In a New Year’s gift to the hospitality industry, Delhi LG VK Saxena on Saturday simplified licensing procedure and allowed restaurants in 5 and 4-star hotels, eating joints operating within airports, railway stations, and ISBT premises to operate 24×7 after payment of a necessary fee.
In a move to ensure ‘Ease of Doing Business’ and boost the ‘Night Time Economy’, the government has reduced the number of documents required for getting licenses. Applicants will no longer be required to upload 28 documents, an official statement said.
By combining the financial year or calendar year of all agencies including MCD, Delhi Police, Delhi Fire Services, and DPCC, the administration will now follow the financial year ending March 31st for the purpose of issuing and validity of licenses/NOCs. The Common Application Form has also been simplified from 21 pages and reduced to just 9 pages, the statement read adding, instead of multiple separate affidavits, a Single Common Undertaking has been introduced.
Further, from the grant of licenses for one year, the administration has expanded the licence period to three years for MCD, Delhi Police and Delhi Fire Service and nine years for DPCC.
In a move to make the process of acquiring a licence in a time-bound manner, applicants will now be able to get a license within a maximum of 49 days, with minimum human interface.
Documents Not Required Anymore
Documents like agency-specific affidavits, Liquor license proof, VAT registration, Weight and measures license, MCD affidavit, DPCC capital investment affidavits, water bill, electricity bills, Registration under the shops and establishment Act, affidavits regarding smoking area, Location maps, DPCC project report, proof of allotment of plot, ESI establishment registration proof, EPF registration proof, Music license, etc, has been removed from the list of required documents.
Application for Banquet Halls
As per the rules approved by the LG, applications for Banquet halls will not be looked into by Delhi Police. Applications for eating establishments of less than 90 square meters and lodging establishments below 12 meters in height will not be looked into by Delhi Fire Services anymore.
Hotels
All restaurants/eating houses in Five and Four Star Hotels, those within the airport, railway station and ISBT premises will be permitted to operate on a 24X7 basis after payment of necessary fee.
Three Star Hotels will be allowed to operate till 2 am, and in all other categories, they will be able to operate till 1 AM. Additionally, in Five and Four Star Hotels, the ceiling of only one restaurant getting a Bar license has been lifted. This will enable Five and Four Star Hotels to obtain separate liquor licenses for more than one restaurant/bar serving liquor within the hotel premises on payment of the license fee.
Fire Safety, Violations No Longer Under Delhi Police
Compliance to fire safety, environmental norms, structural and electrical safety and other safety aspects, which were earlier conducted by Delhi Police, will now be looked after by the respective agencies.
Actions like suspension, cancellation, revocation, cessation of operations, prosecution on any violation of license, registration Certificate or NOC granted under relevant statutes shall be taken by the respective agencies as per their own rules, the statement read.
Police verification of character/antecedents of applicants has been made completely faceless with online PCCs to be now issued in this regard by the Special Branch of Delhi Police, instead of the Local Police Stations.
Processing Fee
A processing fee of Rs 1,000 will have to be deposited at time of submission of online application form for grant of fresh license.
High-Power Committee Meeting
The LG in November had set up a high powered committee meeting to ease and facilitate license requirements for restaurants and eateries and directed it to examine the existing regulations and suggest ways of expediting the licensing processes. After, submission of a report by the Committee, liberalised regulations were formed after several rounds of meeting headed by LG with Chief Secretary, Police Commissioner, Pr. Secretary (Home), MCD Commissioner, Pr. Secy. (Environment), DFS and other concerned officers.
“As many as 2389 new applications for Eating Houses from 2022 and 2121 applications from 2021, are pending as of now. Similarly, 359 applications for Lodging Houses are pending for 2022,” the statement read. Various industry bodies and restaurant/hotel associations had met the LG and conveyed their concerns and the pain being faced due to the red tape ridden licensing regime in the City, it added.
What Next?
The report will now be sent to NIC to bring about necessary changes in the new application undertaking and will be uploaded on the MHA Licensing Portal. This is expected to be done in the next three weeks, and by January 26, entrepreneurs will be able to avail the business-friendly and liberalised licensing regime in Delhi.
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