Retailers Association of India (RAI) has succeeded in Minimum Wages case which was filed before the Delhi High Court. The Delhi High Court has pronounced a judgment which states that the Delhi Government cannot unilaterally increase the wages, and has held their effort to be ultra vires the Constitution. Click here to view the Judgement.

The Delhi Government had issued a notification dated 3rd March 2017, wherein minimum wages for workmen in all scheduled employments were increased from Rs. 9,724/- to Rs. 13,350/- (unskilled category), Rs. 10,764 to Rs. 14,698/- (semi-skilled category) and Rs. 11,830 to Rs. 16,182 (skilled category).

RAI had filed a writ petition before the Delhi High Court challenging the legality of the notification. In it, RAI has contended that, while its members are not averse to and/or against a reasonable increase in minimum wages, the increase of the kind done by the Delhi Government is unprecedented, wholly arbitrary and seeks to put the whole retail industry, at least, so far as the State of Delhi is concerned, in serious jeopardy. The Delhi High Court had passed a stay order stating that no coercive steps be taken by the Delhi Government against the members of Retailers Association of India.

The State Government of Maharashtra had issued a ban on various plastic products in the state through the notification dated 23rd March 2018. The government had then communicated revisions to the ban through a revised notification on 11th April 2018.

As the ban had far-reaching implications on retail business, a delegation from RAI had a series of meetings with the State Government, representing the concerns of the retail industry. RAI was also nominated to the Expert Committee formulated for deliberating upon various aspects of the ban.

Subsequently, the State Government has issued a revised notification dated 30th June 2018.

This is with reference to Retailers Association of India's submission requesting for an extension for implementation of the amendments in the Legal Metrology (Packaged Commodities) Act, 2017, issued vide notification no GSR - 629 (E) dated 23rd June 2017.

On representation from RAI, the Department of Legal Metrology, Ministry of Consumer Affairs, Government of India has extended the implementation of the notification further by three months until 31st July 2018 for disposal of old inventory. Click here to view the advisory.

The State Government of Karnataka issued a notification increasing minimum wages for skilled and unskilled labor in the state w.e.f 30th December 2017. Click here to view the notification.

Subsequently, RAI submitted representations to Shri Siddaramaiah, Hon’ble Chief Minister of Karnataka to highlight the impact of the steep rise in the minimum wages and how it would affect the overall retail industry. Click here to view the representation.

RAI, on behalf of its members, filed a Writ Petition before the Karnataka High Court in this regard challenging the notification which came up for a preliminary hearing on 27.4.2018. After hearing the matter, the Hon’ble Court directed the Government to not precipitate the notification during the pendency of the Writ Petition. Click here to view the interim order.

Retailers Association of India (RAI) had filed a writ petition in 2007 and again in 2010 before the Bombay High Court challenging the constitutional validity of the Levy of Service Tax on Renting of Commercial Properties, in which RAI Members were granted an interim relief. When the matter was dismissed by the Bombay High Court, to continue enjoying the benefit of the interim order, RAI filed a Special Leave Petition before the Supreme Court against the Judgement of the Bombay High Court.

In October 2011, the Supreme Court directed RAI members to pay half their service tax liabilities so that the matter could be scheduled for final hearing. Click here to view the order.

Subsequently, the matter was listed for hearing in March 2018. Since a lot hangs in the balance on the Supreme Court judgement, RAI has engaged the services of the best counsels and lawyers to represent the said case.

On 5th April 2018, the Apex Court accepted that the matter involves constitutional validity. Furthermore, it was held that the matter will be deferred until disposal of the issues pending before the nine judges bench in Mineral Area development Authority and others (Supra). Click here to view the order.

As per RAI's lawyers, since the matter has been referred to the nine judge bench, it may take considerable time to reach the conclusion.

The Government of Maharashtra amended the Maharashtra Shops & Establishments Act 1948. As per the "Maharashtra Shops and Establishments Act (Regulation of Employment and Conditions of Service) 2017", all shops and establishments can remain open 24x7, except the different class of shops & establishments which serve liquors and cinema halls, which are separately notified by the State Government.

Some members approached RAI regarding the ambiguity in the amended act w.r.t. 24x7 operating permission. The same is not being properly executed by the law enforcement authorities. RAI represented to the State Government of Maharashtra seeking clarity regarding the 24x7 store opening permission in the State as per the revised Act. Click here to view the representation.

Subsequently, the State Government has issued a clarification that all the shops and establishments can remain open 24x7, subject to compliance with appropriate conditions. Click here to view the clarification issued by the State Government.

RAI is working with various States Governments in regard to issuance of notifications permitting retailers in the state to operate 365 days a year.

The update on the recent developments in regard to the subject matter is shown below in a tabular format. Click the links to view the notification of respective states.

RAI is working with the State Governments of West Bengal in regard to renewal of the 365 store opening permission in the State. RAI has also submitted a representation to the Government of Karnataka in regard to issuance of the notification allowing retailers to operate 365 days a year.

Furthermore, RAI has started actively engaging and working closely with various State Governments for the adoption of The Model Shops and Establishment (Regulation of Employment and Condition of Services) Act 2016. The Government of Maharashtra recently amended the Maharashtra Shops & Establishments Act 1948 in line with the Model Bill.

The State Government of Maharashtra has announced a ban on numerous plastic products with immediate effect. Please click here to view the notification.

RAI has submitted a representation to the State Government of Maharashtra to clarify applicability of the ban on certain types of plastic products. In its representation, RAI has contended that plastic used for transportation, storage and handling of good should be exempted. Click here to view the representation.

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved subsidizing MDR charges on debit card/BHIM UPI/AePS transactions of value less than Rs.2000 with effect from 1 January 2018, to aid adoption of digital modes of payments by merchants. This shows the commitment of the government to Digital India initiative and comes as a huge relief for the retailers across the country as effectively they will pay zero MDR on accepting digital payments below Rs 2000. Read the official notification here...

The Panvel Municipal Corporation has imposed a complete ban on sale of Plastic Carry Bags in retail stores on 2nd October 2017. The same ban has been implemented with an immediate effect.

Please click here to view the communication.

All RAI members are urged to switch over to alternate means to ensure compliance of the communication in the region.