The Khasi Hills Autonomous District Council (KHADC) in Meghalaya has sparked a controversy after refusing to grant a trade licence to quick-commerce platform Blinkit, citing the need to protect indigenous traders and local businesses.
The KHADC, which regulates trade in areas under its jurisdiction, said the decision was aimed at safeguarding the interests of nearly 4,000 shops in and around Shillong.
A few days ago, KHADC Chief Executive Member Winston Tony Lyngdoh had indicated that the council would not issue a trade licence to Blinkit if its business model posed a threat to indigenous traders and local businesses.
The decision, however, has drawn criticism from several quarters, with opponents accusing the council—constituted under the Sixth Schedule of the Constitution—of overlooking consumer interests and restricting competition.
The Dorbar Shnong of Nongrim Hills, a traditional village council that had issued a no-objection certificate (NOC) to a local resident partnering with Blinkit, said the KHADC's decision would adversely affect the interests of Shillong's nearly six lakh residents, including around two lakh people from marginalised families.
Bantylli Narry, the Rangbah Shnong (elected head) of the Dorbar Shnong of Nongrim Hills, argued that Blinkit would offer consumers more affordable options.
"There exists a monopoly in Shillong where shopkeepers sell goods at MRP, whereas Blinkit offers a 20% discount. We feel that people must have the freedom to choose," Narry said.
Rejecting concerns that Blinkit's entry would cripple local businesses, he argued that traditional retailers would continue to survive despite the expansion of quick-commerce platforms.
Drawing a parallel with the arrival of e-commerce giants, Narry said that when Flipkart and Amazon entered the market, many had predicted that shops in Shillong's Police Bazar would suffer. Instead, he said, those businesses continued to flourish while new shops also opened.
A section of Shillong residents echoed similar views, maintaining that consumers should have the freedom to decide where they purchase their goods. They argued that limiting competition would deprive customers of more affordable choices and noted that quick-commerce platforms could prove particularly useful during emergencies at night when most local shops remain closed.
