Lucknow, August 23
In a major setback to the ambitious plans of retail giants, the Uttar Pradesh government today ordered closure of all Reliance Retail stores and set up a panel to review the existing policy on such outlets.

Reacting to the law and order problems created by the small traders and vyapar mandal’s attack on Reliance Fresh and Spencer's stores in Lucknow and Varanasi, Chief Minister Mayawati announced that cabinet secretary Shashank Shekhar Singh would head a five-member committee that would look into all aspects governing such stores.

Briefing mediapersons after the cabinet meeting, the Chief Minister said with the opening of 10 retail outlets of Reliance Fresh in Lucknow and two in Varanasi, there arose a major law and order problem. Additional police force had to be posted to prevent any further damage to these outlets.

Responding to reports from the district magistrate, the government took the decision to immediately close down these retails shops, informed the Chief Minister. These shops had been attacked and vandalised creating a tricky problem for the local administration, the Chief Minister observed.

Admitting that this was an interim decision, the Chief Minister said a final decision in this regard would be taken only after the high-powered committee reviews all aspects of the retail business and submits its report within a month.

The committee, headed by cabinet secretary, includes principal secretaries of the Departments of Agriculture, Home, Housing, Urban Development and Medical & Health. It would also be empowered to decide about opening new outlets in the future.

Cabinet secretary Shashank Shekhar Singh said a comprehensive policy would be put in place before giving a green signal to the opening of similar Reliance and Spencer outlets in other districts.

Yesterday, while the BSP government was celebrating its 100 days in office, a group of traders led by Uttar Pradesh Udyog Vyapar Mandal president and Samajwadi Party MP Banwarilal Kanchal had ransacked two Reliance Fresh and Spencer's stores in the city. Similar action was also reported from Varanasi in front of an under-construction Reliance food outlet.

An FIR had been filed against Kanchal and his supporters who had been detained at the Gudumba police station.

Earlier, on August 14, wholesale vegetable and grain mandis across the state observed a day-long bandh to protest against the entry of corporate houses and MNCs in the retail sector.