Meghalaya: Dual permit system by KHADC, SMB leaves Shillong non-tribal shopkeepers frustrated
Guwahati: Non-tribal shopkeepers in areas under both the Khasi Hills Autonomous District Council (KHADC) and the Shillong Municipal Board (SMB) are facing confusion as they must secure two different permits: a trading license from KHADC and a business license from SMB, according to The Shillong Times.
KHADC grants trading licenses under the Trading by Non-Tribal Regulation, 1952, while SMB issues business licenses under its Municipal Board Bye-Laws.
The issue resurfaced after the Hynniewtrep National Youth Front (HNYF) of East Khasi Hills, along with SMB officials and police from Sadar Station, inspected shops from Motphran to Lad Umsohsun on Tuesday.
During the inspection, many non-tribal shops were found operating with expired licenses, some overdue for nearly a decade.
The HNYF blamed the SMB for negligence in monitoring such shops. However, SMB sources said that staff shortages have limited their ability to conduct regular checks.
Many shops in Motphran, Laban, and Laitumkhrah fall under both KHADC and SMB, and most were initially registered with SMB for business licenses.
While SMB manages licensing within municipal areas, KHADC also continues to issue trading licenses to non-tribal traders.
This overlapping system has created uncertainty and frustration among shopkeepers, who question the need for two separate permits for the same business.
The matter has remained unresolved for years due to a lack of coordination between the two authorities.
KHADC’s enforcement team carries out periodic inspections in Scheduled Areas, but SMB has struggled to do so because of manpower constraints.
As a result, several shop owners continue operating without valid licenses, with SMB failing to issue warnings or penalties.
The government has yet to decide whether to merge or streamline the licensing process. According to SMB bye-laws, shops that fail to renew their licenses are liable to pay a fine of Rs 50 per day. However, this rule is rarely enforced.
Despite the lapses, SMB continues to provide services like garbage collection to these shops, with waste disposed of at municipal facilities rather than KHADC-managed ones.
License fees are based on rates approved by the state Cabinet, such as archery counters, which pay Rs 600 annually, but the rates have not been revised since 2010, affecting SMB’s revenue.
As per Meghalaya Urban Development Authority (MUDA) bye-laws, obtaining a business license is also mandatory before getting occupancy certificates for commercial buildings.
SMB maintains that despite staff shortages, it is the shopkeepers’ duty to renew their licenses regularly, a rule many have ignored amid ongoing jurisdictional confusion.