NEW DELHI: At least three eateries in the city are operating as full-fledged cafés or restaurants despite holding Health Trade Licences meant for Tea and Snacks establishments, a ground check by The Morning Standard has found.
The three establishments represent only a small sample among hundreds of Tea and Snacks licence holders across the MCD’s 12 zones. Even so, the investigation points to potential gaps in how licence categories are updated and monitored, raising questions about whether businesses are keeping their licences aligned with expanding operations.
The investigation assumes greater significance because, in the first week of June, several violations—including the use of an incorrect licence—were reported at a B&B in Hauz Rani, where a fire claimed 23 lives. Among the violations was the establishment operating a full-fledged restaurant despite holding only a Tea and Snacks licence issued by MCD.
The ground check examined Tea and Snacks Health Trade Licences issued during FY2025-26 across the four Municipal Corporation of Delhi (MCD) zones that recorded the highest number of such licences. This newspaper accessed licence records, visited selected establishments and cross-checked their operations against publicly available information. Most licence holders were small neighbourhood takeaway outlets, which modestly expanded their menus beyond tea and light snacks.
However, among the eateries reviewed, three appeared to be functioning as restaurants, with dedicated seating areas and extensive menus serving a range of meals well beyond the activities permitted for Tea and Snacks establishments under the MCD’s licensing framework.
Apparent mismatch
According to an MCD public health official, a restaurant is an eating place engaged in the preparation, cooking, storage and service of food and beverages for immediate consumption, ordinarily providing seating for on-premises dining.
In contrast, a Tea and Snacks establishment is meant for preparing and selling tea, coffee and light snacks such as sandwiches, pakodas, biscuits and similar items, without providing seating for customers. Health Trade Licences also cover several other categories, including takeaway joints, dhabas and similar food businesses.
Licence records show Layla’s in Green Park, located in the city’s South Zone, holds a valid Tea and Snacks licence until March 2031. However, a visit found the outlet operating a takeaway-focused kitchen serving shawarmas, kebabs, fries, burgers and other meals, along with a small seating area for customers. Calls made to the owner seeking a response remained unanswered.
Uncle Tony’s in Janakpuri, West Zone, was found functioning as a restaurant with indoor seating and a menu extending far beyond tea and snacks. A visit revealed seating for 14-15 customers and dishes including tandoori items, pasta, burgers and other meals. Calls made to the contact number listed for the establishment reached a staff rather than the owner, and no response was received.
In the third case, Deja Bru, also located in Janakpuri, had indoor as well as outdoor seating for 25-30 people. The establishment served coffee and juices alongside noodles, pizzas, burgers and other prepared food items more commonly associated with restaurants than Tea and Snacks establishments.
‘Eateries required to update licence category’
Speaking to this newspaper, the owner said the business began in 2021 and was later expanded with additional seating and an extended menu. “We informed the MCD after expanding from a takeaway outlet to a restaurant or café, and civic officials also inspected our place during renewal,” he claimed.
In contrast, many other licence holders visited during the reporting were small neighbourhood shops selling tea alongside momos, noodles or other fast-food items, with minimal or no seating. While these establishments had also expanded beyond the narrow menu envisaged under the Tea and Snacks category, their scale of operation was substantially different from the three restaurant-style establishments.
Why does it matter?
Explaining the rationale behind separate Health Trade Licence categories for eating establishments, the MCD official said the civic body’s mandate extends beyond ensuring that food is safe for consumption.
While the Food Safety and Standards Authority of India (FSSAI) primarily regulates food safety, the MCD’s Health Trade Licence also assesses whether food is prepared and served in safe and hygienic premises. This includes minimum floor area, ceiling height, structural stability and other public health requirements.
The official said MCD norms prohibit practices like cooking in the open, citing scientific concerns that bird droppings, dust particles and air pollutants can contaminate food.
The licencing framework considers whether an establishment creates a nuisance for neighbouring properties through exhaust emissions and congestion arising from commercial activity, he added.
Updating licences
Another MCD public health official said establishments are required to update their licence category whenever the nature of their business changes. “Even if they fail to do so, the civic body is expected to identify such cases and take appropriate action,” he said, adding that while businesses are expected to comply with the conditions attached to the licence they obtain, MCD retains powers to inspect establishments, issue notices, revoke licences and initiate action against non-compliant businesses.
Licensing system overhaul
The check comes at a time when the MCD is changing the way Health Trade Licences are issued. “MCD continues to issue its own Health Trade Licence under the provisions of the Delhi Municipal Corporation Act, but the licencing process is being simplified for businesses holding valid FSSAI licences,” the official said.
Under the earlier system, officials conducted document verification and physical inspections before issuing a licence. Under the new system, eligible applicants can generate a Health Trade Licence online by uploading their FSSAI details and paying the prescribed fee, while physical inspections will be carried out based on risk assessment.
How strict is monitoring?
Despite claims of continued regulatory oversight, the operation of the three restaurant-style establishments identified during the ground check raises questions about how businesses that evolve beyond their original licence category are identified and monitored.
The ground check suggests similar cases may exist across different zones of the city. The MCD official acknowledged that identifying such establishments requires case-by-case scrutiny rather than merely reviewing licence records.
More importantly, the ground check points to a broader regulatory challenge. As neighbourhood eateries gradually expand their menus and operations, ensuring that licence categories accurately reflect the nature and scale of those businesses remains critical for effective public health regulation.
Licence process getting overhauled, says MCD
This newspaper examines Tea and Snacks Health Trade Licences issued during FY2025-26 across the four MCD zones that issued highest number of such licences. A ground check reveals that most licence holders were small neighbourhood takeaway outlets, which had expanded their menus beyond tea and light snacks, but didn’t upgrade their licences. The MCD is overhauling the process.