CHAPTER III 

Constitution of Market Committees 

7.         Establishment of Market Committee and its incorporation.- (1)  For every market area, there shall be a Market Committee having jurisdiction over the entire market area. 

(2)  ¹[Every Market Committee shall be a body corporate by the name specified in the notification under section 4].  It shall have perpetual succession and a common seal and may sue and be sued in its corporate name and shall subject to such restrictions as are imposed by or under this Act, be competent to contract and to acquire, hold, lease, sell or otherwise transfer any property and to do all other things necessary for the purposes of this Act: 

²{"Provided that no immovable property shall be acquired without the prior permission of the Managing Director in writing; 

Provided further that no immovable property shall be transferred by way of sale, lease or otherwise in a manner other than the manner prescribed in the rules made by the State Government for the purpose." } 

(3)        Notwithstanding anything contained in any enactment for the time being in force, every Market Committee shall, for all purposes, be deemed to be a local authority. 

8.         Vesting of property of local authority in market committee.  (1)  The market committee may require a local authority to transfer to it any land or building belonging to the local authority which is situated within the market yard and which immediately before the establishment of the market was being used by the local authority for the purposes of the market, and the local authority shall, within one month of the receipt of the requisition, transfer the land or building, as the case may be to the market committee on such terms as may be agreed upon between them. 

(2)        Where within a period of thirty days from the date of receipt of requisition by the local authority under sub-section (1) no agreement is reached between the local authority and the market committee under the said sub-section, the land or building required by the market committee shall vest in the market committee for the purposes of this Act and the local authority shall be paid such compensation as may be determined by the Collector under sub-section (5): 

            Provided that no compensation shall be payable to a local authority in respect of any land or building which had vested in it by virtue of the provisions contained in the enactment relating to the constitution of such local authority without payment of any amount whatsoever for such vesting: 

2.             Subs. by M.P. 15 of 2003[28.4.03]. Page 474(5)

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