7 Delhi trades no longer need police licence
The seven trades were listed as “hotel/motel/guest houses, all eating houses or restaurants, swimming pools, discotheque, video game parlor, amusement park, and auditoriums”
In a move that will bring relief to thousands of commercial establishments in the national capital, lieutenant governor (LG) VK Saxena issued a directive doing away with the requisite of Delhi Police licensing clearance for seven types of trades, according to an order perused by HT.
The seven trades were listed as “hotel/motel/guest houses, all eating houses or restaurants, swimming pools, discotheque, video game parlor, amusement park, and auditoriums” in Delhi. The government has said that this will reduce the burden on the police and improve ease of doing business.
An order issued by the LG VK Saxena dated June 19, 2025, said: “I have now taken a considered view to repeal the regulations under Section 28 (1) of the Delhi Police Act, 1978, covering the seven trade activities mentioned at Para 1. In exercise of powers under section 28 (2) read with section 4 of Delhi Police Act, 1978, I hereby withdraw the sanction granted to Commissioner of Police, Delhi, for issuance of regulations under Section 28 (1) of the Delhi Police Act, 1978.....The Commissioner of Police is directed to issue a notification repealing the said regulations with immediate effect.”
An officer with the licensing unit of Delhi Police said: “We will follow the order as it comes to us. There’s always shortage of staff in security, traffic , crime branch and other departments. This could help as some staff could be transferred there.”
Delhi chief minister Rekha Gupta said: “Now the licensing process related to seven business sectors has been taken away from the police and handed over to the municipal bodies and related departments... Union home minister Amit Shah has also been of the clear opinion that the police force should be freed from non-core tasks and its energy and resources should be focused on law and order, security and crime control. Freeing the police force from non-core tasks in a highly pressurised metropolis like Delhi is in line with his policy.”
Gupta said that this was an ideal example of the Centre-state coordination and public welfare governance. “Delhi Police was burdened with the responsibility of licensing for years... this will not only increase coordination in the administrative structure, but will also help the police to focus on important areas like law and order, crime control and women’s safety.”
Delhi BJP chief Virendra Sachdeva said: “Once again, it is evident how quickly the aspirations of Delhi residents are being fulfilled with the formation of a ‘Triple Engine’ government.”
The LG’s order said that the commissioner had notified regulations for issuing licences, no-objection certificates and permissions for these trades, without the LG’s sanction and that the same stood withdrawn.
Saxena said that the move ensures “minimum government and maximum governance”, as it does away with multiple licensing regimes. The order states that Delhi high court and Supreme Court have previously said that the Delhi Police should be “focusing on law and order” rather than “responsibility of licensing” and that “existing system of police granting licences should be abolished”.
A government official said that a committee under the chairmanship of the additional chief secretary (home), with officers of Delhi Police, law and IT departments of the Delhi government was constituted to look into the entire gamut of licences and NoCs. “After considering the report of the committee, the then chief secretary while observing that Delhi Police is facing a shortage of staff, which affects its core policing duties, recommended that Delhi Police be relieved of the responsibilities of regulating licences in the respect of above seven trades,” the Raj Niwas order states.
To be sure, civic bodies, such as the Municipal Corporation of Delhi, New Delhi Municipal Council and Delhi Cantonment Board have also framed regulations to regulate these trade activities in terms of provisions of their respective acts. The licensing by Delhi Police was an additional layer.
“The overlapping of regulations issued under Delhi Police Act, 1978, and Municipal Laws, by multiple authorities for the above-mentioned activities, is impinging the overall ease of doing business,” Saxena said in the order, citing examples of Gujarat, Karnataka, Maharashtra and Goa, which have also implemented such a move previously.
Trade confederations, industries and stakeholders welcomed the move, saying it is likely to simplify regulations and reduce multiple licensing and NoC burden on traders.
Sandeep Anand Goyle, of the Delhi chapter of the National Restaurant Association of India, said the move was positive as it would bring more revenue to Delhi and increase investments in the HCR (hotels, clubs and restaurants) segment.
“Ease of doing business is expected from the order. The administration should ensure that on a unified licence portal, fire NoC, health trade licence and Delhi Pollution Control Committee (DPCC) consent order can be obtained. Industry is now hoping for a positive new excise policy,” he said.
Brijesh Goyal, who heads the Chamber of Trade and Industries (CTI) said that traders have had to obtain licences from multiple departments. “There was no separate need for the licence of Delhi Police and the businessmen were not comfortable with the police licence. We had appealed to abolish the Delhi Police licence and welcome this move,” he said.
However, former Uttar Pradesh director general of police (DGP), Vikram Singh, said that the order curtailing the authority of Delhi police commissioner is a retrograde step. “There is more than what meets the eye. Making Delhi police a toothless tiger and denying them the authority under some protect or the other does not seem to be appropriate.”
