Sikkim government to crack down on trade license sub-letting, warns Minister Bhoj Raj Rai

In a move to curb the misuse of trade licenses in Sikkim, Urban Development Minister Bhoj Raj Rai on March 20 warned that stringent action will be taken against individuals and businesses found engaging in the sub-letting of trade licenses. Addressing a press conference, Rai said that the state government is determined to put an end to unauthorized business operations and ensure compliance with existing regulations.

The issue of trade license sub-letting has been a growing concern in Sikkim, leading to an unchecked influx of businesses operating outside legal parameters. The minister said that a total of 9,449 trade licenses and 190 hawker licenses have been issued across the state. However, complaints have surfaced that a significant number of license holders are illegally sub-letting their licenses to third parties, enabling them to run businesses without proper authorization.

Minister Rai said that the government is fully committed to addressing this issue, and immediate action is being taken against violators. He warned that businesses found operating under sub-let licenses would be shut down, and strict penalties would be imposed.

“We will not tolerate any form of misuse of trade licenses. Those found guilty of sub-letting their licenses will face severe consequences. The law applies equally to all, and no political or personal affiliations will provide immunity from action,” Rai said.

The Urban Development Department has already begun enforcement measures, leading to the closure of multiple shops that were found to be operating under sub-let licenses. The government has urged citizens to report such violations, assuring them that their grievances will be addressed promptly.

To streamline the process, the department is working on a more transparent and efficient system to track and regulate trade licenses. “The public must cooperate with the government in identifying and eliminating such illegal practices. Only then can we ensure a fair and lawful business environment in Sikkim,” the minister added.

Apart from cracking down on illegal sub-letting, the government is also taking steps to recover unpaid trade license fees. Rai said that the state is set to recover approximately Rs 3.5 crore in pending fees from businesses that have failed to comply with financial obligations related to their licenses.

“The government has provided ample time for businesses to clear their dues, yet many continue to default. We will take necessary legal measures to recover these funds, and defaulting businesses may face additional penalties if payments are not made in time,” he said.

Rai said that the implementation of trade license regulations will be impartial, extending to all sectors, including businesses run by politicians and high-ranking officials. “No one is above the law. Even political leaders and government officials must adhere to the same rules as everyone else. There will be no favoritism in enforcing these regulations,” he said.

To address these concerns, the Urban Development Department is reportedly considering a grace period during which businesses can voluntarily report any irregularities in their trade license usage and take corrective measures without facing immediate penalties. Moreover, the government is planning to introduce a digital database to track trade licenses and their holders more efficiently, preventing future violations.

Minister Bhoj Raj Rai has assured that all actions taken will be in the best interest of the public and the business community. “We are not against business growth; we are against illegal practices that disrupt the system. Our goal is to create a fair, transparent, and well-regulated business environment in Sikkim,” he said.