Delhi cabinet discusses Bill on ease of doing business

The Delhi cabinet on Tuesday discussed the government’s draft Delhi Ease of Doing Business Bill, 2026 – a proposed legislation aimed at reducing regulatory hurdles for businesses through a single-window clearance system, self-certification for low-risk enterprises, deemed approvals and a three-year exemption from routine inspections for eligible businesses

The Delhi cabinet on Tuesday discussed the government’s draft Delhi Ease of Doing Business Bill, 2026 – a proposed legislation aimed at reducing regulatory hurdles for businesses through a single-window clearance system, self-certification for low-risk enterprises, deemed approvals and a three-year exemption from routine inspections for eligible businesses.

Officials aware of the matter said that the draft was taken up at a cabinet meeting chaired by chief minister Rekha Gupta.

Officials aware of the matter said that the draft was taken up at a cabinet meeting chaired by chief minister Rekha Gupta. The cabinet directed the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) and the Delhi Development Authority (DDA) to prepare implementation rules before the Bill is moved further in the legislative process.

The proposed law seeks to consolidate approvals, registrations, licences and no-objection certificates (NOCs) on a unified online portal, eliminating the need for businesses to approach multiple departments separately. The government said the initiative forms part of the Centre’s Compliance Reduction and Deregulation Initiative Phase II and aligns with the objectives of the Jan Vishwas Act, 2023.

Under the draft, DSIIDC will act as the single nodal agency responsible for processing applications, coordinating with all departments and civic agencies, and issuing final approvals. Officials said the Bill also introduces a “deemed approval” mechanism, under which applications pending beyond the prescribed timeline would automatically be treated as approved, allowing applicants to download the clearance online.

The draft legislation proposes self-certification for specified low-risk activities, including fire safety compliance, building plan approvals, pollution-related permissions and low-tension electricity connections. It also seeks to remove the requirement for separate trade licences, health trade licences, eating house licences and Shops and Establishments registrations for businesses already registered under laws such as GST, the Food Safety and Standards Act, the MSMED Act or labour codes.

Another key proposal is a three-year exemption from routine inspections for newly registered businesses. Inspections would be permitted only in cases involving serious complaints. The Bill also proposes a “negative list” framework, under which business activities would be permitted unless specifically prohibited by the government.

To further reduce compliance, applicants will not be required to submit documents already available with any Delhi government department. In notified industrial areas, the draft proposes relaxing development control norms relating to floor area ratio (FAR), ground coverage, setbacks and building height to facilitate industrial expansion. It also shifts responsibility for common fire safety infrastructure in such industrial estates from individual units to DSIIDC.

The legislation further proposes standardising the validity period of licences and NOCs through government notification and allowing empanelled professionals, including those recognised by other states, to undertake verification and certification work.

Officials in the chief minister’s office said the objective is to create a transparent, time-bound approval system that reduces procedural delays and encourages investment.

“The objective is to create an administrative system where entrepreneurs and investors spend their time expanding their businesses instead of visiting government offices. We are developing a framework where approvals are simple, processes are transparent, decisions are taken within fixed timelines and unnecessary compliance requirements are removed. This will encourage investment, support industrial expansion and generate employment opportunities in Delhi,” officials said.

Officials added that the draft Bill will undergo the remaining approval process after the implementation rules are prepared by DSIIDC and DDA, following which it will be sent for further consideration in accordance with the prescribed legislative procedure.