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Delhi LG Issues Orders To Scrap Delhi Police License Required In 7 Categories For Hotels, Restaurants

Business owners in Delhi no longer need a Delhi Police licence for operating eateries, hotels, parks, and similar establishments. The move, ordered by LG Vinai Kumar Saxena, aims to reduce red tape and compliance burden. Traders welcomed the decision as a step toward "minimum government, maximum governance."

Published By: Simran Babbar
Last Updated: June 23, 2025 12:22:54 IST

Now, business owners and establishments of eateries, discotheques, and amusement parks in the national capital will no longer require a license certificate from the Delhi police for operational activity. 

The Business owners in the National Capital have welcomed the abolishment of the need for a Delhi Police licence for commercial establishments, calling it a major relief from red tape. 

Brijesh Goyal, the Chairman of the Chamber of Trade and Industry (CTI) while welcoming the move has said that in Delhi, the traders have to take licenses of different departments like MCD, DPCC, Fire Department, GST, Excise etc. He further stressed that there was no separate need for the license of Delhi Police and the businessmen were not comfortable with issuing the license from the Delhi police, which often led to delays and complications. 

“The move will ease the compliance burden on traders, who were already required to obtain clearances from multiple departments such as the Municipal Corporation of Delhi, Delhi Pollution Control Committee, Fire Department, GST, and Excise,” he added. 

A few days ago, during a meeting with Delhi Industry Minister Manjinder Sirsa, the top trade body Chamber of Trade and Industry, had issued an appeal to abolish the police license for needed permissions.  CTI Chairperson Brijesh Goyal said Sirsa assured traders he supported the demand and would take it up with the authorities.

After some deliberations, the Delhi LG Vinay Kumar Saxena on Sunday issued an order withdrawing the licence requirement under the Delhi Police Act, 1978. It stated that the license of Delhi Police will no longer be required across these seven categories: swimming pools, hotels, motels, guest houses, eating houses, discotheques, video game parlours, amusement parks, and auditoriums. In the June 19 order, the Delhi Police’s licensing branch will now only deal with the grant or sanction of arms licences and licences for explosives. 

The order stated, “stated, “…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, covering the seven activities mentioned at Para 1.”

The L-G directed the Commissioner of Police to issue a notification “repealing the said regulations with immediate effect”. The order further said, “The repeal notification shall be given wide publicity by Delhi Police and the Home Department.” 

The order further noted that the Centre, with an intention to achieve the motto of “minimum government and maximum governance”, has taken up an initiative to reduce multiple licensing regimes, being followed in different states and Union Territories (UTs), and requested simplifying licensing procedures.

It is also important to note that LG Saxena while citing the 2 court orders said the Delhi High Court, in a 2003 judgment of Uphaar Cinema tragedy, had recommended that “Delhi Police should only be concerned with Law and Order, and entrusting of responsibility of licensing on the police force is an additional burden…”  The LG also further stated it had also suggested that “the existing system of police granting licences should be abolished”, citing a Supreme Court judgment that affirmed the recommendations of the High Court. 

LG Saxena said some “progressive states”, like Gujarat, Karnataka, Maharashtra and Goa, have already done away with the requirement of licences from police for these trade categories.

The Chamber of Trade and Industry CTI, the top organisation of traders and entrepreneurs in Delhi, has welcomed the move and said the industry players plan to meet Sirsa next week to thank him for his support.

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