1

DAMODARAM SANJIVAYYA
NATIONAL LAW UNIVERSITY
SABBAVARAM, VISAKHAPATNAM, AP., INDIA.

PROJECT TITLE:

‘INDIAN COURTS RESPONSE TO STREET VENDORS’

SUBJECT

Law and Poverty

NAME OF THE FACULTY

Prof. N. Bhagya Lakshmi

NAME OF THE CANDIDATE: JAHNAVI GOPALUNI

ROLL NO. 2020LLB035

SEMESTER IV
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CERTIFICATE

Title of the subject: Law and Poverty

Name of the faculty: Prof. N. Bhagya Lakshmi

“ I, Jahnavi Gopaluni, hereby declare that the project named "Indian courts
response to street vendors" that I have submitted is my own work. All of the
sources from which the ideas were derived have been properly cited. To the best
of my knowledge, there is no issue of plagiarism in the projects.
Name: Jahnavi Gopaluni

Roll No. 20LLB035

Semester IV
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ACKNOLEDGEMENT

I want to express my profound gratitude to our respected Law and Poverty teacher for providing me
with opportunity to create my project and for providing me with the help I needed to complete it
effectively. I'd also like to express my thankfulness to my classmates for their excellent contributions and
cooperation. To the best of my knowledge, I have sought to gather information and have compiled it here.
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TABLE OF CONTENTS
CONTENTS Pg. No

1. SYNOPSIS

2. INTRODUCTION
-
-

3.

4. CASE LAWS

5. RESEARCH FINDING

6. CONCLUSION

7. BIBLIOGRAPHY
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ABSTRACT

A street vendor is commonly described as someone who sells things to the general public
without having a stable installed facility to carry on their business.  They may go to different
locations to market their goods or they may remain stationary in one place. The presence of
such small businesses on the streets is particularly widespread in India and other developing
Asian countries. The reasons for the significant crowding of street vendors in major Indian
cities, the issues they face while being part of the unorganised sector and the legal safeguards
in place for such informal vendors are all discussed in the present study. By analysing several
case laws pertaining to this subject, the study also aims to examine the response of Indian
courts with respect to various difficulties faced by street vendors in India.

OBJECTIVES OF RESEARCH:

The objective of the study is to:

1. Discuss the reasons behind and the factors that lead people to engage in informal/
unorganized method of business in order to sustain their livelihood.
2. To identify the role of street vendors in the developing countries and causes behind
street vending.
3. Elucidate the issues street vendors face and the legal safeguards, different policies and
bills passed by the government to protect the rights and interest of street vendors that
are in place.
4. Examine the response of Indian courts with respect to various difficulties faced by
street vendors in India.
5. Determine the extent of benefit street vendors in India are currently receiving through
the existent safeguards that are available under law and other policies and various way
to Improve their condition.

SCOPE OF THE STUDY:

The study is limited to examining the position of street vendors in India and the analysis of
the ruling given by Indian courts.
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RESEARCH QUESTION:

1. Whether the right to carry on trade and business under article 19(6) and right to life
under Article 21 gives absolute protection for street vendors.

SOURCES REFERRED TO:

Primary sources:

Street vendors in Asia: a review. Economic and Political Weekly by SK Bhowmik

Perception of street vendors as ‘out of place’urban elements at day time and night time.
Journal of environmental psychology by Y.A. Yatmo

Advocacy-Campaigns for Street-Vendors by sewadelhi.org

Secondary sources:

LITERATURE REVIEW: Debdu lal Saha’s(2011) study on ‘Working life of street vendors in
Mumbai’ dwelled on factors like income level, access to finance, indebtedness of street vendors,
access to public space and issues of legality, working conditions, social networking and so on. The
study shows that the street vendors borrow from moneylenders not merely for their economic
activity but also for social security purposes at an exorbitant rate of interest, which, in turn, leads
them to fall into a debt-trap situation.

RESEARCH TYPE:

Analytical research.

RESEARCH METHODOLOGY:

Non-doctrinal method of research.

MODE OF CITATION:

The researcher has employed Oxford University Standard for the Citation of Legal
Authorities (OSCOLA), Fourth Edition.
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INTRODUCTION

Employment prospects are becoming rare in this period of globalization, urbanization, and
rapid development of population density in urban regions. The urban labour force grows at a
greater rate than the jobs generated in the urban economy, including such like manufacturing
and services. As a result, urban centres are unable to give employment to all workers seeking
possibilities to earn a living in permanent employment, forcing many to look for work in the
informal sector of urban settlements. In many nations, particularly in Asia's developing
countries, the informal sector is a significant element of the economy and labour market. It
has a significant impact on job creation, output, and income generating. 1

In this age of globalisation, urbanisation, and the ongoing development of population density
in urban areas, employment prospects are restricted. The urban labour market expands faster
than the number of business and employment available in the city. As a result, urban centres
are unable to provide regular employment to all employees seeking to earn a living, pushing
many to seek labour in the informal sector of urban communities as it is the only option left.
The informal sector is a large portion of the economy and labour market in many nations,
notably in Asia's developing countries. Street vendors play an essential role in employing
migrant workers in this informal sector of the labour. 2

Vending in urban areas is characterized by flexibility of entry, a small size of operation

performed out in a temporary structure in a changeable location without a set place or shop. 
Vendors offer their goods in an unregulated and competitive market without adhering to any
established vending hours. Vending is frequently done illegally, in violation of government
laws, and it does not rely on traditional financial institutions for financing. Because the initial
investment and risk associated with selling daily needs is minimal, a great variety of issues
related to land use, security, health, and infrastructure social arise as a result of street
vending.

The ability of a city to expand economically attracts people from all walks of life, as
development necessitates a diverse workforce of trained, semi-skilled, and unskilled workers
to generate revenue and create urban infrastructure. For a living, these displaced persons are
incorporated into the formal and informal sectors of various development projects in urban
1
Bhowmik, S. K. (2005). Street vendors in Asia: a review. Economic and Political Weekly, 2256-2264.
2
Donatella Privitera, Francesco Saverio Nesci, Globalization vs. Local. The Role of Street Food in the Urban
Food System, Procedia Economics and Finance, Volume 22,2015, Pages 716-722, ISSN 2212-5671,
https://doi.org/10.1016/S2212-5671(15)00292-0.
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settlements. Once these development projects are completed, literate and illiterate people
must seek self-employment in a variety of ways, including the informal sector, because all of
these migrants lack the level of expertise and education required for urban employment,
making secure employment in the formal sector impossible. Furthermore, due to the large
population and rapid urbanization, the government is unable to give employment to everyone,
therefore the majority of people must settle for work in the informal sector. 3
Also, due to
large population and hasty urbanization, it is impossible for the government to provide
employment to everyone So, most of them have to settle for work in the informal sector.

The main objective of this paper is to identify the causes of street vending, the challenges that
street vendors face, the significance of street vendors, and what steps the government is
taking to prevent police and other authorities from harassing street vendors, as well as to
improve working conditions, worker welfare, and life skills training in order to earn a profit.

ROLE OF STREET VENDORS IN INDIA:

In traditional Indian sense, purchasing and selling have been essentially unstructured and
informal. Contrary to the robotic and automated image of shopping favoured by modern
market and supermarket systems, social interaction is a vital part of Indian markets.  The
informal economy includes a large number of street sellers. In India, there are almost ten
million street sellers. Street sellers make up about 2% of the city's population. In India,
vendors make a significant contribution to the country's economy and GDP. 4 Citizens have
the constitutional right to choose their profession and engage in business operations. Despite
this, because street vending is a part of the unorganized and informal economy, police
officers, resident welfare associations, and even citizens themselves have deemed it to be a
criminal activity.

In India, street sellers play a critical role in creating employment and income prospects for
unemployed people. On Indian streets, street vending is a normal sight. Street vending is a
particularly effective technique to provide for all kinds of demand because to its minimal

3
Yatmo, Y. A. (2009). Perception of street vendors as ‘out of place’urban elements at day time and night time.
Journal of environmental psychology,29(4), 467-476;
4
50th round of National Sample Survey Organization (NSSO) report, Ministry of Statistics and Programme
Implementation, Government of India (GOI), < http://microdata.gov.in/>.
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capital constraints and potential adaptability. Vending on the street has a direct impact on the
total of economic activity as well as the production of goods and services.

Causes of street vending include:

1. In the period of globalization, the effect of increased population growth was amplified by a
constantly accelerated migration from rural to urban areas. This rapid pace of urbanization
resulted in both quantitative and qualitative employment issues. 5

2. Inadequate capacity of the modern economic sector to offer employment for the rapidly
rising labour population, as a result of which a big number of unemployed individuals are
pushed to discover or develop their own sources of income.

3. The urban poor in most Indian cities survive by continuing to work in the informal sector,
primarily due to poverty, but also due to a variety of factors such as a lack of fruitful
employment in rural areas, a shrinking formal sector, and lack of education and skills
required for better-paying formal sector jobs. 6

4. The rural poor lack the skills required for modern employment. As a result, they are
unemployed in the formal sector. They have no choice except to create employment using
their sole asset, themselves, in order to survive.

5. Excessive labour in the rural agriculture sector is another reason for street vending. While
the population continues to grow, land does not expand. As a result, there will be insufficient
agricultural land to absorb all of the rural laborers in the future. Furthermore, technological
advancements allow for more effective land management and increased production. As a
result, rural labour is being squeezed out of the agricultural sector. They have nowhere else to
go but to the big cities in the hopes of bettering their condition. Cities become congested, and
surplus laborers are unable to find work, so they begin vending on pavements, roads, and
periodic markets, among other places, to support their families. 7

6. The ever-increasing number of street sellers in developing countries is contributing to an

ongoing economic and political problem. As a result of the crisis, unemployment, poverty,
and other issues are on the rise.

5
Jayanta Boruah* & Sarthak Aryan, Right to Livelihood for street vendors in India,
6
Ibid.
7
Geeta Pandey, Delhi street vendors evicted before Commonwealth Games, BBC NEWS (May 20, 2020 11:12
21 PM), https://www.bbc.com/news/world-south-asia-10716139.
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7. The informal sector uses cheaper labour because there is no legal agreement, no minimum
salary, no health insurance, no unemployment insurance, and no occupational safety norms,
among other things.

THE DIFFICULTIES FACED BY STREET VENDORS INCLUDE:

1. Street vendors have numerous challenges because they are a vulnerable population that is
not protected by the government, non-governmental organizations, labour unions, or any
labour law.

2. Due to market price fluctuations, unstable and inconsistent employment, street vendors are
continually competing with other street vendors. Their earnings are usually meagre, and their
sales fluctuate. Another reason for street sellers' lower income is because they are obliged to
pay bribes to local police of 15 to 20% of their daily earnings. 8

3. Street vendors are frequently accused of encroachment of public places, which results in
traffic congestion, poor hygiene, and improper waste disposal. In the case of street sellers,
food safety has become a growing problem. The government ignores the significance of food
vendors to the urban population's economic and social well-being. However, the government
lately passed the "Street Vendors Bill 2013," which safeguards street vendors' rights. 9

4. Online shopping's negative influence on shops and street vendors has become a popular
trend and a new way to shop. Under this circumstance, demand for retail stores will decline,
if not disappear entirely.

5. Uncertainty and instability: Because Street sellers' profession is illegal, they face insecurity
and instability. If the government grants street vendors licenses, they will be safeguarded
against harassment and eviction by municipal officials and police.

Legal Aspects

1.National Policy on Urban Street Vendors, 2009:

8
Hussain Indorewala, Behind Our Prejudice Against Street Vendors Lies a Flawed Idea of Public Space, THE 3
WIRE (May. 26, 2020, 01:11 AM), https://thewire.in/society/street-vendors-urban-public-spaces.
9
Ibid.
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This policy highlights the beneficial purpose of street vendors in providing people with basic
necessities at reasonable costs and in accessible locations. It also recognises the necessity for
street vending to be regulated through specified and approved vending zones that meet
specific criteria. This policy also aims to reflect the spirit of the Indian Constitution, which
emphasises citizens' right to equal protection under the law, as well as their right to practise
any profession, occupation, trade, or business; and the State's responsibility to work to reduce
income disparities and to implement policies that ensure citizens have adequate means of
survival. The right to practise any profession or carry on any activity, trade, or business is a
fundamental right of every citizen in our country, according to this policy.

The goal of this policy is to provide and encourage a conducive environment for the great
majority of urban street vendors to practise their trade including granting legal status to street
sellers, providing public facilities, and promoting street vendors' access to services such as
credit, skills training, housing, social protection, and building capacity, among others.

2. Street Vendors (Protection of Livelihood and Regulation of street vending) 2012 Bill:

The bill aims to protect street vendors' basic rights while also regulating street vending
through the establishment of vending zones, as well as requirements and restrictions on street
vending. Anyone interested in street vending must first register with the Town Vending
Committee (TVC) according to this policy.

Indian courts response to challenges faced by street vendors:

The persistent fear of losing their source of income has pushed street vendors to solicit the
intervention of courts around the country from time to time. This Court has tried for years to
find a suitable solution to the concerns of street vendors/hawkers on the one hand, and
various segments of society on the other, including residents of the localities where street
vendor actively operate, and has issued several judgements, including the below discussed
judgements:

Sodan Singh vs. New Delhi Municipal Committee, (1989). 10

10
Sodan Singh vs. New Delhi Municipal Committee, (1989) 4 SCC 155.
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Head note: This is a special leave petition filed by petitioners in response to the Delhi High
Court's dismissal of their case. Petitioners seek the right to trade on Delhi's pavements and
along the sides of the roads.

Ratio Decidendi: Right to engage in trade and carry out any business under Article 19(6) is
subject to reasonable restrictions without prejudice to other persons’ liberties.

Facts: The petitioners are a group of street sellers who were denied permission by the Delhi
Municipal Corporation to do their business on city streets. Petitioners are low-income
individuals who rely on their business for a living. And they will not be able to make a living
if they aren't allowed to conduct business in designated areas on the sidewalks of Delhi.

Petitioners’ contention: It was contended that:

1. denying them permission to conduct their small businesses on the roadside would
have a negative impact on their livelihood and would be a violation of Article 21 of
the Indian constitution.
2. Municipal authorities' refusal is a violation of Article 19(1)g of the constitution since
it obstructs the right to free trade.

Respondents’ contention:

The Contention of the respondents is as follows:

No one has a legal authority to enter exclusively a designated space on the road for the
purpose of conducting a commercial enterprise, and that no one may claim any fundamental
right in this regard.

The matter was remanded by the court to the High Court of Delhi's division bench.

Judgement:

 A member of the public is permitted to make lawful use of public land as long as he does not
hinder other people who have the same right to pass and does not overuse the road to the
detriment of others. An individual's liberty comes to an end where the liberty of another
begins.

An individual's liberty comes to an end where the liberty of another begins.

Court concluded:
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Allowing the right to do business without sufficient oversight and regulation "is likely to lead
to unhealthy competition and conflict between traders and the travelling public, and
occasionally among dealers themselves, resulting in anarchy." Under Article 19, clause (6),
the right is subject to reasonable limitations. The petitioners' demand that hawkers be allowed
on every roadway in the city cannot be granted. If a road isn't broad enough to handle the
traffic, no selling may be allowed, or it may be allowed only once a week, say on Sundays
when the congestion is much reduced. Vending may also be forbidden near hospitals or near
schools if the need for security measures necessitates it. Other reasons for refusing to allow
any type of company on a given road may still exist.

The terms of the Delhi Municipal Corporation Act, 1957, are unambiguous, and the
Municipal Corporation of Delhi has the right to allow hawkers and occupiers to set up shop
on public sidewalks where they see it necessary.

It is the duty of the government to designate streets and set aside areas where street trading
can take place. Inaction on the part of the government would negate citizens' fundamental
right. It was expected by the court that the state will act in this regard within a fair time
frame, failing which it will be up to the court to preserve citizens' rights.

The petition was dismissed.

Olga Tellis & Ors v. Bombay Municipal Corporation 11

Article 32 of the Constitution was invoked while filing this Writ Petition. The order of
eviction of slum dwellers and homeless people was issued by Mr. A.R. Antulay, the then
Chief Minister of Maharashtra as a part of city beautification. This was contested by Olga
Tellis, a female journalist, together with the People's Union for Civil Liberties (PUCL) and
other groups. Eviction orders, according to sidewalk dwellers and public interest
organisations, are a violation of fundamental human rights. They filed a writ complaint in the
High Court of Bombay after learning of the Chief Minister's declaration, requesting court to
give an order of injunction prohibiting state government, police personnel and the Bombay
Municipal Corporations from carrying out the Chief Minister's direction.

11
Olga Tellis v. Bombay Municipal Corporation, AIR 1989 SC 1988.
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Petitioners’ contention: Petitioners argued that their removal violates their fundamental rights
under Article 19, Article 21's Right to Life. If they were to be evicted from the slums,
they would lose their livelihood.

Respondents' contention: Because Article 21 protection is subject to reasonable limitations,

intruders who trespass on public land cannot assert an absolute right to life.

Issues Raised:

The following are the questions that have been raised: 

1. Whether right to life under Article 21 of the Constitution is subject to reasonable

restriction in this case.
2. What is the constitutionality of the Bombay Municipal Corporation Act, 1888?
3. Whether or not pavement dwellers are considered "trespassers" under the IPC.

Judgement:

Although the Court has denied to find that the evicted residents were entitled to a new
residence, it ordered that:

1. No one has the right to trespass on public roads, pavements, or any other public space.
The court stated that no one can survive without the sources of livelihood, often
known as the means of livelihood. If the right to livelihood is not considered a part of
the constitutional right to life, the simplest method to deprive someone of their right
to life is to take away their means of survival to the point of abdication. The Court
held that the right to life in Article 21 of the Constitution, encompassed right to
livelihood and state is under an obligation to protect the right to livelihood of every
citizen.
2. In the facts of this case, section 314 of the Bombay Municipality Act is not irrational.
3. The effective resettlement of displaced people should be given top attention.

In Bombay Hawkers' Union And Ors v Bombay Municipal Corporation[15],

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Headnote: In this case, the Supreme Court recommended that a mechanism be devised for
managing hawker licences and establishing hawking and no-hawking zones, for which the
court issued specific guidelines.

Ratio decidendi: No one has any right to do his or her trade or business so as to cause
nuisance, annoyance to public.

Facts: A group of people who engage in the business of street vending have filed writ
petitions, claiming that they have a basic right to engage in their trade business or profession
with which the respondents are unlawfully interfering by unjustly refusing to allow or renew
vendor licences, putting them in risk of being evicted from sites where they conduct business,
along with their merchandise.

Petitioners' contention: 

The petitioners argue that they have a basic right to engage in their trade, business, or
profession, and that the respondents are infringing on that right.

Contention of respondents: Article 19 of the Bombay Municipal Corporation Act includes

rules that are in the nature of reasonable regulations. During the pendency of the writ petition,
the Municipal Corporation, with the help of the Court, devised a strategy for vendor licencing
throughout Greater Bombay territory, which included the creation of special hawking zones.
The Court considered the significance and practicability of the scheme and recommended
modalities to be incorporated by the Corporation in terms of hawking and non-hawking
zones. Petition challenges the validity of certain provisions of the Bombay Municipal
Corporation Act. Respondents contend that no provision infringes upon on street vendors’
rights.

Disposing off the writ petitions, the Court,

Held:

1. The affidavits presented on behalf of the respondents demonstrate in unequivocal

terms that the challenged provisions of the Bombay Municipal Corporation Act are
fair and reasonable restrictions on the exercise of street vendors' right to carry on their
trade or commerce in the public.
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2. No one has the right to conduct his or her trade or business in a way that disrupts,
irritates, or inconveniences other members of the general public.

3. Court gave following guidelines:

A) In Greater Bombay, there should be one hawking zone for every two adjacent
municipal wards, if practicable.
B) The Municipal Commissioner, in collaboration with the Bombay Municipal
Corporation, may establish a no-hawking zones wherever they think fit.

C) In other regions, street vendors should be provided permission to operate their

businesses in exchange for a charge of prescribed amount.

D) Hawking licences in hawking zones should not be denied unless there is a

convincing reason to do so.

In Maharashtra Ekta Hawkers Union vs. Municipal Corporation, Greater Mumbai, 12 a

two-judge bench cited the decisions in Olga Tellis vs. Bombay Municipal Corporation and
Sodan Singh vs. New Delhi Municipal Committee, as well as the guidelines made by the
Committee formed accordance with the terms of earlier judgement, and stated:  The above
authorities make it clear that the hawkers have an unquestionable right to livelihood. 
However, under Article 19, this right is subject to reasonable limitations. Thus, street vending
may be prohibited in areas where the regular traffic flow or pedestrian mobility is impeded,
or where an area must be maintained clear for safety purposes, such as near hospitals, houses
of worship, and so on.

South Calcutta Hawkers, Association v. Govt. of West Bengal 13

The court stated that because street vending is a fundamental right, it must be made publicly
available to citizens, but only in accordance with Article 19(6) of the Constitution. Any law
12
Maharashtra Ekta Hawkers Union v. Municipal Corporation Greater Mumbai, MANU/SC/0927/2013.
13
South Calcutta Hawkers, Association v. Govt. of West Bengal, AIR 1997 Cal 110.
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putting reasonable constraints on such right in the best interest of the people is within the
constitutional realm itself. The court also stated that effective regulation is a must because the
purpose of putting up roadways to ease traffic may be thwarted otherwise. 

Suggestions:

1. LICENSING: The concept of licencing arises in order to prevent illicit businesses

from functioning on the streets under the pretence of street vending, as well as to
safeguard street vendors from harassment by police as well as other powerful
individuals. It also helps vendors identify themselves in the area so that space
management can be managed, as well as supporting them with the registration
procedure.
2. Hawking authorised zones must be meticulously planned to give the least amount of
annoyance to traffic going by.
3. Need for comprehensive legislation: A legislation on national level acknowledges
street vendors as an integral and legitimate part of the urban commerce trading and
distribution system must be enacted, along with all required checks and balances.

CONCLUSION:

Street vendors are a significant part of the country's unorganised sector. Street sellers are
estimated to make up roughly 2% of the population in some cities. In practically every
metropolis, women make up a major portion of the street vendors. The right to carry on
business is a fundamental right of vendors and hawkers, but that does not mean that this
right is unlimited without any restrictions.

Indian courts, through various judgements have reiterated the principle that while street
vendors and hawkers do possess fundamental right to carry on their trade anywhere in the
country under constitutional provision of section 19(6), it cannot be absolutely permissible to
exercise that right under any circumstance without regard to public tranquility.