Gangtok: The practice of subletting trade and hawker licenses has come under severe criticism from local citizens, who blame it for the rising influx of migrant workers in Sikkim. With these licenses issued by municipal corporations under the Urban Development Department, Minister Bhoj Raj Rai has announced a crackdown, vowing to put an end to illegal subletting by the end of 2025.
Addressing a press conference at Kisan Bazaar in Gangtok on Thursday, Rai stated, “License holders of different businesses are not operating as per the law. We have already issued public notices warning those who have sublet their trade or hawker licenses. They are permitted to sublet only to family members, not to outsiders for monetary gain. If found violating this, their business license will be canceled.”
Rai emphasized that the move aligns with the State government’s initiative to regulate the influx of migrant workers. “In 2012, a state government ruling allowed business owners to employ workers through the Labour Department while holding the license themselves. However, in 2014, the rule was amended to prohibit subletting. Additionally, trade license agreements explicitly state that subletting is not allowed. Yet, almost 60 percent of businesses in the State are illegally subletting their licenses,” he revealed.
The Urban Development Department has identified 9,449 trade licenses and 119 hawker licenses across Sikkim. Additionally, trade license fee dues amount to Rs 3.5 crore. Rai also announced that hawker licenses will soon be abolished and merged under trade licenses. “Many shops will be shut down. We are coordinating with the Labour Department, which may have issued Labour cards without proper verification. Business owners must obtain an NOC from house owners. Surprise inspections will be conducted, and violators will not be allowed to continue operations,” Rai warned.
Furthermore, the Minister assured strict action against officials who may have facilitated illegal subletting in the past, allowing businesses to operate despite violations.
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