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BAN flags govt inaction on unfair trade practices

DIMAPUR, MAY 21 (NPN): The Business Association of Nagas (BAN) has expressed deep concern over the state government’s inaction in addressing representations made regarding unfair and illegal trade practices initiated by certain town and municipal councils across the state, including the unlawful issuance of tenders that monopolised local markets and infringed upon free enterprise.
In a statement, BAN president L Mongkum Jamir and vice-president Benthungo Kithan disclosed that they had submitted a formal representation to the state government on April 29, drawing attention to specific instances where tenders were issued in a manner that effectively eliminated competition by awarding exclusive rights to individual entities, which they termed as an action that constituted a clear violation of established fair trade norms and principles.
While appreciating the government’s willingness to act, they pointed out that persistent delays pointed to possible systemic hindrances, which were emboldening irregular practices and sending a distressing signal to the business community.
According to them, the business community now found itself trapped between officially-sanctioned monopolistic arrangements and informal illegal syndicate systems, both of which were severely undermining fair and competitive commerce in the state. They maintained that ultimately it was the general public that bore the burden of such monopolistic practices through inflated prices, reduced choices, and compromised service quality.
Reiterating that the role of public institutions was to serve the people and not to facilitate private commercial gains, BAN urged the government to act decisively before the problem further escalated and caused irreversible damage to the business ecosystem in Nagaland.
Should timely and appropriate action continued to be withheld, they warned that they would be left with no option but to seek judicial intervention by filing a Public Interest Litigation (PIL) to safeguard the principles of fair trade, and protect the interests of the business community and public at large.
As the situation deteriorated, the BAN said they found it necessary to place the representation in the public domain to ensure that transparency and accountability were upheld, and to signal the seriousness of the issue to all stakeholders.
BAN president’s letter to CS: In the representation to the chief secretary, the BAN president sought the former’s immediate intervention and action against illegal tender allotments and unfair trade practices by the municipal and town councils.
He said he was writing the letter following a representation received from the Federation of Nagaland Packaged Drinking Water Manufacturers’ Association (FNPMWA) regarding blatant acts of illegality and unfair trade practices being perpetrated by town and municipal councils in Medziphema, Jalukie, and reportedly extending to other parts of Nagaland.
After carefully studying the content and context of the FNPMWA’s submission, he stated that it was evident that there had been a serious and deliberate lapse on the part of the government and municipal machinery, wherein certain town and municipal councils were illegally making tenders allotments to specific individuals/firms for distribution of packaged drinking water. He asserted that this was a clear violation of free-market principles, transparency, and the rule of law.
Rather than curbing syndicates and monopolistic cartels, he observed that the government through its town and municipal councils appeared to be facilitating corruption, favouritism, and cartelisation, thereby institutionalising illegalities that were damaging both the business community and public trust.
Jamir maintained that these illegal activities had resulted in suppression of healthy competition, denying local manufacturers their rightful opportunity to serve the market; corruption at multiple levels, benefiting a select few at the cost of public welfare; loss of credibility of democratic institutions, leading to deep public resentment; and chaos in society where law-abiding business owners were harassed and penalised.
He urged the government to immediately issue strict directives to all town and municipal councils to refrain from issuing any form of exclusive tenders or permits for supply of goods and services that violated fair trade norms, revoke all such illegal allotments issued to date and declare them null and void, investigate and book all officials involved in authorising such illegal activities under appropriate legal provisions, blacklist and cancel licenses of individuals/firms found to be colluding in these corrupt practices, publicly notify and warn all local bodies against such future misconduct through official circulars and media publications, and ensure that municipal and town councils stuck to their intended mandate of governance and public welfare, not business or profiteering.
He cautioned that failure to act swiftly and decisively on the matter would only further erode public confidence and inflict irreversible damage to the fragile economic ecosystem of the state. He said he looked forward to the chief secretary’s immediate action in the interest of justice, fairness, and public accountability.