Dimapur faces rampant collections, price rise and business flight

DIMAPUR, JUN 7 (NPN): Dimapur’s business community has lamented over what was described as a growing burden of unauthorised collections, donations and informal payments that are affecting trade, pushing up prices and weakening the city’s commercial competitiveness.
According to official sources, there are as many as nearly 350 associations, unions and market syndicates in Dimapur besides around 30 political groups, all exercising their writ over the population, especially business firms and commerce.
Several traders and shopkeepers told this reporter that business in Dimapur is increasingly being strained by repeated monetary demands from different unions, associations, civil society organisations and other groups. They alleged that many of these collections are made in the name of “free-will donations”, “fund-raiser programmes” or welfare contributions, but often come with fixed amounts and without proper receipts.
According to traders, the problem has become so widespread that normal business activity has turned into a daily struggle.
They claimed that shops and business establishments are sometimes forced to make payments to more than one group for the same activity. Some alleged that refusal to pay could invite harassment in the form of inspections of goods, checking of trade licences, questions over product validity or inquiries into the background of the shopkeeper.
Business owners said many traders eventually pay after bargaining, hoping to avoid further trouble. In some cases, they alleged, collections are not only made in cash but also mean giving out in kind, with items such as refrigerators, inverters, fans or other goods reportedly taken as ‘donation’.
Shopkeepers said the ultimate burden falls on ordinary consumers. They maintained that repeated collections, along with taxation and rising operating costs, have forced many shops to increase the prices of goods. Traders said this has made items in Dimapur abnormally costlier than nearby markets across the Assam border.
Several shopkeepers claimed that customers from Dimapur are increasingly travelling to Lahorijan and Khatkhati to buy goods, where prices are reportedly 30 to 40 percent lower. Interestingly, due to huge demand from Dimapur customers, traders in nearby Karbi Anglong have also raised prices but ensuring they remain less costlier than at Dimapur.
Traders have also warned that this trend is causing a major outflow of money from the state and could also lead to loss of GST revenue for Nagaland.
Some business owners said the pressure is now forcing many non-Naga businessmen to consider shifting their operations to neighbouring Assam. They cautioned that if the situation continues unchecked, Dimapur could lose businesses, jobs and revenue, while consumers would continue to suffer higher prices.
Traders also alleged that shops located in various pockets are required to pay annual amounts, sometimes described as protection money, to deal with demands from different groups. One business owner claimed that he pays Rs. 1,000 annually for collection-related matters involving underground groups or CSOs.
Asked why complaints were not filed with the authorities, some traders said they cannot provide evidence since no receipts were issued. Others said they were afraid to provide CCTV footage, fearing reprisals.
When contacted, deputy commissioner Dimapur Dr. Tinojongshi Chang told this Reporter, that the administration was unaware of such activities as no formal complaints had been received. He said action would be taken as per law if any case was reported and urged affected traders to approach the DCCI, DMC, police or district administration.
Naga Council Dimapur president GK Rengma also said the council had not received complaints. He said stern action would be taken if proof was submitted, adding that donations, collections, lottery and calendar sales were not permitted in Dimapur.
DUCCF president Zasivikho Zakiesato strongly maintained that no union or NGO had authority to collect money from markets.
DCCI grievances cell convener Kevin Yepthomi said no complaints had reached the cell, but assured that any grievance would be taken up and reported to police. He said such collections, including “godown tax”, were strictly banned in New Market, though he admitted that some CSOs reportedly collect donations during December without the association’s knowledge. He also urged DMC, the district administration and police to meet DCCI to address rate control in Dimapur.
For decades, forcible collection in Dimapur has turned into a growing cottage industry and the problem has multiplied making Dimapur an unliveable city. Even the state, district administration and police acknowledge this through various notifications and orders banning any form of unauthorised collection of money by individuals, CSOs or organisations in the name of donations or welfare funds.