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MCD seals 54 jewellery units in Chandni Chowk over basement misuse

The Municipal Corporation of Delhi (MCD) on Thursday sealed several jewellery units in basements of buildings in Chandni Chowk’s Kucha Mahajani over alleged misuse of basements for commercial activities, officials said

Published on: Sep 11, 2026, 07:37:30 IST
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The Municipal Corporation of Delhi (MCD) on Thursday sealed several jewellery units in basements of buildings in Chandni Chowk’s Kucha Mahajani over alleged misuse of basements for commercial activities, officials said. Traders alleged that they were given no prior warning about Thursday’s action, leaving bullion worth crores of rupees locked inside some of them.

A view of a sealed shop in the basement of Kucha Mahajani, Chandni Chowk in Delhi on Thursday. (Sanjeev Verma/Hindustan Times)
A view of a sealed shop in the basement of Kucha Mahajani, Chandni Chowk in Delhi on Thursday. (Sanjeev Verma/Hindustan Times)

According to MCD, teams, accompanied by police personnel, arrived around 11.30am and began sealing the units. Notices pasted outside the shops stated that the basements were being used for commercial purposes in violation of the Master Plan for Delhi-2021.

“Notice was issued to the owner of the shop directing thereby to stop the misuse of the basement and bring the premises under permitted use within 48 hours. Basement cannot be used for commercial activity,” said the notices, adding that hearings in the matter had also been held.

“Acting on the directions of the Supreme Court, MCD carried out sealing action against 54 illegal shops operating from basements in Kucha Mahajani, Chandni Chowk. The action was taken against illegal commercial activities being carried out in violations including non-compliance with mandatory fire department and other statutory clearances. Sealing orders were issued under Section 345-A with Section 347 of the DMC Act.”

Under the Master Plan for Delhi-2021, basements can be used only for specified purposes, parking, and storage purposes, and cannot be used for human habitation or unauthorised commercial activities.

The sealing drive comes amid increased scrutiny of illegal construction and misuse of properties following the Satya Niketan building collapse, which claimed seven lives.

Yogesh Singhal, president of the All India Bullion and Jewellers Association, questioned the action against the traders. “The question is whether, after the Satya Niketan tragedy, only traders will have to bear the brunt of this tragedy or whether action will also be taken against any government department and politicians. They should focus on PGs and illegal units. Why are trading hubs being targeted?”

Singhal said notices had been issued in 2019, following which traders submitted the requisite documents, but alleged that MCD teams began Thursday’s drive even before the market had opened. He said 54 basement units across four buildings were sealed.

Kucha Mahajani, located in Chandni Chowk, is one of Old Delhi’s major wholesale jewellery and bullion markets. The densely built market dates to the Mughal-era development of Chandni Chowk and, like several parts of the Walled City, faces problems including congestion, ageing buildings, overhead wires and water seepage.

Singhal said the government should work with traders on redevelopment of the market. “The intent should be to find a solution to the problem. Old Delhi needs redevelopment of its commercial hubs, but if the government has already decided to force us to move...” he said.

 
ABOUT THE AUTHOR
Paras Singh

Paras Singh is a New Delhi-based journalist with Hindustan Times, where he serves as Deputy Metro Editor. He reports on urban governance, the Delhi government, the Delhi BJP, water management, the environment, communities and city life. He joined Hindustan Times in 2021 after beginning his journalism career at The Times of India in 2016, where he covered civic bodies, the water and power sectors, and urban infrastructure. Over the last decade, some of his reporting has led to significant public impact, with investigations into environmental violations, corruption and illegal industrial activity contributing to multiple judicial interventions by the National Green Tribunal and the Delhi High Court. A graduate of St. Stephen's College, University of Delhi, Paras studied journalism from the Indian Institute of Mass Communication (IIMC), New Delhi. Having extensively covered the capital's evolving civic and governance landscape, his recent work increasingly explores Delhi's history, built heritage, urban evolution and the relationship between people and place, alongside continuing to report on governance and public policy.

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