New Delhi: In a sweeping administrative reform hailed as a “historic day for Delhi,” Chief Minister Rekha Gupta on Monday announced that the Delhi Police will no longer be responsible for issuing business licences and No Objection Certificates (NOCs) for a wide range of commercial establishments. The responsibility has now been officially transferred to local civic bodies, a move aimed at streamlining processes and reducing bureaucratic red tape.
This significant decision will impact licensing for establishments such as hotels, motels, guest houses, restaurants, swimming pools, discotheques, amusement parks, video game parlours, and auditoriums. The reform, which has been under discussion for decades, finally gained traction following a directive issued by Lieutenant Governor VK Saxena over the weekend.
Calling it a “long-awaited” and “people-centric” decision, Chief Minister Rekha Gupta said, “This is a historic day for Delhi. With this major reform, police will now be able to dedicate their energy and resources to actual policing, crime control, women’s safety, and public security.” Gupta pointed out that this shift had been a demand pending for over 40 years, one that had hampered economic efficiency. “Nearly 25,000 establishments were getting delayed, and around 10 to 20 lakh people associated with them were suffering due to this public management bottleneck. That ends today,” she added.
Going forward, the Municipal Corporation of Delhi (MCD), New Delhi Municipal Council (NDMC), and the Delhi Cantonment Board will be the sole authorities responsible for issuing these licences. According to Gupta, the reform will pave the way for a single-window clearance system, thereby eliminating duplication and confusion that existed between departments.
“Double licensing used to create confusion about who would do what. With this reform, we are bringing in a single-window system to ensure transparency and efficiency. This is the benefit of a double-engine government,” she said. The Chief Minister praised the Centre for supporting the move, aligning it with Prime Minister Narendra Modi’s vision of ‘Minimum Government, Maximum Governance’. She also said it fits within the broader policy framework of promoting Ease of Doing Business in Delhi.
“We want to make the city not only the political capital of India but also a model of good governance. That is the mission of our double-engine government,” Gupta noted, adding that the new licensing framework would be digitised, transparent, and citizen-friendly.
The decision to remove the Delhi Police from the licensing process is not merely administrative, it carries major political and economic implications. The move addresses long-standing concerns from the hospitality and entertainment sectors, which have often accused the licensing system of being opaque and corruption-prone.
A policy expert familiar with urban administrative reforms, speaking on condition of anonymity stated, “By empowering local civic bodies, the government may reduce delays, simplify compliance, and boost investor confidence in Delhi’s business environment.”
“However, implementation will be key. The capacity of the MCD, NDMC, and other local bodies to manage this added responsibility remains to be tested. Issues such as staff training, digital infrastructure, and inter-agency coordination will be crucial,” he added.
Moreover, the reform could also set a precedent for decentralising other regulatory powers across cities in India. As Delhi looks to model itself as a future-ready metropolis, this move could become a template for urban governance reforms nationwide.