Penalty Burden Despite MSME Registration: Traders Angry Over Belagavi City Corporation Action

• Traders in Belagavi express anger against the corporation
• Penalties imposed on traders in the name of trade licence
• Alleged harassment by officials despite MSME registration
• Traders submit memorandum demanding suspension of penalties

Traders have strongly objected to the actions of officials from the Belagavi City Corporation. Despite being registered under MSME, traders have alleged that officials are imposing penalties citing the absence of a trade licence. They have demanded clarity regarding the rules governing trade licences and MSME registrations.

Small and medium traders in Belagavi city, who have obtained MSME Udyam registration from the Central Government, have expressed widespread opposition to the penalties imposed by the municipal corporation. Officials have reportedly been imposing fines on businesses that do not possess a trade licence, leading to anger among traders. In this regard, office bearers of the traders’ association submitted a memorandum to Mayor Mangesh Pawar.

Although the corporation has powers under Section 353 of the Karnataka Municipal Corporations Act, 1976, traders argue that imposing penalties without proper awareness and clarity regarding government rules is inappropriate. Many traders believed that Udyam registration alone was sufficient to run their businesses, and the sudden issuance of penalty notices has pushed them into financial distress.

The traders have demanded that the penalty process be immediately suspended. They have also urged the corporation to introduce a simplified procedure for obtaining trade licences and provide an online payment facility. The memorandum further requested clear guidelines on trade licence and MSME rules, and called on the city corporation to protect the interests of small traders.

Traders’ Association President Satish Tendulkar made the demand in the presence of Mukesh Khoda, Mukesh Sanghvi, Raju Paliwala, Lalchandji Chapru, Nitesh Jain and several others