The Municipal Corporation of Delhi (MCD) has conducted a comprehensive survey of nearly 400,000 properties in the capital, identifying approximately 21,000 residential buildings that are allegedly being used for commercial purposes. This survey was initiated in response to a Supreme Court order issued in March 2026, which mandated local authorities to take action against residential properties misused for commercial activities.

According to a senior official from the MCD, around 5 per cent of the surveyed properties were found to be in violation of regulations. These buildings are officially designated for residential use but are reportedly housing various commercial establishments, including coaching centres, restaurants, grocery stores, and sweet shops. The MCD plans to issue notices and commence sealing proceedings in a phased manner to address these violations.

The Supreme Court’s directive stemmed from the case of Loganathan v. State of Tamil Nadu and Others, which originated from an unauthorised structure in Chennai. The court’s ruling prompted a nationwide review of similar issues, compelling local bodies to enforce regulations regarding the use of residential properties.

Action Plan for Enforcement and Compliance

The MCD has developed a detailed action plan to carry out enforcement activities on a zonal basis. Local building department officials will be responsible for executing the necessary proceedings against violators. A second municipal official noted that approximately 7,000 of the identified property owners claimed to have completed the conversion process for commercial use during the survey.

Additionally, around 6,000 properties were identified along roads that have been designated for mixed land use. In these areas, commercial activities are permitted, provided that property owners apply for the necessary conversion. Historically, commercial operations were only allowed on specific commercial streets, but the concept of mixed land use was introduced in 2006 to accommodate residents engaged in commercial activities amid a significant sealing drive in Delhi.

Officials indicated that properties failing to complete the required conversion process, including those with unpaid conversion charges, could face sealing. They plan to issue notices shortly, followed by phased enforcement actions to ensure compliance. This initiative aims to enhance scrutiny on commercial establishments operating within residential zones, particularly those lacking the requisite permissions.

Commercial Activity Regulations Under the Master Plan for Delhi

MCD data reveals that Delhi comprises approximately 1,821 roads, of which 987 have been officially notified for commercial activities. An additional 834 roads fall under the mixed land-use category, allowing shops on the ground floor while permitting residential use on upper levels. Under the Master Plan for Delhi, properties situated along these designated mixed-land-use roads can engage in specified commercial activities, contingent upon meeting applicable conditions and paying the necessary conversion charges to the MCD.

This regulatory framework aims to balance residential needs with commercial aspirations, ensuring that property owners comply with local laws while providing essential services to the community. The MCD’s ongoing efforts to enforce these regulations are expected to significantly impact the operation of commercial establishments within residential areas.

As the MCD prepares to implement its action plan, the focus will remain on ensuring that all properties adhere to the established guidelines, thereby promoting orderly development within the city. The forthcoming enforcement actions will serve as a critical step in addressing the misuse of residential properties for commercial purposes.

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