English Quiz for Bank Exams 2016 – Set 12

The Street Vendors (Protection of
Livelihood and Regulation of Street Vending) Bill, passed by the Lok Sabha
recently, is a landmark piece of legislation for the urban poor. It is the
culmination of the efforts of organisations like the National Association of
Street Vendors of India (NASVI) and the Self Employed Women’s Association
(SEWA), which have been campaigning for a comprehensive
law for nearly two decades. The impetus came with a Supreme Court judgment
passed in October 2010 — Gainda Ram and Others vs MCD. The court directed the
“authorities” to frame adequate laws by July 2011 to protect and regulate
street vending. A debate ensued on
what the competent “authority” was. The Centre said that since street vending
was a matter of urban policy, it was the responsibility of the state
governments. Finally, it was decided that urban development was not the issue,
the livelihood of the urban working poor was. And that was in the domain of the
Union government (as in the case of MGNREGA).

The bill states that every city
will have a town vending committee (TVC), headed by the municipal commissioner
or the chief executive, which will decide on all issues related to street
vending. All stakeholders will be represented on the TVC, but the elected
representatives of street vendors will constitute 40 per cent of the members.
One-third of the latter shall be women. The TVC will issue identity cards to
all street vendors after conducting a survey to determine their numbers and
locations. It will ensure that all street vendors are accommodated, subject to
the condition that they constitute no more than 2.5 per cent of the total
population of a ward, zone or town. If a particular area has more than the
stipulated maximum, the excess number will be transferred to an adjoining zone,
but the bill stresses that there will be no eviction. The bill also states that
no street vendor will be evicted till the survey is completed. Eviction is the
biggest threat that street vendors face. The authorities forcibly remove street
vendors and confiscate their goods.
Even the better-off sections of vendors can be reduced to penury after an eviction drive. They lose half their goods and the
fines for claiming them are exceptionally high. The bill makes it clear that
under no circumstances can fines be more than the value of the goods
confiscated.

The bill notes that evictions may
be carried out as a last resort and only in cases where vendors resist
relocation. In case relocation is absolutely necessary, the vendors must be
given notice of 30 days. If they fail to respond, they will be fined at the
rate of `250 a day and if even that does not work, they may be evicted
forcibly. The bill states that the vendors will be provided a signed seizure
list and they may claim the goods after paying the fine. It further states that
perishable goods can be claimed by
the vendors on the same day. Non-perishable goods must be released within two
days. The seizure list is crucial because the street vendor can get back all
the goods confiscated. At present, no such list is provided and the vendor
finds that half the goods are missing. Even when the police raid the homes of
criminals or terrorists and gather evidence, a seizure list is provided. But
street vendors are denied this basic right. Legalising street vending is a big
step towards improving the economic conditions of these vendors. Their present
illegal status encourages rent seeking by unscrupulous
officials and denies them access to loans from banks. A study conducted by the
UNDP and Tata Institute of Social Sciences (TISS) on financial inclusion of
street vendors in 15 cities shows that banks are willing to give loans if the
vendors have legal status. At present, they are drawn to private money lenders,
who charge interest rates ranging from 300 per cent to 800 per cent per annum,
which pushes many vendors into a debt trap. The bill directs the government to
help in providing institutional credit, insurance and other welfare schemes.