KARACHI: Livestock traders have appealed to the chief minister to take notice of the ‘high-handedness’ of a government-hired contractor who is ‘extorting money’ from traders under the guise of a market fee at the city’s entry points.

In a letter to the chief minister, the general secretary of the Association of Livestock Traders - Sindh stated that livestock traders are being forced to pay an “illegal market fee” at the city’s entry points, a practice that violates the Market Act, 1939, and Sindh High Court’s orders.

“You had earlier taken notice of this illegal practice and stopped it forthwith. We urge you to look into this matter again and save livestock traders from this extortion,” the letter reads.

Established under the Agricultural Produce Market Act, 1939, the Market Committee Karachi (MCK) under the agriculture department was originally meant to provide support to growers and eliminate the role of middlemen. However, over the years, sources said, the body has been politicized and rendered unproductive.

Sources indicated that the Sindh High Court had twice ruled against the collection of market fees at the city’s entry points — first in 1997 and later in 2000. In its 2000 order, the court referenced the Agricultural Produce Market Act, 1939, stating: “In any event, the grant of a licence to a dealer only enables him to carry on his business in the notified Market Area in conformity with the requirements of the Act and the Rules.

“There is nothing in the law enabling such dealers to recover Market Fees on behalf of the Market Committee or Trade Allowance from persons who do not transact business through him,” the order said.

The court also clarified that market fees could only be obtained in exchange for specific services, and the funds generated were to be used “for purposes specified in the statute.”

Speaking to Dawn, Latif Quraishy, representing ALTS, said that market fees could only be collected in notified areas from licensed holders, but this has never been the practice.

“This time again, a contractor has set up checkposts at the city’s entry points, where traders are being forced to pay the market fee. We have complained about this matter to relevant government officials but haven’t received any response yet,” he said, adding that the extortion had been ongoing for several months.

The MCK secretary was unavailable for comment.

Sources said that government-hired contractors in previous years had resorted to ‘tax collection sprees’ ahead of Eidul Azha under various pretexts, such as ‘health clearance,’ ‘keeping of milching animals,’ and ‘entry fees.’

Published in Dawn, December 12th, 2024