Loopholes plague North civic body’s new trade licence policy

Update: 2013-01-29 23:45 GMT
The babus in North Delhi Municipal Corporation (North MCD) are preparing to punish traders for their own laxity.

In the new trade license policy put up for approval before standing committee by the municipal commissioner, the unregistered traders will have to cough up five times more as penalty for their annual trade licence fee, which gives ample scope to inspectors to practise their discretion.

The new trade policy which claims to simplify the process of trade licencing is full of loopholes.

‘Many establishments may have been in existence for long but would not have obtained trade licence or many have arrears for non renewal of trade licence. These establishments can clear old dues, subject to payment of a one-time penalty fee at the rate of five times the annual current year license fee,’ said the proposed trade policy put up before the standing committee of North MCD for approval.

Interestingly the corporation don’t have any record of trades being operated in its area and a fresh survey is also being planned towards that end.

The corporation had earlier decided to issue trade licences and take action against illegal trade in its area. But the new policy willl shift the entire blame on traders.

According to the policy, the survey would be outsourced to a private firm and the traders will have to pay the processing charge directly to the firm engaged.

Interestingly again, the corporation has not made any provision to save itself  from an embarrassment the erstwhile Municipal Corporation of Delhi faced in 2008-09. The then MCD had outsourced the survey of traders in Chandni Chowk similarly but not even a single licence could be issued by the corporation. No reason was attributed either for its failure to do so.

Five years down the line, the processing fee of Rs 550 per trade licence is same for the proposed survey. Those who had earlier paid the fee are not considered this time round. And the officers have hardly made any additional provision to make it fool proof.

Further, the fee for all the trades is same irrespective of the locality in which the shop is located and the nature of the shop. For instance, a small multi-brand retail outlet in distant Burari and Narela will have to cough up the same fee as posh markets in Delhi like Civil Lines, or famous ones like Chadni Chowk, Lajpat Nagar and Azadpur.

The trade licence fee for stores and shops in malls, hotels, shopping complexes has been fixed at Rs 7,000 per annum but a multi-brand retail outlet or home furnishing shop in your colony will have to cough up Rs 15,000 per annum.

‘We will study the entire policy and the required amendments would be made before the approval. We are committed to make a trader friendly policy,’ Vijay Prakash Pandey, Deputy Chairman of Standing Committee in NDMC said, when contacted.

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