The state government on Thursday ordered closure of all organised retail stores and set up a panel to review the policy on allowing such outlets.
LUCKNOW: In a rude shock to the retail plans of big corporates, the Uttar Pradesh government on Thursday ordered closure of all organised retail stores and set up a panel to review the policy on allowing such outlets - which have become the target of attack by small traders.
Citing Wednesday's attack on Reliance Fresh and Spencer's stores as the trigger for the decision, Chief Minister Mayawati said Cabinet Secretary Shashank Shekhar Singh would head a five-member committee that would look into all aspects governing such stores.
The local administration took the decision to close down such stores in the state capital and Varanasi, apprehending that there could be a law and order problem, she said.
A group of traders led by Samajwadi Party MP Banwarilal Kanchal had ransacked Reliance Fresh and Spencer's stores in the city on Wednesday. Besides, similar actions were reported from Varanasi in front of an under-construction Reliance food outlet.
The Chief Minister said that in view of the protests against these retail stores, it was felt that there was a need to review the policy in this regard.
When contacted, a Reliance Retail spokesperson declined to comment. Sanjiv Goenka, Vice Chairman of RPG, which owns Spencer's brand of stores, said that he was not aware of the details.
Mayawati said the official committee would include principal secretaries of housing, home, agriculture and health as members.
The committee would look into the law and order, health, sanitation and locational aspects of the existing and proposed retail stores, Mayawati said.
Chief Minister's Principal Secretary Shailesh Krishna later told reporters that district administrations of Varanasi and Lucknow were fully competent to take such decisions if it apprehends any law and order problem.
He clarified that the decision was not applicable to the malls, even though they might also be selling some similar products.
Krishna said that any decision about opening of the stores would be taken only after the committee gives its report which could take up to a month.
He said that small vendors and retailers were affected by the retail stores of the big corporate houses.
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