THE MAHARASHTRA RAW COTTON
(PROCUREMENT,PROCESSING AND MARKETING) ACT, 1971

PREAMBLE.

SECTIONS.

CHAPTER I.

1.    Short Title,Extent,Commencement and Duration.

2.    Definitions.

CHAPTER II.

3.    Establishment of State Advisory Board.

4.    Composition of the Board.

5.    Headquarters of the Board.

6.    Term of Office and Conditions of Service of Non-official Members.

7.    Resignation of Non-official Members.

8.    Temporary Absence of Members.

9.    Disqualification of Non-official Members.

10.  Removal of Members.

11.  Vacation of Membership.

12.  Filling of Vacancies

13.  Meetings of the Board.

14.  Proceedings Presumed to be Good and Valid.

15.  Consultation or association with experts.

16.  Duties of the Board.

CHAPTER III.

17.  Prohibition on Carrying on Business in Cotton(Other than baled cotton).

18.  Prohibition on Cotton Ginning and Pressing Factories.

19.  Prohibition on Transport of cotton(other than baled Cotton) Outside the State.

CHAPTER IV.

20.  Every grower of cotton to sell his produce to Government.

21.  Tendering of Kapas by persons other than the grower.

22.  Grading and pooling of cotton tendered at collection centres.

23.  Weighment procedure and grant of receipt to the tenderer.

CHAPTER V.

24.  Establishment of Cotton Co-ordination Committee and Fixation of Guaranteed Price.

25.  Advance Price Payable to Tenderer.

26.  Mode of Payment of Advance Price and Remaining guaranteed Price.

27.  Deduction to be made from the advance price and remaining guaranteed price for dues of co-operative societies.

28.  Cotton pooled to be ginned or pressed into bales and to be sold or otherwise disposed of by Government at certain
       prices.

29.  Fixation of Final Price.

30.  Settlement of account and final price is fixed and notified.

31.  Mode of Payment of Difference.

32.  Payment of Further Additional Price.

CHAPTER VI.

33.  Constitution of Price Fluctuation Fund.

34.  Accounting of Difference between the Guaranteed Price and the Final Price.

35.  Other matters concerned with the Fund to be regulated by rules.

CHAPTER VI-A.

35A.Provosion for Capital Formation fund.

CHAPTER VII.

36.  Power to issue directions to cotton ginning and pressing factories.

37.  Power to appoint authorised controller.

CHAPTER VIII.

38.  Disputes regarding baled cotton sold by Government to be referred to the East India Cotton Association Ltd., and its
       decision to be final.

CHAPTER IX.

39.  Disposal of Cotton Seeds.

CHAPTER X.

40.  Recovery of amount due on account of purchase of ginned cotton, cotton bales and cotton seeds from Government.

41.  Execution of Certificate of Recovery.

CHAPTER XI.

42.  Power to delegate and to Appoint Agents.

43.  Offences.

44.  Cognizance of Offences.

45.  Protection of action taken in good faith.

46.  Power to make Rules.

47.  Declaration of stocks of ginned cotton not pressed into bales, held at the commencement of the Act and their disposal.

48.  Application of Other Laws not barred.

49.  Power to Suspend the Operation of Provisions of the Act.

[THE MAHARASHTRA RAW COTTON (PROCUREMENT,PROCESSING AND MARKETING) ACT, 1971.]

[This Act received the assent of the President on the 4th December 1971; the assent was first published in the Maharashtra Government Gazette, Part IV, on the 13th December 1971.]

Amended by Mah. 19 of 1972*                                    Amended by Mah. 59 of 1981 @ (30-6-81)
Amended by Mah.   5 of 1974     (12-1-1974).            Amended by Mah. 32 of 1982      (30-6-82)
Amended by Mah. 48 of 1974     (27-7-1974).            Amended by Mah. 35 of 1984      (30-6-84)
Amended by Mah.   8 of 1975     (17-11-1974)           Amended by Mah.   1 of 1987* * (30-6-1986).
Amended by Mah. 17 of 1980$   (28-6-1980).            Amended by Mah. 14 of 1988

    WHEREAS, ginned and pressed cotton has been commanding a high level of prices at the terminal markets in recent years, nevertheless it has been brought to the notice of the Government of Maharashtra that because of too many intermediaries and also defects in the marketing system, growers of cotton in the State do not get a fair share of the price for their crop;
    AND WHEREAS, it is also necessary to supply unadulterated cotton to consumers at a reasonable price, and to guarantee the purity of cotton and honest trade practices at processing centres;
    AND WHEREAS, the Government of Maharashtra has decided that all trade in raw cotton should be carried on by the State for a certain time; and for that purpose to take power  [for acquiring cotton from the growers and other persons having stocks thereof, getting it ginned or pressed into bales, selling it in any form to consumers] and others on behalf of the tenderers and paying compensation to the tenderers; and provide for matters relating to the purposes aforesaid; It is hereby enacted in the Twenty-second Year of the Republic of India as follows:-

CHAPTER I.

1.    Short Title,Extent ,Commencement and Duration.
(1}  This Act may be called the Maharashtra Raw Cotton (Procurement,Processing and Marketing) Act, 1971.

(2)   It extends to the whole of the state of Maharashtra.

(3)   Chapters I and II shall come into force at once and the remaining provisions of this Act shall come into force on such date
       as the State Government may, by notification in the Official Gazette, appoint.

(4)  This Act shall remain in force uo to and inclusive of the 30th June [1989], and shall then expire; and section 7 of the
      Bombay General Clauses Act, 1904, shall apply upon the expiry of this act, as if it had been repealed by a Maharashtra
      Act.

2.    Definitions.
       In this Act, unless the context otherwise requires,-
(a)   "advance price" means the price payable or paid as such to a grower of cotton or a holder of stocks of cotton at the time
       of tendering [cotton] at a collection centre under section 20 or 21;

(b)  "bale" means any pressed package of cotton of whatever size or density;

(c)  "Board" or "Advisory Board" means the Board established under section 3;

(d)  ["additional price"] in respect of any grower or other person tendering cotton at a collection centre, means if the final price
      fixed for any cotton season exceeds the guaranteed price, the proportionate amount payable to him as ["additional price"]
      under sections 30 and 32, on the quantity of [cotton] acquired from him;

(e)  "collection centre" means the place designated by the Market committee [or direct to be so designated by the Director of
      Marketing under section 21A, for tendering cotton,] by any other person holding stocks thereof;

(f)  "controlled area" means an area specified in a notification under section 3 of the Bombay Cotton Control Act, 1942;

(g) "cotton" means raw cotton, whether ginned or unginned;

(h) "cotton ginning factory" has the meaning assigned to it in the Cotton Ginning and Pressing Factories Act, 1925;

(i)  "cotton pressing factory" has the meaning assigned to it in the Cotton Ginning and Pressing Factories Act, 1925;

(j)  "cotton season" means the period from the 1st day of July of any year to the 30th day of June of the next year(both days
     inclusive);

(k) "final price" means the price determined as such [under section 29, in respect of any specified variety or grade of cotton], as
     payable to the cotton growers and othyer persons tendering [cotton], at the collection centres under sections 20 and 21;

    [(ka) "green card" means the card issued in the prescribed form and in the prescribed manner to every grower of cotton
            (whether he is its member or not), by the Primary Agricultural Credit Society, within whose area of operation he grows
            cotton;]

(l)  "guaranteed price" means the price determined as such under section 24, in respect of any [specified variety or grade of
      cotton] as payable to the cotton growers and other persons tendering [cotton], at the collection centres;

(m)"Kapas" means unginned cotton;

(n) "market area" means an area specified in a declaration made under section 4 of the Maharashtra Agricultural Produce
     Marketing (Regulation) Act, 1963;

(o) "market committee" means a committee constituted for a market area under section 11 of the Maharashtra Agricultural
      Produce Marketing (Regulation) Act, 1963;

(p) "marketing society" means a taluka or block co-operative purchase and sales union, or a marketing society of agricultural
     produce, registered or deemed to be registered under the Maharashtra Co-operative Societies Act, 1960, as an
     agricultural society, and includes a cotton sale society;

(q) "member" means a member of the Advisory Board, and includes the Chairman or Vice-Chairman of the Board;

(r)  "non-official member" means a Member who is not a Member ex-officio;

(s) "prescribed" means prescribed by or under rules made under this Act;

(t) "Registrar" means a person appointed to be the Registrar of Co-operative Societies under the Maharashtra Co-operative
    Societies Act, 1960, and includes any person appointed to assist him and on whom all or any of the powers of the Registrar
    under that Act are confirmed.

1. This word was substituted for the word "kapas" by Mah. 48 of 1974, s.3(a).
2. Clause (ka) was inserted by Mah. 59 of 1981, s.3(b).
3. These words were substituted for the words "specified variety of cotton" by Mah. 48 of 1974, s.3(e).

1. For Statement of Objects and Reasons, see Maharashtra Government Gazette, 1971, Part V Extra-ordinary, pages
    238-240.
2. This portion was substituted for the portion beginning with "for acquiring kapas" and ending with "to consumers" by Mah. 48
    of 1974, s.2.
*  Maharashtra Ordinance No. VIII of 1972 was repealed by Mah. 19 of 1972, s.10.
+  Maharashtra Ordinance No. I of 1974 was repealed by Mah. 5 of 1974, s.3.
+  Maharashtra Ordinance No. XVII of 1974 was repealed by Mah. 48 of 1974, s.25.
$  Maharashtra Ordinance No. XXIII of 1974 was repealed by Mah. 8 of 1975, s.5.
$  Maharashtra Ordinance No. VI of 1980 was repealed by Mah. 17 of 1980, s.3
||  This indicates the date of commencement of Act.
@Maharashtra Ordinance No. XII of 1981 was repealed by Mah. 59 of 1981, s.17.
Section 16 of Mah. 59 of 1981 reads as under :-
"16.   Removal of Doubt.
        For the removal of doubt, it is hereby declared that the principal Act, which was to expire after the 30th June 1981, having been retrospectively extended from that date upto and inclusive of the 30th June 1982 by this Act, it shall not be deemed ever to have expired at any time and all its provisions as amended by this Act shall be deemed to be continuously in force,except for the purpose of section 15 of this Act."
    Maharashtra Ordinance No. XIII of 1982 was repealed by Mah. 32 of 1982, s.5.
    Maharashtra Ordinance No. VII of 1984 was repealed by Mah. 35 of 1984, s,5.
    Sections 3 and 4 of Mah. 35 of 1984 reads as under :-
"3.    Savings.
         Nothing in this Act shall render any person liable to be convicted of any offence in respect of anything done by him or anything omitted to be done by him before the 8th September 1984, if such act or ommission was not an offence but for the retrospective extension of duration of the principal Act by this Act.
4.      Removal of Doubt.
         For the removal of doubt, it is hereby declared that the principal Act, which was to expire after the 30th June 1984, having been retrospectively extended from that date upto and inclusive of the 30th June 1986, by this Act, it shall not be deemed ever to have expired at any time and all its provisions as amended by this Act shall, subject to the provisions of section 3 of this Act, be deemed to be continuously in force."
**Maharashtra Ordinance No. IV of 1986 was repealed by Mah. 1 of 1987, s.5.
Sections 3 and 4 of Mah. 1 of 1987 read as under :-
3.     Savings.
         Nothing in this Act shall render any person liable to be convicted of any offence in respect of anything done by him or anything omitted to be done by him, during the period commencing on the 1st July 1986 and ending on the 16th September 1986, if such act or omission was not an offence but for the retrospective extension of duration of the principal Act by this Act.
4.      Removal of Doubt.
         For the removal of doubt, it is hereby declared that the principal Act, which was to expire after the 30th June 1986, having been retrospectively extended from that date upto and inclusive of the 30th June 1989, by this Act, it shall be deemed never to have expired at any time and all its provisions as amended by this Act shall, subject to the provisions of section 3 of this Act, be deemed to be continuously in force.

CHAPTER II

3. Establishment of State Advisory Board.
    The State Government may,  by notification in the Official Gazette, establish for the purpouse of this Act a Board by the
    name of "The Maharashtra State Cotton Control  Advisory Boad"

4. Composition of the Board.
(1) The Board shall consist of the following members:-
(a) the Minister of State for Co-operation, Maharashtra Sate, ex officio Chairman;

(b) the Secretary to the Government of Maharashtra, Agriculture and Co-operation Department(Co-operation Wing),
     Ex-officio Vice-Chairman;

1[(bb) the Registrar, ex officio;]

(e) one representative of the Ministry of  State C0-operative Cotton Growers Marketting Federation Limitted Ex officio, or his
     representative;

(f) the Managing Director, Maharashtra State Co-operative Bank, ex officio, or his representative;

(g) the Managing Director , Cotton Corporation of India Ltd.,ex officio, or his representative;

(h) 3[the Chairman] Mharashtra State Textiles Corporation Ltd., ex officio, or his representative;

(i) the Chairman Mharashtra State Rajya Bazar Sahakari Sangh., ex officio, or his representative;

(j) the Director of Agriculture, ex officio, or his representative;

(k) the Director of Marketing, ex officio, and until such Direcors is appointed the Joint Registrar of Co-operative Societies( Marketing), ex officio;

(l) three representatives of cotton growers appointed by the State Government;

(m) one representative of textile mills appointed by the state government;

(n) one representative of Co-operative Spinning Mills, appointed by the State Government;

(o) one representative of the Co-operative Ginning and Pressing factories appointed by the State Government;

(p)one representative of  East India Cotton Association 4[Ltd.] appointed by the State Government;

(q) a Dputy Secratary to the Government of Maharashtra in the Agriculture and Co-operative Department, designed by the State Government in this behalf, who shall also be the Secretary to the Board.

(2) The names of the non-official Members appointed by the State Government Shall be published in the official Gazette.

5. Headquarters of the Board.
    The headquarters of the Board shall be in Greater Bombay.

6. Term of Office and Conditions of Service of Non-official Members.
(1) Every non-official Member shall hold office for a period of three years from the date of his appointment:

      Provided that, the State Government may extend the said period by a further period not exceeding one year;

      Provided that, after the expiry of the period of his appointment, a person shall,unless disqualified or removed, be be eligible         for reappointment.

(2) Every non-official Member shall receive from the State Government Such allowances for the purpouse of meeting the
     personal expenditure incurred in attending the meeting of the Board or in performing any other functions as such Member,        as may be prescribed.

7. Resignation of Non-official Members.
    Any non-official Member may at any time resign his office by writing under his hand addressed to the State Government, and      upon the acceptance thereof the office of the Member shall become vacant.

8. Temporary Absence of Members.
    If any Member is by infirmity or otherwise rendered temporily incapable of carrying out his duties or is absent on otherwise,      not involving the vacation of his appointment, the State Government may appoint another person to officiate for him and
    carry out his functions under this Act or any rules or regulations made thereunder.

9. Disqualification of Non-official Members.
    A person shall be disqualified for being appointed or continuing as a non official Member, if he-

    (a) holds any office or place of profit under the State Government (except when he is appointed under clause(j) of
         sub-section (1) of section 4);

    (b) is of unsound mind, and stands so declared by a competent Court;

    (c) is an undischarged insolvent; or

    (d) has been or is convicted of any offence involving moral turpitude.

10. Removal of Members.
      If the State Government is of opinion that, any Member is guilty of misconduct in the discharge of his duties, or is
      incompetent to perform or has become incapable of performing his duties as a Member or shuld for any other good and
      sufficient reason be removed, the State Government may, after giving the Member an opportunity to show cause against his
      removal, by notification in the official Gazette, remove him from office.

11. Vacation of Membership.
      If a non-official Member,-

      (a) becomes subject to any of the disqualifications mentioned in section 9, or

      (b) is absent without the permission of the Board from all meetings of the Board for a period of two successive months, he
           shall cease to be a member.

12. Filling of Membership.
(1) In the event of a vacancy in the office of any member, the vacancy may filling of be filled by the State Government, and the person so appointed shall hold office vacancies so long only as the member in whose place he is appointed would have held office.

(2) A vacancy of Member shall be filled as early as practicable:
     Provided that, during any such vacancy the continuing Members may act, as if no vacancy had occured.

13. Meetings of the Board.
(1) The Board shall meet as such times, at least once in a month, and at such places as the Chairman may determine.

(2) The Chairman, or in his absence the Vice-Chairman, shall preside at a meeting of the board. In the absence of both, the         meeting shall be presided over by one of the members present as may be chosen by the meeting to be the Chairman for
      the meeting.

(3) One third of the total number of members of the Board shall be the quorum required to constitute a meeting of the
      Board.

(4) Minutes shall be kept of the names of the Members present and of others who attend the meetings of the Board under
      the provisions of this Act, and of the proceedings of each meeting, in a minute book to be kept for the purpose. The
      minutes shall be signed at the next ensuing meeting after confirmation at such meeting.

(5) Subject as aforesaid, the Board may observe such rules of procedure in regard to the transaction of its business, or the
      business of any committee appointed by it as may be provided by the rugulations made by the Board, with the previous
      sanction of the State Government.

14. Proceedings presumed to be good and valid.
      No act or proceeding of the Board or any of its committees shall be invalid by reason only of a vacancy therein, or any
      defect in the appointment of any person acting as the Chairman or Vice-Chairman or Member, if such act or proceeding
      is otherwise in accordance with the provisions of this Act.

15. Consultation or Association with Experts.
(1)  The Board may, with the previous sanction of the State Government, associate with itself or consult such persons whose
      assistance or advice it may require, for the purpose of performing any of its functions under this Act; such persons may be
      paid such remuneration or fees or allowances as may be sanctioned by the State Government.

(2) The person so assisting or advising the Board may take part in the discussions of the Board relevant to the purpose for
      which he is associated or consulted.

16. Duties of the Board.
      Subject to the control, diretion and superintendence of the State Government, it shall be the duty of the Board--
      (a) to advise the State Government with regard to the policy to be adopted in the matter of cultivation of cotton in the State
           and grading and marketing of cotton with a view to ensure a fair price to the grower and the giving effect to the other
           objectives of this Act;

      (b) to recommend the places at which the collection centres may be located;

      (c) to advise the State Government in the matter of fixation of final prices of different varieties of cotton;

      (d) to recommend the number and places of godowns required for storing cotton and the cotton ginning and pressing              factories required for processing cotton and if necessary for requisitioning godowns or factories;

      (e) to advise the State Government with regard to the policy to be adopted for disposal of cotton-seed and cotton-waste;

      (f)  to advise the State Government on any other matter connected with the administration of this Act in respect of which
           that Government may consider it necessary to obtain the advice of the Board;

      (g) to advise the State Government on all matters to facilitate the proper carrying out of the purposes of this Act.

1. This clause was inserted by Mah. 19 of 1972, s.2(a).
2. Maharashtra XIV of.1988.
    Clauses (d) and (e) were substituted for the original clauses by Mah. 14 of 1988, s.2.
    Section 3 of Mah. 14 of 1988 reads as under :-

3. On and from the date of commencement of the Maharashtra Raw cotton (Procurement, Processing and Marketing)
    (Amendment) Act, 1988 the Chairman and the Managing Director of the Maharashtra State Co-operative Marketing
    Federation or their representatives who are ex-officio members of the Board shall cease to be such members and they shall
    be deemed to have vacated their office as such Members and the Chairman and the Managing Director of the Maharashtra
    State Co-operative Cotton Growers Marketing Federation Limited or their representatives shall be ex-officio members of
    the Board in their place.

3. These words were substituted for the words "the Manging Director", ibid., s.2(b)
4. These letters were inserted, ibid., s.2(c).

CHAPTER III.

17. Prohibition on Carrying on Business in 3[Cotton] other than Baled Cotton.
      Save as otherwise provided by or under this Act and except with the previous permission of the State Government, no
      person, other than the State Government or an officer or agent of such Government, authorised by it in this behalf, shall
      purchase, sell, or 2[store for sale cotton (not being baled cotton) or carry on business therein].

18. Prohibition on Cotton Ginning and Pressed Factories.
(1) No owner or person in charge of cotton ginning factory shall, except with the previous permission of the State Government,
     gin or cause to be ginned in his factory any Kapas to be ginned on Government account.

(2) No owner or person in charge of a cotton pressing factory shall, except with the previous permission of the State
     Government, press or cause to be pressed ginned cotton into bales, other than such cotton to be pressed on Government
     account.

19. Prohibition on Transport of 2[Cotton] other than Baled Cotton outside the State.
      No person other than the State Government or the Head of any Department authorised by the State Government in this
      behalf, shall, except with the previous permission of the State Government or such Head of the Department, 1[transport or
      attempt to transport cotton (not being baled-cotton)] from any place in the State to any place outside the State. Where the
      State Government or the Head of the Department refuses the previous permission in any case the reasons therefore shall be
      recorded in writing.

1. This word was substituted for the word "KAPAS" by Mah. 48 of 1974, s.4.
2. This portion was substituted for the words "store for sale kapas, or carry on business in kapas", ibid., s.5(a).
3. This was substituted for the word "Kapas", ibid., s.5(b).

CHAPTER IV.

20. Every grower of cotton to sell his produce to Government.
4[(1)] Every grower of cotton shall, after the picking operations are over, sell all Kapas produced by him and which he wishes
          to dispose of, to the State Government, by tendering it at a collection centre :

          Provided that, the grower may, where such practice prevails, in the area pay the labourers engaged by him wages in
          kind, i.e., in Kapas, and then tender the remaining quantity to the State Government as provided in this section :

5[Provided further that, where a person is a grower of hybrid, foundation or nucleus cotton seeds and is duly approved by the
   Department of Agriculture for the cultivation of such seeds, such person shall be permitted to get his Kapas ginned, subject
   to such conditions (if any) as may be prescribed, but shall then sell his ginned cotton, which he wishes to dispose of, to the
   State Government by tendering it at a collection centre.]

6[Provided also that, where the grower of cotton is a member of the Growers' Co-operative Spinning Mill, he may tender and
   sell the cotton produced by him, in part or full, to such Mill. When any cotton is sold to the Mill by such member, it shall be
   incumbent on the Mill to make initial payment of the price to the member, which shall not be less than the guaranteed price for
   the variety or grade of cotton as fixed by the State Government and to make final payment of the price, which shall not be
   less than the final price for the variety or grade as fixed by the State Government. The Mill shall tender and sell excess cotton
   so acquired by it to the State Government at the price paid by it.]

7[(2)(a) Save as otherwise provided in the first proviso to sub-section (1) of this section or in this section or in section 21, no
             person shall be entitled to tender any cotton grown by him at a collection centre, except on a green card issued to him
             or to tender any cotton grown by another person on his behalf at a collection centre, except on a green card issued to                that person and except on production of a written authority from such person for such tender.

        (b) The condition subject to which a green card may be issued to, and used by, any person and subject to which it shall
              be liable to be suspended or cancelled shall be such as may be prescribed.

(3) If any officer, not below the rank of Assistant Registrar of Co-operative Societies, is satisfied that any person has tendered
     or attempted to tender at a collection centre any cotton not grown by him on the green card issued to him, or any cotton on
     the green card issued to another person, which is grown by the tenderer or by any other person other than the person to
     whom that card is issued, or any cotton in contravention of sub-section (2), such officer, after holding such inquiry as he
     deems necessary and after giving a reasonable opportunity to such tenderer to offer his explanation, may, without prejudice
     to any prosecution or any other action which may be taken against such tenderer, by order direct that the whole or any part
     of the stocks of cotton so tendered or attempted to be tendered and all packages, coverings or receptacles in which such
     stocks are found or kept and every animal, vehicle, vessel or other conveyance used in carrying such stocks, shall be
     forfeited to the State Government. Where such tenderer has already been paid the price for any such stocks of cotton,
     such officer may by order direct that the amount paid as price to such tenderer shall be refunded by him at the collection
     centre, within two days from he date of receipt of such order by him and on his failure to do so shall be recovered from him
     as an arrear of land revenue.

(4) Any tenderer aggreived by any order made by an officer under sub-section (3) may, within one month from the date of
     communication to him of such order, appeal to the District Deputy Registrar of Co-operative Societies of the District. Such
     Deputy Registrar shall, after giving an opportunity to the appellant to be heard, pass such order as he may think fit,
     confirming, modifying or annulling the order appealed against. The decision of such Deputy Registrar shall be final.].

21. Tendering of Kapas by Persons other than the Grower.
      Any Kapas given by the grower to labourers lieu of wages ass provided in 1[the first proviso] to the last preceding section
      shall not be sold by the labourer to any person other than the State Government. The labourers may tender the Kapas so
      obtained either personally or through an agent authorised by the State Government in this behalf, at a collection cente.

2[21 A. Duty of every market committee to designate and mantain sufficient collection centres at convenient
             places.
(1) Notwithstanding anything contained in the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, it shall be
      the duty of every market committee to designate and maintain one or more convenient places as may be found necessary
      for tendering 3[cotton], by the growers and other persons holding to stocks thereof.

(2) If after making such inquiry as he deems fit the Director of Marketing is satisfied that any collection centre designated by
     any market committee is not convenient to the growers and other persons who wish to tender 3[cotton] or that no
     collection centre is designated by it or the collection centre designated by it is not sufficient for the needs of the locality he
     may by order direct the market committee to designate and maintain such place or places as may be specified by him as the
     collection centre or centres, and the market committee shall comply with such direction.

(3) If the Director of Marketing is satisfied on a complaint or otherwise that any direction issued by him under sub-section (2) is
     not complied with by the market committee within a reasonable period, he may, after giving a notice of at least 15 days and
     giving a reasonable opportunity to the market committee of being heard, by order fix a period for compliance with the
     direction and communicate such order to the market committee.

(4) If the direction is not complied with within the period so fixed, the Director of Marketing may appoint some person to
     comply with the direction and may order that the expense for such compliance with a reasonable remuneration to the person
     so appointed, shall be paid from time to time by the market committee from its Market Fund. Any sums so payable shall be
     deemed to be sums due to the State Government and shall be recoverable as arrears of land revenue].

22. Grading and Pooling of 4[cotton] Tendered at Collection Centres.
     1[All cotton tendered at the collection centres as required by section 20] by the growers or the persons holding stocks or
      on thier behalf by the agents for collection authorised by the State Government shall be graded and marked with the grade
      designation marks 2[in accordance with the provisions of the rules made in this behalf] and pooled according to the
      grades :

                *                         *                         *                         *                         *                        

23. Weighment Procedure and Grant of Receipt to the Tenderer
(1)  Weighment of all 4[cotton] so tendered at the collection centres shall be done in accordance with the provisions of the
      Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963 and the bye-laws of the market committee made
      thereunder, and every tenderer shall be granted a receipt for 4[cotton] tendered by him.

(2) Such receipt shall specify the collection centre at which and the date on which 4[cotton] was tendered, the name of the
      party tendering, the quantity of 4[cotton] which was tendered, and the grade thereof, and other particulars as may be
      prescribed.

1. This portion was substituted for the words "transport kapas" by Mah. 48 of 1974, s. 6(9).
2. This portion was substituted for the word "kapas" ibid, s.6(b).
3. This word was substituted for the word "kapas" ibid., s. 7.
4. Section 20 was recommended as sub-section (1) of that section by Mah. 59 of 1981, s.4(1).
5. Second proviso was added by Mah. 48 of 1974, s. 8.
6. This proviso was added by Mah. 59 of 1981, s.4(1).
7. Sub-sections (2), (3) and (4) were added, ibid.,s. 4(2).

1. These words were substituted for the words "the proviso", by Mah. 48 of 1974, s. 9.
2. Section 21A was inserted by Mah. 19 of 1972, s. 3.
3. This word was substituted for the word "kapas" by Mah. 48 of 1974, s. 10.

CHAPTER V.

5[24. Establishment of Cotton Co-ordination Committee and Fixation of Guaranteed Price.
(1)     At the commencement of every cotton season the Cotton Co-ordination Committee, as established under
         sub-section (2), shall recommend to the State Government the guaranteed prices for different varieties or grades of
         cotton and, where necessaary, also of ginned cotton. The State Government shall, in accordance with the
         recommendation of the Cotton Co-ordination Committee, notify in the Official Gazette and in such manner as it
         deems fit, the guaranteed prices for different varieties or grades of cotton and where necessary, also of ginned cotton.

(2)     The State Government shall appoint a Cotton Co-ordination Committee. It shall consist of the following :-
(a)     the Secretary to the Government of Maharashtra, Agriculture and Co-operation Department (Co-operation Wing);

(b)     a representative each of the Union Ministry of Agriculture and the Union Ministry of Commerce (Department of
         Textiles) ;

(c)     the Textile Commissioner;

(d)     the Chairman-cum-Managing Director, Cotton Corporation of India, Limited;

(e)     two representatives of the Government of Maharashtra;

(f)      a representative of the Maharashtra State Co-operative Marketing Federation or such other body as may be appointed
         by the State Government as its agent to give effect to the provisions of the Act].

1[25. Advance Price Payable to Tenderer.
(1)     Every tenderer of cotton at a collection centre shall inthe first instance be entitled to receive eighty per cent of the
         guaranteed price for the quantity of cotton tendered by him, 2[which shall be payable to him in lump sum or in such
         instalments, not exceeding two, as the State Government may, from time to time, having regard to the availability of funds,
         by general or special order determine. The payment of eighty per cent of the guaranteed price in this manner shall be the
         advance price payable to the tenderer.]

(2)    The difference between the guaranteed price and the advance price shall be payable to the tenderer 3[within a period of
         three months] after the close of every cotton season :]

         4[Provided that, where the payment of the advance price or any thereof is deferred for any reason or the difference
         between the guaranteed price and, the advance price is not paid immediately after the close of any cotton season, there
         shall be paid to the tenderer by or on behalf of the State Government interest on the amount which remains unpaid, from
         the date of tender of cotton by him or from the close of the cotton season, as the case may be, till the date of payment of
         such amount, at such rate not less than ten per cent per annum, as the State Government may, from time to time, by
         general or special order, specify.]

26. Mode of Payment of Advance Price 8[and remaining Guaranteed Price].
      5[Subject to the provisions of the last preceding section, the advance price] 6[and the difference between the guaranteed
      price and advance price] shall be paid to the tenderer through the market committee 7[or through any co-operative society
      or person authorised by the State Governemnt in this behalf] after making any deductions as required by the next
      succeeding section.

9[27. Deduction to be made from advance price 8[and remaining guaranteed price] for dues of co-operative societies and market committee.
          The market committee or the authorised co-operative society or person, as the case may be, may deduct from 10[the
          advance price, and the difference between the guaranteed price and advance price, to be paid to a tenderer of cotton]
          any sums due to any co-operative society, or any dues which the market committee is authorised to deduct by or under
          the Maharashtra Agricultural Produce Marketing (Regulation) Act, 1963, in respect of any notified produce, to such
          extent and 11[in such manner as the State Government may, notwithstanding anything contained in that Act or any
          other law for the time being in force, by general or special order direct,] and pay to the tenderer :

          Provided that, the deductions may be made in such instalments as may be deemed fit, keeping in view 12[any sums due
          from the tenderer which are recoverable under this Act and the quantity of cotton] the person concerned is likely to
          tender from time to time in future :]

          1[Provided further that, where the payment of any sum deducted under this section by or on behalf of the State
          Government or by or on behalf of any Co-operative spinning mill as sum due to a co-operative society is deferred for
          any reason, there shall be paid to the society by or on behalf of the State Government or, as the case may be, by or on
          behalf of the co-operative spinning   mill, interest on the sum so deducted and payable to the society, from the date on
          which the sum due becomes payable till the date of payment, at such rate not less than ten per cent, per annum, as the
          State Government may, from time to time, by general or special order, specify.]

28. Cotton pooled 9[to be ginned or pressed into bales and to be sold] or otherwise disposed of by Government at
      certain price.
(1) The State Government shall cause the 2 [cotton] pooled under section 22 to be 3[ginned or pressed] into bales; and shall,
      subject to the directions (if any) issued by Textile Commissioner under any law for the time being in force, cause 4[the
      bales or ginned cotton to be sold] or otherwise disposed of in the prescribed manner.

(2) Subject to sub-section (1), 5[the bales or ginned cotton shall be sold] or disposed of--
(a) at such procurement prices as may be fixed by the Central Government or by the Textile Commissioner on the advice of the
     Agricultural Price Commission under any law for the time being in force, for the different varieties of cotton grown in the
     country;

(b) in any other case, 6[in the prescribed manner].

7[(2A) The State Government shall further cause the cotton pooled under section 22 to be released for sale at such prices
            and in quantities as may be specified by the Cotton Co-ordination Committee established under sub-section (2) of
            section 24].

8[(3) Notwithstanding anything contained in this section, it shall be lawful for the State Government to set aside such quantity
          of Kapas pooled under section 22 as it thinks necessary, having regard to the interest of the growers, for meeting any
         requirements of students undergoing training at the approved basic training schools in the State, and sell Kapas for the
         purpose at such price as it may fix in that behalf].

10[29. Fixation of Final Price.
    (1)   Soon after the 30th September succeeding each cotton season, or soon after any other date (which may be earlier or
            later than thhe 30th September) specified by the State Government by notification in the Official Gazette, the State
            Government shall, in consultation with the Advisory Board, fix in the prescribed manner the final price for different
            varieties or grades of kapas or ginned cotton acquired during the said cotton season, and notify the final price in the
            Official Gazette and in any other manner as it thinks fit. In fixing the final price, regard shall be had to the price at which
            bales of cotton,   ginned cotton, Kapas, cotton--seed and cotton--waste acquired during the cotton season immediately
            preceding, were sold and the stocks on hand on the 30th September or the specified date as the case may be; and all
            expenditure incurred on the handling and gining of Kapas, the handling and pressing into bales of ginned cotton and
            the handling of cotton bales, cotton seed and cotton waste shall be taken into consideration :

            Provided that, for arriving at the final price of each variety or grade of cotton, the closing stocks not disposed of and on
            hand on the 30th September or the specified date, as the case may be, shall be valued at the average sale price or the
            market price whichever is lower, obtained for such variety or grade of cotton sold earlier in the season.

    (2)    Where after the sale of any undisposed stocks, either wholly or partly, the total amount realised for the last preceding
            cotton season is more than the total amount calculated at the final price fixed as above, the excess amount shall be
            credited to the Price Fluctuation Fund and where it is less, the deficit amount shall be debited to, and paid from, the
            said Fund. Where part of the undisposed stock still remains undisposed at the end of the subsequent season, that part
            of the stock shall be carried forward as the opening stocks and the accounts of the Fund for the previous season shall
            be finalised and closed.

    (3)    Where as a result of the audit of the accounts, any error is noticed and adjustments are required to be made, and on
            account of such adjustments any excess or deficit in relation to the total amount calculated as the final price fixed as
            above is found, the excess amount shall be credited to, and the deficit amount shall be debited to, and paid from, the
            said Fund].

1[30. Settlement of acount after final price is fixed and notified.
    (1) After the final price is fixed and notified by the State Government, if that price is more than the guaranteed price, every
         person, who or on whose behalf Kapas or ginned cotton was tendered at the collection centre, shall be paid 2[seventy-
         five per cent of the difference between the final price and the guaranteed price, as the additional price.];

    (2) The balance 3[of twenty-five per cent.] of the difference referred to in sub-section (1) shall be credited to the Price
         Fluctuation Fund.]

31. Mode of Payment of Difference.
      The payment of any amount to be made to any person under the last preceding section, shall be made in the same manner
      and shall be liable to the same deductions (if any) as laid down in sections 26 and 27.

32. Payment of 6[Further Additional Price.]
      If in any cotton season, the amount at the credit of the Price Fluctuation Fund is equal to or more than 30 per cent of the
      average total sales of cotton during the three preceding seasons, the entire amount realised in excess of the guaranteed
      price shall be distributed and paid 4[as further additional price] to the persons concerned, in the same manner and subject
      to the deductions (if any) as laid down in sections 26 and 27. 5[After the expiry of this Act, the balance in the fund shall be
      distributed among the tenderers in the prescribed manner].

1. These words and figures were substituted for the words "All kapas tendered at the collection centres" by Mah. 48 of 1974,
    s. 11(a).
2. These words were substituted for the portion beginning with "in accordance with" and ending with "of the market committee"
    by Mah. 19 of 1972, s. 4.
3. The proviso was deleted by Mah. 48 of 1973, s. 11 (b).
4. This word was substituted for the word "Kapas" ibid. by s. 11 (c), 12 and 13.
5. Section 24 was substituted for the original by Mah. 59 of 1981, s.5.

1.   This section was substituted for the original by Mah. 48 of 1974, s. 15.
2.   This portion was substituted for the words "which shall be the advance price payable to him" by Mah. 8 of 1975, s. 2(a).
3.   These words were substituted for the word "immediately", ibid., s. (2)(b).
4.   This proviso was added, by Mah. 8 of 1975, s. 2(c).
5.   These words were substituted for the words "The advance price", ibid., s. 3.
6.   These words were inserted by Mah.48 of 1974, s. 16(a).
7.   These words were inserted by Mah. 19 of 1972, s. 5.
8.   These words were inserted by Mah. 48 of 1974, s. 16(b).
9.   Section 27 was substituted by Mah. 19 of 1972, s. 6.
10. These words were substituted for the words "the advance price to be paid", to a tenderer of kapas" by Mah. 48 of 1974,
      s. 17(a).
11. These words were substituted for the words "in such manner as may be laid down in that Act" by Mah. 8 of 1975, s. 4(a).
12. These words were substituted for the words "the quantity of kapas" by Mah. 48 of 1974, s. 17(b).

1.   This proviso was substituted by Mah. 59 of 1981, s. 6.
2.   This word was substituted for the word "kapas" by Mah. 48 of 1974, s. 18(a) (i).
3.   These words were substituted for the words "ginned and pressed", ibid., s. 18(a)(ii).
4.   These words were substituted for the words "the bales to be sold", ibid., s. 18(a)(iii).
5.   These words were substituted for the words "the bales shall be sold", ibid., s. 18(b)(i).
6.   These words were substituted for the words "at the prevailing market price" ibid., s. 18(ii).
7.   Sub-section (2A) was inserted by Mah. 59 of 1981, s. 7.
8.   Sub-section (3) was added by Mah. 48 of 1974, s. 18(c).
9.   These words were substituted for the words "to be ginned and pressed into bales, and bales to be sold." ibid., s.18(d).
10. This section was substituted for the original,  by Mah. 59 of 1981, s. 8.

CHAPTER VI.

33. Constitution of Price Fluctuation Fund.
(1)  For the purpose of this Act, there shall be established and maintained a Fund called the "Price Fluctuation Fund" (in this
      (Chapter referred to as "the Fund").

7[(2) The Fund shall be made up of an initial contribution of rupees one crore and of such further contributions to the Fund
         made by the State Government, from time to time, for meeting any liability referred to in sub-section (1) of section 34,
         only when the balance in the Fund is inadequate for that purpose, and of the amounts credited to the Fund, from time to
         time, in accordance with sub-section (2) of section 30 :

         Provided that, the further contribution by the State Government to the Fund as aforesaid shall be met from the Capital
         Formation Fund established under section 35A, and the State Government may be required to make additional
         contribution to the said Fund in consequence thereof, as may be needed for the purpose of that Fund, under
         appropriation duly made in that behalf.  

(3) The amount available in the Price Fluctuation Fund may be utilised as margin money or for other purposes of the Capital
      Formation Fund established under section 35A for the operation of the scheme, carrying interest at the rate of ten per cent
      per annum or such other rate as may be fixed, from time to time, by the State Government. The interest shall be debited to
      the profit and loss account of the scheme and credited to the Price Fluctuation Fund.]

34. Accounting of Difference Between the Guaranteed Price and the Final Price.
(1) Where for any cotton season, the final price is less than the guaranteed price, the amount of difference shall be paid from
      and debited to the Fund.

(2) Where for any cotton season, the final price is more than the guaranteed price of cotton, subject to the provisions of
      section 32, 1[the amount of twenty-five per cent of the difference shall be credited to the Fund as provided by
      2[sub-section (1) of section 30.]

35. Other matters connected with the Fund to be regulated by rules.
      All other matters connected with the Fund, including the manner in which the Fund shall be maintained, operated and
      expended, shall be regulated by rules made in this behalf.

1. Section 30 was substituted for the original by Mah. 48 of 1974, s. 20.
2. These words were substituted for the words "three fourth of the difference between the final price and the guaranteed price,
    as bonus." by Mah. 59 of 1981, s. 9(a).
3. These words were substituted for the words "of one-fourth", ibid., s. 9(b).
4. These words were substituted for the words "as bonus", ibid., s. 10(a).
5. These words were added, ibid., s. 10(b).
6. These words were substituted for the words "additional bonus", ibid., s. 10(c).
7. Sub-sections (2) and (3) were substituted for the original sub section (2), ibid., s. 11.

3[CHAPTER VIA.

35A. Provision for Capital Formation Fund.
(1)    For providing margin money or equity base for generation of additional requirement of funds for the proper and
         continuous operation of the scheme which are to be borrowed, from time to time, from the credit institutions, a separate
         account is hereby established to be called the Capital Formation Fund (hereinafter in this Chapter referred to as "the
         Fund").

(2)    The State Government shall, under appropriation duly made in this behalf contribute and pay, from time to time, into the
         Fund an aggregate sum of not less than Rupees 25 crores, on or before the 31st March 1985, including any
         contributions already made by it for the purposes of this Fund before the commencement of the Maharashtra Raw Cotton
         (Procurement, Processing and Marketing) (Retrospective Extension of Duration and Amendment) Act, 1981.

(3)    Notwithstanding anything contained in this Act or any other law for the time being in force, the market committee or the
         authorised co-operative society or person making deductions under section 27 shall, while making payment to any
         tenderer, also deduct a sum equal to such per cent (not exceeding three per cent) of the guaranteed price, as the State
         Government may, from time to time, specify by notification in the Official Gazette, fifty per cent of which as the
         contribution of the growers to the Fund and the remaining fifty per cent as their contribution for the development of
         industrial co-operatives based on cotton and shall pay the sum so deducted and collected into the Fund in such manner
         and within such time as the State Government may, by general or special order, direct.

(4)    Any agent appointed by the State Government under section 42 shall contribute and pay into the Fund every year a sum
         of not less than such per cent (not exceeding three per cent) of the agency charges payable to him as the State
         Government may, by general or special order, direct.

(5)    The Fund shall be used for the purposes for which it is established including the purpose referred to in the proviso to
         sub-section (2) of section 33 and operated by such agency as may be authorised by the State Government.

(6)    Separate accounts shall be maintained of the different sources from which contributions or other income is received, and
         the amount standing to the credit of the Fund at the time of expiration of this Act shall, as far as possible, be distributed in
         proportion to their contributions amongst the State Government, the tenderers and the agent, in such manner and
         subject to such deductions (if any) as the State Government may, by general or special order, determine.

(7)    All other matters connected with the Fund, including the manner in which the Fund shall be maintained, operated and
         expended or utilised, shall be regulated by rules made in this behalf.]

1. These words were substituted for the words "the amount of one-fourth of" by Mah. 59 of 1981, s. 12(a).
2. These words, brackets and figures were substituted for the words, brackets and figures "sub-section (2) of section 30",
    ibid., s. 12(b).
3. Chapter VI-A was inserted, ibid., s. 13.

CHAPTER VII.

36. Power to Issue Directions to Cotton Ginning and Pressing Factories.
      The State Government, or any officer authorised by it in this behalf, may issue to any owner or person in charge of a          cotton ginning factory or cotton pressing factory such general or special directions as it or he may think necessary or expedient, for maintaining or increasing the supply of ginned or baled cotton and the owner or such person shall be bound to follow and act upon such directions.

37. Power to Appoint Authorised Controller.
      If the State Government is of opinion that it is necessary so to do for maintaining or increasing the production and supply
        of ginned or baled cotton, it may, by order, published in the Official Gazette, and in such manner as it deems fit, authorise any
      person (hereinafter in this section referred to as "an authorised controller") to exercise, with respect to the whole or any
      part of any specified undertaking which is a cotton ginning factory or cotton pressing factory, such functions of control as
      may be provided therein, and so long as such order is in force with respect to such undertaking or part thereof--
(a)  the authorised controller shall exercise his functions in accordance with any instructions given to him by the State
      Government, so, however, that he shall not have any power to give any direction inconsistent with the provisions of any
      enactment or any instrument determining the functions of the persons in charge of the management of the undertaking,
      except in so far as may be specifically provided by the order ; and

(b)  the undertaking or part shall be carried on in accordance with any directions given by the authorised controller under the
      provisions of the order, and any person having any functions of management in relation to the undertaking or part shall
      comply with any such directions.

CHAPTER VIII.

1[38. Disputes regarding baled cotton sold by Government to be referred to the East India Cotton Association and
         its decision to be final.
(1)    Notwithstanding anything contained in any law for the time being in force, when ginned cotton pressed into bales is sold
        by or on behalf of the State Government to any person, and there is a dispute between the seller and the buyer, regarding
        the quality of the goods sold or regarding the price or delivery of such goods or regarding any other matter connected
        with the sale, the dispute, unless resolved by settlement between the parties, may be referred to the East India Cotton
        Association (hereinafter in this section referred to as "the Association"), by any of the parties to the dispute.

(2)    Where any such dispute is referred to the Association under the last preceding sub-section, it shall be deemed to be
        submitted to arbitration of the Association and shall be decided in accordance with the provision of its Bye-laws. The
        award made or decision given by the authority appointed under the Bye-laws of the Association to decide such dispute
        shall be communicated to the parties concerned, and they shall have a right of one or more appeals as provided in the
        Bye-laws of the Association.

(3)    The fees payable for surveys, arbitrations and appeals and the costs which may be awarded and the period of limitation
        for referring to arbitration and periods for filing appeals shall be in accordance with the provisions of the Bye-laws of the
        Association.

(4)    Any award made or decision given by the authority appointed to decide the dispute, subject to an appeal or appeals as
        provided in the Bye-laws of the Association, and where an appeal is filed, the decision of the appellate authority
    &