Dual licence requirement hits non-tribal businesses in city

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By Our Reporter

Shillong, Nov 12: Non-tribal shopkeepers operating in areas under both the Khasi Hills Autonomous District Council (KHADC) and the Shillong Municipal Board (SMB) are facing uncertainty as they are required to obtain two separate permits — a trading license from the KHADC and a business license from the SMB.
The KHADC issues trading licenses under the provisions of the Trading by Non-Tribal Regulation, 1952, while the SMB issues business licenses in accordance with its Municipal Board Bye-Laws.
The issue resurfaced after the Hynniewtrep National Youth Front (HNYF), East Khasi Hills District, along with officials of the SMB and personnel from Sadar Police Station, conducted an inspection of shops from Motphran up to Lad Umsohsun on Tuesday.
During the inspection, it was found that many non-tribal shops were operating with expired business licenses — some of which had lapsed for nearly ten years — yet continued their operations without interruption.
The HNYF has accused the SMB of negligence for failing to take timely action against such shop owners.
However, official sources clarified that the SMB has been unable to conduct regular inspections due to shortage of manpower. Most of the shops within areas like Motphran, Laban, and Laitumkhrah — which fall under both KHADC and SMB jurisdiction — were earlier registered with the municipal board and obtained business licenses from it.
While the SMB is responsible for issuing business licenses within municipal limits, the KHADC continues to issue trading licenses to all non-tribal traders. This overlapping jurisdiction has left many non-tribal business owners confused and frustrated.
Non-tribal shopkeepers have questioned the need to obtain two separate licenses from two different authorities for the same establishment. The matter, pending for several years, has yet to be resolved, with no coordination or clear understanding reached between the two bodies.
Even though the KHADC enforcement wing carries out periodic checks on shops run by non-tribals in Scheduled Areas, the SMB has not been able to do the same due to manpower issues.
As a result, many shopkeepers have taken advantage of the situation, with the SMB failing to issue notices or seek clarification for non-renewal of licenses.
The government, meanwhile, has yet to decide on merging or harmonising the licensing system.
Official sources further informed that, as per SMB bye-laws, any shop failing to renew its business license must pay a fine of Rs 50 per day. Despite this rule, enforcement has remained weak.
The SMB continues to provide services such as garbage collection to these establishments, with waste being disposed of at the municipal landfill and not at any facility maintained by the KHADC.
The fee structure for business licenses depends on rates approved by the state Cabinet. For example, archery counters currently pay Rs 600 per year. Since 2010, the government has not revised these rates — a factor that has adversely affected the SMB’s revenue.
According to the bye-laws of the Meghalaya Urban Development Authority (MUDA), obtaining a business license is mandatory before issuance of occupancy certificates for commercial complexes.
Ultimately, while the SMB cites manpower shortages, it maintains that it is the responsibility of shopkeepers to renew their licenses regularly — a rule many have long ignored amid the ongoing jurisdictional confusion.

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