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No retail trade in APMC, says Bombay High Court

Court upholds Market Committee's decision after dismissing petitions by several traders

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Many carry out retail trade in the APMC premises
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In a significant order, the Bombay high court has upheld the order of the Market Committee not allowing retail trade inside APMC markets across the state. The high court, while dismissing a bunch of petitions filed by several traders and Pune Merchant Chambers, said: "In the instant case what is impermissible is the carrying on of retail trade in the Market Yard."

The petitioners had approached challenging the order dated March 27, 2015, passed by the minister for coopertation, marketing and textile department. The minister had upheld the order passed by the APMC committee cancelling the licenses of the traders.

As per the petition the Director of Marketing had issued an order in September 2014, revoking the licenses of the traders who carried out retail business. The matter was also referred to the Market Committee which issued a show-cause notice under provisions of Section 40 (e) of the Maharashtra Agricultural Produce Market (Development and Regulation) Act, whereby it is noted that licenses to the traders for retail sale through the Market Committee are not entitled to frame by-laws for retail sale.

The traders replied to the notice by saying that the allotment of the plots were done as per an amendment in the bye laws of the Market Committee. Furthermore, in view of the retail sale no loss is caused to the Market Committee. The show-cause notice is illegal and causes injustice to traders.

The state government opposed the petitions saying that "it has been stated that need to issue directions had arisen in view of the fact that it was noticed that in the market yard many Market Committees have issued licenses for carrying out retail trade which was a serious matter and was against the said act and hence it was necessary to issue directions to all the market committees to stop retail trade."

It was also added that the bye-law in any event cannot be enforced in a manner to defeat the provisions of the Act.

The court while rejecting the arguments of the traders took into consideration that the lease deed between the APMC and the traders had specific condition stipulating that the plots have to be utilized only for carrying out wholesale trade, if used for other purpose then it would be violation of the same.

The court, however, allowed the traders to make a representation to the market committee to allow them carry out wholesale trade with a view to dispose of their stock. They would also be at liberty to apply for issuance of licenses for wholesale trade.

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