On a packed winter afternoon in the MCD Appellate Tribunal, shopkeepers from Chandni Chowk’s narrow lanes finally got some breathing space. The tribunal, hearing a clutch of 21 appeals, put the Municipal Corporation of Delhi’s sealing actions under the scanner and found serious gaps in how the orders were passed. At the heart of the dispute were shops in Gali Ghanteshwar and Katra Neel-old trading pockets where business and regulation have long been uneasy neighbours.
Background
The appeals arose from two sets of sealing orders-one dated October 29, 2021, and another January 13, 2022. All of them flowed from a common show cause notice issued in September 2021, alleging misuse of properties under the Master Plan for Delhi (MPD) 2021.
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Shop owners argued they were on a notified pedestrian shopping street and had already paid “conversion charges,” a fee demanded to regularise commercial use. Some went further, saying the show cause notice never reached them. The MCD, on the other hand, claimed many shops were on non-notified inner roads and were running businesses not permitted under planning rules.
Court’s Observations
After sifting through records and hearing both sides, the tribunal noted a basic inconsistency. In some cases, shops were sealed for not paying conversion charges; in others, sealing followed even after those charges had been deposited. “This fallacy cannot be ignored,” the bench remarked, pointing out that similar properties were treated differently without a clear explanation.
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The tribunal also took a close look at the specific rule cited by the MCD. Clause 15.6.2(a) of MPD 2021 bars only certain hazardous or bulky trades in mixed-use areas. However, the show cause notices and sealing orders did not spell out which prohibited activity any shop was allegedly running. “The order is silent on the exact violation,” the bench observed, adding that a vague reference to ‘shop/business establishment’ was not enough.
Another point that weighed with the tribunal was the absence of a redevelopment plan for the Walled City area, despite MPD 2021 requiring authorities to prepare one. Until such a plan is framed, status quo has to be maintained, the tribunal said, relying on earlier High Court rulings.
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Decision
In the end, the tribunal set aside the January 13, 2022 sealing orders in 15 appeals and kept them in abeyance until a redevelopment plan for the special area is prepared. In three older cases, sealing orders were quashed outright after it emerged that show cause notices were never properly served, with matters sent back for fresh hearings.
For the remaining appeals, the tribunal directed the MCD to verify whether conversion charges had been paid and pass fresh, reasoned orders after giving shop owners a proper opportunity to be heard. With these directions, all 21 appeals were disposed of on December 26, 2025.
Case Title: Deepak Bansal & Others vs Municipal Corporation of Delhi (MCD)
Case No.: Appeal Nos. 78/22, 91/22, 106/22 to 120/22, 130/22, 135/22 to 137/22
Case Type: Appeals against sealing orders (MCD Appellate Tribunal)
Decision Date: 26 December 2025
