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Govt collects cash fines of Rs 20 million from firms breaching MRP rules

According to the DoCSCP, it crosschecked 713 firms during the period. Out of the total number, 13 percent were found not abiding with the government rules.
By Republica

KATHMANDU, June 21: The Department of Commerce, Supplies and Consumer Protection (DoCSCP), has slapped cash fines of Rs 20 million from 92 firms accused of breaching the department’s guidelines of maximum retail price (MRP) in the past two and a half months.  


According to the DoCSCP, it crosschecked 713 firms during the period. Out of the total number, 13 percent were found not abiding with the government rules.


Issuing a public notice, the DoCSCP has made the rule mandatory since April 2, asking the manufacturing firms and importers to maintain labeling MRP in their products. Along with the MRP, the firms have been asked to print names of the manufacturers, batch number and expiry date of the traded goods. Likewise, the firms are also needed to label the standardization and informative picture and symbol in the products applicable under the rule.


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Kumar Dahal, director general of the DoCSCP, said only 26 out of the inspected firms were found strictly abiding with the government rule. Among others, the department asked 308 firms to be present with related documents, while 278 firms were directed to implement necessary measures for corrections.


The Constitution and the Consumer Protection Act 2018, has empowered the DoCSCP with the role of monitoring local markets. The provision has aimed to maintain transparency and promote healthy competition in the domestic market. 


The government has been struggling to implement the MRP rules effectively for over a decade mainly due to the pressures from businesspersons. Earlier on September 17, 2012, the Commerce Ministry published a notice in the Nepal Gazette making price tags mandatory for daily necessities.


Even in the present context, a number of businesspersons have been lobbying not to impose MRP, claiming that the mandatory rule could discourage entrepreneurs as it promotes smuggling of goods. The private sectors have also alleged the DoCSCP of skipping essential preparatory steps, instead opting for abrupt monitoring and penalization, which has caused concern among compliant businesses.


Currently, the MRP has been made mandatory in the market for cement and rods, vehicle parts, food items, footwear, construction materials, surgical goods, ready-made clothes, electricity, electrical and electronic goods, and beauty products.


 

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