The government has taken action against the transport entrepreneurs who called strike on Friday under the Essential Services Operation Act 1957 in lack of any law to punish them for operating transport cartels.
The government arrested transport entrepreneurs, who called strike against the government decision to end transport cartels, on Friday and Saturday
. Home Minister Ram Bahadur Thapa has already instructed the administration to release them only if they make written promise to defy cartels, register companies, operate vehicles and help the government, and lodge case against them if they don't comply.
The government on April 24 had banned transportation strike as per the Essential Services Operation Act 1957.
The government had brought Competition Promotion and Market Protection Act in 2007 to take action against those operating cartels after becoming a member of the World Trade Organization (WTO) but that has not been implemented in lack of regulations for that.
The act mentions issues like monopoly, cartels, trust and other malpractices, and there are provisions of action against those indulging in such activities, according to Chairman of the Law Commission Madhav Paudel.
"The first draft included issues like syndicate, cartel, trust, monopoly, dominant position and others," Paudel told Setopati. "We kept the provision of government intervention in case of monopoly. But the private sector opposed even the draft. The provision of jail term was removed citing lack of culture for competition in Nepal. The businessmen lobbying in the parliament said the provision of jail should be removed as all the Nepali businessmen will have to be jailed. The punitive measures against cartels and syndicate were then limited to fines."
Spokesperson at the Supplies Ministry Mukunda Prasad Paudel said even the fines cannot be imposed in lack of regulations. "The only law to punish syndicate is this act. We cannot do anything until the act is amended and regulations formulated," Paudel stated.
Chairman of the Law Commission Paudel, however, stated that the ministry has not moved the process forward despite the commission sending amended draft to the ministry with proposal of up to three years of jail for those found guilty of syndicate.
The Supreme Court has also issued mandamus on several occasions instructing the government to end syndicate.
A joint bench of justices Ananda Mohan Bhattarai and Anil Sinha on December 16, 2016 had ordered for revocation of syndicate. The SC had also advised the government to not step back citing lack of laws.
Chairman of the Law Commission Paudel said laws to be formulated as per the new constitution will incorporate the rights of passengers.
Article 44 of the constitution has included rights of the consumers as fundamental rights. He revealed that consumers of transportation sector will now be included in essential goods and services in the bill for consumer rights.
"There will be provisions allowing government intervention in price and market. We are preparing draft in a way to delegate more rights to the local bodies. Lower level of governments will have more say in consumer rights, and the federal government in petroleum products and civil aviation."
