NEW DELHI: After scrapping the mandatory police licence for several categories of businesses, the Delhi government is now working on a proposal to do away with health trade licences for hotels, restaurants and other establishments.
Officials said the move is part of the government’s “ease of doing business” push and is being discussed with the Municipal Corporation of Delhi (MCD) and the Lieutenant Governor’s office.
Once the health trade licence is scrapped, the role of the MCD’s health inspectors will cease. Food safety checks will remain with the Food Safety and Standards Authority of India (FSSAI), while fire safety compliance will continue to be overseen by the fire department, said officials.
If cleared, the decision would directly benefit more than 50,000 traders in the Capital. “The proposal has been deliberated upon at multiple levels, including Raj Niwas, the Delhi Secretariat and the MCD. It can be finalised any time,” a senior government official said.
While no formal announcement has been made, officials suggested that an order could be issued soon. According to officials, the government believes that businesses should not be forced to approach multiple agencies for permissions. “Traders have already welcomed the removal of the police licence requirement. This additional step will cull the licence raj system,” said an official familiar with the matter.
Officials maintained that the move would not compromise public safety or result in revenue losses for the civic body. Sources indicated that the new framework may be linked to property tax, as was done with the abolition of the factory licence. However, hotels and restaurants may be required to pay an additional property tax in case they require a health trade licence separately.
According to estimates, nearly five lakh people are indirectly dependent on trades such as hotels, banquets, gyms and entertainment outlets. “The government is keen to ensure that regulatory checks remain in place while also simplifying compliance for businesses,” a senior official said.