UP Government throws out organised retail: Reliance Fresh, Spencer''s told to shut shop in UP

24 Aug 2007

New Delhi: In a regressive move guaranteed to dampen retail plans of organised retail corporations, the Uttar Pradesh Government has ordered the closure of modern organised retail chains in Lucknow and Varanasi, while setting up a five-member committee led by cabinet secretary Shashank Shekhar Singh to review all aspects governing such outlets.

The UP government''s reaction was triggered by an attack by a group of traders on Reliance Fresh and Spencer''s retail stores in Lucknow, fuelled by reports of similar incidents at outlets in Varanasi.

The closure of the two stores has been ordered in Lucknow and Varanasi, ostensibly in the light of the prevailing law and order, basis concerns raised by the district administration.

A decision on the eventual fate of large-format retail stores across the rest of the State will be once the five-member Committee submits its report. The committee would include Principal Secretaries of housing, home, agriculture and health as members, and would also look into the law and order, health, sanitation and location aspects of the existing and proposed retail stores.