Traders in Katra Neel market said they are paying conversion charges and have received clearances to run commercial units.
| Photo Credit: Hunafa KP
Traders in Chandni Chowk’s Katra Neel market have alleged that the Municipal Corporation of Delhi (MCD) has “illegally sealed” eight shops in the area, even though the establishments have been “operating legally” under commercial licenses for decades.
The sealing was carried out on Thursday in compliance with the Supreme Court’s directives to identify and stop the commercial use of residential properties in the walled city. The top court issued the order last month on a petition alleging that residential buildings in the area were being misused for business activities, causing congestion and safety risks. The petitioner is a resident of Gali Ghanteshwar in Katra Neel, where two shops were sealed.
Shop owners said they had “paid conversion charges” and received “necessary clearances” to run commercial units in residential premises. “Our shops have existed here for decades. We pay GST, property tax, and electricity bills under the commercial category,” said a trader who owns a garment shop in Gali Ghanteshwar.
An MCD official said, “The top court has ordered that no further conversion of residential houses into commercial complexes… the sealing is in line with this direction.” The next hearing in the matter is scheduled for October 27.
According to planning records, before the recent sealing, Gali Ghanteshwar had already been declared a “street shopping lane” in the Master Plan of Delhi 2021, while the entire Katra Neel stretch had been designated as “commercial” after previously being marked as “mixed-use” in the 2001 plan.
Another trader, Anil Gupta, said that as construction of new commercial markets remained slow, traders had limited options for conducting business outside traditional markets. “There is a large gap between the demand and supply of commercial spaces. Traders should not be penalised for this gap,” he said.
Some residents said the market’s commercial character developed over time. “I have lived here all my life,” said Beena Sharma, 42, a resident of Ghanteshwar Gali. “These lanes have always been busy. There are a few households left now. Most buildings are partly commercial. It does create congestion, but this is how the area has evolved,” she added.
Ms. Sharma pointed out that many homeowners themselves had rented parts of their houses for commercial use, drawn by the attractive rents that allowed them to move to better localities.
Leader of Opposition in the MCD House, Ankush Narang, expressed concern regarding the sealing drive, describing it as “selective” and claiming that other establishments in similar lanes were “left untouched”.
Praveen Shankar Kapoor, general secretary of Chandni Chowk Nagrik Manch and Delhi BJP spokesperson, said that Katra Neel is recognised as a commercial area under the Delhi Master Plan. “In the 2021 plan, most parts of Katra Neel were marked as commercial, and in the proposed Master Plan 2041, the entire stretch has been designated as 100% commercial,” he said, adding that the traders’ case was not properly presented before the court.
Published – October 25, 2025 01:36 am IST
