New Delhi | Special Correspondent: Arun Sharma

In a significant move aimed at improving the ease of doing business, the New Delhi Municipal Council (NDMC) has announced a major regulatory relief for restaurants, cafés and other commercial establishments operating in Lutyens’ Delhi. The civic body has decided to waive the mandatory requirement of obtaining separate health and general trade licences for such establishments, a step expected to streamline operations and reduce administrative hurdles.


The decision was taken at a recent NDMC Council meeting following sustained representations from traders and business owners, particularly from Connaught Place and surrounding markets. Officials said the move is intended to promote a more business-friendly environment while ensuring that regulatory oversight remains intact.


NDMC clarified that the exemption will be subject to compliance with existing statutory requirements, including valid Food Safety and Standards Authority of India (FSSAI) registration and GST registration, wherever applicable. “Food safety, hygiene and sanitation standards will continue to be strictly monitored through regular inspections,” a senior NDMC official said, emphasising that the waiver does not dilute regulatory accountability.


NDMC Vice-Chairman Kuljeet Chahal said the decision addresses long-standing concerns over procedural delays and overlapping licensing norms. “Our objective is to facilitate legitimate business activity and end unnecessary ‘licence raj’, without compromising public health or safety,” he said.


However, the civic body made it clear that cases currently pending in courts due to non-issuance of licences under the NDMC Act will remain subject to the orders of the Delhi High Court. In such matters, the deemed licensing provision will not apply automatically, and decisions will be taken on a case-to-case basis.


To offset any potential revenue impact, NDMC is simultaneously exploring alternative mechanisms, including a shift towards a unit area-based system for property tax assessment, replacing the existing market rent-based model in certain cases. Officials stressed that there is no immediate plan to impose additional taxes on the public.


The move has been widely welcomed by the business community, which views it as a progressive reform that could boost investor confidence, encourage entrepreneurship and improve compliance by simplifying rules. Urban policy experts say the decision reflects NDMC’s attempt to balance economic facilitation with civic responsibility in one of the capital’s most prominent commercial zones.


Overall, the decision underscores NDMC’s proactive governance approach, signalling a shift towards regulatory simplification while maintaining strict oversight on hygiene, safety and public interest in the heart of the national capital.