25pc of firms inspected last FY lacked operating licences: DosCM

KATHMANDU, AUG 04 -

Of the total business entities inspected by the Department of Commerce and Supply Management (DoCSM) last fiscal year, 25 percent were found running without operating licence. Besides, a large number of firms were found not abiding by the regulation.

The DoCSM inspected 2,390 firms last year (2,124 from the Valley). Of them, 600 had been operating without being registered with the authority.

All the business entities are required to register either with the Office of Cottage and Small Industries, municipalities or the DoCSM.

Shambhu Koirala, director general at the department, said they directed these firms to present their renewed licences at the department.

Although a large number of firms were found not complying with the law, the department took action against very few.

It said it filed cases against nine firms, while it recommended 28 others to the police to take action under the Black-marketing and Some Other Social Offences and Punishment Act 1975. It shut down 109 businesses.

The DoCSM record shows many of the firms did not put sign boards displaying prices, did not issue PAN/VAT bills or did not use measuring devices certified from the Nepal Bureau of Standards and Measurement.

Koirala said it was the first time the department took action against such a large number of firms in a year. “Rather than focusing on the number of inspections, we stressed on result-oriented monitoring this time,” he said.

Consumer rights activists, however, termed the department’s monitoring “ineffective”.

Hari Narayan Belbase, director at the monitoring unit of the department, admitted the monitoring was not able to offer significant relief to the consumers.

There are widespread complaints about the government authorities not taking severe action against wrongdoers.

The rights activists said the government authorities’ failure to take action against traders involved in cheating has boosted their morale.

“The monitoring has been carried out just for the sake of it. The Department has failed to take severe action against the wrongdoers,” said Madhav Timislena, president of the Consumer Rights Research Forum.

He said the department must be able to take action against the wrongdoers in the amrket on the spot.

Source: The Kathmandu Post