Friday, August 24, 2007

Reliance Fresh Told To Shut Shop In UP

Angry traders in Varanasi on Wednesday set on fire a part of the yet to be opened Reliance Fresh retail store. A more violent attack followed in Lucknow led by trade leaders affiliated to the Samajwadi Party.

But on Thursday Chief Minister Mayawati seemed to be sympathetic to the traders. She ordered the retail chains in Varanasi and Lucknow to shut and announced a panel to decide whether such outlets across the state, some of them already running, should be allowed at all. Stores like these will be shut in Lucknow and Varanasi in order to avoid law and order situation, said Mayawati, Chief Minister, Uttar Pradesh.

But insiders say that its not quite so simple. Vegetable vendors opposed to the retail chains are Sonkars, a BSP vote bank.

Moreover, the retail chains owned by Mukesh Ambani''s Reliance group were okayed by the previous Samajwadi Party government, something the party''s trade leaders choose to ignore now.

Mayawati''s decision may be politically correct at this point but it''s a big disappointment for a government that wants to encourage and welcome industries and corporate houses.

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