(Updates with planned closure of shops, arrests) By Prithwish Ganguly NEW DELHI, Nov 7 (Reuters) - Police in New Delhi fired tear gas and used water cannon to disperse traders who stoned buses and damaged public property on Tuesday during protests against a drive to close illegal shops, police and witnesses said. The day-long strike which shut markets and schools came after the Supreme Court said on Monday the government should press ahead with a drive to close around about 40,000 shops operating illegally in residential areas of New Delhi. The capital's municipal authorities said they would restart their drive to seal these shops on Wednesday and were bracing for more violence. "The action will take place at areas where there is sufficient police force," said a senior official of the Municipal Corporation of Delhi. "There are hindrances. That is why security is a must." The government, under pressure from powerful trader groups in a city of 14 million people, had asked the Supreme Court for permission to hold off until the year-end but had to give in. The civic clean-up began earlier this year after the Supreme Court said shops on at least 2,000 city roads passing through residential areas were illegal and should be closed. About 40,000 traders were told to vacate their premises by the end of October or face having them closed. On Tuesday, sporadic trouble broke out near some markets in the city as traders stoned and shattered window panes and windshields of buses, clashed with police and damaged pavement railings and road-dividers, witnesses said. The protesters also marched through the city shouting slogans against the government and setting trash cans on fire. "Traders are demonstrating everywhere," said police spokesman Rajan Bhagat. "We had to use tear gas and water cannon in one place. Bhagat later said 120 people had been arrested for "disturbing law and order" and 465 people detained. Police said they were ready for more trouble on Wednesday. "We will make adequate arrangements and contain the violence," Bhagat said. Traders said they would resist moves to close their shops. "We will not allow anyone to seal our premises. This is our only earning source," said Praveen Khandelwal of the Confederation of All India Traders, which is spearheading the anti-sealing drive. A three-day strike last week by protesting traders shut markets and businesses and sparked violent protests. At least three people were killed during similar protests in September. Authorities ordered Delhi's schools shut on Tuesday and Wednesday as a precautionary measure. Traders say that hundreds of thousands of shop employees and owners would lose their jobs or income in the sealing drive. They have urged the government to make an emergency law that would overrule the court order and allow the shops to remain. But the government is undecided about such a move. Violations of zoning and building laws in the capital are common, aided by corrupt municipal officials. Urban planning experts say the city's infrastructure is unable to meet its growing population. (Additional reporting by Kamil Zaheer)
