Restaurant India News: NRAI Hails NDMC Reform Eliminating Separate Health Trade Permit Requirement

In a significant regulatory shift for the capital’s food service industry, the National Restaurant Association of India (NRAI), which represents over 5 lakh restaurants across the country, has welcomed a licensing reform introduced by the New Delhi Municipal Council (NDMC) with support from the Delhi Government.

Under the revised framework, restaurants and food establishments operating within NDMC jurisdiction will no longer need to obtain a separate municipal health trade licence if they already hold a valid registration or licence from the Food Safety and Standards Authority of India (FSSAI). The FSSAI approval will now be treated as a deemed health and trade licence under relevant provisions of the NDMC Act.

The move reduces duplication in compliance requirements and is expected to shorten approval timelines for both new and existing operators. Licensing complexity has historically been a barrier to entry and expansion, particularly in high-cost urban zones such as central Delhi.

The NRAI acknowledged the role of Hon'ble Lieutenant Governor Shri Vinai Kumar Saxena and the Delhi Government in enabling the reform, along with the efforts of the NRAI Delhi Chapter in engaging civic authorities on long-pending concerns related to overlapping municipal permissions. The decision also grants similar relief to other commercial establishments within NDMC limits, where valid GST registrations will now be recognised as deemed general trade licences.

While inspections by civic agencies will continue to ensure adherence to hygiene, sanitation, and public health norms, the removal of a separate municipal health trade permit eliminates an additional compliance layer that previously required annual renewals and documentation.

Sagar Daryani, President, NRAI, stated, ““This is a historic reform for Delhi’s restaurant community and a proud moment for the NRAI Delhi team. Restaurants operating in NDMC areas will no longer require a separate municipal Health Trade Licence, with FSSAI registration now recognised as the primary statutory requirement. The removal of this additional compliance layer marks a significant step toward regulatory simplification and ease of doing business.

On behalf of NRAI, we sincerely thank Hon’ble Lieutenant Governor Shri Vinai Kumar Saxena and Hon’ble Chief Minister Smt. Rekha Gupta for enabling this progressive and industry-friendly reform. This landmark decision not only streamlines processes in Delhi but also sets a strong precedent for other municipal corporations across India to rationalise and modernise their licensing frameworks.”

Sandeep Anand Goyle, NRAI Delhi Chapter Head, added, “This reform marks a defining moment for Delhi’s restaurant community and significantly strengthens the capital’s ease of doing business framework. As highlighted by Hon’ble Lieutenant Governor Shri V.K. Saxena, the removal of the mandatory MCD Health Trade Licence eliminates a redundant compliance layer for restaurants. We now look forward to the formal notification and operational clearance from the MCD to fully implement this progressive decision.

He further added “For years, the licence required annual renewals and often resulted in procedural delays, despite establishments already complying with FSSAI, fire and excise norms. This move will ease operational pressures, encourage new openings, generate employment and enable restaurateurs to focus on quality, innovation and growth rather than paperwork.”

For the hospitality sector, the reform is expected to improve Ease of Doing Business metrics in the capital, lower administrative friction, and create a more predictable regulatory environment. Industry stakeholders believe the decision could serve as a template for other municipal bodies evaluating licensing rationalisation. The NRAI has reiterated its commitment to continued collaboration with government and civic authorities to support a transparent and growth-oriented framework for India’s restaurant ecosystem.