Kerala High Court: Street Vendors Act Doesn’t Apply to Grama Panchayat Areas

The Kerala High Court has clarified that the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 does not apply to areas governed by Grama Panchayats. As a result, the Court dismissed the plea of a 68-year-old street vendor who sought a vending certificate to continue his business in the Thamarassery Grama Panchayat.

Justice Mohammed Nias CP noted that the protections given under the Street Vendors Act are meant only for urban street vendors. The Court referred to the earlier decision in Sajjad v State of Kerala (2018 KHC 804), which held that a Grama Panchayat does not fall within the definition of a “local authority” under Section 2(1)(c) of the Act, since it does not function in an urban area.

The judge observed that because Thamarassery is a rural local body, the Act cannot be invoked. Therefore, the petitioner cannot claim any rights or protections under the Act.

The petitioner, Musthaffa K, had argued that he was entitled to a vending certificate and that the State must enforce the rules and vending scheme under the Street Vendors Act. The Panchayat, however, opposed the plea, stating that the Act was not applicable in rural areas and accused the petitioner of encroaching on the busiest part of National Highway 766 by putting up an unauthorised temporary structure, causing traffic problems.

It was also submitted that the petitioner was not a resident of the area and had no legal right to occupy public land or demand a certificate. His counsel tried to argue for a broader interpretation of the term “local authority”, claiming that bodies providing civic services should be included. The Court rejected this view, stating that the law clearly limits protection to vendors in urban local bodies.

While denying relief, the Court added that the petitioner may still apply for permission to conduct mobile vending, provided he does not obstruct traffic or pedestrians.

Advocates Sheji P Abraham and Abraham Joseph represented the petitioner. Senior Government Pleader Surya Binoy appeared for the State, while Standing Counsel Vinod Singh Cheriyan and advocates TM Khalid and KP Susmitha appeared for the Panchayat.