licence.

31. Appeal. – An appeal under sub-section (6) of section 8 of the Act along
with an attested copy of the order appealed against shall be made to the Board
within two months from the date of receipt of the order of the market committee:

Provided that the Board may, for sufficient reasons to be recorded in

writing, condone the delay not exceeding a month in preferring such appeal.

(2) The Board may pass any order on the appeal either allowing or rejecting
the appeal recording the reasons therefor. In a case of appeal against the order of
the market committee, the Board may for sufficient reasons to be recorded in
writing, pass orders staying the operation of the order appealed against, pending
disposal of the appeal.

32. Submission of periodical return. – (1) Every licence shall send a

monthly return under sub-section (9) of section 8 of the Act relating to the purchase
or sale of every notified agricultural produce so as to reach the Head of market on
or before the 10th day of the succeeding month in Form 9. All particulars required
to be furnished in that Form shall be duly furnished therein. The periodical return
shall be handed over to the head of market concerned and acknowledgement
therefor obtained or the same shall be sent by registered post with
acknowledgement due. In respect of every transaction referred to in the return,
proper documentary evidence therefor shall be produced.
 (2) Every licensee under sub-section (1) of section 8 of the Act shall
produce the accounts to the market committee for verification once in six months.

(3) Every Head of Market shall maintain a Register in Form 10 on demand

and collection of fee as per trader accounts and send a monthly statement of
applications for licences and accounts of traders in Form 11 to the secretary. He
should also maintain a register on traders accounts in Form 12.

(4) Every monthly return sent by a trader whose annual turn-over is

Rs.25,00,000 (Rupees twenty-five lakhs only) and above shall be scrutinised by the
Secretary concerned after the fee is determined and collected by the Head of
market. The Secretary shall also check and verify the returns with reference to the
original documents kept by the trader at random. The Inspector of Licensed
Premises shall scrutinise all the returns sent by every trader whose annual turnover
is above Rs. 10,00,000 (Rupees ten lakhs Only)but does not exceed Rs.25,00,000
(Rupees twenty five lakhs only). The Inspector of Licensed Premises shall also
scrutinise and verify such returns with the original documents kept by the trader at
random.

33. Levy of fee on notified agricultural produce – (1) The fee on a

notified agricultural produce leviable under sub-section (1) of section 24 of the Act
shall be Re.1 (Rupee one only) for every hundred rupees of the aggregate amount
of the notified agricultural produce which is bought or sold in the notified market
area.

(2) The fee referred to in sub-rule (1) shall be payable only in respect of
first purchase or sale.

(3) The quantum of fee leviable shall be arrived by the Head of market
concerned based on the purchase or sale value of the notified agricultural produce
and on the basis of the return or other documents submitted by the licensee or any
other person to the Head of market. In arriving at the quantum of fee payable under
this rule, Form 13 shall be duly filled in and a copy thereof sent to the Secretary.

(4) The fee shall be paid by the trader immediately after the purchase in
respect of purchases within the market and within a week in respect of other first
purchases or sales effected in any other place in the notified market area except the
market aforesaid:

Provided that the fee shall not be payable more than once on the same
notified agricultural produce either in the same notified market area or in any other
market area within the State of Tamil Nadu.

(5) A permit in Form 15 shall be obtained on an application to the Head of

market in Form 14 for taking the notified agricultural produce out of the notified
market area. The Head of market shall send a duplicate copy of the permit to the
Head of market in whose jurisdiction the said produce is taken in and triplicate
copy to the Secretary concerned. An intimation slip shall invariably be sent to the
Officer –in-charge of check-post, if the said produce is passing through the check-
post. The head of market shall maintain a register of permits issued in Form 16

34. Person authorised to collect fee and charges. – (1) Any fee or charges
to be collected in the name of the market committee shall be collected only by the
Head of market.

(2) Every receipt of fee or charges to the market committee shall be

acknowledged in the receipt in Form 17.

(3) The Head of market shall maintain a register of daily receipts in market
in Form 18 and send to the Secretary, the daily remittance of amount received in
Form 19.

35. Subscription for supply of market report. - The market committee,

shall, levy and collect in advance a subscriptions of an amount not exceeding Rs.
100(Rupees one hundred only) per annum from every subscriber for supply of
market report published by the market committee. A register in Form 20 in respect
of subscribers of market report shall be maintained by every market committee.

36. Exemption – (1) The agricultural produce and the quantity thereof in
respect of which exemption may be granted under the provision to sub-section (1)
of section 8 of the Act shall be as follows:-

(1) Notified cereals:-

(i) Paddy 60 Kgs. per day.

(ii) Rice 50 Kgs. per day.

(iii)Other than paddy and rice Each 50 Kgs. per day

(2) Notified pulses Each 40 Kgs. (in all forms) per day

(3) Notified Oil seeds other than coconut Each 10 Kgs. per day.

(i) Coconut 300 nuts per day

(ii) Coconut coir 50 Kgs. per day

(4) (i) Cotton 50 Kgs. per day

(ii) Cotton Waste 100 Kgs. per day

(iii) Kapas 150 Kgs. per day

(5) Notified Vegetables 50 Kgs. all kinds put together per day.

(6) Notified fruits 50 Kgs all kinds put together per day.

(7) Notified drugs and narcotics 10 Kgs. per day.

(8) Notified condiments and spices 10 Kgs. in each kind per day

(i) Arecanut 1,000 raw nuts or 5 kgs per day which

ever is less

(ii) Tamarind in all forms 10 Kgs. per day

(iii) Coriander seeds in all forms 50 Kgs. per day
(iv) Cashewnut 5Kgs Kerenels, 20 Kgs. unshelled nuts
per day
(9) Sugarcane jaggery, palmgur jaggery 20 Kgs. per day
(10) (i) Tapioca tubers 100 Kgs per day
(ii)Tapioca chips, tapioca flour,
Tapioca starch 50 Kgs. per day.
(11) Gallnut 50 Kgs. per day
(2) The quantity up to which the notified agricultural produce which can be
purchased by a person for his own domestic consumption under clause (a) of sub-
section (2) of section 8 of the Act shall be as follows.
(i) Notified Cereals 200 Kgs.
(ii) Notified Pulses 50 Kgs.
(iii) Notified Oilseeds 25 Kgs.
(iv) Tamarind 10 Kgs.
(v) Chillies 10 Kgs.
(3) The quantity up to which the notified agricultural produce which can be
purchased by a person for his own seed purposes under clause (b) of sub-section (2)
of section 8 of the Act shall be the quantity of seed required to sow two hectares of
land.
(4) The Government may with draw the exemption granted under the
provision to sub-section (1) of section 8 of the act for a period not exceeding five
years.
 37. Person to abide the instructions of the Head of market. – Every
person who enters into a market shall abide by the instructions of the Head of
market or such Officer authorized by him regard to the places where the vehicles
may be parked, in regard to the roads by which and the time at which they may
proceed and such other instructions for smooth running of purchase and sale of
agricultural produce in the market. Any person who obstructs or causes to obstruct
any transaction of business shall quit the market immediately, if so directed by the
Head of market or any officer of the market committee.
38. Receipt of deposit of agricultural produce – (1) Every application for
deposit of agricultural produce in the market shall be in Form 21.

(2) The receipt of deposit of notified agricultural produce under section 26

of the Act shall be in Form 22 and subject to the conditions specified therein.

(3) Every Head of Market shall maintain a register of deposit of agricultural

produce in Form 23.

39. Storage and charge for storage. – (1) Subject to the availability of
fund, the market committee, may arrange, for the temporary storage or stocking of
notified agricultural produce brought by the producer into the market

(2) Whenever any notified agricultural produce brought to the market by

the producer for sale is not sold on the same day, the Head of market may permit,
subject to the availability of accommodation, the temporary storage of such
produce in the premises of the market at the owner’s risk and responsibility, till it is
sold or upto a period of 15 days, whichever is less

(3) While permitting such temporary storage, the Head of market shall give
preference to the small farmers and marginal farmers. A godown register in Form
24 shall be maintained by every Head of market for this purpose

Provided that when such agricultural produce is not sold in the market and
the producer wishes to keep the produce beyond the period specified in sub-rule
(2), he shall pay to the market committee such amount not less than 0.05p. (paise
five only) but not exceeding 0.25 paise (paise twenty-five only) per quintal per day
towards storage charges as fixed by the market committee for each market from
time to time considering the locality, market rent etc:

Provided further that the total period of storage under sub-rule (2) shall not
exceed a period of 180 days.

(4) On completion of the said period of 180 days, the Head of market shall
give notice to the producer to the effect that the agricultural produce stored shall be
sold in the same manner as other agricultural produce, if the same is not removed
or sold by the producer within a week from the date of receipt of such notice if the
producer fails to remove or sell the agricultural produce stored, within the time-
limit, the Head of market shall sell the same in the same manner as other
agricultural produce.

(5) The market committee, may in addition to the storage charge, fix such
amount towards insurance or fumigation charge.

40. Storage after sales and charge therefor. – (1) Subject to the
availability of accommodation, the market committee may permit a trader of the
notified agricultural produce to store the notified agricultural produce bought free
of cost at his risk and responsibility for a period not exceeding 24 hours.

Provided that if the trader does not remove the agricultural produce so
stored, the Head of market may permit the trader to continue the storage for a
further period not exceeding 180 days on the payment of double the amount fixed
under the provision to sub-rule (3) of rule 39 in addition to the amount fixed under
sub-rule (5) of that rule.

(2) Notwithstanding anything contained in sub-rule (1), the Head of market

may, at any time, before the expiry of the period specified in sub-rule ask the trader
to remove the agricultural produce stored by him within a time specified therein, if
it is considered expedient to do so in the interest of the market committee.

(3) If the trader fails to remove the agricultural produce bought and stored
by him under the foregoing sub-rules, the Head of market shall sell such
agricultural produce. The provision of sub-rule (4) of rule 39 shall mutatis-
mutandis apply to the removal and sale under this sub-rule.

41. Weighing of agricultural produce. – (1) The market committee shall

install such number of weighing machines as may be required in the market or in
the notified area with suitable arrangements for their use in proper working order.
Any producer may have his agricultural produce weighed in the market and he shall
be given free certificate of weighment duly signed by the Head of market.

(2) All weighments of agricultural produce intended for purchase or sale in

the notified area shall be made by the person who is licensed to act as a weighman.
He should wear the badge containing serial number allotted to him by the market
committee.

(3) For the purpose of weighing the notified agricultural produce within the
notified market area, the dial scale or platform scale or beam scale or electronic
scale shall alone be used. In every such weighments the weight in metric system
shall be used.

(4) The Head of market shall ensure that correct weighment of agricultural
produce is done in the market.
 (5) All weighment of agricultural produce in the market shall be made by
the licensed weighman under the direct supervision of the paid servant of market
committee who is authorized in this behalf and all weighment slip issued shall be
countersigned by such person.

(6)Proper supervision shall be exercised by such paid servant of the market

committee to avoid unnecessary slippage of agricultural produce or wantonly
leaving a part of agricultural produce or any action which leads loss to
producer/trader.

(7) No charge higher than that fixed by the market committee in respect of
his services shall be demanded and received by any weighman. No weighman shall
demand or receive any fee payable to market committee

(8) The licensed weighman should abide by the instructions of Head of

market in the method or manner of weighing of the agricultural produce and the use
of weighing machines and such other instructions for smooth running of the
business transaction in the market.

42. Returns by weighman, broker, measurer, warehouseman. –Every

broker, weighman, measurer, warehouseman shall submit monthly return in Form
25 so as to reach the Head of market on or before 10thday of the succeeding month.
The provisions of rule 32 shall mutatis-mutandis be followed in submitting the
return under this rule also.

43. Engaging a broker. – (1) No person shall be required to engage and

pay to a broker.

(2) Every broker engaged by a person shall produce documentary evidence

to the satisfaction of Head of market engaging him as a broker by that person.

(3) The provision of sub-rule (7) of rule 41 in the matter of demanding any
charge shall equally apply to a broker.

44. Exposure of agricultural produce for sale – (1) Every producer shall
be bound to expose for sale separately the different kinds of agricultural produce.

(2) It shall be duty of the Head of market to take all possible steps to
prevent adulteration of agricultural produce in the notified area and no person
doing business in the notified area shall cause adulteration of agricultural produce
in such area.

Explanation– For the purpose of this rule, “adulteration of agricultural

produce” shall include the mixing of last pickings of cotton, inferior variety of
cotton with superior variety of cotton or mixing earth, dirt and stems or other
extraneous matter with any agricultural produce.
 (3) The market committee shall maintain for use of producer and trader a
set of samples of standard grades of agricultural produce sold at the market and
shall take fresh samples as may be necessary from time-to time. The market
committee shall also arrange to keep and exhibit samples of different grades of
agricultural produce, with indication of parity prices based on rates ruling in
terminal and other markets for information or producer and trader.

45. Regulation of purchase and sale in the market. – (1) Every

transaction of selling and buying of agricultural produce in the market shall be done
without the intervention of any of staff of market committee. The Head of market
shall however arrange for sale of agricultural produce through secret tender or
through auction. The method of such sale shall be determined by the market
committee either generally for all of its markets and in respect of all of agricultural
produces or separately for each type of agricultural produce for each market.

(2) The Head of market may also arrange direct negotiation between the
producer and trader, if so requested for by the former.

(3) The Head of market shall see that prompt payment is made by trader
after the sale is concluded.

Provided that he or any of his subordinates shall not be party for effecting
disbursement of any amount to the producer.

(4) Every Head of market shall maintain a register of daily purchases by the
trader in Form 26 and the collection of fee thereon in Form 27.

46. Inspection. – (1) The Director or any officer authorised by the

Government in this behalf shall conduct annual inspection of the office of every
market committee. The inspection questionnaire shall be in the form as may be
specified by the Government from time to time. The Government shall review the
annual inspection report submitted by the Director or Officer in this sub-rule.

(2) The Secretary shall conduct the annual inspection of every market and
check-post within the area of the jurisdiction of the market committee. The
inspection questionnaire shall be in the form as may be specified by the
Government from time to time. The Director shall review the inspection report
submitted by the Secretary under this Sub-rule, within three months from the date
of submission of the inspection report.

(3) Any Officer nominated by the Government in this behalf shall conduct
annual inspection of the office of the Board. The inspection questionnaire shall be
in the form as may be specified by the Government from time to time. The
Government shall review the inspection report under this sub-rule.
 (4) The expenses in connection with the annual inspection shall be met
from the fund of the market committee or the Board, as the case may be, in
accordance with the instructions issued by the Government in this behalf from time
to time.

(5) (a) Notwithstanding anything contained in the foregoing rules every

inspection conducted by the Director or any other Officer authorized by him or by
the Secretary, in the course of performing their duties or for the purpose of
supervision of the markets, check posts, etc., either by surprise or by the prior
intimation shall be with reference to a questionnaire in Form 28 and subject to the
instructions issued by the Government from time to time.

(b) The inspection report in the said questionnaire shall forthwith be sent to
the immediate higher authority.

(c) Every instructions at the time of inspection shall be in writing.

CHAPTER IV.

FINANCIAL RULES

47. Accounts. – (1) Every market committee or the Board as the case may
be shall maintain accounts and registers in the relevant forms specified in these
rules.

(2) Every market committee and board shall follow the procedure outlined
in the Tamil Nadu Treasury Code and the Tamil Nadu Financial Code and the
orders issued by the Government from time to time and also the forms and registers
prescribed therein for preparation, drawal, etc., of monthly pay bill and all other
establishment bills.

(3) Every market committee or Board, as the case may be, shall publish
annually, before the end of the month following the close of its financial year a
statement of assets and liabilities with a balance sheet as on the closing of that year.

48. Audit. –The accounts of the market committee and Board shall be
audited annually by the auditor. He may call for the such registers, documents and
books as may be considered necessary at the time of audit.

(2) Every market committee and Board shall send to the Auditor, a copy of
the monthly accounts before the end of the succeeding month and the annual
account before the end of second month following the financial year to which it
relates.
(3) The monthly account and annual account and the statement of assets
and liabilities of the Board and every market committee shall be maintained in
Form 29, 30, 31 and 32 as the case may be.
 49. Submission of audit report. – (1) The accounts of the Board to be
forwarded to the Government under sub-section (2) of section 42 shall be
forwarded to the Government along with the remarks within two months from the
date of receipt of the audit report by the Board.
(2) The accounts of the market committee as certified by the Auditor
together with the audit report shall be forwarded to the Government along with
remarks within two months from the date of receipt of the audit report by the
market committee.
(3) Every market committee or Board, as the case may be shall send replies
to the audit report within two months from the date of receipt of the audit report.
The Director shall see that all the audit objections are settled in time by the Board
and market committee, as the case may be.
(4) The Government may, by order, in writing, direct the Board or market
committee to take such action as may be specified in the order to remedy, within
such time as may be specified therein, defects, if any, disclosed as a result of audit
and the Board or the market committee, as the case may be, shall comply with such
direction.
50. Payment of cost of audit. –The Board and every market committee
shall contribute to the Government such sum as may be specified by the
Government from time to time to meet the cost of audit.
51. Check on receipts and expenditure. –The Board or market committee
as the case may be, shall take all possible steps to secure an adequate check on the
due crediting of receipts and on payments made by the Officers and servants.
52. Daily crediting of money. – (1) Subject to the direction issued by the
Government on the application of the Board or market committee, as the case may
be or otherwise all moneys received by the Board or market committee, as the case
may be, shall be credited daily in a Nationalised Bank, a post office savings bank or
a co-operative bank.
(2) Every market committee shall maintain a register of daily receipts from
each market in Form 33, a register of postings of miscellaneous receipts in Form 34
and a register of daily expenditure in Form 35. The Board shall maintain a register
of receipt and expenditure in Form 36.
53. Payment to be made by cheque. – (1) All payments except from the
permanent advance shall be made by way of a cheque on behalf of the Board or
market committee, as the case may be. A register of cheques issued in Form 37
shall be maintained:

Provided that wherever it is considered absolutely necessary, payment may

be made by cash in the case of bills whose value do not exceed Rs.100 (Rupees one
hundred only).

(2) A register of cheques /money orders received in from 38 shall be

maintained by the Board and every market committee/ Head of market.
 54. Drawing of cheque. – No cheque on behalf of the Board or market
committee, as the case may be, shall be drawn except on a bill which has been
examined and passed by the executive authority concerned or on the issue or
recoupment of the permanent advance, if any.

55. Passing of a bill. – The executive authority concerned shall not pass
any bill for payment without the previous sanction of the Board or the market
committee as the case may be except.

(1) for the payment of the salary and other allowances including travelling
allowances of establishment:

(2) a bill for payment for works and repairs and purchase of stores which
have been duly sanctioned by the Board or market committee, as the case may be:
and

(3) for re-payment to the Government of any money under sub-section (3)
of section 22 of the Act or sub-section (6) of section 37 of the Act, as the case may
be:

Provided that the concerned executive authority may pass a bill for
payment in respect of following matters, namely:-

(i) for meeting an expenditure which does not exceed Rs. 500 (Rupees five
hundred only) Provided sanction of the Board or market committee cannot be
obtained forthwith and when such expenditure has to be incurred immediately
subject to the provision of fund in the Budget: and.

(ii) for payment of all rent, rate and taxes, electricity charges which have
already been approved and accepted by the Board or market committee as the case
may be.

56. Pass Book. – The market committee or Board, as the case may be, shall
get its pass book updated at the close of every month.

57. Cash Book. – The Board and every market committee shall maintain a
cash book and a petty cash book in Forms 39 and 40.

58. Budget. – (1) The Board or market committee, as the case may be, shall
prepare in Forms 41 and 42 respectively for every year, a revised estimate for that
year and a budget estimate for the succeeding year in respect of-

(a) (i) pay and allowances to its employees, and

(ii) all the receipt and expenditure including the pay and allowances of
its employees;
 (b) The material alteration statement to the revised estimate; and

(c) final surrender statement for the year in respect of pay and allowances
of the employees so as to reach the Government on or before the 15 th day of
August, 1st day of January and 1st day of March of every year

(2) No expenditure shall be incurred for which there is no budget provision,

unless it can be met by re-appropriation from savings under other heads which shall
be sanctioned by the market committee or Board, as the case may be, and approved
by the Director in the case of market committee, if it exceeds, Rs. 5,000 (Rupees
five thousand only), and by the Government in the case of Board, if it exceeds Rs.
10,000 (Rupees ten thousand only).

(3) Except where any expenditure is covered by the standing sanctions or

where necessary powers have been delegated to the executive authority concerned
market committee in this behalf, provisions of funds in the Budget by itself convey
no sanction to authority to incur expenditure.

59. Investment of surplus Fund. – (1) The Board or market committee, as

the case may be, shall invest not less than 50 per cent of surplus amount referred to
in sub-section (1) of section 29, sub-section (1) of section 44 and sub-section (5) of
section 45 of the Act in the Public Deposit Account of Government and the balance
of the surplus amount in any Co-operative Bank.

(2) A register of investment in Form 43 and a register of Public Deposit

Account in Form 44 shall be maintained by the Board and every market committee.

60. Permanent advance – Every market committee or the Board, as the

case may be, may fix every year an amount not exceeding a sum of Rs.1,000
(Rupees one thousand only) or the average expenditure for the past twelve months
whichever is less as permanent advance. To each of Head of market or Head of
office. The balance at the end of the year shall be surrendered to the market
committee or Board, as the case may be. A register in Form 45 shall be maintained
by each Head of market and Head of Office.

61. Payment – (1) Every payment shall be made against a bill or voucher:

Provided that in respect of payment from out of the permanent advance and
in respect of which any bill or voucher cannot be obtained, the payment shall be
against receipt.

(2) The Bill, voucher or receipts relating to any payment from the
permanent advance made by an Officer subordinate to the executive authority
concerned shall be sent to the executive authority as early as possible for sanction.
 62. Passing for payment – Every bill presented for payment shall be
entered in the Register of Bills. The Accountant shall check and specify as to the
correctness and genuineness of the claim therein and submit it to the concerned
executive authority for passing the bill with the following entries:

“ Passed for Rs. (in words and figures)only

Paid by cheque/ in cash Rs. (in words and figures) by debit to

(major/ minor and detailed head)

Adjust Rs. (in words and figures) by debit to (major and

minor detailed head) and credit to (major, minor and detailed head)”

63. Acknowledgement of receipt – Separate acknowledgement of receipt

shall be obtained on the bill in respect of every payment.

64. Sanction of expenditure. – (1) Every expenditure other than that

incurred from the permanent advance shall be sanctioned by the competent
authority by proceedings and particulars relating thereto shall be quoted on the bill.

(2) A copy of every proceedings relating to an amount of expenditure

exceeding Rs. 25,000 (Rupees twenty five thousand only) shall be sent to the
Auditor and each proceeding in respect of an amount exceeding expenditure of Rs.
1,00,000/- (Rupees one lakh only) shall also be sent to the Director.

65. Incurring of expenditure. - (1) No expenditure from the Market

Committee Fund or from the Market Board fund and Market Development Fund, as
the case may be, shall be incurred unless –

(a) the expenditure is sanctioned by an order of the authority competent to

sanction such expenditure; and

(b) sufficient funds have been provided for such expenditure in the Budget
for the year or by re-appropriation of funds;

(2) No expenditure shall be sanctioned by the market committee or Board,

as the case may be, unless a certificate in the following form has been furnished in
respect thereof –

FORM OF CERTIFICATE
Rs. p
The amount of the Budget allotment
The amount spent under this head upto date
The amount sanctioned upto date but not spent
The amount to be sanctioned now
Total
The balance remaining
 66. Time limit for presentation of bill – No payment shall be made
against a bill presented after six months from the date on which the amount
becomes due, without specific sanction of the Board or market committee, as the
case may be.

67. Over payment– In every case of over payment of money, the officer
who prepares and submits the bill, the officer who scrutinizes the same and the
authority who passes the bill for payment shall equally be liable to make good the
loss caused by such over payment. They are also liable for disciplinary action under
the relevant rules.

68. Defalcation or loss of money or valuable. – Without prejudice to the

remedy under any law for the time being in force, any defalcation or loss of money
or valuable belonging of the Board or market committee, as the case may be, shall
be reported immediately, by the executive authority concerned, after discovery to
the Auditor and to the Director who shall send a report thereof to the Government,
if the value of defalcation or loss exceeds Rs. 5,000/- (Rupees five thousand only).
A further and complete report shall be submitted to the Auditor and Director as
soon as may be after the matter has been fully enquired into setting forth the nature
and extent of the defalcation or loss, the errors or neglect of rules by which such
defalcation or loss was rendered possible, and the prospects of effecting a recovery.

69. Cheques. – The executive authority of the Board or the market

committee, as the case may be, shall be the custodian of the cheque books. On
transfer of the concerned executive authority, a note shall be recorded in the cash
book and the signature of both the relieved and reliving officers indicating the
number of unused cheques and cheque book handed over and received by them
respectively

70. Signing of cheque – Every Cheque issued by the Board or market

committee, as the case may be, shall be signed by the concerned executive
authority thereof. When the concerned executive authority has to handover charge
to another, he shall sign the specimen signature of the reliving officer together with
the certificate in the form specified below to the Treasury Officer or the Bank, as
the case may be.

“FORM OF CERTIFICATE

Signature and designation of the reliving officer.

I certify that the above is the signature of the officer to whom I have handed
over charge of my office with effect from the forenoon/ after-noon
of……………….(date) day of ……….(month)………20

(Signature and designation of the relived officer with date)”

 71. Writing of cheque – (1) Every cheque shall be written by the
Accountant and signed by the executive authority of the market committee or
Board, as the case may be.

(2) The person who writes cheques and signs it shall equally be liable for
making good any loss caused due to any lapse in issue of cheques in addition to
liability for disciplinary action and also liability under criminal law.

72.Cancellation of cheque – (1) when a cheque is to be cancelled it shall

be recorded thereon as “cancelled” by the concerned executive authority and the
fact of cancellation shall be recorded under the initials in the counterfoil of the
cheque , in the voucher, in the cash book and in the register of cheques issued. The
cancelled cheque shall be destroyed by the auditor after audit.

(2) If the cheque is cancelled before the totaling of cash transactions of the
month in which it was issued, the entry in the cash book shall be struck out in red-
ink under the initials of the executive authority concerned with a note that the
cheque has been cancelled. If however, the cash book has been totaled and the
correction is required to be made in a year subsequent to that in which the cheque
was issued, the amount of cheque shall be credited in the cash book in the treasury
column under the head “refunds of expenditure of previous year due to cancellation
of cheque”. If however, the correction is made in the year in which the cheque was
issued it should be posted on the payment side of the cash book in the treasury
column as “minus due to cancellation of cheque” under the head of the expenditure
to which it was originally charged.

73. Refund of revenue – (1) In cases where any amount has to be refunded
sanction of the Board or market committee, as the case may be, shall be obtained.
The procedure prescribed under the Tamil Nadu Financial Code shall mutatis –
mutandis be followed.

(2) A register of write off and remission in Form 46 shall be maintained by

the Board and every market committee.

74. Stamp account – The Board or market committee, as the case may be,
shall not use any postage stamp without perforation. A register of stamp account in
Form 47 shall be maintained by the Board and every market committee.

75. Purchase of stationery and stores – The Board or the market

committee, as the case may be, shall purchase the stationery and other stores
required by it only after assessing the requirement after considering the stock in
hand, the actual consumption in the previous year. Acknowledgement shall be
obtained and maintained for the issue of the stationery and other store items from
the persons to whom it has been issued. A register of Stationery and Stores in
Forms 48 and 49 shall be maintained by the Board and every market committee.
 76. Purchase of books, maps, periodicals – The Board or market
committee, as the case may be, shall not purchase any book, periodical, daily
newspapers or map other than those required for publicity and propaganda or for
the promotion of the activities of the market committee or Board, as the case may
be. A register of Stock Accounts of Books, etc., inform 50 shall be maintained by
the Board and every market committee.

77. Deposits – (1) Any amount deposited by any contractor or any other
person to the Board or market committee, as the case may be, by way of security or
otherwise which cannot be brought under the revenue head shall be credited in the
deposit account.

(2) An amount in respect of which no claim has been made for a period of
one year in case of an amount less than Re. 1 and three years in case of an amount
more than Re.1 from the date on which it becomes due and payable shall lapse and
be credited to the revenue head of account. A register of lapsed deposits in Form 51
shall be maintained by the Board and every market committee.

(3) Any amount which can be brought under the revenue head of account
shall be credited only under the revenue head of account.

(4) In the case of refund of lapsed deposit amount, the procedure laid down
in rule 73 shall be followed

78. Authority to sanction refund of deposits – No amount of deposit shall

be refunded except by or with the sanction of the executive authority concerned:

Provided that in respect of refund of deposits relating to works, the sanction

of Board or market committee as the case may be shall be obtained.

79. Diversion of loan amount, etc –

No amount of loan borrowed or any grant or subvention received by the

Board or market committee as the case may be, from the Government or any other
person or authority or any amount earmarked for any specific purpose shall be
utilized for the purpose other than that for which the amount has been borrowed or
received or earmarked without the prior sanction of the Government. A register of
loan in Form 52 and a register of sinking Fund in Form 53 shall be maintained by
the Board and every market committee.

80. Checking the registers, etc., of the Board and market committee –
Without prejudice to the generality or powers of the Director or other person who is
empowered to inspect, the Director or such other person shall check the registers.
documents, forms and books maintained in the head office, market and check post.
 81. Purchase, etc., by calling for tenders – (1) Subject to orders issued by
the Government, from time to time every purchase by the Board or a market
committee, as the case may be, the value of which does not exceed Rs. 3,000
(Rupees three thousand only) shall be by obtaining quotations from not less than
three dealers and where the amount exceeds Rs. 3,000 (Rupees three thousand
only) by calling for tenders:

Provided that this rule shall not apply in cases where purchases are made
from Government Department, Public Sector Undertaking, Co-operative
Institutions, from where the purchase of such articles are specifically authorized by
Government.

(2) Every tender for purchase, the value of which exceeds Rs. 5,000
(Rupees five thousand only) shall be placed before a tender sub-committee
consisting of not less than three non-official members of whom one shall be
Chairman or President, as the case may be and two official members and its
acceptance obtained.

(3) A register of tools and plants/ machineries and equipments in Form 54

shall be maintained by the Board and every market committee. In case of purchase
of gunnies, a register of stock account of Gunnies in Form 55 shall be maintained
by every market committee.

82. Printing – The Board and every market committee shall entrust its
printing work to the Government Press only and under extraordinary circumstances
to the Co-operative Press with the prior approval of the Government.

83. Power to condemn–The market committee or the Board, as the case

may be, shall be competent to condemn any material which has become
unserviceable after obtaining permission of authorities specified by the
Government from time to time.

84. Payment by the market committee to the Board - (1) Every market
committee shall pay to the Board 15 percent of its receipt derived from licence fee
and the fee levied under sub-section (1) of section 24 in every quarter specified in
column (1) of the Table below on or before the dates specified in column (2)
thereof, along with a statement of the fee collected.

THE TABLE

Quarter Date prior to which the

amount to be remitted
1St Quarter (April –June) By 31st August
2nd Quarter (July – September) By 30th November
3rd Quarter (October – December) By 28th February
4th Quarter (January- March) By 31st May.
 (2) Every market committee shall, in addition to the statement referred to in
sub-rule (1), furnish to the Board, a monthly statement of the fee referred to therein
before the 15th day of every succeeding month and the annual statement of such
before the end of second month after the financial year to which they relate.

(3) The Board shall maintain in Form 56 a register showing the monthly
statement of fee and a register of quarterly payment of contribution in Form 57.

85. Contribution to the Market Development Fund. – Immediately after

the receipt of the amount under sub-rule (1) of rule 84, the board shall contribute 50
percent thereof to the Market Development Fund.

Provided that in addition to the amount specified in this sub- rule, the Board
may contribute to Market Development Fund any amount remaining after its
establishment charges and authorized expenditure

86. Payment of travelling Allowance and daily Allowances. - (1) The

President, Vice-President and every member of the Board, and Chairman and Vice
Chairman and every member of the Market Committee, shall be paid traveling
allowance and daily allowance at the rates fixed by the Government from time to
time for first class Government Committees, while they attend the meeting or
perform tour in connection with the business of the Board or market committee, as
the case may be.

(2) The official members of the Board or market committee shall be paid
travelling allowance and daily allowance to which they are eligible in accordance
with the Tamil Nadu Travelling Allowance Rules.

(3) No President or Vice –President of the Board shall perform any tour
outside his jurisdiction in connection with an official business of the Board without
the prior permission of the Government.

(4) No Chairman or Vice-Chairman of a market committee shall perform a

tour in connection with the official business without the prior permission of. -

(i) the Director, if he has to perform a tour outside his jurisdiction, but
within the State, and

(ii) the Government, if he has to perform the tour outside the State.

(5) No claim for the travelling allowance or daily allowance shall be

admissible if, -

(i) the claim has not been preferred in the relevant form; and

(ii) the claim is not made within three months from the date of completion
of the journey or tour, as the case may be.
 87. Use of Motor Vehicle. – (1) No motor vehicle shall be purchased or
condemned or disposed off by the Board or market committee, as the case may be,
without the prior approval of the Government therefor.

(2) The orders issued by the Government from time to time regarding the
maintenance of vehicle, use of petrol and log book thereof shall be followed in
respect of each of the vehicles of the Board and the market committee.

88. Use of telephones. – (1) No new telephone or extension thereof shall be

installed without the prior approval of the Government by the Board and market
committee.

(2) The orders issued by the Government from time to time regarding the
usage of the telephone shall be followed by the Board and market committee.

89. Taking building for rent. – (1) Notwithstanding anything contained in

any other rules whenever the market committee or Board proposes to take a
building or land for rent, rent reasonable – certificate shall be obtained from an
Engineer of the Board not below the rank of Assistant Executive Engineer. An
agreement shall be entered in the form specified by the Government in this behalf.

(2) Sanction of Director shall be obtained in cases where the monthly rent
exceeds Rs.2,000 (Rupees Two thousand only) but not exceeding Rs. 4,000
(Rupees Four thousand only) and sanction of the Government shall be obtained in
cases where the monthly rent exceeds Rs. 4,000 (Rupees Four thousand only)

Provided that the above provision shall not be applicable to the premises
already in occupation of a market committee or Board, as the cased may be, if the
rent will not be enhanced at the time of renewal of agreement

(3) Every market committee and Board shall fix rent for its building, land
etc., in accordance with the rates and procedures prescribed by the Chief Engineer
(Building) Public Works Department from time to time and in consultation with the
Superintending Engineer of the Board.

90. Repayment of salaries of the Officers and Servants. – (1) The

repayment to the Government of the amount paid by the Government under sub-
section (3) of section 22 and sub-section (6) of section 37 of the Act shall be made
by the market committee or Board, as the case may be within the date specified by
the Government in this regard from time to time.

(2) A register in Form 58 and 59 shall be maintained by the Board and

every market committee in respect of remittance of pay and allowances and
pension contribution to the Government. The executive authority of the Board or
market committee as the case may be shall be responsible for such repayment.
 CHAPTER V.

CIVIL WORKS

91. Acquisition of immovable property, etc.–(1) Whenever any

immovable property has to be acquired by a market committee or the Board, the
same shall generally be acquired under Land Acquisition Act, 1894 (Central Act I
of 1894). Under special circumstances like necessary to complete a particular
project within a stipulated time, the market committee or Board, as the case may
be, may acquire the immovable property otherwise than under the Land Acquisition
Act, 1894 (Central Act I of 1894)

(2) (a) Whenever a market committee or Board proposes to acquire any

immovable property otherwise than the Land Acquisition Act, 1894 (Central Act I
of 1894) the market committee or Board as the case may be shall obtain.

(i) the prior approval of the Director as to the suitability or otherwise of the
property;

(ii) from the Collector of the district concerned, the particulars regarding
the title over, possession in respect of, the value of, the classification of and such
other particulars, if any relating to the property;

(iii) from the office of the Sub-Register concerned the encumbrance

certificate and other particulars, if any, relating to the encumbrance on the property;
and

(iv) from the Law Officer concerned, the legal opinion regarding the title of
the owner of the property and legal feasibility or acquiring the same.

(b) After satisfying the requirements under sub-rule (1), the market
committee or Board, as the case may be, shall provisionally decide as to whether
the property may be acquired and if the market committee or Board, as the case
may be decides to acquire the property, it shall, subject to provisions of clause (a),
take further action to acquire the property.

(3) In cases where the market committee or Board proposes to acquire any
immovable property under the provisions of Land Acquisition Act, 1894 (Central
Act I of 1894) the market committee or the Board, as the case may be, shall comply
with requirements of sub-clauses (i) and (ii) of clause (a) of sub-rule (2) and take
further action under Land Acquisition Act, 1894 (Central Act I of 1894). A register
of Land Acquisition in Form 60 shall be maintained by every market committee or
the Board.
 92. Administrative approval for purchase of immovable property. – (1)
No immovable property of the value mentioned in column (2) of the Table below
shall be acquired or purchased by the market committee or Board, as the case may
be, unless the prior approval of the authority mentioned in column (1) thereof is
obtained.

THE TABLE
Authority Value of property
(1) (2)
(i) Director If the value exceeds Rs.1,00,000
(Rupees one lakh only) but does
not exceed Rs.5,00,000(rupees
five lakhs only).
(ii) Government If the value exceeds Rs.5,00,000
(Rupees five Lakhs only)

(2) No work shall be commenced on the immovable property which has not
been duly made over to the market committee or Board, as the case may be.

93. Preparation of plan and estimates. –Every market committee shall get
the plan and estimates prepared by the Officers of the Engineering Cell of the
Board in respect of every original, repair and maintenance work including every
civil and electrical work, who shall follow the rules and procedures as specified in
Public Works Department Code in this regard:

Provided that the Engineering Supervisor of the market committee shall

prepare the plan and estimates according to the schedule of rates approved by the
Superintending Engineer of Public Works Department for that area, in respect of
original civil work upto a value not exceeding Rs.3,000 (Rupees three thousand
only) and maintenance and repair works upto a value not exceeding
Rs.3,000(Rupees Three thousand only)and maintenance and repair works upto a
value not exceeding Rs. 50,000 (Rupees fifty thousand only)

Provided further that in special cases, where the work is entrusted to any
authority or agency other than the Engineering Cell, the plan and estimates for such
work shall be prepared in consultation with the Engineering Cell of the Board by
such authority who are competent to do so in accordance with the rules being
followed by them.

94. Technical sanction. – The Officers of Engineering Cell of the Board

specified in column (1) of the Table below having jurisdiction over the area in
which works has to be executed, shall be competent to accord technical sanction,
by countersigning the plan and estimate in respect of the work, the cost of which is
as specified in column (2) and column (3) thereof:-
 THE TABLE
Officers Cost of Civil Works Cost of Electrical Works
Assistant Executive Upto Rs.10,000 Upto Rs. 2,000
Engineer
Executive Engineer Above Rs.10,000 and Above Rs.2,000 and upto
upto Rs.2,00,000 Rs.15,000
Superintending Engineer Above Rs.2,00,000 Above Rs.15,000

Provided that the Engineering Supervisor of the market committee may

accord technical sanction of the estimates of original, maintenance and repair of
any civil work, if the cost of which does not exceed Rs.3,000 (Rupee three
thousand only) as per the rates approved by the Superintending Engineer of Public
Works Department for the area concerned:

Provided further that where the work is entrusted to any authority or agency
other than the Engineering Cell of the Board technical sanction for such work shall
be accorded by the competent Officers of such authority or agency in accordance
with the rules and regulations governing such sanction.

95. Payment of centage charge. –Subject to the contract to the contrary,

centage charge may be paid to the authority or agency other than Engineering Cell
of the Board to which the work is entrusted in accordance with the provisions
applicable to that authority or agency, as the case may be, in that regard.

96. Administrative approval for work. –After complying with the

requirements of rules 93 and 94, the administrative approval of the authorities
specified in column (1) of the Table below shall be obtained in respect of work, the
cost of which is specified in the corresponding entries in column (2) thereof. –

THE TABLE
Authority Cost of Work
(1) (2)
(i) Director of Agricultural Marketing Exceeding Rupees one lakh but not
exceeding Rupees five lakhs.
(ii)Government Exceeding Rupees five lakhs.

97. Maintenance of registers, forms and statements. –The provisions of

the Public Works Department Code shall mutatis-mutandis be followed for the
maintenance of registers including the Register of estimates and allotments, Forms
and statements in respect of any work.

98. check-measurement, inspection and test-check. – The provisions of

the Public Works Department Code shall be followed with regard to the check-
measurement, inspection and test-check including the financial limit prescribed for
various officers therefor by the officers of the Engineering Cell of the Board having
jurisdiction over the area in which the work is executed.

Provided that in respect of which the Engineering Supervisor of the market

committee is competent to accord technical sanction, check-measurement,
inspection and test-check shall be made by the Executive Authority of the market
committee.

99. Works in respect of which quotations have to be called for. –(1) In

respect of any work whether original or repair or maintenance, the estimated cost of
which does not exceed Rs.3,000 (Rupees three thousand only), quotations shall be
called for from the registered contractors of Public Works Department and the
quotations beneficial to the market committee shall be accepted.

(2) The above works shall be executed at the rate not exceeding the
estimated cost.

100. Works in respect of which tenders have to be called for. –(1) In

respect of any work which does not fall under rule 99, tenders shall be called for.

(2) Subject to the instructions issued by the Government from time to time,
the provisions in the Public Works Department Code in respect of the
corresponding work in Public Works Department shall be followed as regards
calling for and settlement of tenders.

(3) Every tender for work to be executed by market committee the value of
which exceeds Rs.3,000 (Rupees three thousand only) but not exceeding Rs.50,000
(Rupees Fifty Thousand only) Shall be placed before the tender sub-committee
consisting of not more than three non-official members of whom one shall be
Chairman and two official members and its acceptance shall be obtained.

(4) Every tender for work to be executed by the Board the value of which
exceeds Rupees one Lakh but not exceeding Rupees ten lakhs shall be placed
before the tender sub-committee consisting of not more than three non-official
members of whom one shall be the President and two official members of whom
one shall be Director and its acceptance shall be obtained. In cases where the value
of the work exceeds Rupees ten lakhs, the tender shall be accepted by the
Government.

101. Exercising the power of the Chief Engineer by the Superintending

Engineer of the Board. – The powers provided to the Chief Engineer (Buildings)
under Public Works Department Code in the matter of preparation, approval of
plans and estimates, calling for tenders, according technical sanction and of check-
measurement, inspection and test-check shall be exercised by the Superintending
Engineer of the Board. He shall not delegate any of his powers to any of the
officers in the Engineering cell of the Board.

102. Entrustment of work to other authority or agency. –Subject to the

provision of rule 103 the market committee or Board, as the case may be, may
entrust the work to other authority or agency if after considering the special and
technical nature of work in consultation with the Engineering Cell market
committee or Board, as the case may be, is of the view that such work shall be
entrusted to such authority or agency.

103. Payment to Contractor. – (1) The provisions of the Public Works

Department Code shall apply in respect of the payment to the contractor subject to
the provisions of sub-rule (2) .

(2) Every payment to a contractor shall be on account of some particular

work done or material delivered and not on general account. Advance or payments
shall not be made in anticipation of measurement. Payment for work done or
materials delivered shall be made on the basis of a contract certificate showing the
quantum and value of work executed duly attested by the officer in-charge of the
work and after check-measurement is made. Such payment will be treated as
payment on account, subject to adjustment on the final bill. Payment to contractor
and suppliers shall be made by-means of cheques drawn in their favour and such
cheques shall be delivered to them direct.

104. Completion certificate. – On completion of a work, a certificate to

the effect the work has been completed as per the plan and estimates shall be
submitted within three months from the date of such completion

(i) by the Engineering Supervisor of the market committee in respect of a

work for which he is competent to accord technical sanction; and

(ii) by the Executive Engineer in respect of the other works.

105. Entrustment of work.–(1) Every market committee shall entrust to

the Board all the civil work including electrical work other than original work, the
cost of which does not exceed Rs.3,000 (Rupees three thousand only) and the
maintenance and repair work the cost of which does not Exceed Rs.50,000 (Rupees
fifty Thousand only)

(2)Where the market committee entrusts any work to Board under sub-rule
(1), the market committee shall pay to the Board 50 percent of the estimated cost of
work as soon as the contract is settled as first instalment. On receipt of certificate of
utilization of the amount of the first instalment, 25 percent of the total estimate cost
shall be paid as second instalment and the balance amount shall be paid on receipt
of certificate of utilization of the amount of second instalment.
 (3) The Board shall commence the work immediately on receipt of amount
of first instalment.

106. Handing over of the building, etc by the Board. – Immediately after
completion of work entrusted, the Board shall handover the building or other work
executed, to the market committee concerned. The market committee shall after
due verification of the buildings, or other work executed by the Board or other
authority or agency and after consultation with such authorities as it may decide,
satisfy itself that the work has been executed as per the approved plan and
estimates or specifications. Any deviations from the plan and estimate shall
forthwith be brought to the notice of the Board or authority or agency by the market
committee. The Board, authority or agency shall rectify the defects immediately.
Additional expenditure or loss incurred, if any, by the Board or authority or agency
for rectifying such defects is not payable by the market committee. The Board or
authority or agency, as the case may be, shall make good the loss, if any

CHAPTER VI

LAW CHARGES

107. Authority competent to sanction fees to the Counsel and the law
Officers. – Subject to the provisions of rule 108, the market committee or Board
shall be competent to sanction the fees to the Counsel and to the Law Officers
engaged by in it connection with any settlement of deed, offering of legal opinion
and with any litigation in which the market committee or Board as the case may be,
is a party.

108. Quantum of fees payable to the Counsel and the Law Officers. –
The quantum of fees payable to the Counsel and law Officers engaged by the
market committees or Board, as the case may be, in the matters specified in rule
107 shall be the amount calculated with reference to the provisions contained in the
Precis of Standing orders applicable to the Law Officers of the Government, as
modified by the Government from time to time:

Provided that the market committee or Board as the case may be, may pay
to the Counsel or Law Officers in advance the incidental charges and an amount
not exceeding 50 percent of the approximate fees payable in respect of a case:

Provided further that the market committee or Board, as the case may be,
may, in exceptional cases, pay a higher amount of fees than that specified in the
above provision considering the importance of the case and additional work
involved therein, with the prior approval of the Government;

Provided also that if any doubt arises as to the quantum of fees payable to a
Counsel or a Law Officer, the Market committee or Board as the case may be, shall
refer the matter to the Government and the decision of the Government in the
matter shall be final.

109. Appeal against the decision of a Court. – Where a case is decided by

the Court against the interest of the market committee or Board, the market
committee or Board, as the case may be shall obtain the opinion of the concerned
Law Officer as to the feasibility of filling an appeal in the higher forum and –

(i) if the interest of the Government is not adversely affected and if they are
not a party, shall take a decision on filling of appeal; and

(ii) if the interest of the Government is adversely affected or if the

Government are a party to the case, shall obtain orders of the Government as to
whether an appeal shall be filed in the case.

110. Initiation or continuation of litigation against the interest of the

Government. –The market committee or Board, as the case may be shall not
initiate or continue any litigation, whether civil or criminal, before any Court
against the interest of the Government, without the prior sanction of the
Government.

111. Maintenance of Suit Register. –The market committee or Board shall

maintain a register of litigation in Form 61. The un-disposed cases at the close of
the year with the cost thereof which has not been recovered or has been recovered
partially shall be carried over to the Register for the ensuring year. The register
shall be periodically reviewed by the concerned executive authority and see that
necessary action for recovery of due is taken in time. Every market committee shall
also maintain a register of composition of offence in Form 62 and a register of
Prosecution in Form 63.

CHAPTER VII

SURCHARGE RULES

112. Submission of documents. – (1) The Auditor and the Board in respect
of the market committee and the Auditor and the Government in respect of the
Board shall be (hereinafter referred to as the authority in the Chapter) competent to
disallow and surcharge items in respect of the market committee or Board, as the
case may be, and recover the sums so disallowed and surcharged. The market
committee or Board, as the case may be, shall be furnished with the details of
action taken in this sub-rule.

(2) The secretary or the Chief Executive Officer, as the case may be shall
submit all accounts to the authority for the purpose of this rule.
 113. Power to summon documents. –(1) the authority may, -

(a) by summon, in writing, require the production of any book, deed,

contract, account, voucher, receipt or other account, the perusal or examination of
which he considers necessary;

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

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

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

114. Authority to report material impropriety or irregularity, loss,

waste or misapplication. –The authority shall, -

(a) report to the market committee or Board, as the case may be, any
material impropriety or irregularity which he may observe in the expenditure or in
the recovery of moneys due to the market committees or Board or in the accounts
of the market committee or Board; and

(b) report to the market committee or Board, as the case may be, any loss,
waste or misapplication of money or other property owned by or vested in, the
market committee or Board, if such loss, waste or misapplication is adirect
consequence of neglect or misconduct, with the names of any person directly or
indirectly responsible for such loss, waste or misapplication.

115. Duty of the Secretary, Chief Executive Officer to remedy the

defects or irregularities. - The Secretary of the market committee or the Chief
Executive Officer of the Board shall forth with remedy any defect or irregularity
that may be pointed out by the authority and report the same to the market
committee or Board, as the case may be.

116. Power of authority to disallow and surcharges. – (1) The authority

may disallow the loss waste or misapplication of money reported and surcharge the
same on the person directly or indirectly responsible and shall in every such case,
certify the amount due from such person.

(2) The authority shall state in writing the reasons for his decision in
respect of every disallowance, surcharge or charge and communicate by registered
post a copy thereof to the person against whom it is made.
 (3) the provisions in the Civil Procedure Code, 1908 (Central Act V of
1908), regarding services of notice, summons and other communications shall be
followed in respect of communications under this rule.

(4) interest at the rate of nine percent per annum shall be charged on the
surcharge amount due with effect from the day following the last date fixed for
payment of the said surcharge amount in the surcharge amount in the surcharge
certificate. The interest so charged on surcharge amount overdue shall be specified
in the surcharge certificate itself in precise terms.

117. Submission of representation. –Any person aggrieved by

disallowance, surcharge or charge made, may within fourteen days from the date of
service of communication under rule 116 represent to the Government in writing.
Any order passed on such representation by the Government shall be final.

118. Recovery. –Every sum certified to be due from any person by the
authority under these rules, shall be paid by such person within fourteen days from
the date of service of communication under rule 116 into the treasury or the bank in
which the accounts of the market committee or Board, as the case may be, are
maintained. Such sum, if not paid shall be recoverable as arrears of land revenue.

119. Returns. –(1) The market committee or Board, as the case may be
shall send a half-yearly return to the authority in Form 64 for watching the timely
recovery of the amount due.

(2) The return for each half-year shall include all surcharge outstanding at
the end of the half-year and shall be sent to the authority by the tenth day of the
month succeeding the half-year to which the return relates. Where no amount is
pending recovery, a ‘NIL’ return shall be sent. As soon as an amount is completely
recovered, the market committee or Board, as the case may be shall report the fact
to the authority.