Market Inspection Penalty News: New Shiv Store Fined NPR 201,000

23rd January 2026, Kathmandu

The Department of Commerce, Supply, and Consumer Protection has intensified its regulatory oversight in the Kathmandu Valley, conducting a large-scale market inspection across 18 different firms in Kathmandu, Bhaktapur, and Lalitpur. These surprise checks were strategically executed to ensure that businesses are operating in strict accordance with the Consumer Protection Act, 2075, and the Consumer Protection Rules, 2076. This move comes as part of a proactive government initiative to stabilize market prices and protect citizens from unethical trade practices.

Market Inspection Penalty

During the single-day operation on Friday, January 23, 2026, the department identified several discrepancies in retail and manufacturing operations. The most significant action was taken against New Shiv Store, located in Kathmandu-29, New Buspark. The firm was slapped with a substantial cash fine of NPR 201,000 for serious violations found during the on-site check. This penalty serves as one of the highest individual retail fines recorded in the current month, signaling a zero-tolerance policy toward consumer rights infringements.

Understanding the Legal Framework: Act 2075 and Rules 2076

The department clarified that the disciplinary action against the New Buspark-based store was rooted in the Consumer Protection Act, 2075. This legislation provides the government with the authority to monitor price, quality, and supply chains to prevent artificial scarcity or price gouging.

Key violations that typically trigger such high fines under these regulations include:

Inaccurate Labeling: Selling goods without clear information on ingredients, expiry dates, or manufacturer details.

Lack of Bills and Invoices: Failing to provide customers with authentic receipts or failing to maintain purchase invoices for official verification.

Price Tampering: Selling goods above the Maximum Retail Price (MRP) or failing to display a visible price list in the shop.

Quality Compromise: Distributing products that do not meet the safety or quality standards set by the Nepal Bureau of Standards and Metrology.

The use of the Consumer Protection Rules, 2076, alongside the Act, allows inspectors to impose immediate on-the-spot fines ranging from NPR 5,000 to NPR 300,000 depending on the severity of the offense.

Scrutiny of Large Scale Firms: Himalayan Brewery Case

The inspection drive was not limited to small retail outlets. Himalayan Brewery Pvt. Ltd., a major player in the beverage industry, also came under the radar. Although not immediately fined, the brewery was issued a formal instruction to appear before the department.

The firm has been given a three-day deadline to present all relevant business-related documents for a detailed audit. This includes production records, tax invoices, and quality certification papers. This step highlights the department’s focus on “Source Monitoring,” where they track products from the factory level to the retail shelf to ensure that no irregularities are occurring at the production or distribution stages.

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Corrective Measures for 16 Other Firms

While New Shiv Store faced the brunt of the penalties, the remaining 16 firms inspected during this cycle were issued corrective instructions. These firms, spanning across Kathmandu, Lalitpur, and Bhaktapur, were found to have minor compliance issues such as:

Improper Price Display: Negligence in updating the price list displayed for public view.

Documentation Lapses: Minor errors in record-keeping that did not suggest intentional fraud.

Hygienic Standards: For food-related firms, instructions were given to improve storage conditions and general sanitation.

The department noted that the goal of these inspections is not just to penalize but to educate. By providing corrective directives, the authorities aim to help businesses transition into a more transparent and consumer-friendly operational model without immediately hampering their financial viability.

Collaborative Monitoring and Consumer Safety

The success of this large-scale inspection was attributed to a collaborative approach. The teams consisted of officials from the Department of Commerce, supported by the local administration, representatives from the Nepal Police, and dedicated consumer rights activists.

The participation of non-government stakeholders ensures that the inspections are unbiased and transparent. Consumer activists play a crucial role in identifying “hidden” market anomalies, such as shops that only overcharge certain demographics or stores that sell counterfeit goods under the guise of branded items.

Conclusion: A Shared Responsibility for Fair Markets

The Department of Commerce, Supply, and Consumer Protection has signaled that these inspections will become more frequent as the country enters busy economic periods. Businesses failing to comply with the 2075 Act risk not only financial loss through fines but also potential suspension of their business licenses and significant reputational damage.

Authorities have emphasized that consumer protection is a shared responsibility. While the government remains committed to continuous monitoring, consumers are encouraged to be vigilant. Citizens should always demand a bill for every purchase and report any suspicious pricing or quality issues through the official government hotlines or the “Hello Sarkar” portal.

By penalizing non-compliant entities like New Shiv Store and guiding others toward better practices, the Nepal government is working to cultivate a market culture rooted in accountability, transparency, and the prioritization of consumer interests.

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