UD&HD to withdraw provision of NOC from house owners for renewal of trade licenses

GANGTOK, 19 July: The State Government reportedly decided today to withdraw the recently introduced mandatory requirement of ‘No Objection Certificates’ from house owners for renewal of trade licenses for businesses operating out of rented premises. The decision was reportedly taken at a meeting held today between representatives of the business community, UD&HD officials and state government.
The move comes after the business community approached the State government that this provision in the renewal of trade licenses regime has created havoc among the business community as house owners sought to raise the house rents taking advantage of the situation.
The business community in their representation made to the government had highlighted that the UD&HD has no power to invoke this unnecessary provision and in such cases only court has the discretionary power to decide the NOC and examine the NOC from the house owners.
The state government has taken a policy decision to withdraw the requirement of NOC from house owners even for renewal of trade licences, a provision it had introduced five months ago. Earlier, the house owners NOC was required only at the time of applying for a trade licence, not for the yearly renewals.
A large number of the trade license holders have not renewed their licenses owing to their inability to furnish the new NOCs.
As per UD&HD’s official statistics only five percent of Sikkimese own businesses while it is mostly those from outside the state who set up business here. Needless to add, most of these businesses operate from rented accommodations.
The UD&HD will come up with the notification within two or three days, it is informed.