In Delhi, the process of obtaining licenses and clearances is so complex and time-consuming that it has become a major hurdle for businesses. The city's regulatory structure is fragmented and cumbersome, creating opportunities for violations. A recent fire at a B&B in Hauz Rani highlighted the issue, where 25 rooms were operating despite a license for only six.
Delhi's Master Plan for Delhi (MPD) and Unified Building Bye-Laws (UBBL) determine how land can be used and what activities are permitted in residential, commercial, industrial, and mixed-use zones. However, the city's administrators have chosen to prioritize business over rules and regulations, leading to a demand-supply mismatch and illegal growth.
The Delhi Municipal Corporation (MCD) has attempted to address the issue by deregulating certain licenses and integrating them with property tax. However, experts argue that reforms should strengthen safety standards rather than weaken them. The Hauz Rani fire illustrates the consequences of a regulatory gap that allows businesses to operate without proper oversight.
Delhi's population is estimated at 25 million, but only around 13,000 establishments hold health trade licenses. The MCD has launched a new portal for health trade licenses, but the process remains complex and time-consuming. The city's industrial base is also suffering due to flawed licensing, pushing businesses towards non-conforming areas.
The Delhi Police have arrested the owner of the B&B for allegedly operating 26 rooms, but the bigger question remains - who was responsible to check for violations? The police have lost their powers to issue no-objection certificates for certain trade categories, and the system is now fragmented and weak.
