Now, Gurugram traders only need 2 documents to get a licence

The Municipal Corporation of Gurugram (MCG) has simplified the process of procuring trade licences considerably. Now traders will simply have to submit proof of identification, along with a lease deed or a certificate of legal occupancy, instead of submitting as many as 15 documents, many of which officials said were redundant.

As per MCG officials, in August this year, they realised that of the estimated 1.5 lakh businesses operating in the city, more than 1.35 lakh were functioning without valid trade licences, leading to losses amounting to hundreds of crores to the civic body annually.

Under sections 330 (factory, etc. not to be established without permission of commissioner), 331 (premises not to be used for certain purposes without licence), 335 (eating houses etc. not to be used without licence from commissioner), 336 (licencing and control of thereafter, circuses and places of public amusement) of the Haryana Municipal Corporation Act 1994, it is compulsory to apply for a trade licence from the MCG to set up any business within the municipal limits. Otherwise, the MCG is within its rights to seal the business.

MCG officials disclosed that during a review meeting held on December 5, the issue of trade licences came up for discussion. MCG commissioner Yashpal Yadav found that the steps for procuring trade licences were needlessly complicated and included extensive paperwork, although many of the documents were redundant.

“There were many documents listed for the issuance of trade licences, almost all of which were not under the MCG’S purview, such as the issuance of a no-objection certificate (NOC) from the fire department, and many other such licenses that were issued by the labour department. Hence, the MCG commissioner directed officials to revise the list of required documents to simplify and facilitate the process of obtaining trade licenses,” said an MCG official, who attended the meeting, on the condition of anonymity.

Samir Srivastava, zonal taxation officer (ZTO), said that only a handful of people had obtained trade licences at the start of this year, but following sealing drives and trade license camps, there has been a surge in the issuance of licences.

On September 17, the MCG had sealed 55 spas in Omaxe City Centre, Omaxe Gurgaon, Omaxe Celebration, Raheja Mall and ILD Mall for operating without trade licenses.

“We had carried out a series of sealing drives in September, but we soon realised that many shopkeepers were not aware that obtaining trade licenses was mandatory. As such, we decided to stop the sealing process temporarily and are presently carrying out weekly awareness and license procuring camps in malls and market places,” said Srivastava.

He added that in the 2017-18 fiscal year, in Zone 3 alone, the MCG had collected a sum of ₹2.35 crore from the issuance of trade licences, and since April the collection has already surpassed last fiscal’s figure, with ₹2.37 crore having been collected in six months.

Srivastava said that if trade licences have not been obtained by March 31, 2019 then the MCG will resume its sealing drives.

Many shopkeepers complained that the rates for shops in malls and commercial markets were too high and wanted the MCG to reconsider its rates.

“For procuring trade licenses, I have to submit nearly six times the amount to the MCG for my MG Road shop located in one of the malls, in comparison to a shop of similar size located in one of the Haryana Urban Development Authority (Huda) markets. The disparity is unfair, and I have written to the MCG for reviewing the price,” said a shop owner on the condition of anonymity.

For shops measuring above 5,000 square feet, the MCG has a fixed price cap of Rs 70,000 for malls and Rs 12,000 for commercial markets.

nearly six times the amount to the MCG for my MG Road shop, which is located in one of the malls, against the same shop of similar size located in one of the HUDA markets. I don’t understand the disparity and have written to the MCG for reviewing the price,” said a shop owner on the condition of anonymity.

For shops measuring above 5000 square feet, MCG has a fixed price cap of Rs 70,000 for malls and Rs 12,000 in commercial markets.