Over 100 illegal private markets in Dhaka South costing crores in lost revenues
These unlicensed markets supply food, vegetables, poultry, livestock, and daily essentials to millions of residents, but their lack of registration means the city corporation is losing crores in potential revenue each year while undermining oversight on health, safety, and urban order.
Highlights
- Only 2 legal private markets in DSCC, 100+ illegal
- Dhaka South losing Tk50cr+ revenue yearly
- FY25 earnings just Tk30 lakh
- 2022 policy: licence & renewal mandatory
- Hatirpool has 1 legal, 3 illegal markets
- Dhaka South starts drives to shut down violators
Hatirpool Bazar is the only legal market under Dhaka South City Corporation (DSCC) in the Hatirpool area. Yet, within just 500 metres, at least three private markets operate without registration, depriving the city corporation of revenue.
This is not an isolated case.
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DSCC officials estimate that over 100 illegal private markets, excluding supermarkets and shopping malls, are currently operating across its 75 wards, despite a 2022 policy that clearly bars operating markets without registration.
These unlicensed markets supply food, vegetables, poultry, livestock, and daily essentials to millions of residents, but their lack of registration means the city corporation is losing crores in potential revenue each year while undermining oversight on health, safety, and urban order.
In 2022, Dhaka South introduced a private market policy requiring all markets run by individuals, organisations, or institutions (other than the government) to obtain licenses. But compliance has been minimal.
Since then, 15 private markets applied for registration, and only 10 received licences. Of these, just two renewed their licences last year, generating only Tk30 lakh in revenue, according to official records. So now, only two private markets are legal in Dhaka South.
The policy was designed to streamline the establishment, licensing, and operation of private markets in the city.
It defines a private market as any land, structure, or open space owned by individuals, organisations, or institutions, excluding government bodies, where multiple buyers and sellers trade daily commodities at fixed or negotiated prices.
While supermarkets and shopping malls are exempt, nearly all other types of privately run marketplaces are covered under the policy.
Loss in revenue
According to the government gazette, the Dhaka South City Corporation introduced specific rules for licensing and renewal of privately run markets.
An application fee of Tk500 is required to obtain a market licence. In addition, if the market is located beside a main road, the licence fee is Tk215 per square metre, while for markets along other roads the fee is Tk108 per square metre.
The same fee must be paid again during annual renewals.
For instance, if a private market occupies 500 square metres beside a main road, the operator would need to pay Tk1,07,500 annually to the city corporation as the licence fee.
Deputy Chief Revenue Officer Shahjahan Ali told The Business Standard, "Illegal private markets are everywhere in Dhaka city. If we can bring them under registration, more than Tk50 crore in revenue is possible."
"Last year, in FY25, only two markets renewed their licence and we earned only Tk30 lakhs," he added.
However, the establishment of such markets need to be supervised properly, Shahjahan said. "The way the markets are springing up is rather creating obstacles for ordinary people," he added.
Dhaka South officials said they have partially identified over 50 illegal private markets in five zones, while the remaining zones are believed to have even more.
Officials estimate that as over 100 unlicensed private markets are operating, it is causing the corporation to lose crores in revenue that could have funded waste collection, drainage, and market infrastructure upgrades.
Enforcement push begins
On 2 September, Dhaka South issued a fresh public notice warning that no market may be operated without a valid licence. It cites the 2022 regulations and the Local Government (City Corporation) Act, 2009, under which violators can face fines, closure, or prosecution.
The notice cautions that operating a market without a license will invite legal action under the city corporation act, with penalties applicable under its fifth schedule. It called on all stakeholders to cooperate with the city authorities in enforcing the regulations.
Dhaka South City Chief Estate Officer Hasiba Khan said, "We will carry out drives in phases and shut down illegal markets. Only those who register will be allowed to operate."
According to an internal planning, the drives will begin with formal notices and inspections, followed by sealing or closure of unregistered markets, and prosecution where necessary.
Officials and urban experts argue that regulation is not only about revenue.
Unlicensed markets can undermine public health and safety standards. They may lack proper waste disposal systems, fire safety measures, or structural stability. They also complicate traffic management and urban planning because they often spring up in unauthorised locations.
The 2022 regulations
According to the regulations, owners must obtain a licence from the South City Estate Department before establishing or running a private market; renew it annually within the set timeframe; comply with hygiene, safety, and zoning rules; and allow inspections by Dhaka South authorities.
Failure to secure or renew a licence is a punishable offence under Section 92 of the city corporation act, empowering the corporation to shut down markets, impose fines, and prosecute violators.
