The new automated trade licence system introduced by the Dhaka North City Corporation (DNCC) has triggered concerns over potential revenue loss and a surge in fraudulent activities, officials say.

The new system, introduced following an office order by DNCC Chief Revenue Officer Md Moniruzzaman dated 9 March 2025, enables applicants to obtain trade licence online without mandatory verification by designated supervisors.

The new policy was taken following a decision of a meeting chaired by new DNCC Administrator Mohammad Azaz.

This process, aimed at simplifying the licence issuance, has instead created loopholes for unscrupulous individuals to exploit, according to DNCC officials.

Under the previous system, applications underwent a rigorous vetting process involving trade licence supervisors and taxation officers before being finally approved by the zonal executive officers.

However, the automated system bypasses these important checks, allowing licences to be generated with potentially false documents, incorrect business classifications, and even for operations in restricted areas. There is no chance for assessing the fees too.

An applicant can download a licence within a day of application.

In the 9 March office order, a copy of which was obtained by the Daily Sun, the DNCC chief revenue officer instructed trade licence and advertisement supervisors to suspend the auto-generated licences if there is any document gap by one day.

However, a trade licence supervisor, wishing anonymity, told the Daily Sun that the online system lacks any suspension mechanism. “There is no system for suspension in the existing system. Besides, if the option is created, then there is also a problem because if a newly issued licence is suspended, we have to face public wrath.”

According to the DNCC Citizen Charter, one client will get a trade licence within three days from the application for general trade and the duration is seven days in the case of special businesses like chemicals.

“Within just a few days, we discovered that many people took trade licences with fake documents, at fake addresses and lowered fees,” said a supervisor, wishing anonymity.

Talking to the Daily Sun, Moniruzzaman acknowledged that they were having issues arising from the automated licensing system, noting that they informed the administrator of the matter.

He explained that trade licence supervisors face an overwhelming workload, processing 25-30 applications daily, making thorough vetting nearly impossible.

“We are not giving any licence to special types of businesses like bars and clinics that require permission from the Fire Service, Department of Explosives and Department of Environment. If there is any gap in the system we will rectify it. Besides, if anyone takes trade licence with fake information related to address, nature of business and lowering measurement of advertisement to avoid higher taxes, the licence will not save him from legal action.”   

Meanwhile, DNCC Administrator Mohammad Azaz said the approval power of the officials was cut to root out corruption and bribery to get the trade licence.

He said, “Nobody gets a trade licence at government-fixed fees and instead has to pay additional Tk10,000-15,000 above original fees. The money      is taken during the approval stage and that is why we have introduced an auto-generated licence. But we are facing some challenges which will be addressed gradually. We will plug the loopholes.” 

Asked about submitting fake documents and addresses, Azaz said, “Before the introduction of the auto-generated licence system, traders take licences for businesses at residential areas like Gulshan, Banani and Mirpur through bribery. It could not be prevented. No inspector visited the business locations and documents properly but now we will recruit 300 people on a contractual basis to check the information of the trade licences.”

He claimed that the revenue from trade licences has increased after the introduction of the new system.

According to the DNCC data, 42,806 trade licences were issued and 1,13,665 renewed in 2023-24 fiscal year. It has also issued 39,478 trade licences till 22 March of fiscal year 2024-25 while renewed 1,11,399 others.