Street Vendors Act, 2014

Background and evolution

Street vendors provide affordable goods and services to urban residents and represent a large part of the informal economy. Estimates suggested that around 2.5% of urban populations depended on vending. Yet vendors faced harassment, extortion and eviction, since many municipal laws treated vending as an obstruction or encroachment.

In Sodan Singh v. NDMC (1989), the Supreme Court held that street vending is a legitimate trade protected by Article 19(1)(g), subject to reasonable regulation. Gainda Ram v. MCD (2010) directed the government to enact a law. The National Policy on Urban Street Vendors of 2004 and 2009 had laid down principles. The Street Vendors Act was passed in 2014, and states framed rules and schemes. During COVID-19, the PM SVANidhi scheme (2020) provided collateral-free loans to vendors.

Key features and provisions

• Survey (Section 3): every Town Vending Committee must survey vendors every five years; all existing vendors identified are accommodated in vending zones.
• No eviction before survey: vendors cannot be evicted or relocated until the survey is completed and certificates issued.
• Certificate of Vending (Section 4): issued to vendors, specifying category (stationary, mobile, etc.) and location.
• Town Vending Committee (Section 22): includes the municipal commissioner, police, traffic and health officials, and vendor representatives making up at least 40% of members, with at least one-third women; it identifies vending zones and fees.
• Rights (Section 12): to carry on vending in designated zones, and to be relocated to a new site if displaced.
• Relocation and eviction (Section 18): only as a last resort, with 30 days' notice, and seized goods must be released after a fine.
• Grievance redressal (Section 20): a committee chaired by a retired civil judge or judicial magistrate.
• Vending plans: local authorities must prepare plans every five years.
• Protection from harassment (Section 27): no harassment by police or other authorities when vending in accordance with the Act.