The Municipal Corporation of Delhi (MCD) has issued an order deregulating health trade licences for 67 out of 97 categories that previously required such permissions. This move comes amid an ongoing blame game over the Hauz Rani bed and breakfast fire incident.
FSSAI Registration as Deemed Licence
Under the new order, the licence or registration document issued by the Food Safety and Standards Authority of India (FSSAI) will be treated as a health trade licence for these 67 categories of businesses. Among the beneficiaries are tea and snack stalls, a category under which a licence was issued to the Hauz Rani establishment, allowing it to serve only tea and readymade snacks. The bed and breakfast allegedly ran a restaurant-like operation from there.
Boost to Ease of Doing Business
MCD called the move an initiative to boost the ease of doing business. It clarified that restaurants will no longer be required to obtain a separate health trade licence from the civic body. An official stated, "We currently have around 13,000 licences on record. Deregulation will effectively widen the licensing net because food businesses in both conforming and non-conforming areas will now be covered through FSSAI licences, which was not the case earlier."
The order further states, "Under Sections 417, 420 and 421 of the DMC Act, 1957, FSSAI registration/licence shall henceforth be treated as a deemed health trade licence for food businesses. However, licensees must comply with fire safety, pollution control and other statutory norms prescribed by MCD and other government agencies and obtain all requisite clearances. The responsibility for ensuring public safety will rest entirely with the licensee."
Delayed Implementation
The order comes more than a year after the previous lieutenant governor announced the decision to simplify licensing requirements. Sources said the delay was caused by internal deliberations over the categories that should be exempted from MCD licensing. "It was only after obtaining the anticipatory approval from the deliberative wing that the order was issued," said an official familiar with the matter.
Enforcement and Concerns
An MCD official said, "The deemed licence provision will also not prevent government agencies from taking action against unauthorised construction. We will anyway continue with risk-based assessment." However, experts fear the situation may worsen. "At a time when widespread violations are being reported despite MCD issuing licences and conducting inspections, relying solely on FSSAI licences may further complicate enforcement," said an expert.
A senior MCD official told TOI that the order has been issued recently and the transition process is under way. "The portal has been discontinued for fresh applications and renewals. Modifications are being made to redirect applicants to the FSSAI portal," the official said. However, TOI found the portal fully operational on Friday. Officials later said the transition process may take at least 15 days.
Categories Affected
The 67 deregulated categories include banquet halls, coffee houses, eateries, restaurants, food courts, dhabas, canteens, refreshment rooms, ice-cream parlours and independent food outlets. Hotels, guesthouses, swimming pools, salons and amusement parks will still have to acquire MCD licences.
