The Municipal Corporation of Delhi (MCD) has sealed 54 jewellery shops operating from basements in four buildings within Kucha Mahajani, a historic market in Chandni Chowk. The enforcement action, carried out on Thursday, September 10, stems from allegations of unauthorised commercial use of these basement premises and violations of Delhi's building and land-use regulations.
This decisive move follows direct orders from a Monitoring Committee appointed by the Supreme Court. The MCD cited non-compliance with Section 345-A read with Section 347 of the Delhi Municipal Corporation (DMC) Act, 1957, along with breaches of the Master Plan of Delhi (MPD) 2021 and the Unified Building Bye-Laws (UBBL) for Delhi 2016.
Long-Standing Dispute Leads to Sealing
The sealing action is the culmination of a dispute that has spanned several years. The MCD initially issued a show-cause notice on November 19, 2019, under Section 345-A of the DMC Act. This notice mandated that owners and occupiers cease the commercial misuse of their basements within 48 hours, asserting that such commercial trading was not permitted under the MPD 2021 for these specific premises.
Despite the initial notice, the dispute persisted, with some traders challenging the classification of their premises as basements. Multiple opportunities for personal hearings were granted to the owners in 2025. Following these proceedings, traders were directed to pay a penalty equivalent to 12 times the annual conversion charges. The sealing order explicitly states that the required payment was not made by the deadline.
Subsequently, the MCD issued a formal sealing order on February 17, 2026, paving the way for the recent enforcement. Beyond the land-use violations, the civic body also cited non-compliance with mandatory Fire Department clearances and other statutory requirements.
Traders Protest, Seek Access to Shops
The sealing operation itself has drawn strong objections from the affected traders, who have questioned both the MCD's classification of their premises and the manner in which the action was executed. Adesh Kumar Jain, a trader in Mohini Market, claimed his shop was on the ground floor and had been operational since 1997. He stated that traders possess GST, sales tax, income tax, and electricity records that identify their premises as ground-floor establishments.
Jain further alleged that the shops effectively became lower relative to the road level after sewer lines were laid and the road was subsequently reconstructed. Traders also reported that MCD officials arrived around 11:30 AM without issuing a fresh notice, proceeding to seal the premises with valuable jewellery, customer orders, cheque books, and other essential belongings still inside.
In response to the sealing, the All India Bullion and Jewellers Traders Association has approached authorities, seeking temporary access to the sealed shops to allow traders to retrieve their inventory and other critical items.