The Delhi government has withdrawn regulations requiring several commercial establishments to obtain licenses from the Delhi Police. Lieutenant Governor (LG) VK Saxena issued the order, which is effective immediately. This move aims to reduce bureaucratic hurdles, promote ease of doing business, and minimize potential harassment by regulatory agencies.
The order impacts seven categories of businesses, including hotels, motels, guest houses, eating houses or restaurants, swimming pools, discotheques, video game parlors, amusement parks, and auditoriums. Now, these establishments will no longer need to approach the Delhi Police for permission or No-Objection Certificates (NOCs) to operate. The licensing power will now be transferred to local bodies such as the Municipal Corporation of Delhi (MCD), New Delhi Municipal Council (NDMC), or Delhi Cantonment Board.
The decision has been welcomed by traders and industry stakeholders across the capital. They believe that it will simplify regulations, reduce the burden of multiple licenses and NOCs, and streamline operations in commercial hubs. Representatives from restaurant associations highlighted that Delhi and Kolkata were among the few cities that still mandated police licensing for eateries, a requirement they considered outdated and unnecessary.
The Hotel Association of India (HAI) also hailed the decision as a landmark reform that aligns with national efforts to improve ease of doing business. HAI believes that it will promote greater transparency, encourage investment, and boost tourism growth in the capital. K.B. Kachru, President of HAI and Chairman – South Asia, Radisson Hotel Group, stated that the streamlining of licensing norms would reduce compliance burdens and transaction costs, fostering Delhi's growth as a competitive and investment-friendly hospitality hub.
The withdrawal of these regulations reflects the central government's vision of "minimum government and maximum governance". The aim is to reduce multiple licensing regimes across states and Union Territories and simplify licensing procedures. Delhi Chief Minister Rekha Gupta stated that the reform aligns with the Centre's "Maximum Governance-Minimum Government" and "Ease of Doing Business" policy. Union Home Minister Amit Shah has also emphasized that the police force should be relieved of non-core duties to focus on law and order, security, and crime control.
The Delhi Police's Licensing Branch will now primarily deal with the grant or sanction of arms licenses and licenses for explosives. An officer with the licensing unit of Delhi Police noted that this move could help alleviate staff shortages in other departments, such as security, traffic, and crime branch, as some personnel could be transferred.
This decision comes after partial liberalization of licensing norms in October 2023. The current move fully eliminates police licensing requirements for the specified sectors. The Ministry of Home Affairs (MHA) notified the orders after Union Home Minister Amit Shah intervened for speedy clearance. The decision responds to a request from Delhi CM Rekha Gupta to reduce business regulatory hurdles.
