Punjab Rural Development Fund

The Punjab Rural Development Act, 1987

Punjab Act No. 6 of 1987

Received the assent of the Governor of Punjab on the 9th April, 1987, and was published in the Punjab Gazette, (Extra). Legislative Supplement, Part I, dated April, 10, 1987/Chaitra 20, 1909.

An Act to provide for the establishment of the Punjab Rural Development Board with a view to accelerate rural development, augment agricultural production, improve facilities to the dealers and purchasers of agricultural produce and to provide for relief for loss of agricultural produce due to natural calamities.

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3. Establishment of Board, its constitution, powers and duties - (1) The State Government may, by notification, for exercising powers conferred on and performing the functions and duties assigned to the Board by or under this Act, establish the Punjab Rural Development Board.

(2) The Board established in terms of sub-section (1) shall consist of a Chairman and the following other members, namely :-

(i) the Agriculture Minister, Punjab;

(ii) the Revenue and Rehabilitation Minister, Punjab;

(iii) the Rural Development and Panchayats Minister, Punjab;

(iv) the Financial Commissioner Development, Punjab;

(v) the Financial Commissioner Revenue, Punjab;

(vi) the Secretary to Government of Punjab in the Department of Finance; and

[(vii) four other persons nominated by the Chief Minister, Punjab from amongst the persons having sufficient experience in the rural and agriculture and other allied fields.]

(3) The [Chief Minister] Punjab, shall be the Chairman of the Board.

(4) The Board constituted in terms of sub-section (2) shall be a body corporate having perpetual succession and a common seal with powers, subject to the provisions of this Act, to acquire and hold property and shall by the said by the said name sue and be sued.

(5) The State Government shall exercise superintendence and control over the Board and its employees, and may call for such information as it may deem necessary.

(6) Subject to the rules made under this Act, the Board may frame regulations for transacting business at its meetings and for such other matters as may be prescribed.

(7) Subject to the rules made under this Act, an estimate of annual income and expenditure of the Board for the ensuing year shall be prepared and passed by the Board and submitted every year for sanction of the State Government not later than the prescribed date :

Provided that the State Government shall sanction and return the budget to the Board within a period not exceeding two months from the date of receipt thereof.

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[5. Levy and collection of fee - (1) Subject to the rules made under this Act, there shall be levied for the purpose of this Act, a fee on ad valoram basis, at the rate of [rupees three] for every one hundred rupees, in respect of the agricultural produce, bought or sold in the notified market area.]

(2) The fee levied under sub-section (1) shall be paid by the dealer in such manner as may be prescribed and shall be realised by a market committee established under the Punjab Agricultural Produce Markets Act, 1961 (Punjab Act 23 of 1961) :

Provided that the burden of the fee shall be passed on by the dealer by adding it to the purchase price recoverable by him from the next purchaser of the agricultural produce or the goods processed or manufactured out of it.

[(2-A) If any dealer fails to pay the amount of the fee levied under sub- section (1), he shall, in addition to the amount of fee be liable to pay interest on the amount of fee due from him at the rate of eighteen per centumper annum from the date of default.]

(3) The arrears of fee levied under sub-section (1) shall be recoverable as arrears of land revenue.

[5A. Power to borrow by the Board. - The Board may, with the prior approval of the State Government, raise loans from the blanks or other financial institutions on such terms and conditions, as may be prescribed.]

6. Constitution of Fund - (1) There shall be constituted a fund to be called the Punjab Rural Development Fund which shall vest in the Board.

(2) The Fund constituted under sub-section (1) shall be administered by such officer or officers of the Board as may be appointed by it in this behalf.

(3) The amount of fee [realised by a market committee established under the Punjab Agricultural Produce Markets Act, 1961 (Punjab Act 23 of 1961)] under sub-section (2) of section 5 shall be credited to the Fund within such period as may be prescribed and the grants from the [State Government and local authorities and the loans raised by the Board under section 5-A] shall also be credited to this Fund.