Closure of Reliance stores ordered

Published August 24, 2007

LUCKNOW, Aug 23: The government of one of India’s largest states on Thursday ordered the closure of retail stores set up by Reliance Industries citing law enforcement problems.

The move came after traders in northern Uttar Pradesh state attacked Reliance Fresh stores, which the company opened on Wednesday.

“In view of these protests ... the cabinet has decided to order the closure of Reliance stores in (state capital) Lucknow and Varanasi (town),” state chief minister Mayawati Kumari told a news conference.

Reliance -- which launched its $6 billion retail business last November -- has some 20 stores across Uttar Pradesh, India’s most populous state with nearly 170 million people.

As a host of domestic and international companies seek to invest in India’s lucrative $300 billion retail market, traders and street vendors say their livelihood is threatened. In May, thousands of vegetable sellers vandalised three Reliance Fresh stores in eastern India in the first violence against the firm’s plans to build a local version of US giant Wal-Mart.

“We can’t comment on it as we haven’t seen the order. We see it as a law and order problem, nothing else,” the Reliance official said.—AFP

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