MCD launches ‘instant’ permits for 67 categories of food businesses in Delhi

A senior MCD official explained that applicants will have to submit the prescribed license fee along with uploading of FSSAI certification.

A new lax trade licensing regime for 67 categories of food-related businesses – under which permits can be issued instantly without extensive documentation – took effect on Tuesday, with the Municipal Corporation of Delhi (MCD) operationalising its new health trade license portal, senior civic officials said.

The 67 deregulated trades fall into the following sub-categories: eating establishments (restaurants, banquet halls, coffee houses, food courts), storage and sale (paan shops, milk products, cold storage), hawking, and manufacturing units. (Representative)

Under the revised system, licenses for dozens of trades can now be issued instantly, and the certificate issued by the Food Safety and Standards Authority of India (FSSAI) will now be treated as a “deemed license” for several categories, including restaurants, banquet halls, food carts, and cloud kitchens.

A senior MCD official explained that applicants will have to submit the prescribed license fee, along with uploading the FSSAI certification.

“After filling the requisite information, an ‘instant licence’ will be generated in just 5-10 minutes. However, it will only be deemed a final license once the details submitted are verified over 21 days,” the official explained.

The 67 deregulated trades fall into the following sub-categories: eating establishments (restaurants, banquet halls, coffee houses, food courts), storage and sale (paan shops, milk products, cold storage), hawking, and manufacturing units.

Currently, around 13,000 licensed health trades exist under MCD, a number likely to rise significantly as the process eases.

Officials said that once an application is filed, verification will be completed within 21 days for all categories.

HT had reported on June 5 that 67 food-related trades were being deregulated. Following the Hauz Rani fire on June 3, the “instant” licensing system had been suspended after it emerged that the B&B owner had obtained an instant licence under the “tea and snacks” category and allegedly misused it to operate a full-blown kitchen and restaurant.

MCD officials, however, insisted the reforms are limited to food quality, hygiene standards and cooking conditions, pointing out that the onus of complying with structural and other norms will lie entirely with establishment operators. “Despite deregulation, licence holders will continue to be responsible for complying with fire safety norms, pollution control regulations and other statutory requirements,” another official said.

1964 norms upgraded

In a major reform, MCD has updated the dated 1964 guidelines to include modern facets of food trade, such as cloud kitchens. The new guidelines divide eating establishments into seven categories, including cloud kitchens, base kitchens, open-air restaurants, preheated food serving outlets, and now include items such as induction stoves. “The previous guidelines were framed in 1964, and there was no provision for new developments like cloud or base kitchens. With changing business models, it became necessary to update them. While anticipatory approval has been received for drafting these guidelines, implementation will require approval from the House,” officials said.

A second official explained that applicants must agree to the 31-point regulations before applying for the license.

“The licensee will completely indemnify MCD for any incidence of fire. Fire safety standards are to be taken care of by the licensee. The licensee will be squarely responsible for the fire safety of the premises.”