This seems like an old-style horror movie where the villain and his henchmen extort a village and everybody is too afraid to complain or resist as they face dire consequences. 

How many more such henchmen are extorting small vendors etc through strong-arm tactics and threats of injury or even death? How many hawkers are paying up? We hear that there is a hawkers’ mafia in different areas, controlled by a henchman who collects regular payment through goons.
 
The only way to stem this is to complain collectively. Go right down to the root of what is a criminal and extortion-driven ecosystem. There may be people of authority in collusion with these henchmen. That too, needs to be investigated. There has to be seen if this is a pattern across the city, maybe not as brazen, but in different avatars. 

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For people to live in fear, bow down to criminal force and feel they have no option to complain or avenue for justice is certainly a very unhealthy or no way to live and a pointer of corruption endemic in society.