AAP Tax Law

Indian law / Street Vendors Act, 2014

Sections 37, 38 and 39 of the Street Vendors Act, 2014

The final provisions of the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 deal with local authority bye-laws, government schemes for street vendors and a limited power to remove difficulties in implementing the Act.

Section 37 - Power to make bye-laws

Under Section 37, a local authority may make bye-laws governing vending zones, subject to the Act and any rules or schemes made under it. A bye-law is a subordinate local regulation: it cannot override the parent Act, applicable rules or the government scheme.

Section 37 authorises bye-laws on all or any of the following eight subjects:

  1. Clause (a): Regulation and manner of vending in restriction-free-vending zones, restricted-vending zones and designated vending zones.
  2. Clause (b): Determination of monthly maintenance charges for civic amenities and facilities in vending zones under Section 17.
  3. Clause (c): Determination of penalties under Section 18(5) and Section 28, subject to the statutory limits.
  4. Clause (d): Regulation of the collection of taxes and fees in vending zones.
  5. Clause (e): Regulation of traffic in vending zones.
  6. Clause (f): Regulation of the quality of products and services offered to the public and maintenance of public health, hygiene and safety standards.
  7. Clause (g): Regulation of civic services in vending zones.
  8. Clause (h): Regulation of other matters in vending zones as necessary.

Practical effect: Specific local obligations, such as traffic arrangements, hygiene requirements and authorised fees, must be read alongside the relevant bye-laws of the municipality concerned.

Section 38 - Scheme for street vendors

Section 38(1): Framing and notification

The appropriate Government must frame a scheme for the purposes of the Act within six months from commencement, after due consultation with the local authority and the Town Vending Committee. The scheme is made by notification and may specify all or any of the matters listed in the Second Schedule.

The six-month period is the original statutory implementation deadline; it is not a fresh deadline arising whenever an individual vendor applies for a certificate. To determine the applicable operational rules, consult the scheme and notifications of the relevant State or Union Territory.

Section 38(2): Public notice

The local authority must publish a summary of the notified scheme in at least two local newspapers, in the manner prescribed by rules. Publication makes the governing arrangements more accessible to affected vendors and the public.

The scheme complements the plan for street vending under Section 21 and the First Schedule. The scheme, plan, rules and bye-laws have distinct statutory functions and should not be treated as interchangeable.

Section 39 - Power to remove difficulties

Section 39(1): Limited Central Government power

Where a difficulty arises in giving effect to the Act, the Central Government may issue an order published in the Official Gazette making provisions necessary or expedient to remove that difficulty, provided the order is not inconsistent with the Act.

The proviso imposes a strict time limit: no order under Section 39 may be made after three years from commencement of the Act. This is a historical transitional power, not a continuing general authority to amend the Act or issue new difficulty-removal orders today.

Section 39(2): Parliamentary oversight

Every order made under this section must be laid before each House of Parliament as soon as practicable after it is made.