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Himachal panchayats can now declare rural vending zones

The Department of Panchayati Raj said the bylaws will help gram panchayats identify and declare vending zones with good footfall and ample open space. They also specify that preference for licences will be given to bona fide Himachal residents after police verification.

News Arena Network - Shimla - UPDATED: September 26, 2025, 06:42 PM - 2 min read

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The state government on Friday notified the Himachal Pradesh Rural Street Vendors Model Bylaws, 2025, aimed at regulating rural street vendors and local markets while helping gram panchayats carry out their functions effectively.

 

The Department of Panchayati Raj said the bylaws will help gram panchayats identify and declare vending zones with good footfall and ample open space. They also specify that preference for licences will be given to bona fide Himachal residents after police verification.

 

These bylaws will particularly help regulate mobile vendors in rural areas. The government had earlier notified vendors’ bylaws for urban areas. In recent years, rural areas have seen a rise in mobile vendors, especially from other states, which sometimes led to communal tensions and prompted the government to frame clear rules.

 

On August 1, the Panchayati Raj Department had released the draft bylaws and invited objections and suggestions. As no objections were received, the department has now officially notified the Himachal Pradesh Rural Street Vendors Model Bylaws, 2025.

 

Any person above 18 years can apply for a vending licence from the gram panchayat, along with a one-time registration fee. Licences will be issued under two categories — stationary vendor or mobile vendor — and will be valid for one year.

 

The Director of Rural Development and Panchayati Raj will periodically fix the vending fee. The bylaws also empower gram panchayats to impose a penalty of up to Rs 1,000 on anyone vending without a licence. In case of repeated violations, the penalty can be extended up to Rs 5,000 per day.

 

A gram panchayat can, through a resolution passed in a general or special meeting, declare natural markets — places where buyers and sellers have traditionally gathered for the sale and purchase of products or services. The bylaws also state that vendors must vacate their licensed spot after the licence expires. Non-compliance may lead to seizure of their goods.

 

The Sub-Divisional Magistrate (SDM) Civil will handle all disputes and grievances of rural vendors.

 

Also Read: Dr Harshwanti Bisht to get 2025 Kedar Singh Rawat Award

 

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