The Municipal Corporation of Delhi has identified more than 21,000 properties being used for commercial activities in residential areas, with around 9,000 now facing notices or possible sealing for unpaid charges or land-use violations. The findings emerged from a survey of four lakh properties across the civic body’s 12 zones.
The survey began on June 1 after a Supreme Court order in March 2026 directed local bodies in all state and Union territory capitals to act against the unauthorised commercial use of residential properties. The order in Loganathan v. State of Tamil Nadu and Others arose from a case involving an unauthorised structure in Chennai before being expanded into a pan-India exercise.
According to an MCD report covering action taken until October 13, around 12,000 of the properties identified had paid conversion charges. Of these, more than 6,500 are located on roads notified for mixed land use, where commercial activity can continue after the owners or occupiers pay the required charges.
An MCD official said notices had been issued to the relevant property owners and occupiers. “People on these streets can continue with commercial activities only when the owners or occupiers pay the conversion charges. Accordingly, we have issued them notices,” the official said.
The remaining properties either had not paid the required charges or were being used for activities that are not permitted in residential areas. The activities identified include eateries, grocery shops, paying guest accommodation, salons, large retail outlets, automobile repair shops and marriage halls.
Before issuing notices, the MCD’s building department checked whether the activities were protected under applicable National Capital Territory of Delhi laws or covered by a court order. Officials said three cases were found to fall under such protection and no action was being taken against them. The zones have issued show-cause notices to more than 6,500 properties, asking owners to explain why their premises should not be sealed.
Sealing proceedings have also started in some areas. Four properties in the Central zone and 14 in the Rohini zone have been taken up for sealing action, according to the report. In Rohini, two properties have deposited the requisite conversion or misuse charges.
The enforcement drive is also exposing the administrative complexity of regulating mixed-use neighbourhoods in Delhi. The MCD’s findings distinguish between commercial activity on roads notified for mixed land use, where payment may regularise certain uses, and activities or locations where commercial use is not permissible. The notices and proposed sealing action are therefore tied both to payment compliance and to the nature of the activity being conducted.
The survey is continuing across the city. Rohini has issued a certificate confirming that its survey of all properties is complete, while the Karol Bagh zone is expected to finish its exercise soon. After planned and regularised areas are covered, officials said the MCD will shift attention to residential properties in unauthorised colonies, including areas that have benefited from the PM-UDAY scheme.
The next phase will determine the extent to which the enforcement exercise reaches neighbourhoods outside planned and regularised areas. For property owners and occupiers already served notices, the immediate process involves responding to the MCD’s show-cause notices, paying applicable charges where permitted and facing sealing proceedings where the use is not protected or permissible.
