June 1: The Guwahati Municipal Corporation (GMC) has threatened to close down the business establishments, which fail to renew their trade licences.

The corporation today issued a notification stating that any business establishment found to be operating without a valid trade licence after June 30 will be closed down under the Section 390 of Guwahati Municipal Corporation Act, 1971.

Under this act, any person carrying on any trade, profession or calling within the municipal area requires to obtain a trade licence from the corporation.

An official of the corporation said according to the laid-down rules, the business establishments need to renew their trade licences at the end of every financial year, that is March 31. They have to pay the renewal fees to carry on with their trade.

“It has come to our notice that even two months after March 31, many establishments have failed to renew their licences,” he said.

“To give them a last chance, June 30 has been fixed as the last date for renewal of trade licences. However, they will have to pay a penalty, which will be 20 per cent of the fee. Any business concern which fails to renew the licence by the extended date will face closure without any further notice,” the official added.

The corporation is losing out a sizeable amount of revenue because of the reluctance of a section of traders in renewing the licences.

“We have decided to tighten the noose around the defaulters as the corporation is giving maximum emphasis on increasing the revenue collection in a bid to improve the financial condition of the GMC,” the source said.