To improve ease of doing business in the national Capital, the Ministry of Home Affairs (MHA) on Monday notified orders that exempt several business categories from requiring police licences in Delhi. The move, initiated by Lieutenant Governor VK Saxena and fast-tracked by Union Home Minister Amit Shah, marks a significant rollback of regulatory controls that have existed since the 1980s.
The MHA notification says that businesses such as swimming pools, eating houses, hotels, motels, guest houses, discotheques, video game parlours, amusement parks and auditoriums will no longer need police licences to operate in Delhi, instead authorities such as Municipal Corporation of Delhi (MCD), New Delhi Municipal Corporation (NDMC) and Delhi Cantonment have been given the responsibility.
This notification formalises the LG’s order issued on June 19, 2025, which was sent to the MHA for approval. Home Minister Shah’s intervention reportedly ensured its speedy notification.
Officials called the reform a “historic step” in aligning Delhi’s regulatory environment with the Central Government’s broader vision of “Maximum Governance, Minimum Government.” It followed partial liberalisation in October 2023, when some categories were given conditional exemptions under the Delhi Police Act. With the latest notification, the requirement of police permissions for these businesses has been completely abolished.
The reform follows Chief Minister Rekha Gupta’s appeal to the Prime Minister, Home Minister and the LG, highlighting how the existing licencing regime was causing delays, red tape and unnecessary harassment for entrepreneurs in the city. Her request brought fresh political attention to the issue, leading to a coordinated effort across state and central authorities.
As per officials, the MHA notification is expected to make setting up and running such businesses simpler, faster and less dependent on discretionary police clearances. Entrepreneurs and industry groups have welcomed the move, calling it a timely intervention that will boost economic activity and investor confidence in the Capital.
Officials believe the Delhi model could serve as a template for similar reforms in other States, setting the tone for nationwide efforts to remove outdated regulatory hurdles.