New Delhi: Nearly a year after announcing plans to ease business regulations by doing away with health trade licences for eateries, the Municipal Corporation of Delhi (MCD) has now clarified that it wants to do away with the licence only for certain types of businesses.
Deemed Approval for FSSAI-Licensed Establishments
Senior civic officials explained that licences issued by the Food Safety and Standards Authority of India (FSSAI) would be treated as "deemed approved" by the MCD for eateries, hotels, and similar establishments. However, all other businesses that require the health trade licence will continue to remain under the MCD's regulatory framework.
"No health trade licence is being abolished," an official clarified. "The health trade licence is issued to regulate trades from the perspective of prevention and control of communicable diseases. What is being done is that for eating establishments already licensed by FSSAI, the licence will be treated as deemed approval by MCD."
Revised Mechanism for Eateries
Under this revised mechanism, owners of restaurants and eateries will still need to apply by uploading their FSSAI certificate on the MCD portal and pay the prescribed municipal fee. However, no initial inspection by civic authorities will be required, streamlining the process.
Categories and Licence Merging
The civic body currently issues health trade licences across 97 categories, including eateries, swimming pools, dry-cleaning units, and several other establishments. Officials noted that there are 17 categories where applicants currently need both a health trade licence and a general trade licence. A proposal to merge these into a single licence (GTL) has been prepared and shared with the corporation's standing committee.
"Also, there are certain categories which are neither covered under the FSSAI nor the general trade licence, so in those cases the health trade licence will be mandatory," an official added. The licensing process has been simplified through an online system that requires the submission of fewer documents.
Background and Criticism
The clarification comes after the Centre's July 2025 reform push aimed at liberalising Delhi's business environment and positioning the capital as a preferred investment destination. Nitin Gupta of the Kamla Nagar Traders Association criticised the decision, saying, "Why should a salon or dry cleaner pay full HTL? In the case of eateries, why is MCD charging a fee separately?"
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