The Tamil Nadu Panchayats (Opening and Maintenance of Market) Rules, 2000

What the Rules govern

The Tamil Nadu Panchayats (Opening and Maintenance of Market) Rules, 2000 apply to places used by the public for buying and selling goods, including shandies. They distinguish between public markets maintained by Village Panchayats or Panchayat Union Councils and private markets operated under licence.

The Rules matter to Panchayats, market operators, landowners or lessees proposing a market, traders and people seeking the right to collect market fees.

Opening public markets

A Panchayat Union Council or Village Panchayat must obtain the Inspector's permission before opening and maintaining a public market on land that it owns or leases.

Key requirements include:

• The application must state the proposed fees, which cannot be lower than fees prescribed by the Government from time to time.
• Proposals are examined for commercial viability, public and trader access, and health and sanitation requirements specified by the Deputy Director of Public Health and Preventive Medicine.
• A proposed Panchayat Union market is assessed against markets within a radius of 10 kilometres.
• A proposed Village Panchayat market is assessed against nearby markets within a radius of 5 kilometres.
• No new Village Panchayat market may be permitted if it would affect the commercial viability of an existing public or private market within 5 kilometres.

Existing public markets continue under their existing classification. District Panchayats must maintain and annually update a district register of such markets in the first week of April.

Private market licences

No person may open or maintain a private market without a licence, which must be renewed every year. An applicant may be a person, firm, co-operative society or Panchayat Union Council.

The application must include:

• Proof of title to the proposed land, or a lease deed and site sketch.
• Details of drainage, sanitation, road access, waste disposal, water and toilets.
• Proposed fees or rents and whether the market is daily or weekly.

The site is subject to public health review. The licensing authority may require entrances, drains, paving, ventilation, water, toilets, cleaning arrangements and adequate passages between stalls. Approved fee rates must be displayed prominently in Tamil.

Decisions, appeals and fee collection

A rejected applicant must be given a reasonable opportunity to make representations, and the rejection must be communicated in writing. An appeal may be filed with the Inspector within thirty days of receiving that communication, and the Inspector's decision is final.

Rights to collect fees in public markets may be leased through public auction, subject to confirmation by the relevant Village Panchayat or Panchayat Union Council.