LG approves operation of 55 outlets on 24x7 basis in Delhi

Lieutenant governor (LG) VK Saxena on Monday allow 55 more e-commerce and retail businesses to operate round-the-clock in the national capital, paving the way for more grocery shops and some clothing stores to stay open all night.

The approvals are a second tranche since October 2022, when the LG cleared a batch of applications for 300 establishments to operate 24x7. Running a business round-the-clock requires a specific exemption from certain sections of the law on a case-by-case basis, and these first need to endorsed by the labour department.

“Following permissions to more than 300 establishments to operate on a 24x7 basis in October last year, LG VK Saxena has further approved the proposal of the labour department, endorsed by the chief minister, to exempt another 55 establishments from sections 14, 15 & 16 of the Delhi Shops & Establishments Act, 1954. These 55 establishments situated at various locations in the national capital include e-commerce outlets and retail garments and accessories outlets,” the LG’s office said in a statement.

The list of approvals suggested most of those allowed are grocery delivery businesses, grocery stores and some clothing outlets.

An LG office official said all 300 establishments that applied previously are operating 24 hours in the Capital.

The operation of all shops and establishments in the Capital is governed under Delhi Shops & Establishments Act, 1954 which limits the opening and closing hours of all shops, within the urban, semi-urban and rural areas of Delhi, to 9am and 7pm respectively.

Any establishment that wants to operate 24x7 needs to apply to the labour department and once it gives its approval, the file moves to the LG after endorsement from the elected government under whose preview the labour department comes.

An official, who asked not to be named, said that the Shops and Establishment Act, 1954 provides that exemption be given for each outlet separately. “If a pharmacy chain obtains exemption for one outlet, it cannot operate other outlets on the same basis. The exemptions are shop- or establishment-specific,” the official said. “All those willing to operate 24x7 need to move an application seeking exemption,” the official added.

In October, while approving the 300 establishments, the LG flagged what he said were issues of inordinate delays (some applications were pending since 2016) and ad-hocism in how the labour department dealt with applications.

“Taking grave exception to the delays ranging up to seven years in disposing applications for exemption by the labour department, the LG in October 2022 noted on file that the basic purpose of according exemptions under Section 14, 15 & 16 of the Delhi Shops & Establishment Act, 1954 is to enable various establishments to carry on with their businesses on a 24x7 basis, so that the same may facilitate employment generation and promote a positive business environment for future investment in the city. The LG had flagged the unprofessional attitude and lack of due diligence on the part of the labour department on the matter, and underlined that apparently some pick and choose policy has been adopted by the department in processing such applications, which could be indicative of corrupt practices,” LG office said.

The labour department has taken several corrective steps, and in order to ensure transparent and effective monitoring, an online system has been developed for receipt of application of exemption under sections 14, 15 & 16 of Delhi Shops & Establishment Act, 1954. “Now, no physical application is accepted and the applications are accepted only through online,” said the LG office.

A labour department official did not comment on the development.

Chairman of Chamber of Trade and Industry (CTI) Brijesh Goyal said the approval from the LG was a welcome step, but the 24x7 operations of business is possible only when the law and order situation in the Capital is better. “The LG should also take steps to improve law and order, so that the confidence of the traders is high and the business activities can get a conducive environment,” said Goyal.