A year-old policy change that stripped Delhi Police of its licensing powers over seven trades – hotels, restaurants, guest houses, discotheques and swimming pools, among others – is drawing renewed scrutiny in the wake of the Hauz Rani fire that killed 21 people and exposed multiple regulatory lapses.
In July 2025, the Centre amended the Delhi Police Act to remove the force’s authority to issue and renew licences for seven categories of businesses. The move, officials said at the time, was part of a broader push to improve ease of doing business and reduce regulatory burden on police officers, ending a decades-old system under which Delhi Police played a direct role in regulating a range of commercial establishments.
The reform was accompanied by assurances that businesses would continue to be governed by other departments and civic agencies. But experts and former police officers said the Hauz Rani tragedy, and other similar incidents in past few weeks, have highlighted the fragmented nature of oversight across multiple agencies.
The issue has come into focus after investigators found a raft of alleged violations at Flourish Stay, a B&B that was licensed for six rooms but was operating as a full-fledged hotel with more than two dozen rooms. Officials also found alleged irregularities relating to building approvals, fire safety clearances and commercial activity.
To be sure, there is no guarantee that police licensing alone would have prevented such violations. Even under the current B&B framework, operators are required to submit guest records to local police every 15 days. Officials familiar with the matter said no such records had been provided in the Hauz Rani case.
Still, former police officers argue that the earlier licensing regime provided an additional layer of scrutiny.
Retired IPS officer Rajan Bhagat, who last served as deputy commissioner of police, said fragmented regulation often leads to weak accountability. “Why does the government create multiple agencies? If something is everyone’s responsibility, it is nobody’s responsibility. The government should frame rules making one agency responsible for regular periodic inspection for each type of licence granted… At least then there will be accountability,” Bhagat said. “At present, regulation is fragmented.”
Former Uttar Pradesh director general of police Vikram Singh echoed those concerns, saying the earlier licensing system enabled police conduct periodic verification of establishments in their jurisdictions. Singh said the licensing process often required businesses to submit ownership details, safety certificates and compliance documents, creating a structured mechanism through which irregularities could be zeroed in on.
With licensing powers removed from police, responsibility is now distributed among multiple agencies. Fire clearances are issued by Delhi Fire Services, building permissions are handled by municipal bodies or the Delhi Development Authority depending on jurisdiction, while other permissions fall under separate departments.
Supporters of the reform, however, maintain that eliminating overlapping checks helps businesses operate more efficiently and reduces bureaucratic hurdles. The Centre had presented the changes as part of efforts to simplify compliance requirements and improve the business environment in the Capital.
The debate now centres on whether existing agencies have adequate mechanisms for regular inspections and enforcement, and whether responsibility for oversight is clearly defined across departments.
