The Business Association of Nagas (BAN) on Wednesday expressed deep concern over what it called the “ongoing inaction” by the Government of Nagaland in addressing unfair and illegal trade practices by certain Town and Municipal Councils across the state, including the unlawful issuance of tenders that monopolize local markets and infringe upon free enterprise.
BAN had earlier, on April 29, submitted a representation to the Government, drawing attention to specific instances wherein tenders were issued in a manner that it said effectively eliminated competition by awarding exclusive rights to individual entities, an action it called a clear violation of established fair trade norms and principles.
“While we appreciate the Government’s willingness to act, these persistent delays point to possible systemic hindrances,” said BAN, adding that the situation emboldens irregular practices and sends a “distressing signal to the business community.”
BAN said the business community now finds itself “trapped between officially sanctioned monopolistic arrangements and informal illegal syndicate systems—both of which are severely undermining fair and competitive commerce in the state.”
“Ultimately, it is the general public that bears the burden of such monopolistic practices through inflated prices, reduced choices, and compromised service quality,” BAN added.
As the situation deteriorates, BAN has placed its April 29 representation in the public domain to demand transparency and accountability, and to signal the seriousness of the issue to all stakeholders.
The representation urges the Government to revoke illegal tenders, investigate officials involved, blacklist offending firms, and ensure that local bodies adhere to their governance mandates rather than engage in profiteering.
BAN reiterated that the role of public institutions is to serve the people—not to facilitate private commercial gains—and urged the Government to act decisively before the problem further escalates and causes irreversible damage to Nagaland’s business ecosystem.
“Should timely and appropriate action continue to be withheld, we will be left with no option but to seek judicial intervention by filing a Public Interest Litigation (PIL) to safeguard the principles of fair trade and protect the interests of the business community and the public at large,” BAN cautioned.
Below is the full text of the representation submitted to the Government of Nagaland by BAN on 29 April 2025:
To,
The Chief Secretary,
Government of Nagaland,
Nagaland, Kohima – 797001
Subject: Immediate intervention and action against illegal tender allotments and unfair trade practices by Municipal and Town Councils in Nagaland
Hon’ble Sir,
This letter is written with grave concern following the representation received from the Federation of Nagaland Packaged Drinking Water Manufacturers Association (FNPMWA), regarding blatant acts of illegality and unfair trade practices being perpetrated by Town and Municipal Councils in Medziphema, Jalukie, and reportedly extending to other parts of Nagaland.
After carefully studying the content and context of the FNPMWA’s submission, it is evident that there has been a serious and deliberate lapse on the part of the Government and its municipal machinery, wherein certain Town and Municipal Councils are illegally issuing tender allotments to specific individuals/firms for the distribution of packaged drinking water. This act is in clear violation of free-market principles, transparency, and the rule of law.
Rather than curbing syndicates and monopolistic cartels, the Government – through its Town and Municipal Councils – appears to be facilitating corruption, favouritism, and cartelisation, thereby institutionalising illegalities that are damaging to both the business community and public trust.
Such actions raise pressing and disturbing questions:
· Is this the return on investment for those who spend huge sums of money during Town/ municipal elections to buy votes?
· Does holding office in a Town or Municipal Council grant the right to issue permits and tenders that break all norms of fair competition and legality?
· Is the Government aware, complicit, or indifferent to these violations?
These illegal activities have resulted in:
· Suppression of healthy competition, denying local manufacturers their rightful opportunity to serve the market;
· Corruption at multiple levels, benefiting a select few at the cost of public welfare;
· Loss of credibility of democratic institutions, leading to deep public resentment; · Chaos in society, where law-abiding business owners are harassed and penalised.
We strongly urge the Government of Nagaland to immediately:
1. Issue strict directives to all Town and Municipal Councils to refrain from issuing any form of exclusive tenders or permits for supply of goods and services that violate fair trade norms.
2. Revoke all such illegal allotments issued till date, and declare them null and void.
3. Investigate and book all officials involved in authorising such illegal activities under appropriate legal provisions.
4. Blacklist and cancel licenses of individuals/firms found to be colluding in these corrupt practices.
5. Publicly notify and warn all local bodies against such future misconduct through official circulars and media publications.
6. Ensure that Municipal and Town Councils stick to their intended mandate of governance and public welfare – not business or profiteering.
Failure to act swiftly and decisively on this matter will only further erode public confidence and inflict irreversible damage to the fragile economic ecosystem of the state. We look forward to your immediate action in the interest of justice, fairness, and public accountability.
Sincerely,
for BUSINESS ASSOCIATION OF NAGAS
( L MONGKUM JAMIR )
PRESIDENT