Partners furious over MRP raids

At a time when partners are finding ways to survive the slowdown, the raids

conducted by the Controller of Legal Metrology, which is authorized to keep a

check on the implementation of MRP (Maximum Retail Price) rules have made them

furious.

These raids have become so frequent that some resellers have alleged

harassment by the department officials in the name of MRP rules. Partners have

alleged that MRP inspectors repeatedly penalize them for no fault of theirs.

However, the state controller, TC Wankhede has denied any harassment from

department’s side. Says he, "We are doing our duty as per the law.

Dealers are penalized for not putting MRP labels on the products they

sell."

However, what upsets IT traders and importers is that when a retailer is

found selling goods without the MRP label, the entire chain from the retailer to

the importer is penalized. "That is how the law is," counters Wankhede.

But importers and traders find the law ridiculous. "Since the time we

have been told to put MRP label on imported products, we are doing it diligently

despite all the difficulties that we face in the customs warehouse," says

Balraj Virdi, Impex Incharge, Neoteric. "If a retailer is tam-pering with

the MRP label it is not our fault. Once the goods have left our custody, how can

we be held responsible?" he asks.

Aladdin Software, alleged that they were penalized by the MRP inspector after

finding goods in Aurangabad without MRP labels; and after some days another

inspector took them to task again because some other retailer in their link was

found selling goods without MRP labels.

"This is sheer harassment," says NK Dileep, Director, Aladdin

Software. "It is a good law and people should know about it, but some of

its provisions are not justified," he adds.

For every product found without MRP label, the officials charge Rs 5,000 per

director plus Rs 5,000 for the company as a whole.

There were instances where MRP inspectors have penalized resellers for not

putting proper address on the labels. "We were pulled up because our

products did not carry the ‘Gala No.’ printed along with the address,"

says Anees Khalfay, Radiant Technologies.

MRP rules originating from the Standards of Weights and Measures Act, 1976,

were primarily made to safeguard the interest of customer buying the products.

However, its implementation on IT products began only recently.

The Control of Legal Metrology has every right to inspect warehouses/premises

of wholesale or retail dealers, but does not have any say in setting the MRP

value of any product. They just monitor whether the labels are put according to

the law.

The law applies to all goods that are manufactured in the country. But, since

most IT products are not manufactured here and are imported, a separate set of

rule is applied to them. This falls under the provisions applicable to packaged

commodities imported into India. The basic set of rules (see box) clearly gives

instruction for all importers.

"On the one hand our government talks about liberalizing the IT sector

and on the other, they force these kind of laws on us. These laws simply slow

down the process. This will affect the development of IT sector," says

Balraj.

Many IT traders have alleged that these laws are very ambiguous and are not

specific to IT products. "They should have a separate set of simple rule

for IT products. To discuss this we are soon calling a meeting with the

Controller of State," says the TAIT representative.

"We have accepted the invitation for a meeting which is basically to

educate the IT community about the MRP rules. It is high time that IT traders

observed these rules like all others do," says Wankhede.

NELSON JOHNY MUMBAI