In a major regulatory reform aimed at easing compliance for food businesses, the New Delhi Municipal Council (NDMC) has announced that establishments operating within its jurisdiction will no longer need a separate ‘health licence’ to function. Going forward, a valid licence or registration from the Food Safety and Standards Authority of India (FSSAI) will be considered sufficient for legal operations.
FSSAI Licence to Act as Deemed Approval
Under the new directive, FSSAI licences or registrations—along with Goods and Services Tax (GST) registration—will be treated as deemed permissions in the NDMC area. The move is expected to bring significant relief to restaurants, eateries, and other food establishments that previously had to navigate multiple approval processes, often criticised as part of the so-called “inspector raj.”
Senior NDMC officials confirmed that both health licences and general trade licences issued by the civic body have now been waived for eligible food businesses, provided they hold valid FSSAI authorisation.
Reduced Compliance Burden for Food Operators
According to officials, the reform is part of a broader effort to soften regulatory oversight and lower the compliance burden on small and medium food enterprises. The waiver applies across the New Delhi Municipal area and is designed to streamline operations while encouraging entrepreneurship.
Key elements of the policy change include:
- Exemption from NDMC-issued health licences
- Waiver of general trade licences for food establishments
- Recognition of FSSAI approval as the primary regulatory clearance
Food Safety Norms Still Mandatory
Authorities clarified that while the health licence requirement has been removed, businesses must continue to strictly comply with all FSSAI regulations, food safety standards, and hygiene guidelines. Enforcement and monitoring under the central food regulator’s framework will remain in place.
Officials added that the decision marks a significant step toward improving the ease of doing business in the capital’s core administrative zone, signalling a shift toward simplified governance without diluting consumer protection standards.
The change is expected to benefit hundreds of eateries and food outlets operating under NDMC limits, cutting red tape while maintaining oversight through a single, unified regulatory system.
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