Islamabad Capital Territory Agricultural Produce Markets Ordinance, 2002

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THE ISLAMABAD CAPITAL TERRITORY AGRICULTURAL  
PRODUCE MARKETS ORDINANCE, 2002 
 
CONTENTS 
 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Notification of intention of exercising control over purchase and sale of agricultural produce 
in specified area 
4.  Declaration of notified area 
5.  Market committee to issue and renew license 
6.  Application for licence fee to be paid and cancellation or suspension of licenses 
7.  Establishment of market committees 
8.  Constitution of the market committee 
9.  Oath of office 
10. Duties of the market committee 
11.  Period of office of members 
12.  Removal of members 
13.  Election of chairman and vice-chairman 
14.  Vote of no-confidence 
15.  Filling of vacancies 
16.  Committee to be a corporate body 
 

 
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17.  Sub-committee and its powers 
18.  Appointment and salaries of officers and servant of market committee 
19.  Employees to be deemed to be public servants 
20.  Execution of contracts 
21.  Levy of fees 
22.  Market committee funds 
23.  Purposes for which the fund may expended 
24.  Levy of surcharge on loss 
25.  Trade allowance 
26.  Board of Arbitrators 
27.  Bar on suit in absence of notice 
28.  Power to borrow 
29.  Power annual proceedings 
30.  Supersession of market committee 
31.  Dissolution of the market committees 
32.  Acquisition of land 
33.  Encroachments 
34.  Training institute 
35.  Recovery of dues 
36.  Emergency powers 
37.  Penalties 
38.  Power to make rules 
39.  Bye-laws 
40.  Trial of offences 
41.  Authorities and officers 
  
 
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THE ISLAMABAD CAPITAL TERRITORY AGRICULTURAL  
PRODUCE MARKETS ORDINANCE, 2002 
ORDINANCE CXVIII OF 2002 
An Ordinance to provide for regulation of purchase and sale of agricultural products in the 
Islamabad Capital Territory 
WHEREAS it is expedient to provide for better regulation of purchase and sale of agricultural 
products and for that purpose to establish markets for agricultural products in the Islamabad capital 
Territory; 
AND WHEREAS the President is satisfied that circumstances exist which renders it necessary 
to take immediate action; 
NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of 
October, 1999, and the Provisional Constitution Order No.1 of 1999, read with the Provincial 
Constitution (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in that 
behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the 
following Ordinance, ___ 
1. Short title, extent and commencement.___(1) This Ordinance may be called the 
Islamabad Capital Territory Agricultural Produce Markets Ordinance, 2002. 
(2) It extends to the whole of the Islamabad Capital Territory. 
(3) It shall come into force at once. 
2. Definitions.___ In this Ordinance, unless there is anything repugnant in the subject or 
context,___ 
(a)  “agriculture Produce” means:___ 
(i)  barley and its atta, sallu, bhusu; 
(ii)  bujra (grains) and its atta; 
(iii)  cotton unginned (phutti), cotton ginned (lint), cotton waste; 
(iv)  chillies (green dry and ground): 
(v)  fodders, viz senji, lucem, shaftal, berseem, shalgham, guara, chari, 
bajra, maize, javi, barley, wheat, jowur (green and dry) and their seeds 
methi, metha, swank, oats, ajwain; 
(vi)  fruits and vegetables (fresh and dry) and their squashes, jams, pickles, 
cordials, marmalades, chuntnies, sauce, jellies; 
(vii)  firewood and tanning bark; 
(viii)  gram (whole and split) and its chollia , atta, kera, surri, bura, wandaa. 
 
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(ix)  jute (seed and fibre); 
(x)  jowar (grains) and its atta; 
(xi)  poultry including turkeys (dressed or otherwise), fish and livestock 
products, viz,. beef, mutton, hides and skins (dry and wet), bones, bone 
meals, feeds, wool, hair, eggs, cheese, butter, desi ghee, milk and curd 
(dehi); 
(xii)  mehndi (leaves and powder); 
(xiii)  maize (grains), maize cobs (dry and green) and its atta, starch, 
sug(glucose), glutten, meals and wastes; 
(xiv)  oilseeds; viz., cotton seed, linseed, sarson, raya, toria, taramira, 
soyabean,sunflower, til, groundnut, castor, palm and their oils, oil 
cakes, hulls, meals feeds, vegetable ghee; 
(xv)  pulses (whole and split), viz., moong, mash, masour, moth, raj mash, 
arhar, lobia, gram and other beans; 
(xvi)  rice (paddy), rice (cleaned), rice (broken) phak parali, hulls, husks (rice 
silver); 
(xvii)  sugarcane and its products, viz. gur, shakkar, sugar (desi and refined), 
molasses, sugarcane juice; 
(xviii)  tobacco leaves, tobacco cured and its snuff or naswur and guraku and 
(xix)  wheat and its atta maidu, suji, duliu, starch, chukur, bran, bhusa; any 
other commodity that may hereafter be declared by notification to be 
agricultural produce for the purposes of this Ordinance; 
(b) “dealer” means any person who within the notified market area sets up, 
establishes, uses or allows to be used any place for the purchase or sale of the 
agricultural produce; 
(c)  “Director of Agriculture” means the Director of Agriculture Industries and 
Labour Welfare, Islamabad Capital Territory; 
(d)  “Deputy Commissioner” means the Deputy Commissioner of the district 
within the boundaries of which the notified marker area concerned is situated; 
(e)  “Extra Assistant Director Agriculture” means the Extra Assistant Director of 
Agriculture concerned; 
(f)  “grower” means a person who by himself or through tenants or otherwise 
grows, rears, produces, manufactures or processes agricultural produce but 
shall not include a person, other than a member of a society registered under 
the Co-operative Societies Act, 1912 (II of 1912), who works as a dealer or 
broker either individually or as a part of a firm of dealers or brokers or is 
 
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otherwise engaged in the business or disposal, storage or processing of 
agricultural produce; 
(g)  “Government” means the Federal Government; 
(h)  “market” means a building, block of buildings, enclosure or other area which 
may be so notified in accordance with the rules made under this Ordinance; 
(i)  “market committee” means a market committee established under section 7 of 
this ordinance; 
(j)  “notified market area” any area notified under, 
(k)  “prescribed” means prescribed by rules or bye-laws made Ordinance; 
(k)  “prescribed” means prescribed by rules or bye-law made under this 
Ordinance; 
(l)  “Secretary market committee” means the secretary of the market committee 
concerned; 
(m)  “trade allowance” means such allowance as may be prescribed under the rules 
or may be specified in the bye-laws of a market committee; and 
(n)  “warehouseman” includes a person who stores any agricultural produce not 
belonging to himself and charges rent therefore in any form, from the persons 
at whose instance the said produce in so stored. 
 3. Notification of intention of exercising control over purchase and sale of agricultural 
produce in specified area. ___ Government may, by notification, declare its intention of exercising 
control over the purchase and sale of such agricultural produce and in such area as may be specified 
in the notification and such, notification shall state that all objections or suggestions, which may be 
received by the Deputy Commissioner through Extra Assistant Director of Agriculture within a 
period to be specified in the notification will be considered:___ 
Provided that such period shall not be less than thirty days from the date of issue of the 
notification. 
4. Declaration of notified area.___(1) After the expiry of the period specified in the 
notification under section 3 and after considering, such objections and suggestions as may be 
received before the expiry of the specified period, the Government may by notification and in any 
other manner that may be prescribed declare the area notified under section 3 or any portion thereof 
to be notified market area for the purposes of this Ordinance and the agricultural produce over which 
Control is to be exercised in that area. 
(2) Government may, at any time by notification, declare its intention to exclude any area 
which is already declared as a notified market area and also to include or re-include any area and in 
so doing the procedure laid down in section 3 and sub-section (1) of this section shall be followed. 
(3) After the date of issue of such notification and on the establishment of market committee 
under section 7, no local authority, notwithstanding anything contained in any other law entitling 
such local authority to establish a market and no person for himself or on behalf of the another 
 
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person unless exempted by rules made under this Ordinance, shall, within the notified market area, 
set up, establish or use any place for the purchase or sale of the agricultural produce or purchase such 
agricultural produce except under and in accordance with, the terms and conditions of a, licence 
granted under the provisions of this Ordinance:___ 
Provided that a licence shall not be required by a grower who either himself, or through a bona 
fide agent, sells his own agricultural produce or the produce of his tenant or by a person who 
purchases any agricultural produce for his private or domestic use:___ 
Provided further that in the case of a market committee established for the first time under this 
Ordinance, no person shall be deemed to have violated this provision if he has made an application to 
the market committee for grant of a licence. 
(4) No person shall, within the market store, purchase, sell or in any other manner deal in any 
commodity which is not declared as agricultural produce. 
5. Market committee to issue and renew license.___ Subject to such rules as the Government 
may make in this behalf, the market committee concerned shall be the authority to issue licence to a 
dealer under this Ordinance and to renew such a license. 
6. Application for licence fee to be paid and cancellation or suspension of licenses. ___ (1) 
Any person who wishes to work as a dealer in a notified market area may apply on the prescribed 
form to the market committee concerned for a licence or for the renewal of the licence which shall be 
granted for such period, in such form, on such conditions and on payment of such fee riot exceeding 
one thousand rupees per annum as may be prescribed:___ 
Provided that no fee shall be charged from a dealer who is a cooperative society registered 
under the Co-operative Societies Act, 1925 (Sind Act VII of 1925). 
(2) License under this Ordinance shall not be granted to a person who,___ 
(a)  is a minor; or 
(b)  is found to be of unsound mind by a Court of competent jurisdiction; or 
(c)  is a declared insolvent; or 
(d)  has been found guilty of criminal misappropriation or criminal breach of trust 
or cheating or any other offence involving moral turpitude or an abetment of 
or attempt to commit any such offence by a Court of competent jurisdiction, 
provided that this disqualification will not operate if a period of three years 
has elapsed since the completion of the sentence imposed on any person in 
respect of any such offence. 
 (3) If any person carrying on business of a dealer in a notified market area on the date of 
issue of notification under section 4 fails to apply for a licence within thirty days from the date of 
issue of such notification, the market committee may refuse to grant him a licence unless he deposits 
late fee as specified below in cash with the market committee:___ 
(i)  Up to 3 months Rs.1,000.00 
(ii) Up to 6 months Rs.2,000.00 
 
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(iii)  Exceeding 6 months Rs.3,000.00 
(4) The market committee may, on being satisfied that three has been a breach of any of the 
conditions of a license by an order in writing cancel or suspend such licence and may also direct that 
such licence shall be renewed for such period not exceeding four months for a first breach and not 
exceeding nine months for a second or subsequent breach as may be specified in that order: 
Provided that no such order shall be passed without giving the licensee an opportunity to show 
cause within fifteen days from the date of issue of the show cause notice. 
(5) Any person aggrieved by an order passed under sub-section (4) may, at any time within one 
month of the passing of the order, appeal to the Extra Assistant Director of Agriculture of the district 
against such order. The order of the Extra Assistant Director of Agriculture passed after providing an 
opportunity of being heard to the appellant, if confirmed by the Director of Agriculture, shall be 
final. 
7. Establishment of market committees.___ (1) The Government shall by notification 
establish a market committee for every notified market area. 
(2) The market committee constituted and established under the Agricultural Produce Market 
Act, 1939 (V of 1939) and the Islamabad Capital Territory Local Government Ordinance, 1979 (VI 
of 1979) shall be deemed to have been constituted under this Ordinance. 
8. Constitution of the market committee.___ (1) A market committee shall consist of ten or 
seventeen members as Government may in each case determine. 
(2) Of these members one may be appointed by Government from amongst the employees of 
the Agriculture Department. 
(3) Subject to such, rules as may be made by the Government in this behalf, the remaining 
members shall be elected from amongst growers, dealers, functionaries under section 10(3) and 
consumer that is to say:___ 
(a)  if the committee is to consist of ten members, there shall be elected; 
(i) five members from growers of the notified market area concerned; 
(ii)  two members from persons licensed under section 6 and one member 
from persons licensed under section 10 and working as a weigh man, 
broker or palledar in the notified market area concerned; and 
(iii)  one member from amongst the consumers resident in the notified 
market area concerned who is not a dealer or a grower; 
(b)  if the committee is to consist of seventeen ,members, there shall be elected,___ 
(i)  nine members from growers of the notified market area concerned; and 
(ii)  five members from persons licensed under section 6 and one member 
from persons licenced under section 10 and working as a weighman, 
broker or palledar from the notified market area concerned; and 
 
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(iii)  one member amongst the consumers resident in the notified market 
area concerned who is not a dealer or grower; 
(c)  for the election the Electoral college shall be,___ 
(i) in the case of grower members, all the elected members of Union 
Councils in the notified market area concerned; 
(ii) in the case of dealer members, all the licensees under section (6) of the 
notified market area concerned; 
(iii)  in the case of member in respect of functionaries mentioned in sub-
section (3) of section 10, all the licensees under section 10 of the 
notified market area concerned; and 
(iv)  in the case of consumer member elected under clause (i), (ii) and (iii). 
(4) If any question arises as to whether any person is or is not a grower for the purposes of this 
Ordinance the decision of the Director Agriculture shall be final:___ 
Provided that the decision shall not be made without providing an opportunity of being heard 
to the person to be affected thereby. 
(5) No more than one person related to each other as father, son, brother, uncle, brother-in-law, 
son-in-law and their ascendants and descendants shall be elected as a member of the same market 
committee. 
(6) A person shall be eligible as a member of a market committee for two consecutive terms, 
but shall not be re-elected thereafter unless two consecutive terms have expired before such re-
election. 
(7) No act done by a market committee shall be called in question on the ground merely of the 
existence of any vacancy in, or any defect in the constitution of, the market committee. 
 9. Oath of office.___ A member, vice -chairman, chairman shall before taking his scat make 
and subscribe to an oath in such form as may be prescribed. 
10. Duties of the market committee.___ (1) The market committee shall enforce the provisions 
of this Ordinance and the rules and bye-law made thereunder in the notified market area and, when 
so required by the Government, shall establish a market therein providing such facilities for persons 
visiting it in connection with the purchase, sale, storage, weighment, pressing and processing of 
agricultural produce as the Government may from time to time direct. 
(2) Subject to such rules as Government may make in this behalf, the market committee shall 
issue licences to brokers, weighmen, measurers, surveyors, warehousemen, changers, palledara, 
boriotas, tolas, tokrewalas for carrying on their occupation in the market area in respect of 
agricultural produce and to renew suspend or cancel such licences. 
(3) No broker, weighman, measurer, surveyor, warehouseman, changer, palledar, boriota, Cola. 
totrewala and rehriwala shall unless duly authorized by licence carry on his occupation in a notified 
marked area in respect of agricultural produce. 
 
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11. Period of office of members.___ Subject to the provisions of section 14, every member 
shall hold office for a period of two years, from the date of his making oath of office and if on the 
expiry of this period no person is elected to succeed him, such member shall, unless the Government 
otherwise directs, continue to hold office until his successor is elected. 
12. Removal of members.___The Government may, at any time by notification, after providing 
him an opportunity of being heard remove any member if such member has in their opinion, been 
wrongly or improperly elected of has lost the qualification on the strength of which he was elected or 
whose continuance as a member in the opinion of Government is not desirable. 
13. Election of chairman and vice-chairman.___ Every market committee shall elect from 
amongst its members a chairman and vice-chairman:___ 
Provided that a member who is not a grower shall not be eligible for election as chairman;___ 
Provided further a member who is nova grower shall also not be eligible for election as vice-
chairman of a market committee consisting of seventeen members. 
14. Vote of no-confidence. ___ (1) A chairman or a vice-chairman shall vacate office if a vote 
of no-confidence is passed against him in the manner prescribed by two-third majority of total 
number of members of the market committee electing him. 
(2) A motion of no-confidence against a chairman or vice-chairman shall not be moved before 
the expiry of six months from the date of his assumption of the office and a second or subsequent 
motion shall not be moved except with an interval of six months between the first and second motion 
or any two subsequent motions. 
(3) A motion of no-confidence shall not be competent after the expiry of thirty days beyond 
every interval of six months provided under sub-section (2) and in such a situation it shall be deemed 
to have been moved and rejected for purposes of sub-section (2):___ 
Provided that a member who is not a grower shall not be eligible for election as chairman. 
15. Filling of vacancies.___ If any vacancy of a member of a market committee occurs due to 
his death, resignation, transfer or retirement or is caused by the removal of any member in 
accordance with the provisions of section 12, such vacancy shall be filled in accordance with the 
provisions of section 8:___ 
Provided that term of office of the member so elected shall expire on the same date as the term 
of office of the vacating member would have expired had the latter held office or the full period 
allowed under section 11 unless there be delay in electing a new member to succeed the member first 
mentioned, above in which case it shall expire on the date on which his successor is elected. 
16. Committee to be a corporate body. ___ Every market committee shall be a body corporate 
by such name as the Government may specify in the notification establishing and it shall have 
perpetual succession and a common seal, may sue and be  sued in its corporate name and shall, 
subject to the provisions of section 28, be, competent to acquire and hold property both moveable 
and immovable and to lease, sell or otherwise transfer any moveable or immovable property which 
may have become vested in or been acquired by it and to contract and to do all other things necessary 
for the purpose for which it is established:___ 
 
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Provided that no market committee shall permanently transfer any immovable property except 
in pursuance of a resolution passed at a meeting specially convened for the purpose by a majority of 
not less than three-fourth of the members of the market committee:___ 
Provided further that no market committee shall be competent to exercise any power with 
regard to immovable property without approval or special, or general directions of the Government 
or a person authorized by Government in that behalf. 
17. Sub-committee and its powers. ___ (1) The market committee may appoint two or more of 
its members to be a sub-committee for the conduct of any work or to report on any matter. 
(2) The market committee may delegate to, or withdraw from, any one or more of its members, 
or sub-committee, such of its powers, or duties and in such manner as may he prescribed. 
18. Appointment and salaries of officers and servant of market committee.___ (1) Subject 
to such rules as may be made by the Government in this behalf, a market committee may employ 
such persons as may be necessary for the management of the market including seasonal and part-
time staff may pay such persons such salaries and wages as it may think fit and shall have power to 
control, remove and punish them. 
The market committee may also in such manner as may be prescribed, grant to its employees 
such leave, allowances pensions, gratuities or compassionate allowances as it deems proper; and may 
contribute to any provident fiend which may be established for the benefit of such employees. 
(2) The Government may constitute a market committee employees cadre for such employees 
and on such terms and conditions of service as may be prescribed. 
(3) Subject to such rules as may be made by the Government, every employee of a market 
committee shall be liable to be transferred for service in any market committee of the Islamabad 
Capital Territory. 
(4) The committee shall, in the case of any Government servant whom it employs, pay to 
Government such contribution towards pension and leave allowances of such servant as may be 
payable under the regulations applicable to that Government servant. 
19. Employees to be deemed to be public servants.___ Every person employed by a market 
committee and every member thereof shall be deemed to be a public servant within the meaning of 
section 21 of the Pakistan Penal Code (Act XLV of 1860). 
20. Execution of contracts. ___ (1) Every contract entered into by a market committee shall be 
in writing and shall be signed on behalf of the market committee by the chairman and two members 
or, if for any reason, the chairman is unable to act, by the vice-chairman and two members of the 
market committee and shall be sealed with the common seal of the market committee. 
(2) No contract other than a contract executed in the manner provided in subsection (1) shall be 
binding on a market committee. 
21. Levy of fees.___ A market committee may, subject to such rules as may be made by 
Government in. this behalf levy fees, not exceeding the maximum rates prescribed, on the 
agricultural produce bought or sold by or through a dealer in the notified market area. 
Provided that no fee shall be leviable,___ 
 
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(a)  in respect of any transaction in which delivery of the agricultural produce 
bought or sold is not actually made; 
(b) on a person who is not a party to a transaction; and 
(c) in respect of any subsequent transaction of sale or purchase within the same 
notified area of an agricultural produce extracted after being subjected to 
manufacturing processing. 
22. Market committee funds.___ (1) All moneys received by a market committee shall be 
deposited into a fund to be called the market committee fund. All expenditure incurred by a market 
committee under or for the purposes of this Ordinance shall be defrayed out of the said fund and any 
surplus remaining after meeting such expenditure shall be invested in such manner as may be 
prescribed. 
(2) Every market committee shall, out of its fund, pay to the Government the cost of any 
special of additional staff employed by the government in consultation with the market committee 
for giving effect to provisions of this Ordinance in the notified market area. 
(3) The Government shall determine the cost of such special or additional staff and shall, 
where the staff is employed for the purposes of more market committees than one, apportion such 
cost among the committees concerned in such manner as they think fit. The decision of the 
Government determining the amount payable by any market committee shall be final. 
(4) Every market committee shall, out of its fund pay to the Government such percentage of its 
income as may be prescribed to be credited to a fund maintained and operated upon by the 
Government for purposes common to or in the overall interests of the market committees. 
23. Purposes for which the fund may expended. ___Subject to the provisions of section 22 the 
market committees fund shall be expended for the following purposes only, namely:___ 
(a)  acquisition of land for the establishment of market or markets; 
(b)  maintenance and improvement of the markets including construction of 
storages, platforms small pullies, culverts and roads; 
(c)  construction and repair of-buildings which are necessary for the purposes of 
establishing such markets and for the health., convenience and safety of the 
persons using them; 
(d)  collection and dissemination of information regarding all matters relating to 
marketing in respect of the agricultural produce and propaganda in favour of 
agricultural improvement and thrift; 
(e)  providing comforts and facilities such as light, sanitation, shelter, shade, 
parking, accommodation and water for the persons draught cattle, vehicles and 
pack animals coming to the market and similar other purposes; 
(f)  provision of facilities such as cleaning sets, plants for grading, standardization, 
packing and processing of agricultural produce. 
 
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(g)  construction of cold storages, warehouses and godowns for the benefit of 
growers; 
(h)  establishment of feeder markets; 
(i)  provision and maintenance of standard weights and measures; 
(j)  pay, leave, compassionate and medical allowances, gratuities, pensions, 
honoraria and contributions towards leave allowances or provident fund of the 
persons employed by market committee; 
(k)  payment of interest on loans that may be raised for purposes of the market and 
the provision of sinking fund in respect of such loans; 
(l)  expenses incurred to auditing the account of market committee, 
(m)  payment of traveling allowances to the members and employees of market 
committees and -embers of the Board of Arbitrators as prescribed; 
(n)  payment of allowances and honoraria to the Administrator of the superseded 
market committee; 
(o)  contribution towards the market committees fund subject to rules framed 
thereunder; 
(p)  payment of property tax and house tax; 
(q)  payment of other taxes as covered by appropriate Act or Ordinance; 
(r)  engagement of a lawyer; 
(s)  subject to previous sanction of the Government — 
(1)  purchase of load carrying vehicles for bringing agricultural produce of 
farmers to the market; and 
(2)  agricultural implements and machinery to be distributed amongst 
growers of the market area; 
(t)  holding, of agriculture melas, fairs, exhibitions and shows for agriculture 
publicity and propaganda amongst farmers for improved production; 
(u)  advance of loans on interest to other market committees in the district for 
carrying out development projects with the previous sanction of the 
Government; 
(v)  training of members and staff of market committees and members of the 
Board of Arbitrators; 
(w)  purchase or sale of essential agricultural commodities; 
 
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(x)  any other purpose that may be declared by notification by the Government for 
improvement of agriculture and agricultural marketing, which is calculated to 
promote the general interest of the farmer; and 
(y)  for the conduct of elections. 
 24. Levy of surcharge on loss.___ (1) Every person shall be liable for the loss, waste or 
misappropriation of any money or property belonging to a market committee, if such loss, waste or 
misappropriation is proved to the satisfaction of the Deputy Commissioner or any other officer 
specially empowered in this behalf to the Government to be the direct consequence of such person’s 
neglect or misconduct in the performance of his duties while being a member of the market 
committee. 
(2) The person against whom an order under sub-section (1) is made may within one month 
of the issue of such order, appeal to the Government which shall have the power of confirming, 
modifying or setting aside the order. 
 25. Trade allowance.___ No trade allowance, other than an allowance prescribed by rules or 
bye-laws made under this Ordinance shall be made or received in a notified market area by any 
person in any transaction in respect of agricultural produce and no civil court shall, in any suit or 
proceeding arising out of any such transaction recognize any trade allowance not so prescribed. 
 26. Board of Arbitrators.___ (1) The Government may, by notification, direct that all or any 
of the disputes other than a dispute to which all the parties are dealers, arising in notified market 
area, and relating to such matters connected with agricultural produce as may be prescribed shall be 
referred to a Board of Arbitrators constituted under this Ordinance in such manner, for such period 
and subject to such provisions as may be prescribed. 
 (2) The Board shall receive and record evidence and shall have power to administer oaths to 
parties and witnesses and on requisition in writing signed by the Chairman of the Board, the 
Magistrate authorized by the District Magistrate in this behalf shall issue necessary processes for the 
attendance of witnesses and the production of documents and material objects required by the Board 
and may enforce the said processes as if they were processes for attendance and for production 
before himself. 
 (3) No member of the Board, who has a direct interest in the, matter under reference shall 
take part in the consideration or discussion of, or vote on any question with respect to the said matter. 
 (4) The decision of the Board of Arbitrators shall be in accordance with majority of votes. 
 (5) If a majority of votes is not in favour of any proposed decision, the opinion of the 
Chairman of the Board shall prevail. 
 (6) The decision of the Board of Arbitrators shall,___ 
(a)  be enforced by a civil court having jurisdiction as if it were a decree of that 
court; and 
(b)  be final and shall not be questioned in any Court. 
 27. Bar on suit in absence of notice.___ (1) No suit shall be instituted against any market 
committee or any member or employee thereof or any person acting under the direction of any such 
 
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market committee, member, or employee for anything done or purporting to be done under this 
Ordinance, until the expiration of two months next after a notice in writing stating the cause of 
action, the name and place of abode of the intending plaintiff and the relief which he claims, has 
been in the case of a market committee, delivered or left at its office and in the case of any such 
member, employee or person as aforesaid, delivered to him or left at his office or usual place of 
abode, and the plaint shall contain a statement that such notice has been so delivered, or left:___ 
 Provided that if any such suit is filed without delivering or leaving such notice as aforesaid or 
before the expiration of the said period of two months or where the plaint does not contain a 
statement that such notice has been so delivered or left the plaintiff, shall not be entitled to any cost. 
 (2) Every such suit shall be dismissed unless it is instituted within six months from the date 
of the accrual of the cause of action. 
 28. Power to borrow. ___ (1) A market committee may, with the sanction of the Government 
raise money required for carrying out the purposes for which it is established oil the security of any 
property vested in and belonging to the market committee and of any fees leviable by the market 
committee under this Ordinance. 
 (2) A market committee may, for the purpose of meeting the initial expenditure on lands, 
buildings and equipment required for establishing a market, and for the proper discharge of the duties 
and functions impose, on it by or under this Ordinance, obtain a loan from the Government or from 
any other market committee on such conditions, and subject to such rules as may be prescribed. 
 29. Power annual proceedings. ___- (1) The Government may, by order in writing call for the 
record and annul any proceeding of a market committee or its subcommittees which it considers not 
to be in conformity with law or rules or bye-laws and may do all things necessary to secure such 
conformity or may suspend any resolution which it considers likely to lead to breach of peace or to 
cause injury or annoyance to public or to any class or body of person or is likely to affect adversely 
the interest of the market committee or of growers or dealers transacting business in agricultural 
produce or of any class of functionaries working in the notified market area:___ 
 Provided that no action under sub-section (1) shall be taken by the Government without 
providing an opportunity of being heard to the market committee or its sub-committee. 
 (2) An officer authorized by Government may, by order in writing, suspend within the limits 
of the notified market, the execution of any resolution or order of a market committee or its sub-
committee or prohibit the doing within those limits of any act which is being done or is about to be 
done in pursuance of or under cover of this Ordinance or any rule or bye-law made thereunder, if in 
his opinion the resolution older or act is in excess of the powers conferred by law or is likely to lead 
to breach of peace or to causes injury annoyance to public or to any class or body of persons, or is 
likely to affect adversely the interests of the market committee of growers or dealers transacting 
business in agricultural produce or of any class of functionaries working ill the notified market area 
concerned. 
 (3) The officer making an order under this section shall forthwith forward a copy thereof, 
with a statement of his reasons for making it and the explanation, if any, of the market committee 
concerned to the Government who may thereupon rescind the order or direct that it shall continue in 
force with or without modification permanently, or for such period as it thinks fit. 
 
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 30. Supersession of market committee.___ (1), If, in the opinion of the Government a market 
committee is incompetent to perform or persistently makes default in performing the duties imposed 
on it by or under this Ordinance or abuses its powers, the Government may by notification supersede 
such committee:___ 
 Provided that before issuing a notification under this sub-section the Government shall give a 
reasonable opportunity to the market committee for showing cause against the proposed supersession 
and shall consider the explanations and objections, if any, of the market committee. 
 (2) Upon the publication of a notification under sub-section (1) the following consequences 
shall ensue.___ 
(a) all the members including the Chairman and Vice Chairman of the market 
committee shall, as front the date of such publication, be deemed to have 
ceased to be members of the market committee; and 
(b) all assets of the market committee shall vest in Government and the 
Government shall be liable for all the legal liabilities of the market committee 
subsisting at the date of its supersession up to the limit of the said assets. 
 (3) The Government may, at its discretion, by order, constitute either a new market 
committee as provided under section 7 or such other authority for the carrying out of the functions of 
the market committee as the Government may deem fit. 
 (4) When the Government have made an order under sub-section (3) the assets and liabilities 
defined in Clause (b) of sub-section (2) vesting in the Government at the date of such order shall be 
deemed to have been transferred on the date of such order to the new market committee or authority 
constituted as aforesaid. 
 (5) Where the Government by order under sub-section (3), have appointed an authority other 
than a new market committee for the carrying out of the functions of the superseded market 
committee the Government may by notification determine the period not exceeding ninety days for 
which such authority shall act:___ 
 Provided that the term of office of such authority may be terminated earlier if the 
Government for any reason considers it necessary. 
 (6) At the expiry of the term of office of such authority, a new market committee shall be 
constituted. 
 (7) Upon such an order being made the assets and liabilities vesting in tile authority thereby 
superseded, shall be deemed to have been transferred by such order to the new market committee. 
 (8) Whenever the assets of a market committee vest in the Government and no new market 
committee or authority is appointed in its place, the Government shall employ the balance of the 
assets remaining after the discharge of the subsisting legal liabilities of the said market committee for 
any object of public utility in the area specified in the notification issued under sub-section (1) of 
section 4. 
 31. Dissolution of the market committees. ___ (1) Notwithstanding anything contained in the 
Ordinance, where a general election to the National assembly is announced and the Government is 
satisfied that it is in the public interest to prevent the Market Committees from using their funds or 
 
Page 16 of 21 
 
influence for political purposes, the Government may, by notification, dissolve the market 
committee. 
 (2) On the publication of the notification under sub-section (1),___ 
(a)  all the members including the Chairmen and Vice-Chairmen of the 
market committees shall, as from the date of such publication, cease to 
be members of the market committee; 
(b)  all powers and functions of the market committees shall be exercised 
and performed by such officer as the Government may appoint in this 
behalf as Administrator; and 
(c)  all assets of the market committees shall vest in the Government and 
the Government shall be liable for all the legal liabilities of the market 
committees subsisting 6n the date of their dissolution upto the limit of 
the said assets till such time new market committees are constituted 
under section 8. 
 (3) The market committees dissolved under sub-section (1) shall be reconstituted as soon as 
possible after the constitution of the Federal Cabinet as a result of the said general election. 
 32. Acquisition of land.___ Where any land is required by a market committee for carrying 
out any of its functions under this Ordinance, it shall obtain the prior approval of the Government 
before approaching the collector of the district concerned for acquisition of land under the Land 
Acquisition Act, 1894 (I of 1894). 
 33. Encroachments.___ (1) If any person makes an encroachment, moveable or immovable on 
over or under a road drain, Mara or open space belonging to a market committee without its written 
permission, the market committee, in addition to instituting criminal proceedings against him, may, 
by notice, require the person responsible for any such encroachment to remove the same in a period 
of seven days, and if the encroachment is not removed within such period the market committee may 
cause the encroachment to be removed through its own agency, and the cost incurred thereon by the 
market committee shall be recoverable as arrears of land revenue:___ 
 Provided that no action shall be taken without providing an opportunity of being heard to the 
person to be affected thereby. 
 (2) Notwithstanding anything contained in any other law, no compensation shall be payable 
for any encroachment removed or caused to be removed under this section. 
 34. Training institute. ___ (1) The Government may set up a training institute for the training 
of members and the staff of market committee dealers, processors and other market functionaries and 
for the promotion of research in agricultural marketing and allied subjects and may by rules 
provide,___ 
(a)  for the administration of training institute; 
(b)  for the compulsory training of members and staff; 
(c)  for the courses to be studied; and 
 
Page 17 of 21 
 
(d)  for the holding of examinations and the award of diplomas and certificates to 
successful trainees. 
 (2) Every market committee shall pay towards the cost and maintenance of the institution set 
up under sub-section (1) such amount as the Government may from time to time determine. 
 35. Recovery of dues.___ (1) All sums due from a market committee to the Government may 
be recovered in the same manner as arrears of land revenue. 
 (2) Any amount due to a market committee shall be recoverable as arrears of land revenue 
 36. Emergency powers. ___ If at any time Government is satisfied that a situation has arisen 
in which the purposes of this Ordinance cannot be carried out in accordance with the provisions 
thereof, Government may by notification,___ 
(a)  declare that the functions of the market committee shall, to such extent as may 
be specified in the notification, be exercised by Government or such officer as 
it may direct; and 
(b)  assume to itself all or any of the powers vested in or exercisable by any market 
committee; and such notification may contain such incidental and 
consequential provisions as may appear to Government to be necessary or 
desirable for giving effect to the objects of the notification. 
 37. Penalties.___ (1) Whoever contravenes the provisions of section 4 shall be punishable 
with fine which may extend to one thousand rupees and in case of a continuing contravention, with a 
fine which, in addition to such fine as aforesaid may extend to one hundred rupees for every day, 
after the date of first conviction, during which the contravention is continued. 
 (2) Whoever contraventions the provisions of sub-section (3) of section 19, shall be 
punishable with fine which may extend to one hundred rupees and in the case of continuing 
contravention with fine which in addition to such fine as aforesaid, may extend to ten rupees for 
every day, after tile date of first conviction, during which the contravention is continued. 
(3) Whoever contravenes the provisions of section 21 and 25 shall be punishable with fine 
which may extend to one thousand rupees. 
 38. Power to make rules.___ (1) The Government may, either generally or specially for any 
notified market area or areas, make rules consistent with this Ordinance, for carrying out all or any of 
the purposes thereof. 
 (2) In particular and without prejudice to tile generality of the foregoing power such rules 
may provide for all or any of the following matters, namely:___ 
(a)  election and removal of members of market committees; 
(b)  power to be exercised and the duties to be performed by the market 
committees; 
(c)  election of the Chairman and Vice-Chairman of market committees and their 
powers and term of office; 
 
Page 18 of 21 
 
(d)  filling of casual vacancies in the office of members or in the office of 
Chairman or Vice Chairman of market committees; 
(e)  time, place and manner in which a contract between buyer and seller is to be 
entered into and money is to be paid to the seller; 
(f)  management of the market, maximum fee which may levied by market 
committees in respect of agricultural produce bought or sold by licensees in 
the notified market areas; and the recovery and disposal of such fee; 
(g)  issuance by market committees of licenses to brokers, weighmen, measurers, 
surveyors, warehouseman, changers, palledars, boriotus, tolas tokrawala and 
rehriwalas the form in which and the conditions under which, such licenses 
shall be issued or renewed and the fee if any to be charged thereof; 
(h)  the place or places at which agricultural produce shall be weighed, the kind 
and description of the scales, weights and measures which alone may be used 
in transaction in agricultural produce in a notified market area; 
(i)  inspection, verification, regulation, correction and confiscation of scales, 
weights and measures in use in a notified market area; 
(j)  trade allowances which may be made or received by any person in arty 
transaction in agricultural produce in a notified market area; 
(k)  (i)  constitution, powers and functions of Board of Arbitrators; 
(ii)  procedure to be followed by Board of Arbitrators in the disposal of 
references under this Ordinance; 
(iii)  transfer of matters and cases from one Board of Arbitrators to another 
and the transfer of money in such cases; 
(iv)  representation in proceedings before Board of Arbitrators of parties 
who are minors or of unsound mind or are unable to make an 
appearance; 
(v)  regulation of the scale of costs which may be allowed proceedings 
before a Board of Arbitrators; 
(vi)  prescribing and determining the amount of the fee payable in respect of 
any proceedings before a Board of Arbitration; and 
(vii)  maintenance, by Board of Arbitrators, of registers and records of 
proceedings before such Board and for the inspection of such registers 
and records; 
(l)  prohibition of brokers from acting in the same transaction on behalf of both 
the buyer and the seller of agricultural produce; 
(m)  provision of accommodation for storing any agricultural produce brought into 
the market; 
 
Page 19 of 21 
 
(n)  preparation of plans and estimates for works proposed to be constructed partly 
or wholly at the expense of market committees, and the grant of sanction to 
such plans and estimates; 
(o)  form in which the accounts of a market committee shall be kept, audit and 
publication of such accounts and the charge if any to be made for such audit; 
(p)  management and regulation of provident fund which may be established by a 
market committee for the benefit of its employees; 
(q)  preparation and submission for sanction of annual budget reports and returns 
to be furnished by a market committee; 
(r)  investment and disposal of surplus funds of market committees; 
(s)  prescribing any matters in respect of which fee shall be payable under this 
Ordinance, and fixing the amount of such fee and the mode of payment and 
recovery thereof; 
(t)  exemption of persons or classes of persons from the obligation of obtaining 
licenses under section 6; 
(u)  traveling expenses that may be paid to the members and employees of market 
committees; 
(v)  settlement of any question as to whether any person is or is not in power; 
(w)  appointment of members of market committee; 
(x)  submission of a panel of growers non-official members and persons licensed 
under section 6 and 10; 
(y)  imposing on persons licensed under section 6, the duty of making return to 
market committee at regular intervals of transactions of sale and purchase 
affected by them, or at their place of business and of producing accounts for 
inspection and furnishing information when called upon by an authority duly 
empowered and prescribing the form and mode of verification of, and the 
particulars to be entered in such returns as well as the nature of such 
information; and 
(z)  (i)  conditions of service of the employees of market committees and their 
 grades of pay; 
(ii) schedule of the staff that may be employed by the market committees; 
(iii)  rules to be followed in making appointments to various posts under 
market committees and their appointing authorities; 
(iv) method for the holding of inquiries in disciplinary, cases against 
servants of market committees, penalties to be imposed and appeals 
against orders imposing penalties; and 
 
Page 20 of 21 
 
(v)  matters relating to transfer, retirement, training pension, gratuities, 
medical aid, travelling and other allowances, leave, conduct of 
servants, terms and conditions. 
(3) The Islamabad Capital Territory Agricultural Produce Markets Rules, 1940, shall remain 
operative to the extent they are consistent with this Ordinance till such time new rules are made 
under this Ordinance. 
39. Bye-laws.___(1) Subject to this Ordinance and rules made by the Government under 
section 38, a market committee may in respect of the notified market area under its management, 
make bye-laws for,___ 
(a)  regulation of business; 
(b)   conditions of trading; 
(c)  delegation of powers, duties and functions of sub-committees if any, provided 
by section 17; 
(d)  remunerations of different functionaries and specifically mentioned in this 
Ordinance working in the notified market area and rendering any service in 
connection with the sale or purchase of agricultural produce; 
(e)  appointment and punishment of its employees ; and 
(f)  such other matters as are in the opinion of the Government necessary or 
expedient to be provided for; and may provide that contravention thereof shall 
be punishable on conviction with a fine which may extend to rupees five 
hundred. 
 (2) The power to make bye-laws under this Ordinance is subject to the condition of the bye-
laws being made after the previous publication, in such manner as may be prescribe. 
 (3) The bye-laws shall be submitted to the Government for confirmation and shall not be 
valid unless and until approved by the Government. 
 (4) The Government may modify the bye-laws or return the same to the market committee for 
reframing. 
 (5) The bye-laws, as approved by the Government, shall be published in the official Gazette 
and shall take effect from the date of such publication. 
 (6) The Government may, cancel the bye-laws of market committee and thereupon the bye-
laws shall cease to have effect. 
 40. Trial of offences.___ (1) No offence punishable under this Ordinance or any rule or bye-
laws made thereunder shall be tried by a Court not inferior to that of Magistrate of the First Class. 
 (2) Prosecutions under this Ordinance may be instituted by a person duly authorized by a 
resolution of the market committee in this behalf. 
 (3) All fines recovered shall be credited to the market committee fund. 
 
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 (4) A market committee may by a resolution compound any offence and may exercise this 
power at any time before directing prosecution, or where a prosecution has been instituted before the 
case is finally disposed of by the trial Court. 
 41. Authorities and officers.___ Notwithstanding anything contained in this Ordinance, all 
authorities and all officers who immediately before the commencement of this Ordinance were 
exercising functions of market committees under any other law shall continue to exercise their, 
respective functions under this Ordinance till the market committees are re-constituted:___ 
 Provided that the Government may withdraw all or any of the functions from such authorities 
or officers as it may deem necessary.