Delhi restaurants may no longer need key MCD licence: Industry welcomes move, civic officials flag concerns

Indian Express

21-07-2025

Following Lieutenant Governor V K Saxena's announcement that restaurants will no longer need to obtain a health trade licence from the Municipal Corporation of Delhi (MCD), the industry welcomed this move, while civic body officials expressed reservations over doing away with the key requirement.
At The Indian Express Expresso event on Friday, Saxena announced that restaurants in Delhi would no longer need to obtain MCD-issued licences. 'Today, there is a need for ease of doing business… People should not have to come to the government; the government should go to the people. We have ended the licensing system in the city. We have allowed three-star and four-star hotels to operate 24 hours… If we talk about the MCD licence, I would like to tell you that it was cleared in the last meeting… MCD licences will not be required for restaurants.'
The MCD's health department issues the health trade licence to restaurants, which is mandatory for operation and is valid for a minimum period of three years and a maximum of six years. Sources said the plan is to hand over the MCD's licensing process to the Food Safety and Standards Authority of India (FSSAI). It will cover all eateries from small takeaway joints, dhabas, and five-star restaurants.
Sandeep Anand Goyal, Delhi chapter head of the National Restaurant Association of India (NRAI), said the move is welcomed by the industry and they are awaiting an official announcement.
'It will become much easier and smoother for the industry to operate and progress in Delhi,' Goyal said. 'There was a procedure where documents related to the restaurant, the director or partner, and related enquiries had to be uploaded to get the health trade licence. This has been made simpler.'
On questions of possible violations of sanitation and hygiene conditions, Goyal said, 'In the organised sector, where big chains and family-run restaurants operate, brand goodwill is so important that no one will compromise on health and hygiene. It's critical to the sustainability of the business.' He added that the New Delhi Municipal Corporation (NMDC) should also scrap the health trade licence.
Manpreet Singh, owner of ZEN Restaurant and NRAI treasurer, said that the FSSAI license is already required for restaurants, and the authority does regular check-ups. 'It is difficult and time-consuming for an owner to apply for a licence at two places. It's duplication, since a lot of documentation work is required. It is better if only one licence is needed to run the restaurant.'
According to an official source, there are also plans to do away with the fire no-objection certificate (NoC) requirement for restaurants. Official sources in the MCD said there are approximately 10,000 licensed establishments in the city. These include hotels, motels, and banquet halls. Sources said there are an equal number of illegal establishments operating as well.
Owners of an establishment have to apply for three types of licences on the Modified Unified Portal for Licensing:
All these are issued within a month of filing the application.
The health department looks at several criteria before granting the licence: size of the establishment; windows and netted doors for ventilation; hygiene in kitchen and washing areas; availability of storage facility; medical certificate of food handlers; quality of water supply; pest management, among others.
According to the health department's guidelines, the premises need to be checked every six months. Owners must also obtain a licence from the FSSAI under the Food Safety and Standards (Licensing and Registration of Food Businesses) Rules, 2011.
Till last month, a fourth NOC was required from the Delhi Police as well. On June 19, the L-G passed a notification that police clearances would not be required for businesses such as hotels and restaurants.