In a move aimed at tackling the practice of paying “syndicate charges”, the West Bengal government on Monday announced that it would bring in a law to curb the culture of taking forced donations in the state which would in turn improve the climate for business and construction activity.
Presenting the Budget for 2026-27 in the Assembly, state Finance Minister Swapan Dasgupta said the proposed legislation would target unauthorised collections and informal charges allegedly imposed on residents, traders, builders and contractors by local syndicates and groups.
Law against ‘syndicate culture’
The proposed law is expected to address what has for years been described in Bengal’s political discourse as “syndicate culture,” which refers to the alleged practice of forcing individuals, home-builders and developers to procure construction materials through favoured local suppliers or pay extra sums to neighbourhood groups controlling labour, logistics and access to worksites.
It would also seek to curb the practice of coercive “donations” allegedly collected from residents, traders and contractors during festivals, club events, construction work and other local activities.
BJP’s action against ‘threat culture’
The announcement assumes significance as the BJP government, which came to power in the state last month, has repeatedly asserted that dismantling extortion networks and what it calls the prevailing “threat culture” would be one of its principal governance priorities.
Although Dasgupta did not spell out the provisions of the proposed legislation, the measure is expected to provide a legal framework to deal with unauthorised charges linked to construction activity, supply of building materials and forced monetary collections.
The move is also in line with the new government’s broader effort to project itself as pro-investment and business-friendly.
Improving ease of doing business
The budget speech outlined a series of measures aimed at improving the ease of doing business, alongside efforts to remove informal barriers and localised extortion that are often cited by sections of the business community as a deterrent to investment.
TMC vs BJP on ‘syndicate’ operations
Allegations of syndicate operations and forced donations have long figured in West Bengal’s political debate, particularly in relation to the construction sector and local club networks.
The erstwhile Trinamool Congress government, had often rejected such allegations of operating a widespread extortion system and maintained that isolated incidents were being politically exaggerated.
The proposed law is likely to be closely watched by the real estate sector, contractors, traders’ bodies and small businesses, many of whom have over the years complained of local pressure to make payments for construction, transport, loading and unloading, or community events.