Delhi: MCD cracks down on illegal commercial ops

Hindustan Times

13-05-2025

The Municipal Corporation of Delhi (MCD) has initiated a crackdown on unauthorised commercial activities operating in non-permitted areas by forfeiting conversion charges and revoking health trade licences, officials said.
The move follows the detection of fraudulent practices where individuals seemingly misused the online software application MCD's software system, exploiting a loophole, to make payments for conversion, parking, and registration fees and subsequently obtained receipts, civic officials said. These individuals also acquired health trade licences by submitting incomplete information, enabling them to run illegal commercial operations that violate Master Plan-2021 regulations, they added.
The online software application was originally developed by the MCD to streamline the payment of conversion, parking, and registration charges. However, these conversions are permitted only in conforming or permissible areas, as outlined under the Master Plan-2021. Despite this, several instances have emerged where individuals misused the software to make payments and generate receipts, which were then used to fraudulently obtain health trade licences—even though such conversions were not legally allowed.
While the exact number of such cases has not been disclosed, an MCD official confirmed that files are currently being scrutinised to identify more instances of misuse. 'We are also working to upgrade the software to automatically incorporate checks related to unauthorised colonies, road width, and permissible commercial activities so that such applications are flagged or rejected at the outset,' the official said.
'MCD is taking action against such illegal acts,' the civic body said in a public advisory. The authority added that it recently acted against such establishments, forfeiting conversion charges and cancelling health trade licences.
In its public advisory, the MCD warned the public against dealing with fraudulent operators, stating that under Master Plan-2021 guidelines, conversion is not allowed for illegal or unlisted activities, regardless of whether health licence fees were paid. 'Operating such activities will result in penalties,' the MCD said.
'We have urged the public to verify the permissibility of commercial activities from MCD's website or MCD office before depositing any conversion, parking, and registration charges or health trade licence charges,' the statement said. 'The use of premises is regulated by the provisions of Master Plan-2021. Likewise, a health trade licence can be issued only in the premises where the activity is permissible as per Master Plan-2021.'
The advisory further reiterated: 'People are also urged that whenever they are starting any new commercial activity in any area under the jurisdiction of MCD, they should verify the permissibility of the proposed activity from the website of MCD or from the MCD office before depositing any conversion, parking, and registration charges or health trade licence charges.'
Officials noted that in addition to unauthorised colonies, violations were also found in applications for roads less than 18 metres wide, which are not permissible for commercial activities. 'These facts were discovered during the random examination of documents submitted by applicants, including the addresses of commercial establishments,' an official said.