East Corpn gets trader-friendly

Ten amendments made, little paper work required to apply for licences

The East Delhi Municipal Corporation on Wednesday decided to do away with several documents, which applicants had to produce while seeking licence to start a business.

EDMC has introduced 10 amendments in its general trade licensing policy, announced on Wednesday, apart from incorporating several other trades into the list of classified trade items that need a licence.

An official said thousands of traders may benefit from the new policy, and EDMC may earn at least Rs 8 crore to Rs 10 crore from it.

EDMC commissioner S S Yadav said India ranks very low across the globe in the ‘ease of doing business’ index. One of the important components of the index was time taken in getting a trade licence issued.

“The mandatory requirements under the previous policy made obtaining a trade licence cumbersome, forcing people to shy away from applying for it. So we have decided to do away with such redundant rules and make the process easier,” said Yadav.

The civic body has now scrapped ownership proof of plot in conforming industrial areas, building plan, site and key plans, five affidavits, blueprint of sanctioned plan, proof of tenancy, structural safety certificate for all buildings and the fire department’s no-objection certificate. Yadav said applicants can now produce documents like water or electricity bill to prove ownership.

“Instead of getting the site and key plans made from an authorised architect, applicants can even apply by drawing the plan by hand. For structural safety, applicants will have to produce such a certificate only if the structure is over 20 years old, or if the building is structurally weak,” said Yadav.

“In case of the fire department’s no-objection certificate, it will be required only where it has been made mandatory,” he added.

New trades

The new policy has also incorporated more trade items, which will require a licence, into the classified trade list. Some of the new entrants include cable operation network, shops at malls, company-branded shops, business process outsourcing, finance and insurance companies, multiplex, coaching centres, ATMs, advertisement agency, wedding planners and cellphone shops, among others.

As per estimates, there are around a lakh commercial units operating in east Delhi. But only 2,350 traders have the mandatory licence. Officials hope that the simplified rules will encourage traders to legalise their business.

“The process has been simplified to the extent that one can get the trade license on the spot. We will organise special camps in markets and issue trade licence on the spot,” said EDMC standing committee chairman Mahak Singh.

Officials have warned of action against traders who doesn’t legalise their business within a few months.