Sikkim government crackdown on trade license violations, warns against sub-letting

The Sikkim government has announced a strict crackdown on the illegal sub-letting of trade licenses, with Urban Development Minister Bhoj Raj Rai warning of severe penalties for violators. Addressing a press conference on March 20, Rai emphasized that unauthorized business operations will no longer be tolerated, and regulatory measures will be strictly enforced to maintain compliance.

The issue of trade license sub-letting has raised concerns over unregulated businesses operating outside legal frameworks. According to official data, Sikkim has issued 9,449 trade licenses and 190 hawker licenses. However, numerous complaints have surfaced, alleging that many license holders are illegally sub-letting their permits to third parties, allowing unauthorized businesses to function.

Minister Rai reaffirmed the government’s commitment to curbing this malpractice, stating that any business found operating under a sub-let license would be shut down immediately, with legal action taken against those responsible. “The misuse of trade licenses will not be tolerated. Those found guilty will face strict consequences, and no political or personal influence will shield violators from action,” he asserted.

The Urban Development Department has already initiated enforcement measures, leading to the closure of multiple establishments operating under illegally sub-let licenses. Authorities have urged the public to report such violations, assuring prompt action against offenders. To enhance transparency, the government is working on a more efficient system for monitoring and regulating trade licenses.

Beyond tackling illegal sub-letting, the government is also taking steps to recover outstanding trade license fees. Minister Rai revealed that businesses collectively owe approximately ₹3.5 crore in unpaid fees, warning that legal measures will be taken against defaulters if payments are not settled promptly.

“We have given businesses ample time to clear their dues, yet many continue to default. Necessary legal actions will be taken, and additional penalties may be imposed if payments are further delayed,” Rai stated.

The minister further stressed that enforcement of trade license regulations would apply uniformly to all businesses, including those operated by politicians and high-ranking officials. “No one is above the law. Whether business owners, political leaders, or government officials, everyone must comply with trade license regulations without exception,” he added.

To facilitate compliance, the government is considering a grace period during which businesses can voluntarily disclose any irregularities in their trade license usage and rectify them without immediate penalties. Additionally, plans are underway to introduce a digital database for better tracking of trade licenses and preventing future violations.

Minister Rai assured that these measures are aimed at fostering a fair and well-regulated business environment in Sikkim. “We are not against business growth; we are against illegal practices that disrupt the system. Our goal is to establish a transparent and lawful business ecosystem that benefits everyone,” he concluded.