Why did MCD seal 54 jewellery shops in Chandni Chowk? Here’s what the sealing order says

The Municipal Corporation of Delhi (MCD) sealed 54 jewellery shops operating from basements in four buildings in Kucha Mahajani, Chandni Chowk, on Thursday, citing unauthorised commercial use and violations of building and land-use regulations, the Indian Express reported.

The action was carried out under Section 345-A read with Section 347 of the Delhi Municipal Corporation (DMC) Act, 1957, following directions of the Monitoring Committee appointed by the Supreme Court. Here is how the matter reached the sealing stage.

According to the sealing order, the MCD had first issued a show-cause notice on November 19, 2019, under Section 345-A of the DMC Act. The notice directed the owners or occupiers to stop commercial misuse of the basements within 48 hours.

The MCD's position was that commercial trading was being carried out in premises where such use was not permitted under the Master Plan of Delhi (MPD) 2021.

The dispute, however, has continued for several years, with some traders contesting the classification of their premises as basements.

Hearings held, penalty imposed

The sealing order states that the owners were subsequently given multiple opportunities for personal hearings in 2025.

Following these proceedings, the traders were directed to pay a penalty equivalent to 12 times the annual conversion charges. The order says the required payment was not made.

The MCD subsequently issued a sealing order on February 17, 2026, paving the way for Thursday's enforcement action.

On September 10, MCD officials entered the Kucha Mahajani area and sealed all 54 shops covered by the action. The civic body said the premises were being used for illegal commercial activities in violation of the Unified Building Bye-Laws (UBBL) for Delhi 2016 and MPD-2021, besides citing non-compliance with mandatory Fire Department and other statutory clearances.

Traders dispute basement classification

The traders, however, have questioned the MCD's classification of their premises and the manner in which the action was carried out.

Adesh Kumar Jain, a trader in Mohini Market, said his shop was on the ground floor and claimed that the premises had been operating since 1997. He said traders possess GST, sales tax, income tax and electricity records describing their premises as ground-floor shops.

Jain also alleged that the shops had been pushed lower relative to the road after sewer lines were laid and the road was subsequently constructed.

Traders further said MCD officials arrived around 11:30 am without fresh notice and sealed the premises, leaving jewellery, customer orders, cheque books and other belongings inside.

The All India Bullion and Jewellers Traders Association has approached authorities, seeking temporary access to the sealed shops so traders can retrieve their inventory.