Health Trade Licence – Delhi Survey Raises Questions Over Restaurant Licence Compliance
Health Trade Licence – A recent field verification has highlighted concerns over whether some food businesses have updated their licence categories in line with the expansion of their operations.
A field investigation has found that at least three food establishments in Delhi are operating as cafés or restaurants despite possessing Health Trade Licences issued for Tea and Snacks outlets. Although these businesses represent only a small number of licence holders across the Municipal Corporation of Delhi (MCD), the findings have drawn attention to possible shortcomings in monitoring whether commercial establishments revise their licence category after expanding their services. The issue has gained importance following recent discussions on regulatory compliance and public safety standards in the capital.
Field Inspection Reveals Licence Category Differences
The review focused on Tea and Snacks Health Trade Licences issued during the 2025-26 financial year across the four MCD zones that recorded the highest number of such approvals. Licence records were examined, selected businesses were visited, and their on-ground operations were compared with publicly available information.
Most of the inspected outlets were neighbourhood takeaway shops offering tea, beverages and a limited range of fast food. However, investigators found three establishments operating with restaurant-style facilities, including customer seating and extensive food menus, even though their licence category remained listed as Tea and Snacks.
The findings have attracted additional attention because a fire at a bed-and-breakfast property in Hauz Rani earlier this year reportedly exposed several regulatory violations, including the operation of a restaurant under an incorrect licence category.
Businesses Found Offering Expanded Restaurant Services
Among the establishments reviewed was Layla’s in Green Park, which holds a Tea and Snacks Health Trade Licence valid until March 2031. During the inspection, the outlet was seen serving shawarmas, burgers, kebabs, fries and other prepared meals while also providing limited seating for customers. Attempts to obtain a response from the owner were unsuccessful.
Another outlet, Uncle Tony’s in Janakpuri, was found functioning as a restaurant with indoor seating for around 15 customers. Its menu included tandoori dishes, burgers, pasta and several other meal options that extend beyond the traditional Tea and Snacks category. Contact attempts did not result in an official response.
A third establishment, Deja Bru in Janakpuri, featured both indoor and outdoor seating accommodating approximately 25 to 30 people. Besides coffee and beverages, it served pizzas, noodles, burgers and other prepared dishes commonly associated with full-service cafés.
MCD Explains Differences Between Licence Categories
According to an MCD public health official, a restaurant licence applies to establishments engaged in preparing, storing, cooking and serving food for immediate consumption while generally offering seating for diners.
In comparison, the Tea and Snacks category is intended for businesses serving tea, coffee and light refreshments such as sandwiches, pakodas and biscuits without customer seating. The civic body’s licensing framework also includes separate classifications for takeaway outlets, dhabas and other food businesses.
Business Owner Claims Civic Body Was Informed
The owner of one of the inspected establishments stated that the business initially began as a takeaway outlet before later expanding into a café-style operation with additional seating and a broader menu. According to the owner, MCD authorities were informed about the changes, and officials visited the premises during the licence renewal process.
Inspectors also observed several smaller neighbourhood shops selling tea along with items such as momos and noodles. While these businesses had diversified their menus, their overall scale and customer facilities remained significantly different from restaurant-style operations.
Public Health Standards Extend Beyond Food Safety
Officials explained that the Health Trade Licence system is designed to evaluate more than food quality. While the Food Safety and Standards Authority of India oversees food safety regulations, the MCD assesses whether food is prepared and served in hygienic premises that meet prescribed structural and public health standards.
Authorities said inspections also examine factors such as adequate floor space, building stability, ceiling height and the impact of commercial activity on neighbouring properties. Rules additionally discourage practices like open-air cooking because of concerns about dust, pollution and possible contamination.
Civic Body Revising Licensing System
MCD officials said businesses are expected to update their licence category whenever the nature of their operations changes. The corporation also has the authority to conduct inspections, issue notices, suspend licences and take action against establishments that fail to comply with applicable rules.
The civic body is currently revising the Health Trade Licence process. Under the updated system, eligible applicants holding valid FSSAI licences can obtain Health Trade Licences online after submitting required documents and paying the applicable fee. Physical inspections will continue based on risk assessment, while officials maintain that regulatory oversight will remain in place.