New Delhi: Nearly a year after announcing plans to ease business regulations by doing away with health trade licenses for eateries, MCD has now clarified that it wants to do away with the license for certain types of businesses only.Senior civic officials said that licenses by Food Safety and Standards Authority of India (FSSAI) would be treated as “deemed approved” by MCD for eateries, hotels etc.. All other businesses that require the health trade license will continue to remain under the MCD’s regulatory framework.“No health trade license is being abolished,” an official said.The health trade license is issued to regulate trades from the perspective of prevention and control of communicable diseases.What is being done is that for eating establishments already licensed by FSSAI, the license will be treated as deemed approval by MCD,” an official said.However, under this revised mechanism, owners of restaurants and eateries will still need to apply, upload their FSSAI certificate on the MCD portal and pay the prescribed municipal fee. However, no initial inspection by civic authorities will be required.The civic body currently issues health trade licenses across 97 categories, including eateries, swimming pools, dry-cleaning units and several other establishments.Officials said there are 17 categories where applicants right now need both a health trade license and a general trade license. A proposal to merge these into a single license (GTL) has been prepared and shared with the corporation’s standing committee.“Also there are certain categories which are neither covered under the FSSAI nor the general trade license, so in those cases the health trade license will be mandatory,” an official said.The licensing process has been simplified through an online system that requires the submission of fewer documents, officials added.The clarification comes after the Centre’s July 2025 reform push aimed at liberalizing Delhi’s business environment and positioning the capital as a preferred investment destination. Nitin Gupta, of Kamla Nagar Traders Association, said the decision to continue with the health trade license for certain trades is unjustified. “Why should a salon or dry cleaner pay full HTL. In the case of eateries, why is MCD charging a fee separately?” he asked.
