Act No.: State Act (Bihar), notified in Bihar Gazette (Extraordinary) on 1 September 2006.
Year: 2006
Last Updated (article): 12 November 2025
Official Clean PDF: https://drive.google.com/file/d/1_NkitEbgZJsfLwfwOdIWs8xBV4mRmUx-/view?usp=share_link
Introduction
Bihar repealed its Agricultural Produce Market Committee (APMC) regime in 2006 through this short repeal Act. The law abolishes the 1960 APMC Act and 1975 Rules, but keeps ongoing assessments, market-fee proceedings and employee matters alive under a detailed savings clause. It also vests all APMC assets and liabilities in the State Government and sets out a scheme-based path for absorption/retirement of Board/Committee staff.
Structure of the Act
| Part/Section | Subject | What it deals with |
|---|---|---|
| Section 1 | Short title, extent, commencement | Name of the Act; applies to whole of Bihar; comes into force immediately. |
| Section 2 | Definitions | “Administrator”, “Special Officer”, “Board”, “Market Committee/Bazar Samiti”, etc. |
| Section 3 | Repeal & savings | Repeals the 1960 Act and 1975 Rules; validates past actions; continues pending/initiable proceedings, with Special Officer (original) and Administrator (appeal). |
| Section 3 (contd.) | Disciplinary proceedings | Continues departmental proceedings; explains what counts as “initiated”; outer limit of 365 days to frame charges if not framed by repeal date. |
| Section 4 | Vesting | All assets & liabilities of Board/Committees vest in State; immediate possession/custody directions; use of immovable assets only for farmer/agri-related purposes. |
| Section 5 | State’s power | General power to issue directions to achieve the Act’s objects. |
| Section 6 | Employees | Staff to continue; 3-Secretary Committee to frame statutory absorption/retirement/VRS scheme; timelines and overriding effect. |
Gazette note: The Act was published in the Bihar Gazette (Extraordinary) on 1 September 2006.
Key Provisions Explained
Section 1 – Short Title, Extent & Commencement
The law is called the Bihar Agriculture Produce Market (Repeal) Act, 2006, extends to all of Bihar, and commenced at once.
Section 2 – Who Are the Key Functionaries?
- Administrator: not below District Magistrate rank.
- Special Officer: not below Sub-Divisional Magistrate rank.
These officers are central to savings and transition.
Section 3 – Repeal with Strong “Savings”
- What is repealed? The 1960 APMC Act and 1975 Rules.
- Past actions protected: Any action/decision under the old law remains valid.
- Proceedings continue: Any penal/assessment/market-fee proceeding (even if only decided to be initiated) shall continue as if the Act still existed. Original authority: Special Officer; Appellate: Administrator.
- What counts as ‘initiated’? Decision to initiate or opinion on records that it ought to be initiated.
- Departmental proceedings: Those begun on/before repeal continue under the new controlling department; an “initiated” proceeding includes framed charges—or where material shows it ought to be initiated. Cut-off: if charges were not framed by repeal date, they cannot be framed after 365 days from repeal (excluding the repeal date).
Real-world example: A pre-repeal market-fee assessment against a trader at a Bazar Samiti can proceed before the Special Officer and appeal to the Administrator, despite the APMC law being repealed.
Section 4 – Vesting of Assets & Liabilities
- Everything vests in the State: All moveable/immovable assets and all liabilities (statutory or otherwise).
- Who takes possession? Administrator/Special Officer must take immediate possession of immovable assets and custody of moveables (including bank/post-office balances, cash, vehicles, equipment).
- On behalf of State: Possession/custody is for and on behalf of the State Government; Administrator may issue binding directions for safe custody; State may also issue binding orders to prevent injury/dissipation.
- Public-purpose ring-fencing: Immovable assets must be used only for agriculture/farmer-related activities (marketing, storage, agro-processing, horticulture, agro-service).
Section 5 – Power of the State Government
The Government can issue directions/orders/instructions to achieve the object of this Act.
Section 6 – Employees & the Transition Scheme
- Continuity: All Board employees remain in service on same pay/allowances till a final decision via a statutory scheme.
- 3-Secretary Committee: Must propose within two months a detailed scheme for absorption/retirement/VRS, etc.; Government may amend and then enforce it; to be fully implemented within three months of enforcement.
- Overriding effect & transition deployment: The scheme overrides other laws/instructions; Secretaries’ Group decides interim deployment, not open to challenge; State may amend to remove difficulties.
Practical Implications in Bihar
- For traders/mandi users: If you had pre-repeal assessments/market-fee proceedings, they continue before the Special Officer with appeal to the Administrator—as if the old Act still existed. Don’t ignore notices.
- For land/asset occupants of old mandis: Land, buildings and other assets of Boards/Committees now belong to the State; possession/custody actions and protective directions can be issued. Proposed uses must be agriculture/farmer-related only.
- For employees of Board/Committees: Service continues with pay protection until the statutory scheme is enforced and implemented; deployment during transition is decided by the Secretaries’ Group.
FAQs – Real Questions People Ask
1) Does repeal wipe out old market-fee cases?
No. Assessments/levies/penal actions continue and are decided by the Special Officer, with appeal to the Administrator.
2) Who owns old APMC market yards now?
All assets and liabilities vest in the State Government; possession/custody is taken by Administrator/Special Officer for the State.
3) Can the State use market-yard land for non-agriculture purposes?
The Act mandates use of immovable assets only for agriculture/farmer-related activities (marketing, storage, agro-processing, etc.).
4) What happens to Board/Committee employees?
They continue in service with pay protection until a Government-approved scheme is enforced and implemented.
5) Is there any time-limit for framing charges in pending departmental cases?
Yes. If charges were not framed by the repeal date, they cannot be framed after 365 days from repeal (excluding the repeal date).
Summary
The Repeal Act, 2006 ended Bihar’s APMC framework, but it carefully preserves the State’s ability to finish ongoing/initiable assessments and market-fee proceedings through a new two-tier administrative setup (Special Officer → Administrator). Simultaneously, it moves all APMC assets and liabilities to the State, instructs immediate possession/custody, and ring-fences immovable properties for agriculture/farmer-related use only. For employees, the Act stabilizes service conditions during transition and requires a statutory scheme for absorption or retirement within set timelines, with overriding effect over other laws. In practice, traders cannot rely on repeal to escape pre-repeal dues; occupants of market-yard assets must recognize State ownership/use stipulations; and employees have scheme-based protections. A Hindi version can be generated on request.
Case Laws & Examples
- The Bihar Agriculture Marketing Board Employees Association v. State of Bihar (Patna High Court) – A batch of writs challenged the constitutional validity of the Repeal Act, 2006. The Court dismissed the challenges, upholding the repeal and noting the transitional protections, especially for employees under Section 6(1).
- Nand Kumar v. State of Bihar (Supreme Court, 2014) – Considered issues around the Section 6(ii) Committee of Secretaries and the absorption/regularisation scheme for erstwhile Marketing Board/Committee staff in the post-repeal transition.
(Other Patna High Court orders reiterate that Boards/Committees stood dissolved w.e.f. 01.09.2006 and assets vested in the State; see, e.g., Sanjay Kumar Sah v. State of Bihar, 18 Oct 2022).
Related Laws
- Bihar Agriculture Produce Market Act, 1960 (repealed) – background framework.
- Bihar Agriculture Market Yard Land Transfer Act, 2017 – deals with specific transfers of vested market-yard land (post-repeal).
Conclusion & Disclaimer
🗣️ This article is part of Samvida Law Associates’ effort to simplify Bihar’s laws for public understanding. For individual legal problems, it is always advisable to consult a qualified advocate.
Disclaimer: This post is for informational purposes only and does not constitute legal advice.
