No Routine Inspections for 3 Years: Delhi Cabinet Clears Ease of Doing Business Bill
The Delhi Cabinet has approved the draft for the Ease of Doing Business Bill, 2026, that proposes self-certification for low-risk industries and no routine inspections for three years.
The proposed law will do away with the need for businesses to approach multiple departments for approvals, registrations, licences, No Objection Certificates (NOCs) and other permissions, the Delhi CMO said in the statement issued Wednesday.
A significant feature of the bill is the provision for deemed approval. If the competent authority fails to decide an application within the prescribed timeframe, the relevant approval, registration or NOC will be deemed to have been granted automatically, Gupta said.
The applicant will be able to download it directly from the online portal. This will eliminate unnecessary pendency of files and delays in decision-making.
A Single Window System will be established to provide all major business approvals, registrations, NOCs and utility connections through a single online portal. Services such as building plan approvals, factory licences, fire clearances, water, sewer and electricity connections, RERA registrations and co-operative society registrations, among others, will be processed through this portal within prescribed timelines.
The bill was deliberated and passed in the cabinet meeting chaired by Chief Minister Rekha Gupta on Tuesday. The legislation, already approved by the Cabinet, has been sent to the Union Home Ministry for further necessary action, it said.
Gupta said the bill is prepared under the Government of India's Compliance Reduction and Deregulation Initiative (Phase II) and is in line with the spirit of the Jan Vishwas Bill, 2023.
The government is working towards creating a system where approvals are easier to obtain, procedures are clear, decisions are taken within fixed timelines and unnecessary compliance burdens are eliminated, she said.
Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) will be the nodal agency for the entire approval process, from the receipt of applications to the grant of final approvals.
The chief minister said the bill also proposes to relax several development control norms in notified industrial areas by removing restrictions related to Floor Area Ratio (FAR), ground coverage, setbacks and building height to facilitate industrial expansion.
The self-certification system will be introduced for low-risk activities. Under specified categories, procedures relating to fire safety, building plan approvals, pollution-related permissions and low-tension electricity connections will be completed based on self-declaration.
This will enable small, low-risk and low-hazard enterprises to commence operations without unnecessary delays. Enterprises already registered under GST, FSSAI, the MSMED Act or the Labour Codes will not be required to obtain separate trade licences, health trade licences, eating house licences or Shops and Establishments registrations, the CMO said.
This will eliminate multiple licensing requirements for the same purpose and significantly reduce the compliance burden on businesses.
Gupta said under normal circumstances, there will be no routine inspections for three years after registration. Inspections will be carried out only in the event of complaints of a serious nature.
The proposed legislation will also introduce a Negative List approach, meaning entrepreneurs will be free to undertake any activity unless it is specifically prohibited under the published Negative List.
The government may also notify a common validity period for all licences and NOCs, eliminating the need for renewals at different intervals. Verification and certification services may also be provided through empanelled professionals, the statement added.
