The Municipal Corporation of Delhi (MCD) has surveyed nearly 400,000 properties across the national capital and identified around 21,000 residential buildings operating commercial establishments, people familiar with the matter said on Wednesday.
They are designated for residential use but are being used for commercial activities. The survey in Delhi has identified coaching centres, restaurants, grocery stores, sweet shops, and other commercial establishments operating from residential premises. “Around 5% of the surveyed properties were found to be in violation of the norms.
We will issue notices and initiate sealing proceedings in a phased manner,” a senior MCD official said.
The exercise follows a Supreme Court order in March 2026 directing local bodies in all state and Union Territory capitals to act against residential properties being illegally used for commercial activities. A second municipal official said 7,000 of the 21,000 building owners claimed during the survey that they have completed the conversion process for commercial use. Another 6,000 properties were located along roads notified for mixed land use, where commercial activities are permitted provided they apply for conversion. The concept of mixed land use was introduced in 2006 to provide relief to people carrying out commercial activities from residential buildings amid a massive sealing drive in Delhi overseen by a Supreme Court-appointed committee. Delhi has around 1,821 roads, of which 987 have been notified for commercial activities, according to MCD data. Another 834 roads fall under the mixed land-use category, where shops are permitted on the ground floor while residential use is allowed on upper floors.
The order was passed in Loganathan v. The corporation has prepared an action plan and will begin enforcement on a zonal basis, with officials from local building departments carrying out the proceedings. Originally, commercial operations were permitted only on designated commercial streets. “Properties where the required conversion process has not been completed, including those where conversion charges remain unpaid, could face sealing. Under the Master Plan for Delhi, properties along notified mixed-land-use roads can be used for specified commercial activities subject to applicable conditions and payment of conversion charges to MCD.
We will issue notices and ask others to use conversion charges,” the official said. Officials said they would issue notices shortly, followed by enforcement action in phases. “The action is expected to bring renewed scrutiny to commercial establishments operating from residential areas, particularly those that have not obtained the necessary permissions,” he added.
State of Tamil Nadu and Others, a case that began with one unauthorised structure in Chennai before the top court expanded into a pan-India review.
