The Municipal Affairs Department, Government of Nagaland, has issued a directive prohibiting all Urban Local Bodies (ULBs) from issuing exclusive permits to single entities for the supply of goods and services. The move comes following “complaint representations received from NGOs” regarding “illegal tender allotments and Restrictive Trade Practices.”
In an official circular dated May 26, 2025, addressed to all Town Councils across Nagaland—including Kohima, Dimapur, Mokokchung, Tuensang, Mon, and others—the department stated that “henceforth, all ULBs are hereby prohibited to issue such Restrictive Trade Permits.” It also emphasized that municipal and town councils must “advocate free and fair-trade practices and endeavor to provide credible municipal governance and best municipal practices by way of providing fair opportunity and equal platform for all public to carry out their trade and business in a peaceful manner.”
The directive called on ULBs to act immediately on remedial measures, stating that they “shall refrain from any practices encouraging exclusive permit system for supply of goods and services to a single entity in any manner.”
Moreover, in cases where such permits are already in operation or are being proposed, the ULBs are instructed to “take immediate action to review and withdraw such Tenders, Orders and permits, causing or likely to cause Restrictive Trade Practices.”
Further, the department warned that “any such act committed at any hierarchy of the ULBs thereby causing such Restrictive Trade Practices shall be viewed seriously and shall have the same connotation as defined [under] 2. (41)(i) & (ii) of the Consumer Protection Act 2019.”
In conclusion, the directive reminded that “as mandated bodies, ULBs should strive to maintain credible integrity in all aspects of functioning and which should be within the ambit of the Nagaland Municipal Act, 2023 and other related extant laws.”
The letter has been marked for “strict compliance”.
The Confederation of Nagaland Chamber of Commerce and Industry (CNCCI) has “extended its sincere appreciation to the Government of Nagaland” for its swift directive to Urban Local Bodies (ULBs) to immediately halt the issuance of Restrictive Trade Permits and cancel those already issued.
In a press statement issued on May 26, CNCCI welcomed the move, calling it a “swift and decisive action” and a “prompt response” to the business community’s long-standing concerns.
The apex chamber recalled its “sustained engagements with the Government at various levels,” during which it consistently raised the issue and advocated corrective steps to end what it described as an “illegal practice.”
“As the apex chamber representing all 17 District Chambers across the state,” CNCCI stated, it considers itself “a committed partner in the Government’s mission for economic development and progress.”
It further emphasized that “sustainable growth can only be achieved through meaningful collaboration between the Government and the business community.”
The organization lauded the decision as a sign of the state government’s sincerity, stating that “this prompt response to CNCCI’s appeal underscores the Government’s sincerity in addressing the genuine concerns of the business community.” It also viewed the development as “a welcome shift towards inclusive governance where stakeholders are taken onboard.”
The CNCCI added that such “timely and positive intervention sends the right message and fosters an environment conducive to building a vibrant and robust business ecosystem in Nagaland.”