Over 300 hotels, firms can open 24/7 in Delhi

The 24/7 operations of the 314 establishments, which also include logistics and essential commodity firms, some call centres and e-commerce delivery platforms, will begin once the formal notification is out

More than 300 establishments including hotels, restaurants, medicine stores and transport services will soon be allowed to operate round the clock in the national capital, with Lieutenant Governor VK Saxena approving a proposal for exemptions under the Delhi Shops and Establishment Act, officials said on Sunday.

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Saxena has approved a proposal to grant exemptions to 314 such establishments; the applications of some of them were pending since 2016, an official said, adding that the move was aimed at revitalising the economy and boosting the Capital’s night life.

The LG has directed that a notification to this effect be issued within seven days, the official said. The 24/7 operations of the 314 establishments, which also include logistics and essential commodity firms, some call centres and e-commerce delivery platforms, will begin once the formal notification is out.

Another official, who asked not to be named, said that the Shops and Establishment Act, 1954 provides that exemption be given for each outlet separately. “If a pharmacy chain obtains exemption for one outlet, it cannot operate other outlets on the basis of exemption obtained for a particular outlet. The exemptions are shop- or establishments-specific,” the official said. “All those willing to operate 24x7, need to move an application seeking exemption,” the official added.

The decision was taken on a proposal moved by the labour department. The operation of all shops and establishments in the Capital is governed under the law mentioned above. The proposal was moved by the department through the elected government and was put before the LG through the office of chief minister Arvind Kejriwal, a third official said.

Serving liquor in restaurants and bars is currently permitted till 1am, and the exemptions to restaurants and hotels will not apply to the sale of alcohol.

The list of the 314 establishments was not immediately available. The third official said that many hotels, including some five-star hotels, applied to the labour department seeking 24x7 operations of their restaurants and room service, while a major online shopping platform sought permission for 24x7 delivery of goods. Some stand-alone restaurants also sought permission for 24x7 operations.

“The decision, providing exemption under Sections 14, 15 & 16 of the Delhi Shops & Establishment Act, 1954, is expected to boost employment generation and promote a positive and a favourable business environment that is a prerequisite for economic growth. The decision will also provide fillip to the much desired ‘night life’ in the city. Exemptions under Sections 14, 15 & 16 of the said Act enable commercial establishments to operate on a 24x7 basis, subject to certain conditions that entails welfare of labour and security, etc.,” the first official said.

Restaurateurs and traders have welcomed the LG’s move to permit 24x7 operation of businesses. “Night-time economy is a serious economy. It should have been done way before. Many people working in IT companies and other sectors who are busy during the day may come out in the night, and the restaurants may not face a crisis of customers during the night. It will create more jobs as well,” said Riyaaz Amlani, former president of National Restaurant Association of India.

Ashish Grover, general secretary of the Delhi Drugs Traders Association, also praised the move. “The medical stores of Delhi shut down at different times followed by different markets across the city.”

Some traders, however, raised concerns over law and order, and infrastructure. “While the police patrolling in major markets such as Connaught Place and Khan Market is high, the other markets do not witness similar confidence during night hours. The LG should ask the police to maintain high security during the night hours,” said a trader, who did not want to be named. Another trader said the lack of public transport during the night hours will affect customer footfall.

The officials said that the LG has taken a very serious view of and flagged issues of inordinate delay, adhocism, randomness and unjustified discretion on part of the labour department in disposing of the applications made by establishments for these exemptions.

“It may be noted that out of total 346 pending applications, 18 applications of 2016, 26 applications of 2017, 83 applications of 2018, 25 applications of 2019, 04 applications of 2020 and 74 applications of 2021 had not been processed by the labour department on time. These applications were kept pending for no reason even as just 02 applications, one of 2017 and another of 2021, were processed and sent for approval, in a display of unexplained discretion on part of the labour department, which strongly indicated prevalence of corrupt practices,” one of the officials said.

No reaction was available from the labour department or the Aam Aadmi Party (AAP) government on the alleged delay. Deputy chief minister Manish Sisodia is the labour minister of Delhi. A response from the Delhi Police on the law and order situation with regard to the 24x7 business operations by these establishments was awaited. Law and order comes under the preview of the LG in Delhi.

The officials said that the LG has noted while approving the proposal that inordinate delay in processing of such routine applications negatively affects the confidence of the business community at large.

The LG has also pointed out that it took repeated observations and persuasion from the LG Secretariat for the labour department to put in place a digital mechanism for receipt of applications. This, the LG said, showed reluctance on part of the labour department in adopting simple technological interventions that improved the regulatory framework for “Ease of Doing Business”, the officials said.

They said that the LG has strictly advised that such applications are disposed of within a prescribed timeline so that a conducive investor-friendly business environment can be created.

As per the Shops and Establishment Act, 1954 the opening and closing hours of all shops, within the urban, semi-urban and rural areas of Delhi are 9am and 7pm respectively, while in respect of commercial establishments within such territory, the opening and closing hours are 8am and 6pm respectively.