NRAI Welcomes NDMC Reform Removing Separate Health Trade Licence Requirement for FSSAI-Registered Restaurants

The National Restaurant Association of India (NRAI), which represents over five lakh restaurants across the country, has welcomed the licensing reforms announced by the New Delhi Municipal Council and supported by the Delhi Government that exempt restaurants and food establishments from obtaining separate municipal health trade licences if they hold a valid registration or licence from the Food Safety and Standards Authority of India (FSSAI).

In a step aimed at improving Ease of Doing Business, NDMC has decided that FSSAI-registered restaurants and cafés operating within its jurisdiction will no longer need to apply for a separate health trade permit from the local authority. Instead, the FSSAI licence will be treated as a presumed health and trade licence under the relevant provisions of the NDMC Act.

The NRAI expressed gratitude to Hon’ble Lieutenant Governor Vinai Kumar Saxena, the Delhi Government, and NDMC for introducing the reform. The association also acknowledged the efforts of its Delhi Chapter leadership for engaging with authorities on concerns related to duplicative municipal licensing systems. The decision also extends relief to other commercial establishments within NDMC limits, where valid GST registrations will be recognised as deemed general trade licences.

According to the NRAI, the reform reduces redundancy, simplifies regulatory requirements, lowers procedural delays, and benefits both existing businesses and new entrants in Delhi’s food service sector. Civic authority inspections will continue to ensure compliance with public health, hygiene, and sanitation standards.

Reacting to the development, 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.”

Speaking on the occasion, Sandeep Anand Goyle, NRAI Delhi Chapter Head, said: “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.”

The NRAI reiterated its commitment to working with government agencies and civic authorities to help build a transparent, efficient, and growth-oriented regulatory environment for India’s restaurant sector.