Holding Capacity, Municipality, No-vending Zone, Street Vendor, Mobile Vendor, Vending Zone
SCHEME FOR STREET VENDING
- Short title, Extent and Commencement. – (1) This Act may be called the
Bihar State Street Vendors (Protection of livelihood and Regulation of Trade) Act, 2012.
(2) It extends to the whole of the State of Bihar.
(3) It shall come into force on such date as the State Government may, by
notification in the official gazette, appoint and different dates may be appointed for different
areas of the State.
- Definitions.- (1) In this Act, unless otherwise required in the context-
(a) “Government” means the State government;
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(b) “Holding capacity” means the maximum number of streets vendors who can be
accommodated in any defined location, area or vending zone;
(c) “Municipality” means a Municipal Corporation or a Municipal Council or a
Nagar Panchayat, and includes such other body legally entitled to function as a local
authority in any city or town to provide civic services and regulate street vending, and
includes the planning authority, by whatever name called which regulates the land use in
that city or town;
(d) “Notification” means a notification published in the Official Gazette;
(e) “No-vending zone” means an area or place or a location or a street or road
designated as such by the Municipality or a planning authority where vending activities
shall be prohibited;
(f) “Planning Authority” means an Urban Development Authority or any other
authority in any city or town,by whatever name called, designated by the Government as
responsible for regulating the land use by defining the precise extent of areas for any
particular activity in the master plan or development plan or zonal plan or layout plan or any
other spatial plan which is legally enforceable under the applicable Regional and Town
Planning Act or the Urban Development Act or the Municipal Act;
(g) “Prescribed” means prescribed by rules made under this Act by the
(h) “Scheme” means a scheme framed by the Government under section 3;
(i) “Specified” means as specified by the scheme;
(j) “State Nodal Officer” means an officer designated by the State Government to
coordinate all matters relating to street vending in the State;
(k) “District Nodal Officer” means an officer designated by the District magistrate
to coordinate all matters relating to street vending in the District;
(l) “Street Vendor” means a person engaged in vending of articles, good, wares,
food items or merchandise of everyday use or offering services to the general public, in a
street, lane, side walk, footpath, pavement, public park or any other public place or private
area or from a temporary built up structure or by moving from place to place and includes
hawker, peddler, squatter and all other synonymous terms which may be local or regionspecific; and the words ‘street vending” with their grammatical variations accordingly;
(m) “Mobile Vendor” means a person who sells goods or offers services, moving
from place to place carrying wares on push cart or in bicycle or scooter or any other light
motorized vehicle of less than 800 cc engine power or carrying basket on head, or in bags or
contraption attached to own body, or may sell wares in moving buses, trains, house to house
carrying goods on a cart or on own body for regular or casual customers;
(n) “Town Vending Committee” means the body constituted by the Government
under section 4;
(o) “Vending Zone” means an area or place or a location designated as such by the
Municipality in consultation, with the planning authority, in case there be one, for the
specific use by street vendors for street vending and includes footpath, side walk, pavement,
embankment, portions of a street, waiting area for public or any such place considered
suitable for vending activities and providing services to the general public, and shall include
restricted vending zone.
(2) Any reference in this Act to any enactment or any provision thereof, shall, in
relation to an area in which such enactment or such provision is not in force, be construed as
a reference to the corresponding law, in force in that area.
- Scheme for Street Vendors.- (1) For the purposes of this Act, the Government
shall frame, by notification, a scheme which may specify all or any of the following matters,
(a) The norms of spatial planning to be adopted by the planning authority for
earmarking vending zones or adequate space for street vendors in the master plan,
development plan, zonal plan, layout plan or any other spatial plan;
(b) The principle for determination of vending zones as restriction-free vending
zone, restricted- vending zones and non-vending zones, street and other public places;
(c) The condition under which private places may be designated as vending zones
by the Municipality;
(d) The principle for determining holding capacity of vending zones and the manner
of undertaking comprehensive digitalized photo census and survey of the existing number of
street vendors within the holding capacity of the vending zones;
(e) The form and manner of grant, renewal, suspension or cancellation of a
registration certificate for, and issue of identity card to, the street vendors;
(f) The manner of levy and collection of fees for the grant and renewal of a
registration certificate and fines for contravention of the terms and conditions of registration
and other provisions of this Act;
(g) The form and manner of filing appeals to, and procedure for disposal of appeals
by, Municipality in respect of registration of street vendors;
(h) The manner of, and the terms and conditions of, allotment of stalls to the
registered street vendors;
(i) The form and manner of grant, renewal, suspension or cancellation of a license;
(j) The manner of levy and collection of fees for the grant and renewal of license
and fines for contravention of the terms and conditions of the license;
(k) The terms and conditions for street vending including norms to be observed for
maintaining and up keeping public health and hygiene;
(l) The designation of State Nodal Officer for co-ordination of all matters relating
to street vending at the State level;
(m) The designation of District Nodal Officer for co-ordination of all matters
relating to street vending at the District level;
(n) The manner of maintenance of proper records and other documents by the town
vending committee, local authority, planning authority, State Nodal Officer and District
Nodal Officer in respect of street vendors;
(o) The manner of giving notice to, and eviction of, street vendors; impounding,
destruction or seizure of stalls, goods and equipments and relocation of street vendors, and
compensation payable to evicted street vendors;
(p) Any other particulars which may be considered by the Government as proper
for including in the scheme;
(2) A summary of the scheme notified by the Government under subsection (1)
shall be published by the Municipality in such manner as may be prescribed.
TOWN VENDING COMMITTEE
- Town Vending Committee.- (1) The Government shall, in each Municipal/local
authority, constitute a town vending committee.
(2) Each town vending committee shall consist of –(a) the Municipal Commissioner or
the Chief Executive Officer, as the case may be, who shall be the Chairperson; and
बहार गजट (असाधारण), 28 -दस/ बर 2012 15
(b) such numbers of other members as may be prescribed, to be nominated by the
Government, representing the local authority, the planning authority, traffic police, local
police, association of street vendors, market associations , trade associations, resident
welfare associations, nationalized banks and such other institutions as it deems proper:
Provided that the number of members nominated to represent the street vendors shall
not be less than forty percent of the total number of members and one-third of such
members shall be from amongst women vendor.
Provided further that reasonable representation shall also be given to persons who
are physically challenged.
(3) The Government may, if it deems fit, prescribe some allowances for the members
nominated by it under clause (b) of sub-section (2), except those who are government
(4) The member nominated under clause (b) of sub-section (2) shall, unless his
nomination is terminated earlier by the Government, hold office for a term of three years from
the date of his nomination.
- Meeting of town vending committee.-The town vending committee shall meet
at such times and places within the jurisdiction of the Municipality and shall observe such
rules of procedure in regard to the transaction of business at its meeting, and in discharge of
its functions, as may be prescribed.
- Temporary Association of persons With town vending committee For
particular Purposes.-(1) The town vending committee may associate with itself, in such
manner and for such purposes as may be prescribed, any person whose assistance or advice,
any person whose assistance or advice it may desire in carrying out any of the provisions of
(2) A person so associated under sub-section (1) for any purpose shall have a right to
take part in the discussion relevant to that purpose, shall not be a member for any other
(3) The person so associated under sub-section (1) may be paid such allowances as
may be prescribed
- Office space and other employees of Town Vending Committee.- The
Municipality shall provide the town vending committee with appropriate office space and
such other employees as may be required.
- Constitution of ward vending committee.-The town vending committee may
constitute, in such manner and for such purposes, such number of ward vending committee,
as may be prescribed.
- Function of Town Vending Committee.- The Government may assign to the
town vending committee the following functions, namely.-(a) issue to the street vendors
identity cards in such form and manner as may be prescribed;
(b) collect such fee for registration or renewal of registration of street vendors as
may be prescribed;
(c) determine the manner of collection of fees through banks, counters of
Municipality or counters of town vending committee, fee for registration, usage of parking
space for mobile stalls and availing of civil services, in consultation with the Municipality;
(d) grant, renew, suspend or cancel registration certificates to street vendors, in such
form and manner, and on such terms and conditions, as may be specified;
(e) identify and designate vending zones;
(f) specify timings for vending in vending zones;
(g) maintain the records of land, street, footpath, embankment, waiting area, parks
and other public places designated for vending in such manner as may be prescribed;
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(h) conduct periodic surveys of vending zones;
(i) collect and maintain data regarding street vendors;
(j) determine quantitative norms for different categories of stationery and mobile
stalls in the vending zones.
(k) assess and determine maximum holding capacity of each vending zone;
(l) identify and declare area as restriction –free-vending zones, restricted –vending
zones and no vending zones in manner specified;
(m)fix signboard at each vending zone to indicate kind of vending zone, its
boundaries and vending times;
(n) declare place and timing of vendors markets for weekly haats, night bazaars,
holiday bazaars and festival bazaars;
(o) ensure adequacy of civic amenities, including water sanitation, waste
management, electricity in the vending zones;
(p) monitor activities of street vendors;
(q) ensure that the quality of products and services provided to the public and public
health, hygiene and safety standards as specified by the Municipality are maintained;
(r) ensure that allotted stalls are utilized by the allottees in accordance with the
terms and conditions specified;
(s) specify the terms and conditions for issue, renew, suspension or cancellation of
registration in the manner specified;
(t) determine actions including imposition of fine for violating the terms and
conditions for registration;
(u) promote awareness regarding credit through institutional mechanisms;
(v) determine norms for regulating the activities of street vendors;
(w)determine terms and conditions for providing benefits of insurance, maternity
benefits, old age pension and other social security schemes to the street vendors in case of
death , illness or disability ;
(x) lay down guidelines for organizing associations and self-help group of street
(y) conduct training program for street vendors with a view to equip them with
entrepreneurship and technical and business skills;
(z) redress grievances and resolve disputes amongst the street vendors;
(aa) to allocate such duties and responsibilities to the Ward Vending Committees
as may be prescribed;
- Publication of annual accounts statement.- The town vending committee shall
prepare and publish its annual accounts statement in such form and manner as may be
REGISTRATION OF STREET VENDORS
- Application for registration.-(1) Every person who has completed the age of
14 years and intends to do street vending shall make an application for registration as street
vendor to the town vending committee.
(2) Every application under sub-section (1) shall be made in such form and manner
and accompanied by such fees as may be specified.
- Registration of street vendors and issue of certificate of registration.-(1) An
application made under sub-section (1) shall be examined by the town of vending committee
and registration made within such period, and in a such period, and in a such manner, as
may be prescribed,
बहार गजट (असाधारण), 28 -दस/ बर 2012 17
Provided that on completion of specified period, if no response is received by the
applicant he would be deemed to have been registered.
(2) The town vending committee shall not summarily reject the application without
giving the applicant an opportunity to rectify deficiencies, if any and hearing him.
(3) If the town vending committee or the officer authorized by town vending
committee, as the case may be, is satisfied that the application is in compliance with the
provisions of this Act and the rules or schemes made thereunder, he shall register the name
of the street vendor.
(4) Any person aggrieved by the decision of the town vending committee under subsection (3) may, prefer an appeal to the Municipality within such period, and in such
manner, as may be specified.
(5) No person shall carry on or commence the business of street vending unless he
holds a certificate of vending issued under this Act.
(6) Subject to the provisions of section 12 (5), the Town Vending Committee or any
officer authorized by the Town Vending Committee, subject to such conditions and
restrictions as may be specified in the scheme, issue a certificate of vending to every street
vendor who has been registered under section 12 (1) and (2).
(7) Every vendor who has been issued certificate of vending shall be issued identity
cards in such form and manner as may be specified in the scheme.
(8) The criteria to be followed by the Town Vending Committee for issuing
certificate of vending to a street vendor shall be specified in the scheme, which may, apart
from other things, provide for preference to the Scheduled Castes, the Scheduled Tribes,
other Backward Classes, Economically Weaker Section, women, persons with disabilities,
minorities or such other categories as may be prescribed.
- Preference in allotment of stalls to registered street vendors.- (1)The
Municipality may give preference to the registered street vendors in allotment of stalls in the
(2) The allotment of stalls to the street vendors shall be made in such manner, and
subject to such terms and conditions, as may be prescribed.
- Grant of license.- A registered street vendor to whom a stall has been allotted in
a vending zone shall be granted a license which may be renewed from time to time by the
Municipality, in such manner, on payment of such fee, and subject to such terms and
conditions, as may be prescribed.
RIGHTS AND OBLIGATIONS OF STREET VENDORS
- Rights of street vendors.- Every street vendor shall have right to carry on the
business of street vending activities in the vending zones allotted to him in accordance with
the terms and conditions mentioned in the certificate of vending and the scheme framed.
- Right of a street vendor for a new site or area on relocation.-Every street
vendor, who possesses a certificate of vending, shall, in case of his relocation, be entitled for
new site or area, as the case may be, for carrying out his vending activities as may be
determined by the local authority.
- Duty of street vendors.- (1) Where a street vendor occupies space on a time
sharing basis, he shall remove his goods and wares every day at the end of the time-sharing
period allowed to him.
(2) Every street vendor shall maintain cleanliness and public hygiene in the vending
zones and adjoining areas.
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(3) Every street vendor shall maintain civic amenities and public property in the
vending zone in good condition and not damage or destroy or cause any damage or
destruction to the same.
RELOCATION OF STREET VENDORS, EVICTION AND PROCEDURE FOR
CONFISCATION OF GOODS
- Relocation or eviction of street vendors.- (1) The municipality shall, having
regard to public nuisance or obstructions of movement of general public caused by street
vendors, or for any other public purpose, relocate such street vendors in such manner as may
be specified in the scheme.
(2) Where the municipality is satisfied that a street vendor has consistently failed to
comply with his duties and obligations under the Act or the rules and the scheme made
thereunder, evict such street vendor in such manner as may be specified in the scheme.
(3) No street vendor shall be relocated or evicted by the municipality from the site
allotted to him unless he has been given seven days’ notice for the same in such manner as
may be specified in the scheme.
(4) A street vendor shall be relocated or evicted by the municipality physically in
such manner as may be specified in the scheme after he had failed to vacate the site after the
expiry of said period of notice under sub section 3.
(5) Every street vendor who fails to relocate or vacate the site allotted to him after
the expiry of the said period of notice shall also be liable to pay, for every day of such
default, a penalty which may extend up to rupees five hundred as may be determined by the
- Confiscation and reclaiming of goods.-(1) The municipality, in addition to
evicting the street vendor under section 18, may if it deems necessary, confiscate the goods
of such street vendor in such manner as may be specified in the scheme.
(2) The street vendor whose goods have been confiscated under sub section (1) may
reclaim his goods in such manner, and after paying such fees, as may be specified in the
PREVENTION OF HARASSMENT OF STREET VENDORS
- Prevention of harassment of street vendors.- No street vendor who carries on
the street vending activities in accordance with the terms and conditions of his certificate of
vending shall be prevented from exercising such rights by any person or police or any other
authority exercising powers under any other law for the time being in force.
DUTIES OF MUNICIPALITY/LOCAL AUTHORITY
- Duties of local authority.-Notwithstanding anything contained in any other law
for the time being in force, the Municipality shall be responsible for:-(a) Overall supervision
and monitoring of the Scheme for street vendors;
(b) Allotting stalls to the street vendors in the manner specified;
(c) Granting, renewal, suspension or cancellation of license to the registered street
vendors in the manner specified;
(d) Providing, in consultation with the town vending committee, in the vending
zones and to the street vendors, civic services, including:
(i) Solid waste Disposal
(ii) Public toilets to maintain cleanliness,
(iii)Electricity and drinking Water,
(iv)Shelter to protect street vendors and their wares,
बहार गजट (असाधारण), 28 -दस/ बर 2012 19
(v) Storage facilities, beautification, placement of signage and,
(vi)Other facilities as may be needed by the street vendors and specified in the
(e) Fixation of fees/levies to be charged from street vendors for purposes of
registration, use of space, availing civic services and manner of their collection, in
consultation with the vending committee as per scheme;
(f) Determining, in consultation with the town vending committee, the manner of
collecting, through banks, counters of Municipal/local authority and counters of town
vending committee, fee for registration, use of parking space for mobile stalls and availing
of civic services;
(g) Allocation of staff and budget to each vending committee subject to a minimum
annual grant and that at least 50 per cent of the fees and fines collected by a Committee
passed on to it for discharging various functions effectively.
(h) Undertake, in consultation with the town vending committee, comprehensive
digitalized photo census and survey of the existing number of street vendors with the
assistance of such expert s and in such manner as may be specified, for the purpose of
accommodating street vendors within the holding capacity of the vending zones; the survey
(i) Ward by ward, cluster-by-cluster, street-by-street, market-by-market
mapping of the area where the vendors are located in each city/town.
(ii) Comprehensive survey and census count of weekly markets held in different
parts of the city or town on different days.
(iii)Photographic digitized census count of street vendors and their location with
the collection of information in such formats as may be prescribed.
(i) The entire database of street vendors shall be notified put on the website of
the concerned Municipality and Updated at regular intervals.
(j) Regulation of traffic near Vending Zone.
DUTIES OF PLANNING AUTHORITY
- Duties of planning authority.-Notwithstanding anything contained in any other
law for the time being in force, the Planning Authority shall be responsible for:-(a)
Determining spatial planning norms for street vending;
(b) Earmark space for vending zones in the master plan, development plan, zonal
plan, layout plan and any other plan;
(c) Designate areas as no-vending zone;
(d) Monitor the functioning of the town vending committee with regard to the
(e) Amend the city or town master plan, development plan, zonal plan, layout plan
and any other plan for accommodating street vendors in the designated vending zones;
(f) Demarcate vending zones specific to the requirements of the town or city;
(g) Make spatial plans conductive and adequate for the prevalent number of street
vendors in that city or town and also for the future growth, by adopting such norms as may
(h) Discharge any other duty or duties which may be assigned to it by the
government from time to time.
(i) Explore the feasibility of mobile vending in certain areas including multistoried
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BREACHES OF CONDITIONS AND PENALTY
- Cancellation or suspension of registration.-Where any street vendor who has
been registered under this Act or his agent or servant commits breach of any of the
conditions thereof or any other terms and conditions specified for the purpose of regulating
street vending under this Act or any rules or schemes made thereunder, or where the town
vending committee is specified that such registration has been secured by the street vendor
through misrepresentation or fraud, the town vending committee may, without prejudice to
any other fine which may have been incurred by the street vendor under this act, cancel the
registration or suspend the same for such period as it thinks fit:
Provided that no such cancellation or suspension shall be made by the town vending
committee unless an opportunity of hearing has been given to the street vendor.
- Cancellation or suspension of allotment of stall, license.-Where any street
vendor to whom a stall has been allotted or a license has been granted under this Act or any
agent or servant of such vendors commits breach of any of the conditions thereof, or any
other terms and conditions specified for the purpose of regulating street vending under this
Act or any rules or schemes made thereunder, or where the Municipality is satisfied that
such allotment of stall or license, as the case may be, has been secured by the street vendor
through misrepresentation or fraud, the Municipality may, without prejudice to any other
fine which may have been incurred by the street vendor under this act, cancel the allotment
of stall or license, as the case may be, or suspend the same for such period as it thinks fit:
Provided that no such cancellation or suspension shall be made by the local authority
unless an opportunity or hearing has been given to the street vendor.
- Penalty for Contraventions.-If any street vendor.- (a)indulges in street vending
(b) vends beyond the designated vending zones or specified timings;
(c) vends goods or offers services that are determined to public health;
(d) contravenes the terms and conditions of registration;
(e) contravenes the terms and conditions of stall or license; or
(f) contravenes any other terms and conditions specified for the purpose of
regulating street vending under this act or any rule or schemes made thereunder, or vends in
a no-vending zone
he shall be liable to a penalty which shall not be less than rupees two hundred but
which may extended to rupees one thousand, as may be determined by the town vending
committee, or as the case may be, by the Municipality.
- Conferring ownership rights etc.- (1) Nothing contained in this Act shall be
construed as conferring upon a street vendor any temporary, permanent or perpetual right of
carrying out vending activities in the vending zones allotted to him or in respect of any place
on which he carries on such vending activity.
(2) Nothing contained in sub-section 1 shall apply to any stationery vendor, if a
temporary leasehold or ownership right has been conferred on him by a lease deed or
otherwise, in respect of a place at specific location where he carries on such vending activity
in accordance with the provisions under any law for time being in force for carrying out
such vending activity.
- Returns.-Every town vending committee shall furnish, from time to time, to the
Government and the Municipality such reports and returns as may be prescribed.
बहार गजट (असाधारण), 28 -दस/ बर 2012 21
- Promotional Measures.-The government may, in consultation with the town
vending committee, Municipality, planning authority, street vendors association or unions,
undertake promotional measures of making available credit, insurance and other welfare
schemes of social security for the street vendors.
- Research Training and Awareness.-The Government may, to the extent of
availability of financial and other resources –(a) Develop and organize capacity building
programmes for street vendors and on how to exercise the rights contemplated under this
(b) Undertake research, education and training programmes to advance knowledge
and understanding of the role of the informal sector in the economy, in general, and the
street vendors, in particular and to raise awareness aiming the public through town vending
- Power to make bye-laws.-Subject to the provisions of this Act or any rules or
schemes made thereunder, the Municipality may make bye-laws to provide for all or any of
the following matters, namely:- (a)The regulation and manner of vending in vending zones,
restricted – vending zones and enforcement of no-vending zones
(b) The regulation of collection of taxes and fees in the vending zones
(c) Regulation of traffic in or near the vending zones
(d) The regulation of quality of product and services provided to the public in
vending zones and maintenance of public health, hygiene and safety standards
(e) The regulation of civic services in the vending zones; and
(f) The regulation of such other matters in the vending zones and no-vending zones
as may be necessary
- Power to make rules.- (1) The Government may, after consultation with the
town vending committee, by notification, make rules for carrying out the provisions of this
(2) In particular and without prejudice to the generality of the foregoing power, such
rules may provide for all or any of the following matters, namely:-(a) The manner of
framing and publishing summary of scheme under sub-section 2 of section 3.
(b) The number of members under clause (b) of sub-section (2) of section 4.
(c) The allowances of members under sub-section (3) of section 4
(d) The time and place for meeting, procedure for transaction of business at
meetings and functions to be discharged under section 4
(e) The manner and purpose for which a person may be associated under sub-section
(1) of section 6
(f) The allowances to associated person under sub-section (3) of section 6
(g) The other employees of town vending committee under section 7
(h) The manner and purpose for constituting, and the number of the ward vending
committees under section 8
(i) The form and manner for preparing and publishing annual accounts statement
under section 10
(j) The returns to be filled under section 27
(3) Every rule made under this Act shall be laid, as soon as may be after it is made,
before the State Legislature, while it is in the session, and if the house agree in making any
modification in the rule agree that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be off no effect, as the case may be, however, that any
such modifications or annulment shall be without prejudice to the validity of anything
previously done under that rule or scheme or bye-law.
22 बहार गजट (असाधारण), 28 -दस/ बर 2012
- Power to remove difficulties.- (1) If any difficulty arises in giving effect to the
provisions of this Act, the State Government may, by order published in the Official
Gazette, make such provisions, not inconsistent with the provisions of this Act, as appear to
it to be necessary or expedient for removing the difficulty.
Provided that no order shall be made under this section after expiry of three years
from the commencement of this Act.
(2) Every order under this section shall, as soon as may be after it is made, be laid
before the State Legislature.