NVCC members submitting the memorandum of their demands to Nagpur Mayor Sandip Joshi

Nag Vidarbha Chamber of Commerce (NVCC), the apex association for trade, commerce and industry for Vidarbha region, has vehemently protested Nagpur Municipal Corporation Commissioner Tukaram Mundhes order dated July 27 making it mandatory for every shop and office to obtain trade license. 

A delegation led by Ashwin Mehadia (President, NVCC) recently met Guardian Minister Dr Nitin Raut and Nagpur Mayor Sanjip Joshi and submitted a memorandum requesting for urgent intervention of state government and general body of NMC to revoke the said order. 

Mehadia said that the NMC order is arbitrary, in excess of authority conferred on Mundhe under the Maharashtra Municipal Corporation Act, 1949 (MMC Act). The order violates the fundamental rights guaranteed under Article 14, 19 and 21 of the Constitution of India. Mehadia said that Mundhe has attempted to control all business/ commercial/ professional activities within the city limits of Nagpur, whereas the MMC Act empowers him to regulate only selective commodities and activities, which may create nuisance or are danger to public safety and property.

BC Bhartia, Past President, NVCC, said that the order is uncalled for particularly keeping in mind the present COVID-19 pandemic crisis. Bhartia said that strong resentment is brewing among the business community of the city due to this diktat of NMC and traders fear fresh unleash of inspector raj and corruption due to this order. If the order is not reversed then traders may come on streets to protest.

Advocate Sanjay K Agrawal, Vice President, NVCC, said that the order is in contravention to the provisions the MMC Act, hence void ab-initio. Agrawal stated that on conjoint reading of the order and schedule-3 to the order, it is implicit that obtaining trade license from corporation is made mandatory for all shops and offices and Mundhe under the garb of notifying terms and conditions of license has framed injudicious rules under Schedule-3 of the order.

Agrawal further said that, the Section 376 of the MMC Act, under which the order is claimed to be issued, in unequivocal terms states that only specified things, trades and operations as specified in rules can be asked to obtain a license. The list of goods, trades and operations which can be regulated by Commissioner are mentioned in Chapter XVIII of Schedule-D of the MMC Act.

The Act doesn’t allow the Commissioner to regulate the goods, trades and operations not mentioned in the said chapter.The Commissioner in his order has prohibited every trade and profession (including offices of Advocates, Engineers, Charted Accountants, Company Secretary, Banks, Insurance, Cooperative Society, etc.) within the territorial jurisdiction of Nagpur Municipal Corporation to operate without obtaining a trade license. Thus, the said order is ultra-vires to the provisions of the MMC Act, he added.