Kerala - Thiruvananthapuram   

Law against monopolies unlikely

THIRUVANANTHAPURAM: The State government’s bid to frame a new legislation to stall the free rein of multinational and monopoly companies in the retail sector is unlikely to bear fruit, it is learnt.

Acting on complaints that the local self-government institutions were liberally doling out licences for setting up shopping malls against the interests of the declared government policy, the Local Administration Department is understood to have asked the Law Department to explore the possibilities of framing a new law against the retail giants. The new law was expected to give adequate powers to the civic chiefs to reject applications for setting up supermarkets. The unprecedented rise in the prices of essential commodities also has compelled the department to take action against the retail majors.

Official sources told The Hindu that the State government cannot prevent the spread of monopolies just through means of legislation. By scrapping the Monopolies Restriction and Trade Practices (MRTP) Act, the Centre has facilitated the smooth entry of major companies into the retail sector.

The legislation would not have a legal standing too.

Recently, when the Thiruvananthapuram city Corporation denied permission to a company for opening a supermarket within its limits, the latter moved court and secured an order against the decision.

The proposed legislation too is feared to meet with the same fate since it would go against the right for free trade. No definition has so far been made about monopoly trading and confining it within the tenets of legislation would not have any legal sanctity, sources said.

The only option left with the State government is to gain more powers to prevent hoarding and black-marketeering of essential commodities through pre-emptive raids on warehouses of such companies. In spite of several amendments, the Essential Commodities Act still has many loopholes, which are allegedly being used to hoard goods.

Being a Central Act, the government would have to seek the permission of the Centre to propose amendments. Though the Food and Civil Supplies Department has finalised proposals to be submitted to the Centre for amending the Act, it is unlikely to be accepted as it is goes against the proclaimed policy of free trade.

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