After witnessing the red flag in Kerala, West Bengal and UP, which has led it to apply brakes in these states, Mukesh Ambani-led Reliance Retail has now decided to tone down its ambitious roll out plans in Jharkhand as well, while it closely monitors the mood in other states where launch of Reliance Fresh stores were planned.
The company has decided to go slow in Jharkhand as the company had faced opposition from the local vendors in Ranchi, who had vandalised its stores three months back. The company feels that trouble makers may get emboldended with the recent attacks which took place in neighbouring UP leading to closure of the Reliance Fresh stores.
However, sources said the move is only temporary and would only delay the company’s roll out plans. Reliance Retail chief executive, operations and strategy, Raghu Pillai had earlier this month said at the opening of the company’s first hypermarket in Ahmedabad that 350 Reliance
Fresh stores would be rolled out by the year-end.
Reliance Retail had earlier decided on introducing a modified version of?its larger supermarkets, which would not stock? fruits and vegetables?in the states where it was likely to face opposition and Kerala, West Bengal and Jharkhand were amongst the identified states. However, now the company would give final shape to the plans only once clarity emerges on the stand of the various state governments on organised retail.
A Reliance Retail spokesperson declined to comment on the issue.?
Though legal experts maintain that any order banning organised retail is unconstitutional, the setback to retail chains comes at a time when the government is studying the viability and need of setting up a ?retail regulator? for the sector.
As reported by FE, the department of consumer affairs has told the UP and Kerala governments that law and order cannot be the basis for closing operations of retail majors. On Tuesday agriculture minister Sharad Pawar also said that states cannot permanently close retail operations on the pretext of law and order.