Delhi restaurants still require health trade licence but in a modified form, clarifies civic body

A proposal regarding the modified regime has been moved by the public health department and will require approval from the deliberative wing, officials said.

Almost a year after former lieutenant governor announced the abolition of the health trade licence for restaurants under the government’s ease of doing business push, the Municipal Corporation of Delhi (MCD) clarified on Monday that the health trade licence regime to continue, albeit in a modified form.

An official overseeing the process said around 97 types of trades fall under the MCD’s health trade licence regime, including restaurants, hotels, guest houses, swimming pools, banquet halls and coffee houses. (File Photo/HT )

Establishments may have to submit Food Safety and Standards Authority of India (FSSAI) certification along with paying the licensing fee, civic officials said, adding that hotels, restaurants and similar trades will continue to require a health trade licence.

A proposal regarding the modified regime has been moved by the public health department and will require approval from the deliberative wing, officials said.

In contrast, the New Delhi Municipal Council (NDMC) announced on January 21 that there would be no need for separate licences beyond FSSAI and GST registrations. MCD’s move will effectively result in two different licensing regimes in the city — one in MCD areas and another in NDMC areas.

An official said the health trade licensing was not being abolished because its key objective is the prevention and control of communicable diseases and maintaining public health.

“So we decided to modify the existing regime in which restaurants will be able to obtain an FSSAI certificate and use that to apply for a health trade licence. They will have to pay the MCD licensing fee. The FSSAI certificate will ensure that an inspection at the time of application is not required. We reserve the right to undertake inspections at later stages,” the official said.

A second official overseeing the process said around 97 types of trades fall under the MCD’s health trade licence regime, including restaurants, hotels, guest houses, swimming pools, banquet halls and coffee houses.

“Of these, 17 types of trades will be moved to the general trade licensing regime. MCD has already merged general trade licensing with property tax. The remaining 80 trades, including hotels and restaurants, will continue under the modified health trade licence (HTL) regime,” the official explained.

The restaurant and hospitality industry has long argued that the FSSAI certificate, which serves a similar purpose, should eliminate the need for a separate health trade licence.

“Under the ease of doing business push by both the Centre and the Delhi government, it was announced that steps would be taken to reduce the licensing burden. The abolition of the police licence for eating houses was a major relief and so was the announcement that the health trade licence would also go. NDMC has already implemented it and the industry has been eagerly looking forward to the MCD following suit,” said Sandeep Anand Goyle, Delhi chapter head of National Restaurant Association of India.