State govt bans exclusive ULB trade permits, calls for fair-trade practices

In response to growing complaints from various civil society or-ganisations and NGOs, the Municipal Affairs department has issued a directive prohibiting all Municipal and Town Councils (Urban Local Bodies) in Nagaland from issuing exclusive trade permits or tenders that favour a single entity for the supply of goods and services.
In an official order issued by additional secretary T. Nchumbemo Odyuo, the department noted that such restrictive trade permits violate the principles of fair trade and undermine public trust in municipal governance.
In this regard, ULBs have now been directed to immediately refrain from any practices encouraging exclusive permit system for supply of goods and services to a single entity in any manner. In the event of such cases being in operation or poised for operation, it said that ULBs shall take immediate action to review and withdraw such tenders, orders and permits, causing or likely to cause Restrictive Trade Practices.
It noted that any act committed at any hierarchy of the ULBs, thereby causing such Restrictive Trade Practices, shall be viewed seriously and shall have the same connotation as defined in Section 2. (41) (i) & (ii) of the Consumer Protection Act 2019.
As mandated bodies, the government said that ULBs should strive to maintain credible integrity in all aspects of functioning and which should be within the ambit of the Nagaland Municipal Act, 2023 and other related extant laws.