RULES
87C. Grant of license for direct purchase of agricultural produce from agriculturists or producers: - (1) Subject to the provisions of section 72A of the Act, any person desiring to purchase agricultural produce directly from the agriculturists or producer-sellers in one or more market areas may submit an application in writing to the Director of Agricultural Marketing in FORM-50 for grant of license, along with the documents specified in that form subject to the following conditions:-
(i) The applicant shall furnish details of direct purchase centers proposed to be opened initially in Form 51. He shall also submit the names of new centers likely to be opened in the course of his business in Form 52 before fifteen days of their opening.
(ii) The applicant shall submit details of financial status, resources with supportive documents, bank statements, income tax returns, list of permanent assets and liabilities, memorandum and articles of association if it is a company and other documents showing the credibility of the applicant for direct purchase of notified agricultural produce from agriculturists, producer-seller.
(iii) The applicant shall provide necessary infrastructure facilities for weighment, storage, shelter and other basic facilities as may be specified by the Director of Agricultural Marketing from time to time.
(2) The license fees for grant or renewal of license for establishment of a direct purchase centre shall be Rupees fifty thousand payable by demand draft in favour of the Director of Agricultural Marketing, Bangalore.
Provided that the amount of license fee paid by the applicant may be refunded if the license is not granted or renewed for the reasons other than non compliance of requirements of the conditions of license after deducting ten percent of the fees towards processing cost.
(3) 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 proposal. He may also in consultation with the person/persons as he deemed fit suggest necessary measures for improvement of the activities of a direct purchase centre.
(4) The Director of Agricultural Marketing may after satisfying himself that the arrangements made for purchasing of notified agricultural produce from the agriculturists in the direct purchase centre are sufficient to carry on the activities, grant license in FORM 48 to start business in such centre subject to the conditions specified therein.
(5) The applicant shall deposit an irrevocable continuous bank guarantee or cash security of Rupees fifty lakhs or an amount equal to two percent of the annual turnover of the previous year which ever is more with the Director of Agriculture Marketing.
Provided that the bank guarantee specified under this rule shall be fifty percent to the Government organizations and co-operative institutions.
(6) The direct purchase licensee shall do cash and carry business in the direct purchase center and pay the seller in cash or cheque immediately.
(7) The Direct Purchase Centre 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 Direct Purchase Centre for purchase of notified agricultural produce from agriculturist, producer-sellers.
(8) 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, suspend or cancel license to the applicant.
(9) A license granted under sub rule (4) shall, unless renewed remain in force till the end of tenth market year including the year in which it has been granted.
(10) Every application for renewal of license shall be made one month before the expiry of its period. If the application applied for renewal of license by the applicant 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 the application.
(11) Subject to the provisions of the Act, Rules and the directions issued by the Director of Agricultural Marketing from time to time, the direct purchase center licensee shall operate in the area or place for which license has been granted.
(12) Direct purchase licensee may sell his produce either in the market established by the market committee or private market yard or sell in retail or process such agricultural produce or may export by value addition through grading, packing etc.
87 D. Grant of license to establish farmer – consumer market: (1) Subject to the provisions of Section 72B and 72C of the Act, any person desiring to establish a farmer–consumer market in one or more market areas shall submit an application in writing to the Director of Agricultural Marketing or the Officer authorized by him in FORM 46 for grant of license or renewal thereof in FORM 49 along with the documents specified in that Form subject to the conditions specified below. The Director of Agriculture Marketing or the Officer authorized by him shall record the date of receipt of such applications in the register maintained in FORM 47.
(2) The Farmer–Consumer Market shall be established on a land with clear title or leasehold title having the lease agreement for a minimum period of five years with a peaceful possession.
(3) The applicant shall provide infrastructure facilities such as sheds, drinking water facilities, sanitary facilities, roads, storage facilities including stalls for the farmers/growers, shops for ancillary service such as booths for sale of seeds, fertilizers, fruits, vegetable, milk etc.
(4) The license fee for establishing a farmer–consumer market shall be rupees ten thousand.
(5) The Director of Agricultural Marketing or the Officer authorized by him shall verify the documents submitted by the applicant and after inspection of the proposed farmer consumer market established by the applicant may grant license in FORM-48 within a period of thirty days from the date of receipt of the applications subject to the conditions specified therein.
(6) In the farmer–consumer market the farmer or the producer-seller shall not be permitted to sell more than the quantity of notified agricultural produce as may be specified by the Director of Agricultural Marketing from time to time.
87E. Procedure for Settlement of disputes: (1) Any dispute between the private market yard licensee, direct purchase centre licensee, farmer consumer market licensee and the market committee, agriculturist, trader, commission agent or a consumer shall be filed in writing by the complainant himself or his authorized representative to the Director of Agricultural Marketing or any subordinate officers authorized by him affixing necessary documents within a period of thirty days from the date of arising the dispute.
(2) The Director of Agricultural Marketing or any subordinate officers authorized by him shall after giving an opportunity of being heard to the concerned parties and making necessary enquiry, give his decision within a period of sixty days from the date of receipt of the complaint.
The disputes may also include,- (i) Dispute regarding the payment to be made to the farmers for the purchase of agricultural produce from him while dealing in the direct marketing or private markets or farmer-consumer markets;
(ii) Dispute as to the jurisdiction (Area of operation).
(iii) Dispute regarding the weight of agricultural produce, price, charges, fees, taxes etc.
(iv) Any other dispute tenable under the Act and the rules made there under
87F. Power to revoke bank guarantee.- (1) The cash security or the bank guarantee deposited by the private market yard license, direct purchase centre license shall be recorded in FORM 53 and maintained by the Director of Agricultural Marketing.
(2) The Director of Agricultural Marketing shall have the power to revoke the bank guarantee furnished by the private market yard license, direct marketing license in the event of:-
(i) Failure to pay the sale proceeds to the agriculturists or producer-sellers or any other dues by the private market license or person operating in the private market yard for which they are liable to pay to the agriculturists or producer-sellers.
(ii) failure to pay the sale proceeds to the agriculturists or producer-sellers or any other dues by the direct purchase license for which they are liable.
(3) The Director of Agricultural Marketing shall have the right to forfeit the whole amount of bank guarantee if the dues to be paid by the license to the agriculturists or producer-seller is more than fifty percent of the bank guarantee or if the license is continuously in default for more than three times in making payments or if the dues are more than ten per cent of the goods purchased in a month.
(4) The bank guarantee furnished by the licensee shall be un-conditional and the amount guaranteed by the bank or part thereof as the Director of Agricultural Marketing on demand shall be payable. No other kind of bank guarantee shall be accepted.
(5) Subject to the provision of Act and Rules, the bank guarantee furnished by the licensee to the Director of Agricultural Marketing shall be refundable to him on ceasing to be a licensee if the Director of Agricultural Marketing is satisfied that there are no liabilities due by the licensee either to the agriculturists, producer-seller, market committee or any other person in respect of the transactions for which the bank guarantee is furnished.
(6) The bank guarantee shall be deemed to be held in trust for the purposes for which it is made and shall not be used for or utilized for any purposes nor it shall be liable for levy of attachment or execution by any court or other authority for any other purposes.
(7) The licensee shall recoup the bank guarantee within a period of one month from the date of such forfeiture under sub rule (2) or (3), failing which the license of the private market yard, direct purchase licensee shall be cancelled.
(8) The cash security or bank guarantee furnished by the private market yard licensee or the direct purchase licensee shall be deposited in a scheduled bank situated at Bangalore as the licensee may specify. The amount of such security or bank guarantee shall be deemed to have been enhanced to the extent of the interest credited by the bank in respect of the security or guarantee held in deposit.
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