TABLE OF CONTENTS

INTRODUCTION TO THE TOPIC..

PAGE 05

PROBLEM OF STREET
VENDORS.PAGE 07
STREET VENDORS ACT, 2014.
PAGE 11
CASE STUDY AND ANALYSIS...
PAGE 14

CONCLUSION...PAGE
19

BIBLIOGRAPHY....PAGE 21
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CHAPTER-1
INTRODUCTION to the topic
Street vendor is a person who offers goods for sale to the public at large without
having a permanent built-up structure from which to sell. Street vendors may be
stationary in the sense that they occupy space on the pavements or other
public/private spaces, or mobile in the sense that they move from place to place by
carrying their wares on push carts or on their heads. Street vendors form a very
important component of the urban informal sector in India. It is estimated that the
total number of street vendors in the country is around 10 million. They comprise
around 2% of the total population in the metropolitan cities 1. The terms street
vendor and hawker have the same meaning and are often interchanged. They
suffer from various day to day problems such as irregular income, regulations of
government etc. in the monsoon season the street vendors have to suffer a lot
because on rainy days they are not able to sell their things and so they suffer from a
constant problem of social security. Over the past few decades we have observed
that there is a substantial increase in the number of street vendors in the major
Indian cities. Mumbai has the largest number of street vendors estimated at around
250,000. Kolkata has more than 150,000 street vendors. Ahmadabad and Patna have

1 www.nndccomputercentre.com/national-status-of-street-hawkers/
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around 80,000 each and Indore, Bangalore and Bhubaneswar have around 30,000
street vendors.2
The total employment provided through street vending becomes larger if we
consider the fact that they sustain certain industries by providing markets for their
products. Many of the goods sold by street vendors, such as clothes and hosiery,
leather and moulded plastic goods and household goods, are manufactured in small
scale or home-based industries. These industries employ a large number of workers
and they mainly rely on street vendors to market their products. In this way street
vendors help sustain employment in these industries.
Street vendors are mainly those who are unsuccessful or unable to get regular jobs.
This section of the urban poor tries to solve their problems through their own
meagre resources. Unlike other sections of the urban population they do not demand
that government create jobs for them, nor do they engage in begging, stealing or
extortion. They try to live their life with dignity and self-respect through hard work.
The study on street vendors in seven cities shows that their average earnings range
between Rs 40 and Rs 80 per day. Women vendors earn even less. These people
work for over 10 hours a day under gruelling conditions on the streets and are under
constant threat of eviction. This plays havoc with their lives. A study of street
vendors in Mumbai conducted by SNDT Womens University and ILO shows that
an overwhelming majority of them suffer from ailments related to stresshyperacidity, migraine, hypertension, loss of sleep, among others.3
The poorer sections too are able to procure their basic necessities through street
vendors, as the goods sold are cheap. The study on street vendors in seven cities
mentioned above showed that the lower income groups spend a higher proportion of
2 www.india-seminar.com/2006/568/568_sharit_k_bhowmik.htm
3 wiego.org/.../Bhowmik_Urban_Responses_to_Street_Trading_India.pdf
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their income in making purchases from street vendors mainly because their goods
are cheap and thus affordable. Had there been no street vendors in the cities the
plight of the urban poor would be worse than what it is at present. In this way one
section of the urban poor, namely street vendors, helps another section to survive.
Hence, though street vendors are viewed as a problem for urban governance, they
are in fact the solution to some of the problems of the urban poor. By providing
cheaper commodities, street vendors are in effect providing subsidy to the urban
poor, something that the government should have done. Indian government, seeing a
dire need of legislation for the welfare of the street vendors came with Street
Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.

CHAPTER-2
position of street vendors in india:
analysis
Street vendors have existed since time immemorial. In recent times however, they
have come to be regarded as a public nuisance by certain sections of the urban
population. NGOs representing the elite sections, especially the residents
associations of the middle class and upper middle class, are most vocal about
eviction of street vendors from their vicinity. In most of the large cities, such as
Mumbai, Delhi, Kolkata, Chennai, Bangalore, these associations aggressively
argue for restoration of pavements as public space only when street vendors
encroach on them.
At the same time these associations too blatantly encroach on public space by
employing private guards who regulate entry of people through public roads that
access their residential areas. They cordon off public space such as roads and lanes
by erecting fences and gates.

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Unfortunately, such encroachments are often condoned by the police and municipal
authorities. In several middle class or upper middle class residential colonies in
Delhi the local citizens welfare associations build gates on public roads that lead
to the colonies and have security guards who regulate entry of people. This is done
to prevent mobile vendors or anti-social elements from entering the colonies, but
the public at large too are harassed because of these forms of private regulations of
public spaces. However, the municipal authorities and the police in fact encourage
such forms of encroachment and use of private guards as they see it as a way of
maintaining law and order. This was assumed to be the basic duty of the police.4
The constant tirade by these elite NGOs that street vendors deprive pedestrians of
their space, inconvenience traffic and encourage anti-social activities finds favour
with the media which highlights this issue. The municipal authorities too act
promptly on their advice by evicting these street vendors, depriving them of their
livelihood. The inconvenience caused to the majority of the population who find it
convenient to purchase from street vendors is never a consideration. The fact that
no committee of slum dwellers (they would represent the majority of the
population in any city) has ever complained against street vendors is of course
irrelevant to the municipal authorities as well as these self-proclaimed defenders of
public space (who collectively constitute less than 5% of the population).
The Supreme Court has taken a different position. More than a decade ago, the
New Delhi Municipal Committee evicted a common street vendor, Sodhan Singh,
who sold garments at Janpath in New Delhi. He appealed to the Supreme Court
through a public interest litigation claiming that the action violated his
fundamental rights, more specifically his right to carry on business or trade (article
19(1)(g) of the Constitution of India). In a very significant judgment, the court
ruled that, If properly regulated according to the exigency of the circumstances,
4 National Policy for Street Vendors, by SHARIT K BHOWMIK
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the small traders on the side walks can considerably add to the comfort and
convenience of the general public, by making available ordinary articles of
everyday use for a comparatively lesser price. An ordinary person, not very
affluent, while hurrying towards his home after a days work can pick up these
articles without going out of his way to find a regular market. The right to carry on
trade or business mentioned in Article 19(1)g of the Constitution, on street
pavements, if properly regulated cannot be denied on the ground that the streets are
meant exclusively for passing or re-passing and no other use. (Sodhan Singh
versus NDMC, 1989).
The above extract from the Supreme Court judgment is significant because it
emphasizes several important aspect of street vending and use of public space. The
judgment notes the positive role of street vendors in providing essential
commodities to common people at affordable prices and at convenient places.
Moreover, the judgment notes that street vending, if regulated, cannot be denied
merely on the ground that pavements are meant exclusively for pedestrians. The
most important aspect is that street vendors are exercising their constitutional right
to carry out trade or business hence it should be regulated properly and not
abolished.
Despite the Supreme Courts ruling, street vendors conduct their business amidst
insecurity. Whenever eviction drives are conducted their wares are confiscated or
even destroyed. Even where street vending is permitted by the municipality, the
police has the authority to remove them. Section 34 of the Police Act empowers the
police to remove any obstructions on the streets. Hence, even if the municipal
authorities demarcate areas as street vending zones, the police has the right to evict
street vendors in these zones. Even licensed street vendors can be evicted under
this law.

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In order to overcome these restrictions, street vendors organize themselves into

unions or local associations that enable them to continue their activities. These
organizations are mainly localized bodies representing street vendors in specific
areas of the city. Most of these unions or associations are independent
organizations though some of the unions are affiliates of the larger trade union
federations. Since street vending is not officially permitted, the main role of these
organizations is to negotiate with the local authorities (officers in the municipal
wards and police stations) for occupying public space. In general it is found that
the rate of unionization is low. The different studies conducted on street vendors in
Mumbai, Delhi and Ahmadabad show that less than 20% of them are members of
unions. Most of these members are males as female vendors constitute a small
section of the profession. In most cases they marginalized.
There are other means through which street vendors manage to conduct their trade.
Vendors in an area form their informal associations that negotiate with the local
authorities. This invariably means offering rent (bribes) to the authorities for
warding off eviction drives or forewarning them of impending drives. These
associations collect money from their members and pay it as rent to the concerned
authorities. There are others forms of extracting rent. In some cases local
musclemen, more often than not with the backing of a political party, collect
protection fees through threats. Their links with the local authorities ensure that
those who pay will not be disturbed and those who refuse will face eviction either
by musclemen or the authorities.
one of the main reasons for poor organisation among hawkers is because theirs
is a competitive occupation. Unlike factory workers who can be united for a
common cause, street vendors tend to view each other as competitors. Each
vendor feels that the other should be evicted as fewer the number of vendors the
more they can sell. Hence they prefer to negotiate directly with the authorities

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for carrying out their trade in a particular area. Organisations that they form
could only help in this process.
However, there are other reasons for unionising street vendors. If the role of the
union is to mainly devise means for keeping hawkers on the streets, it will be an
uphill task in the long run. There may be other unions with greater political
backing who are more efficient in these tasks and who could take over. Hence,
not only do hawkers compete with each other, their unions too are competitive
and constantly trying to use all types of resources to achieve their objectives and
displace the others.

CHAPTER-03
STREET VENDORS ACT,2014
The bill aimed at providing social security and livelihood rights to street vendors, has
its origins in the The Street Vendors Policy introduced in 2004, which was later
revised as 'National Policy on Urban Street Vendors, 2009. Also in the same year,
the Ministry of Housing and Urban Poverty Alleviation circulated a draft of bill titled,
'Model Street Vendors (Protection of Livelihood and Regulation of Street Vending)
Bill, 2009', between all States and Union Territory governments for creation of state
legislation, however it had no legal bindings, thus few governments made any
progress in this regard. Eventually in 2010, the Supreme Court of India, which has
recognized street vending as a source of livelihood, directed the ministry to work out
on a central legislation, and a draft of same was unveiled to the public on November
11, 2011.

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The key point of the draft bill were, protection legitimate street vendors from
harassment by police and civic authorities, and demarcation of "vending zones" on
the basis of "traditional natural markets", proper representation of vendors and
women in decision making bodies, and establishment of effective grievance redressal
and dispute resolution mechanism.
The bill was drafted with the help of the National Advisory Council, chaired by Sonia
Gandhi, and approved by the Union Cabinet on August 17, 2012. After the cabinet's
approval it was introduced in the Lok Sabha (Lower House of the Parliament of
India) on September 6, 2012 by the Union Minister of Housing and Urban Poverty
Alleviation, Kumari Selja, amidst the uproar over the coal block allocation scam in
the house. The Bill was passed in the Lok sabha on 6 September 2013 and by the
Rajyasabha on 19 February 2014.

MAJOR CONTENTS OF THE BILL:5

Town Vending Committee will be responsible for conducting of survey of

all the vendors under its jurisdiction, and such survey must be conducted
every five years. No street vendor will be evicted until such survey has
been made and a certificate of vending has been issued.

All street vendors will be accommodated in a designated vending zone. In

case, all the vendors cannot be accommodated in the same vending zone,
allocation of space will be made by drawing of lots. However, those who
fail to get space in the same vending zone will be accommodated in
adjoining vending zones.

5 www.indiacode.nic.in/acts2014/7%20of%202014.pdf
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All street vendors above fourteen years of age will be granted a certificate
of vending. However, such certificates will be granted only if the person
gives an undertaking that he will carry out his business by himself or
through the help of his family members, he has no other means of
livelihood and he will not transfer the certificate. However, the certificate
can be transferred to one of his family member if such vendor dies or
suffers from permanent disability.

The certificate may be cancelled if the vendor breaches the conditions of

the certificate.

No vendor will be allowed to carry out vending activities in no-vending

zones.

In case of declaration of a specified area as a no-vending zone, the vendors

will be relocated to another area. However, such street vendors must be
given a notice of at least 30 days for relocation. Vendors, who fail to vacate
such space after a notice has been given, will have to pay a penalty which
may extend up to two hundred fifty rupees per day.

The local authority may physically remove the vendor and make seizure of
goods of such vendors who have not relocated to the vending zones.

There shall be a dispute resolution body consisting of a Chairperson who

has been a civil judge or a judicial magistrate and two other professionals
as prescribed by the appropriate government.

There will be a Town Vending Committee in each zone or ward of the

local authority.

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A vendor who vends without a certificate of vending or a vendor who

contravenes the conditions laid down in the certificate may be penalised
with a fine which may extend up to two thousand rupees.

CHAPTER-04
CASE STUDY
Olga Tellis and ors Vs. Bombay Municipal Corporation and ors6:

6 1986 AIR 180

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A landmark decision in Indian legal history, the petitioners here challenged certain
provisions (Ss 312 to 314) of the Bombay Municipal Corporation Act, 1888 as
being violative of Articles 14, 19 and 21 of the Constitution. The first two
provisions insisted that the permission of the Municipal Commissioner had to be
obtained before constructing permanent or temporary constructions on public
streets/ways. The last provision, which was the most contentious one, gave the
Commissioner the power to evict, without notice, such occupants of public ways
who had violated the other two provisions.
The petitioners consisted mostly of slum dwellers, pavement dwellers and some
socially conscientious journalists. The pavement dwellers had come to the city for
purposes of employment in various industries and had settled down on roads and
pavements which gave them proximity to their places of work. They contended
that if they were evicted, it would amount to depriving them off their livelihood
and deprivation of livelihood was akin to deprivation of life itself which was
guaranteed by Art. 21. The court, in its oft quoted ruling affirmed that right to life
included right to livelihood and eviction from their dwellings was indeed a
deprivation of livelihood. Consequently, the decision to be made was whether the
procedure involved in such deprivation was in fact just fair and reasonable, in
order to bring it within the ambit of Art. 21.
JUDGMENT: The court at the very outset declared that the provisions were not
arbitrary considering the fact that the occupants who would fall within the swathe
of section 314 were illegal dwellers and they had created considerable public
nuisance and obstruction. The court then proceeded to understand the tenor of the
impugned provision. The provision merely says that the commissioner may
without notice evict illegal occupants. It was only an enabling provision. By
necessary implication it meant that in ordinary course notice was to be given and it
was only in special and extraordinary circumstances that he could dispense with
the need for a notice. The onus of proof would then fall on the state to prove such
exceptional circumstances.
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Taking into consideration the special nature of the case, the court went on to
undertake the role of the commissioner. It ordered that the dwellers would be
evicted only one month after the end of the rainy season (date specified). The state
was also directed to give alternate accommodation to certain dwellers. This was
not a condition precedent for eviction and was merely to give effect to certain
earlier assurances by the government.

Ahmedabad Municipal Corporation Vs. Nawab Khan Gulab Khan and

ors7
The respondents in this case were pavement dwellers on a busy road in
Ahmedabad. It is to be remembered that, here, most of them had permanent
dwelling places on the road and some were running full fledged business units.
Some of these dwellings had been sold/transferred and subsequent transferees were
dwelling in them. The respondents approached the court when the Municipal
Corporation threatened to evict them. The High Court stayed the eviction process,
asking the Municipal Corporation to follow fair procedure for eviction and also to
provide alternate accommodation to the dwellers.
When the matter came in appeal before the apex court, the issues framed were:
1. Whether the principles of natural justice had to be followed for eviction of
pavement dwellers?
2. Whether they were to be provided with alternate accommodation?
JUDGMENT: In this case the court was firm on the eviction issue since the
dwellers had made permanent structures on the road and were obstructing public
life. But the court observed that principles of natural justice, more specifically that
of audi alteram partem had to be followed. This implied that they had to be served
adequate notice-the adequacy of the notice being a subjective concern. If the
encroachments are immediate and have been in existence only for a short period
7 (1997)11SCC121

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the no notice is required. But as the duration of existence increases, the

requirement of notice becomes increasingly mandatory. In the instant case the
Municipal Corporation was giving a notice of 21 days, which was considered to be
adequate.
Answering the second question, the court observed that a right to alternate
accommodation was well within the ambit of Art. 21 of the Constitution which was
expanded in the Olga Tellis case to include right to livelihood. Since the dwellers
were being deprived of their livelihood, the state was under an obligation to
provide adequate alternate accommodation. On the other hand this cannot be
concluded to be a universal rule and the satisfaction of this requirement has to be
measured subjectively. Otherwise it would lead to an abuse of judicial process. In
this case the Municipal Corporation had devised a scheme for rehabilitation by
which only some of the writ petitioners, classified on the basis of the duration of
their dwelling and income limits, were entitled to alternate accommodation. The
court accepted this contention of the Municipal Council.

Bombay Hawkers Union and ors Vs. Bombay Municipal Corporation 8

In this case the petitioners through a series of Writ Petitions challenged the
constitutional validity of certain provisions of the Bombay Municipal Corporation
Act on the grounds that those provisions gave arbitrary and unguided power to
the authorities to grant or refuse hawking licenses and also to remove goods and
stalls from places without giving due hearing to the hawkers. Later, in a separate
application, the petitioners had asked for direction from the court to the Mumbai
Commissioner to make a scheme for granting hawking licenses and for declaring
hawking zones.

8 (1985)3SCC528
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The first contention of unconstitutionality of the provisions of the BMC Act was
based n the premise that the hawkers had a fundamental right [under Art. 19 (1) (g)
of the Constitution] to carry on any trade or profession of their choice.
JUDGMENT: The court accepted this view but also held that the provisions of the
impugned Act were mere restrictions put on the rights of the hawkers, keeping in
mind the interest of the general public to uninhibited use of public ways and roads.
Such restrictions were authorized by Art. 19 (6) of the Constitution.
The ultimate analysis concentrated on a scheme which was formulated by the
BMC for creation and regulation of hawking zones as well as for granting hawking
licenses. The court made a few cursory alterations. For instance, the ban on selling
of cooked food items and fruits was removed and the maximum time to continue
selling on the streets was extended from 9 PM to 10 PM. In addition to this a few
other modalities were also suggested by the court. The main modality was a
direction to the BMC to create at least one hawking zone per ward. This modality
has been interpreted in subsequent decisions of the courts as a directive from the
apex court for the state agencies to create hawking and non-hawking zones. The
BMC was to prepare a final scheme taking into consideration the court order.
Sodan Singh Vs. NDMC and ors9
Another landmark case, the Supreme Court was to expand further on the principles
laid down in the Bombay Hawkers Union case. The following additional views
may be culled out:
JUDGMENT:
1. Though streets are primarily meant for passing and re-passing of the public it
cannot be contented that they cannot be used for other ancillary purposes.
2. Hawkers can only demand their fundamental right under Art.19 (1) (g) which
would be subject to reasonable restrictions imposed by the State. They could not

9 (1989)4SCC155
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claim that if they are prevented from hawking, it would be a deprivation of their
right to livelihood under Art. 21.
3. There is no law regulating street trading in Delhi.
4. Since the citizens do not have the right to choose a particular place for trading, it
is for the state, through suitable enactment, to designate streets and earmark places
from where street trading can be done.
5. Inaction on the part of the state would result in deprivation of fundamental rights
of citizens.
6. The NDMC was to come up with a scheme for relating hawking in Delhi.
Pursuant to the framing of a scheme, a committee was to be constituted in order to
address grievances of hawkers with respect to implementation of the scheme.

Maharashtra Ekta Hawkers Union Vs. Municipal Corporation, Greater,

Mumbai10
This case was a continuation of the Bombay Hawkers Case. As noted earlier, the
Supreme Court had concluded the said decision with directive to the BMC to
finalize a scheme for regulating hawking in Bombay. A scheme was prepared
laboriously by the BMC over a long period of years. The scheme was accepted by
the Bombay High Court. Various aspects of this scheme were challenged before the
Bombay High Court through a series of writ petitions.
The new scheme reduced the number of allowed hawking zones in Bombay
drastically, from the number initially proposed in the draft scheme put before the
apex court in the earlier case. The petitioners also contended that the BMC had
grossly under estimated and applied wrong criteria in identifying beneficiaries of
the scheme. Besides, there was a proposal to set up Hawking Plazas in Mumbai,
10 (2004)1SCC625

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which was disallowed by the Honble High Court. All these issues inter alia came
up in appeal before the Honble Supreme Court.
JUDGMENT: The crux of the decision may be identified thus:
1. The Municipal Corporation should identify No-Hawking Zones. By implication
hawking could be done in all other areas. This would be subject to the scheme
framed as well as reasonable restrictions imposed by the Corporation from time to
time in the interest of the general public.
2. The court was not competent to go through the nitty-gritty of the scheme. A
committee on the lines of the one constituted in Sodan Singhs case was ordered to
be created. This committee would hear all grievances regarding implementation of
the scheme.
3. Hawking in costly electronic items is not to be permitted. By its very nature
hawking was to make items of day to day use available to consumers at a cheaper
price. It should not evolve into a trade in costly items.
4. Hawking Plazas may be created.

Maharashtra Ekta Hawkers Union Vs. Municipal Coroporation,

Greater Mumbai 11
In this case the petitioners tried to almost reargue the first case. This move was
nipped in the bud by the court. Apart from suggesting a few modalities, the major
contribution of this decision was that it directed the state legislature to formulate a
scheme independent of the court verdict in consonance with the National Policy for
Street Vendors, 2004. The scheme upheld in the instant case would only be valid
till the latter scheme was made.

CHAPTER-05
11 JT2007(8)SC373
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CONCLUSION
We can, thus conclude that the hypothesis drawn at the threshold of this project is
true, in the sense that, with increasing urban migration and the shrinking formal
sector, hawking and street vending have emerged as one of the critical means of
earning a livelihood for the urban poor in India. Today, vending is an important
source of employment for a large number of urban poor as it requires low skills
and small financial inputs. Street vendors are mainly those who are unsuccessful
or unable to get regular jobs. This section of the urban poor tries to solve their
problems through their own meagre resources. Unlike other sections of the urban
population they do not demand that government create jobs for them, nor do they
engage in begging, stealing or extortion. They try to live their life with dignity and
self-respect through hard work.
Street vendors have poor social protection and their working conditions on the
streets expose them to a variety of safety and health issues. The SNDT ILO study
found that around 85 per cent of the street vendors complained of stress related
diseases migraine, hyper acidity, hyper tension and high blood pressure. In general,
there are more men vendors than women vendors in India. Women vendors earn less,
on average, than men vendors: their earnings range from 40 to 60 rupees per day. The
lack of toilets has an adverse effect on womens health and many suffer from urinary
track infections and kidney ailments. The mobile women street vendors also face
security issues.
Vendors are often regarded as public nuisance. They are accused of depriving
pedestrians of their space, causing traffic jams and having links with anti-social
activities. The municipal authorities and housing societies, aided by the media, have
targeted vendors at frequent intervals. The lack of recognition of the role of the
street vendors culminates in a multitude of problems faced by them: obtaining

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licence, insecurity of earnings, insecurity of place of hawking, gratifying officers and

musclemen, constant eviction threat, fines and harassment by traffic policemen.
SHORTCOMINGS OF THE ACT:The National Association of Street Vendors of India (NASVI) has pointed out that
the present bill differs from the draft bill, which ensured that 'Town Vending
Committees' (TVC) would have at least 40 per cent representation of street vendors,
however the final bill presented in the monsoon session of the Parliament, the civic
bodies, which have no representation of street vendors, are made the final authority
on all issues concerning their fate, including the rehabilitation and resettlement
plans, plus the bill also have legal ambiguities, like no clear definition of "public
purpose land", which makes its interpretation liable to misuse of the law.[13]
According to Sharit Bhowmik, professor and chairperson of the Centre for Labour
Studies at Tata Institute of Social Sciences, Mumbai, the bill leaves the onus of
creating the schemes to the local municipalities of the states, "which defeats the
purpose of a Central legislation.

BIBLIOGRAPHY

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Government

of

India,

National

Policy

for

Urban

Street

Vendors/Hawkers, Ministry of Urban Employment and Poverty

Alleviation, 2004
Sharit K.Bhowmik, Hawkers in the Urban Informal Sector: A Study of
Street Vendors Sharit K. Bhowmik, 2000, op cit.
www.meupa/nic.in
Street Vendors (Protection of Livelihood and Regulation of Street
Vending) Act, 2014

SNDT Womens University ILO, Street Vendors in Mumbai

(unpublished report), Mumbai, 2000.
Social security for street vendors, by Mr. Sharit K.Bhowmiks
Manushi Nagarik Adhikar Manch (tr. Manushi Citizens Rights Forum),
Memorandum Submitted to the Lt. Governor of Delhi on Behalf of
Delhis Street Vendors and Rickshaw Pullers and Owners on 2 October
2001.
Ela Bhatt, We Are Poor, But So Many, Oxford University Press, Delhi,
2006.
http://wiego.org/informal_economy_law/street-vendors-india
WIEGO Law Pilot Project on the Informal Economy, Street Vendors in
India .

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By:Kamala Sankaran, Shalini Sinha and Roopa Madhav.