The Centre is planning two different laws for organised retail in the country to ensure that top retailers do not have to shut shop due to arbitrary state government decisions. The move is aimed at instilling confidence among the big-ticket investors that are planning a pan-Indian presence in various formats of retail. Recently, small store owners in Uttar Pradesh, Kerala, West Bengal and Jharkhand triggered unrest, fearing that big retail chains will put them out of business.
Officials sources said a national-level law was being contemplated, which would be for retail organisations having a pan-Indian presence. For retail chains interested in having only limited or regional presence, state governments would be allowed to formulate laws in step with local requirements.
The government is also mulling creating a national consumer authority that will act as a regulator for retailing.
The idea behind bringing about two sets of laws is that state governments have been seen arbitrarily closing down retail establishments of big corporate players that do not violate any constitutional principles for doing business.
Once in place, the laws would ensure that retail giants with pan-Indian presence, like Reliance Retail, Aditya Birla Retail, Bharti Retail and Spencers, would not come in the ambit of state retail laws and cannot be forced to shut shop, as has been done in UP and Kerala.