RULES
"PART VI- A
Establishment of private market yards, direct purchase centers and farmer – consumer markets etc.
87 B. Grant of license for establishment of private market yard.- (1) Subject to the provisions of Section 72A and 72C of the Act, any person who has already established the infrastructure or desiring to establish a private market yard in one or more market areas may submit an application in writing to the Director of Agricultural Marketing in FORM-46 for grant of license or renewal thereof, along with the documents. The Director of Agricultural Marketing may grant license for establishment of private market yard or renew the same:-
Private Market Yard shall be of three types, namely;
(i) Private market yard license develops, manages and controls the yard:- (a) Private Market Yard where private market yard license develops, manages and controls the yard by providing infrastructure facilities such as auction halls, sheds, shops, godowns, storages, pre-cooling, cold storages, raitha bhavan, canteen, ripening chambers, laboratory facilities to evaluate quality of produce, grading and packaging facilities, loading and unloading site, electronic display of market rates, electronic weighbridges, internal roads, drinking water and sanitary facilities, etc., with an investment of not less than the amount as specified below excluding the cost of land.
(i) Rupees ten crores in Bangalore city.
(ii) Rupees five crores in other district head quarters.
(iii) Rupees two crores in other places.
(b) The Land earmarked for establishment of Private Market Yard shall bear a clear title or lease hold right by agreement for a period of not less than ten years with possession. The extent of such land for establishment of a Private Market Yard shall not be less than.-
(i) ten acres in respect of City or Town situated in the district headquarters other than Bangalore; and
(ii) Five acres in respect of other places...
(c) No private market under this rule, except market relating to fruits, vegetables, flowers and such other perishable commodities as may be notified by Government from time to time, shall be established in Bangalore.-
(i) Within a radius of 25 kilometers from the existing market committee; and
(ii) The extent of land of such private market shall not be less than 50 acres.”
(ii) Private market yard licensee himself takes up buying or selling of notified agricultural produce on wholesale basis:- (a) Private Market Yards where private market yard licensee himself takes up buying or selling of notified agricultural produce on wholesale basis. For this purpose, necessary infrastructural facilities required for such activity shall have been provided or shall be provided with an investment of not less than the amount specified below including the cost of land.
(i) Rupees five crores in Bangalore city
(ii) Rupees three crores in other district head quarters.
(iii) Rupees two crores in other places.
(b) The extent of land for a private market yard under this category shall not be less than the extent as specified below and the land shall bear a clear title or lease hold title agreement for a minimum period of thirty years with a peaceful possession.
(i) Minimum of three acres of land in the city or town situated in the district head quarters.
(ii) Minimum of two acres of land in other places.
(iii) Private Market setup with the assistance from Central or State Government etc. (herein after called Terminal Market):- Private Markets set up with the assistance from Central Government or State Government or fully financed by the private entrepreneurs or on public private partnership model with establishment of main terminal market and collection centers for procurement of notified agricultural produce with a minimum investment of rupees twenty five crores for the purpose.
(2) The applicants under the above categories shall specify the place and location of the establishment of private market yards for marketing of notified agricultural produce in market area.
(3) The license fees payable for grant or renewal of license per annum for each categories of private market yards shall be as specified below payable by demand draft in favour of the Director of Agricultural Marketing, Bangalore.
(i) Bangalore city - Rupees fifteen thousand
(ii) District Headquarters - Rupees five thousand
(iii) Other places - Rupees two thousand
Provided that the amount of license fee paid by the applicant may be refunded if the license is not granted or renewed for any reason after deducting ten percent of the fees towards processing cost.
(4) The Director of Agricultural Marketing shall record the date of receipt of the application in the register maintained in FORM 47 and shall evaluate the project report. He may also in consultation with the person/persons as he deemed fit may suggest necessary measures for improving the efficiency of private market yard.
(5) The Director of Agricultural Marketing on the basis of the evaluation report may within sixty days from the date of submission of application issue:-
(i) A letter of permission for the commencement of the project specifying the period for completion which shall not be more than two years in case of new projects.
OR
(ii) Refuse to issue permission letter for the reasons to be recorded in writing and communicated to the applicant.
Further that no letter of refusal under this rule shall be issued unless a reasonable opportunity of being heard is given to the applicant.
(6) In case of new projects, the applicant shall complete the project within the period specified in such permission letter and if the applicant could not complete the project within the specified period, he may apply to the Director of Agricultural Marketing explaining the reasons for extension of the period. The Director of Agricultural Marketing after inspection of the project may consider extension of time not exceeding one year.
(7) In case of new projects, after completion of the project and for existing projects at the time of application, the applicant shall give intimation to the Director of Agricultural Marketing. The Director of Agricultural Marketing after inspection and enquiry as are considered necessary and shall by a notification issued under Section 6 of the Act declare the private market yard for the regulation of marketing of notified agricultural produce specified in the notification.
(8) After the issue of notification under sub rule (7), the Director of Agricultural Marketing may subject to the provisions of Section 72C of the Act, grant license in Form 48 for establishment of a private market yard subject to the conditions specified therein.
(9) Before commencement of marketing of agricultural produce, the applicant shall deposit an irrevocable and continuous bank guarantee or cash security as specified below or an amount equal to two percent of the annual turnover of the previous year which ever is more with Director of Agricultural Marketing.
(i) In Bangalore city - rupees fifty lakhs.
(ii) In places of district head quarters - rupees twenty five lakhs.
(iii) In other places - rupees five lakhs.
Provided that the bank guarantee prescribed under this rule shall be fifty percent to the Government organizations and co-operative institutions.
(10) The private market yard licensee shall submit application for renewal of license in FORM 49 to the Director of Agricultural Marketing. The Director of Agricultural Marketing after making such enquiries as he deemed fit, may renew the license of the private market yard for marketing of notified agricultural produce.
(11) The Director of Agricultural Marketing, after giving the applicant an opportunity of being heard, for the reasons to be recorded in writing refuse to grant or refuse to renew the license to the applicant who is either not solvent or otherwise disqualified under the Act and Rules.
Provided that no order under this sub rule shall be made unless a reasonable opportunity of being heard is given to the applicant.
(12) A license granted under sub rule (8) shall, unless renewed remain in force till the end of tenth market year including the year in which it has been granted.
(13) Every application for renewal of license shall be made one month before the expiry of its period. The application for renewal of license if is in accordance with the provisions of the Act and Rules, the applicant shall be deemed to be duly licensed until orders are passed on such application.
(14) The private market yard licensee who himself is a buyer or any person operating as a buyer in a private market yard shall pay market fee at the rates as specified under section 65 of the Act.
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