A major proposal under consideration is the elimination of mandatory health trade, general trade, and factory licences currently issued by the MCD and NDMC to commercial establishments across the city.
The Centre has also recommended that businesses already registered under GST or FSSAI be exempted from registering separately under the Shops and Establishment Act, which is administered by Delhi govt’s labour department, as per the TOI report.
The deregulation cell under the cabinet secretariat has pitched for bringing approvals from FSSAI, GST, ESIC, the fire department and Delhi Pollution Control Committee under a single-window system. Sources told TOI that the Centre has described these as “low-hanging fruits” that can be quickly “fructified” through executive orders or notifications, without the need to amend existing laws.
The push comes days after LG VK Saxena cleared a proposal withdrawing Delhi Police’s powers to issue licences to seven categories of businesses — swimming pools, eateries, hotels, guest houses, discotheques, video game parlours, amusement parks and auditoriums.
Officials said a recent presentation was made to the Prime Minister, highlighting reforms already introduced by the Lieutenant Governor to streamline business regulations in Delhi. Impressed by Saxena’s efforts, the PM directed officials to ensure that traders are no longer entangled in bureaucratic red tape while setting up operations. According to officials, the deregulation cell conducted an extensive review of existing laws and held multiple rounds of consultations with representatives from the Delhi government, MCD, NDMC, DDA, RERA, and the Union Ministry of Housing and Urban Affairs. These discussions, along with an analysis of best practices from other states, shaped the final set of recommendations aimed at untangling the regulatory web created by overlapping agency jurisdictions.One of the reforms — exempting GST- or FSSAI-registered businesses from mandatory Shops and Establishment Act registration — can be implemented via a labour department notification, reported TOI.
To streamline the process, the cell has suggested designating either MCD or NDMC as the nodal agency for all business-related licences. It has proposed that applicants be required to visit only one office for all approvals. It further recommended transferring powers to issue FSSAI and weights and measures licences to the civic agency and designating the MCD commissioner or NDMC chairperson as commissioner of food safety and controller of legal metrology.
“Any other licence for commercial activity currently handled by Delhi govt should also be brought under MCD to ensure a single point of contact,” the cell said.
The recommendations noted that these reforms would pave the way for a truly effective single-window clearance system. The Lieutenant Governor has been advised to bring all key stakeholders — including MCD, NDMC, FSSAI, GST, ESIC, EPF, fire services, and the DPCC — onto a unified platform to streamline approvals and coordination.
(with TOI inputs)
