The Hindu Business Line : Reliance Fresh, Spencer’s told to shut shop in UP

New Delhi, Aug 23 In a move that could dampen the retail plans of big corporations, the Uttar Pradesh Government has ordered the closure of modern organised retail chains in Lucknow and Varanasi.

At the same time, it has set up a five-member committee led by Cabinet Secretary Mr Shashank Shekhar Singh to review all aspects governing such outlets.

The decision was triggered after Reliance Fresh and Spencer’s retail stores in Lucknow were attacked by a group of traders, followed by reports of similar incidents at outlets in Varanasi.

The UP Government’s Deputy Director (Press), Mr Vijay Rai, told Business Line over phone that the orders to close the retail stores were restricted to only Lucknow and Varanasi and were prompted by recommendations of the local district administration.

“The closure of the stores has been ordered in Lucknow and Varanasi in light of the law and order concerns raised by the district administration. Any decision on the fate of large-format retail stores across the rest of the State will be taken only after the five-member Committee submits its report,” he said.

Mr Rai added that he expected a decision by the committee “very soon.”

The committee would include Principal Secretaries of housing, home, agriculture and health as members.

It would look into the law and order, health, sanitation and location aspects of the existing and proposed retail stores.

However, the decision of closure would not be applicable to the malls even though similar products were sold through them, the Government clarified.

While Reliance Retail officials refused to comment on the development, Spencer’s officials were not reachable.

More Stories on : Politics | Retailing | Other States | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page