MCD records 28 pc rise in food business licences after easing approval process

New Delhi, Jul 14 (PTI) The Municipal Corporation of Delhi has recorded a nearly 28 per cent increase in food business licences in the first month of its new licensing regime, with officials now planning surprise inspections to ensure establishments comply with the revised framework, officials said. The civic body issued 895 "deemed licences" between June 9 and July 10, compared to around 700 licences granted during the same period last year, according to official data. The increase comes after the MCD replaced its conventional health trade licensing system with a "deemed licence" regime for 67 categories of food businesses as part of the government's ease-of-doing-business reforms. Under the new system, food establishments no longer need to obtain a separate MCD health trade licence. Instead, an FSSAI registration or licence, along with the payment of the municipal fee, is treated as an MCD licence. Officials said the simplified process has made it easier for businesses to obtain licences, but acknowledged that the actual number of food establishments operating under the new system could be higher than the official figures. "Several businesses have obtained FSSAI registrations but are yet to pay the municipal fee, which is mandatory for the deemed licence to become effective. Many owners are under the impression that obtaining an FSSAI certificate alone is sufficient, but that is not the case. The deemed licence comes into force only after the municipal fee is deposited," a senior MCD official told PTI. To identify such establishments, the civic body is now planning a series of inspections across the city. "We have already begun inspections, and these will be intensified in the coming weeks. There will be random and surprise inspections, particularly at high-risk establishments. The objective is to verify whether businesses have completed the deemed licensing process, paid the municipal fee and are complying with the applicable provisions. Wherever violations are found, action will be taken," the official said. While the new regime has reduced paperwork for businesses, it has also raised questions within the civic body and among urban planning experts over the scope of scrutiny before food establishments begin operations. Under the earlier system, applicants seeking an MCD health trade licence had to submit a range of documents, including building-related records, layout plans and, in certain cases, fire safety clearances. The licensing process was also linked to provisions of the Master Plan for Delhi (MPD)-2021, ensuring that food businesses operated only in areas where such commercial activity was permissible. The revised framework no longer makes compliance with the Master Plan a condition for obtaining a deemed health trade licence. Instead, it provides that FSSAI guidelines will be adopted for issuing such licences, while placing the responsibility for ensuring public safety and protection of property on the licensee. Officials clarified that an FSSAI registration certifies only food safety and hygiene standards. It does not certify compliance with building by-laws, fire safety norms, occupancy limits, structural stability or land-use regulations. "An FSSAI licence is essentially a food safety certification. Compliance with other laws continues to be mandatory, but those aspects are no longer examined as part of the deemed licensing process. They are dealt with separately by the enforcement agencies concerned," another senior MCD official said. The policy has also revived concerns over the possibility of more food businesses operating in non-conforming areas, where the existing land use does not match the land use prescribed under the Master Plan. Experts said that while the deemed licence enables a business to operate from the food safety perspective, it does not exempt the establishment from action if it violates land-use norms, building regulations or fire safety requirements, and cautioned that removing these checks from the licensing stage could weaken regulatory oversight. "The Hauz Rani fire showed how a licence issued for one kind of activity was allegedly being used for something entirely different. Earlier, multiple documents were scrutinised before a health trade licence was granted. Now, much of the responsibility shifts to inspections after the business has already started operating," a former civic body official and an urban planning expert said. He said the concern was particularly in non-conforming localities, many of which have narrow lanes, congested neighbourhoods and inadequate infrastructure. "These areas were never planned for intensive commercial activity. If restaurants or other food establishments begin operating without adequate scrutiny, it can create safety risks and make emergency response more difficult. Enforcement, therefore, becomes even more important under the new system," he said. Under the Master Plan for Delhi, non-conforming areas are those where the existing use of land differs from the use permitted under planning norms, such as commercial establishments operating in residential neighbourhoods without the requisite approvals. Municipal officials, however, said the reforms were aimed at simplifying approvals and bringing unlicensed food establishments under the regulatory framework. They maintained that the deemed licence does not exempt businesses from complying with safety norms and said that action will be taken if violations are found. PTI MSJ PRK