2006 Delhi sealing drive
Encyclopedia
The 2006 Delhi sealing drive was a campaign by the Municipal Corporation of Delhi
(MCD) to close (and thus "seal
" the locks of) a number of illegal commercial establishments in Delhi, India which are running in residential areas without authorization. The drive witnessed considerable opposition from trading bodies in the city which led to the death of four people in September 2006. It ran until early 2007.
As of today, the Supreme Court of India
has suspended the drive. The new plan envisions a mixed land use policy by which commercial and residential use can be simultaneous. However, the sealing drive in Delhi is very much in progress. Shops and establishments which were registered by Municipal Corporation of Delhi
under 24 specified categories were made to pay various charges though most of them have commercial electricity meter
s and some have approved commercial water meters. Almost all the shops had VAT
registration and the owners were paying income tax
through income from these shops. So all the shops which are running from residential areas and were not found on notified roads are being forcibly shut down.
. One of the allegations put forward is that the government is not taking any initiative to stop the drive in order to promote shopping malls.
. The court has also struck down various petitions of the government suspending the drive.
Several traders' unions have argued that the action may have serious economic, social and psychological impact, and accused the Government of not providing adequate alternate space required for shops and offices.
, Y.K. Sabharwal in March 2005 took over the demolition cases although they had not been assigned to him. In 2007, the paper Mid-Day
revealed that Sabharwal's two sons Chetan and Nitin operated a real estate firm Pawan Impex, which after languishing for three years, suddenly attracted a 300-fold capitalization from the real-estate major BPTP around the same time that Sabharwal took over this case. As a result of the demolition of many well-established commercial offices across Delhi, the demand for mall spaces skyrocketed. In October 2005, Pawan Impex partnered with the promoters of Filatex India
, and they went on to build the new Square One
luxury mall in Saket
.
In a newspaper rebuttal, Justice Sabharwal addressed some other allegations, but failed to explain why he did not recuse himself from a case where his own sons may be said to have a direct interest.
In September 2007, four Mid-Day journalists were sentenced to four months imprisonment by the Delhi High Court
for contempt of court (making such allegations about an ex-judge). Vitusha Oberoi, an editor at Mid-day, said: "We have said that what we have said is the truth (in their articles relating to former Chief Justice of India Y K Sabharwal) and that is why we should not be hauled up for contempt."
Some of the major events are as follows::
On 16 February 2006, the Delhi High Court sent a notice to the MCD to remove all the commercial ventures in residential areas in the city.
On 25 February, after some violent reactions the demolition activities are suspended.
During 18 March through 21 March Traders protested the 26 March date for SC hearings and there was a call for a bandh
.
On 24 March the SC extended the deadline to 28 March 2006 after seeing the tense situation in the capital. It ordered violating traders to submit affidavit
s stating that they will shut down their businesses or face action from 29 March. Over 40000 traders file the affidavits.
On 29 March, under tight security, MCD started sealing the commercial establishments whose owners had failed to file affidavits before the deadline set by the court.
On 25 April, the union urban development minister, Jaipal Reddy
, said that the central government would provide a bill concerning regularisation of commercial establishments. MCD announced the end of the sealing drive on 20 May after the central government introduces a bill to suspend the action of municipal authorities. President Kalam
gave his assent to the bill to make it a law on 21 May. And on 23 May the MCD started desealing shops in the capital.
In response to a petition moved jointly by the Delhi Residents Welfare Associations
Front and an NGO Citizens Forum, which alleged that the new legislation was politically motivated keeping in view the coming municipal elections, and was illegal, the SC issues notices to the centre and the MCD on 23 May.
The SC termed the new law, which was putting a moratorium on demolitions and sealings in the capital, as invalid on 10 August. The court also ordered the MCD to restart sealing in the capital. The MCD resumed the sealing of shops in residential areas on 1 September, after a gap of three months. The All Delhi Traders Association filed a petition in the SC demanding the implementation of the Delhi Special Provisions Act that suspended the demolitions for a year. The monitoring committee appointed by the SC in consultation with the MCD decides that no day-to-day-need shops will be sealed.
In another effort to avoiding a confrontation with either the judiciary or the protesting trading bodies, the delhi government's Delhi Development Authority
(DDA) makes several amendments to the 2001 Delhi Master Plan on 7 September. According to the proposed amendments:
MCD expanded its sealing drive on 19 September; traders protest at nearly 100 locations across the city. The SC refused to stay the sealing drive.
Four people died in police firing after the bandh called by the traders in Delhi turns violent on 20 September.
On 21 September the Prime Minister, Manmohan Singh
, set up a Group of Ministers (GoM) to look into the issues pertaining to sealing in Delhi. The MCD suspended all sealing operations in the capital for the time being, following the violence. It said it wanted more security to carry out the sealing drive.
On 29 September the SC declared that there would be no sealing of shops or commercial establishments till 31 October after which it shall resume. The court also asks the owners of the illegal shops to submit affidavits stating that their businesses were being run on illegal premises. The court also clarifies that it will not tolerate the government's continued attempts to pass new laws that dilute its orders to remove shops in residential areas.
On 18 October the Supreme Court further extended, till 31 January 2007, the last date for filing of affidavits by traders in the capital who are using residential premises for commercial activities for those who had not done so till yet and thus in a way temporarily postpones the sealing of their shops. Sealing is however not stopped for the 44000 traders who have already submitted the affidavits. On 25 October the Delhi Traders Association decides to intensify its protests against the sealing drive, which was scheduled to restart from 1 November. And on 30 October The traders started a three day strike against sealing drive.
On 31 October the traders tried to resolve the case and meet Jaipal Reddy
and Delhi chief minister Sheila Dikshit
.
On 1 November the centre moves the SC seeking relief for the 44,000 traders in Delhi who are now facing sealing. The centre tells the Supreme Court's monitoring committee that sealings cannot go on because the law and order situation cannot be handled. They claim that protests are threatening to become extremely violent, and could seriously affect the whole city.
On 2 November the SC decides to hear the sealing case on 6 November. The GoM decides not to carry out any sealing operations until 6 November.On 3 November The MCD approached the SC with a fresh petition asking for an indefinite postponement of sealing citing the law and order situation. The Delhi Police adds that it needs reinforcements to deal with the law and order situation, which it will only have by 6 November.
On 6 November the SC refuses to grant any relief to traders from the sealing drive.
The court dismisses applications of the Centre, Delhi government and the MCD, seeking relief for the traders. A meeting of the GoM decides that the SC's order on sealing would be implemented. After this statement, traders announce that they will hold a 24-hour bandh in Delhi on 7 November and then decide their future course of action.
On 7 November the traders protested against the Supreme Court's order to resume the sealing drive by holding a one day strike. On 8 November the MCD restarted the drive amidst protests. 25 companies of paramilitary forces are deployed in New Delhi to assist in sealing drive.
On 9 November the Telecom Regulatory Authority of India's office is sealed as it was operating from a posh residential colony.
On 27 November the government said that a master plan for Delhi, addressing all of its civic problems, would be finalised by January in 2007.ndtv.com
On 4 December traders held a 'Sealing Chetna Week' (Sealing Awareness Week) against the sealing drive.
On 18 December the showrooms of several top designers were sealed in the Ambawata complex mall near Qutub Minar in South Delhi.
On 24 January the government filed a petition in the Supreme Court seeking to finish the drive as according to it the decisions passed by the court would become irrelevant once the Delhi Master Plan comes into force in February 2007. (The plan allows mixed land use in various circumstances according to which land can be used both for commercial and residential purposes.)
On 31 January thousands of traders filed affidavits that they will abide by the courts verdict as demanded by the SC even as the government claims that the soon to be notified Delhi Master Plan will finish off the drive. The new Master Plan allows far more liberal guidelines for construction and commercial development. Shops on streets across Delhi, that were forced to shut down, will have the right to reopen if they can provide parking. Under the new Masterplan, an extra floor can be added and the landlord can rent out each floor if he provides parking of two cars. Fifty per cent of the house can be used for an office and so can the basement.
On 7 February confusion prevailed on the issue as the government said that due to the provisions in the Master Plan there is no need for sealing. The SC appointed monitoring committee had demanded that sealing should continue.
On 8 February the Delhi Master Plan was notified which identifies a mixed land use policy according to which shops on over 2000 roads can function. The SC said that sealing should be suspended until 12 February.
On 9 February an NGO, The Delhi Pradesh Citizen Council, challenged the Masterplan in the Supreme Court saying that it is a move only to appease the traders ahead of incoming municipal elections.
On 13 February the Supreme Court stays the sealing of commercial establishments in residential areas on 2,183 roads covered by the Master Plan Delhi-2021 until further orders are issued.
Municipal Corporation of Delhi
The Municipal Corporation of Delhi is a municipal corporation, an autonomous body that governs 9 Districts of Delhi, in the state of Delhi, India. It is one of three municipal corporations in the National Capital Territory of Delhi, the others being New Delhi Municipal Council, and Delhi...
(MCD) to close (and thus "seal
Seal (mechanical)
A mechanical seal is a device which helps join systems or mechanisms together by preventing leakage , containing pressure, or excluding contamination...
" the locks of) a number of illegal commercial establishments in Delhi, India which are running in residential areas without authorization. The drive witnessed considerable opposition from trading bodies in the city which led to the death of four people in September 2006. It ran until early 2007.
As of today, the Supreme Court of India
Supreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
has suspended the drive. The new plan envisions a mixed land use policy by which commercial and residential use can be simultaneous. However, the sealing drive in Delhi is very much in progress. Shops and establishments which were registered by Municipal Corporation of Delhi
Municipal Corporation of Delhi
The Municipal Corporation of Delhi is a municipal corporation, an autonomous body that governs 9 Districts of Delhi, in the state of Delhi, India. It is one of three municipal corporations in the National Capital Territory of Delhi, the others being New Delhi Municipal Council, and Delhi...
under 24 specified categories were made to pay various charges though most of them have commercial electricity meter
Electricity meter
An electricity meter or energy meter is a device that measures the amount of electric energy consumed by a residence, business, or an electrically powered device....
s and some have approved commercial water meters. Almost all the shops had VAT
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
registration and the owners were paying income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
through income from these shops. So all the shops which are running from residential areas and were not found on notified roads are being forcibly shut down.
Criticism of the government
The government has been reprimanded time and again by the courts for failing to conduct the drive properly: for making excuses such as the drive will create law and order problems, and for not proceeding against the big establishments but instead targeting small shops. Apparently the government has a way of solving the issue by putting in force the Delhi Master Plan 2021 which will allow mixed land use and thus make the commercial activity in residential area legal(a law which the court has declared invalid) out of judicial purview, but the government has as yet not given any indication that it plans to do so. This is probably because that would put the government in direct confrontation with the judiciaryJudiciary
The judiciary is the system of courts that interprets and applies the law in the name of the state. The judiciary also provides a mechanism for the resolution of disputes...
. One of the allegations put forward is that the government is not taking any initiative to stop the drive in order to promote shopping malls.
Court judgement
Reacting to several PILs, the Supreme Court has repeatedly reprimanded the government for improperly conducting the drive. After the government introduced a law to provide relief to the trading bodies, the court declared it invalid in response to another public interest litigationPublic interest litigation
In Indian law, Public Interest Litigation OR जनहित याचिका means litigation for the protection of the public interest. It is litigation introduced in a court of law, not by the aggrieved party but by the court itself or by any other private party...
. The court has also struck down various petitions of the government suspending the drive.
Several traders' unions have argued that the action may have serious economic, social and psychological impact, and accused the Government of not providing adequate alternate space required for shops and offices.
Improper conduct allegations against CJI Y.K. Sabharwal
Chief justice of the Supreme Court of IndiaSupreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
, Y.K. Sabharwal in March 2005 took over the demolition cases although they had not been assigned to him. In 2007, the paper Mid-Day
Mid-day
Mid Day is an afternoon daily Indian compact newspaper. Editions in various languages are published in Mumbai, Bangalore, Delhi and Pune .-Establishment:...
revealed that Sabharwal's two sons Chetan and Nitin operated a real estate firm Pawan Impex, which after languishing for three years, suddenly attracted a 300-fold capitalization from the real-estate major BPTP around the same time that Sabharwal took over this case. As a result of the demolition of many well-established commercial offices across Delhi, the demand for mall spaces skyrocketed. In October 2005, Pawan Impex partnered with the promoters of Filatex India
Filatex India
Filatex India Limited is an Indian textile firm primarily manufacturing several grades of polyester yarn. It also has interests in real estate and shopping malls. It had a turnover of Rs...
, and they went on to build the new Square One
Square One
Square One can refer to:*Square One Shopping Centre, a shopping mall in Mississauga, Ontario, Canada*Square One Mall, a shopping mall in Saugus, Massachusetts, USA*Square One Television, a children's television series about math...
luxury mall in Saket
Saket
In Sanskrit, Saket means a place close to Heaven, thus a place where God resides. Saket was the ancient name of the city of Ayodhya, an important Hindu religious place, said to be the birthplace of Lord Rama...
.
In a newspaper rebuttal, Justice Sabharwal addressed some other allegations, but failed to explain why he did not recuse himself from a case where his own sons may be said to have a direct interest.
In September 2007, four Mid-Day journalists were sentenced to four months imprisonment by the Delhi High Court
Delhi High Court
The High Court of Delhi was established on 31 October 1966. The High Court of Delhi was established with four judges. They were Chief Justice K. S. Hegde, Justice I. D. Dua, Justice H. R. Khanna and Justice S. K. Kapur.-History:...
for contempt of court (making such allegations about an ex-judge). Vitusha Oberoi, an editor at Mid-day, said: "We have said that what we have said is the truth (in their articles relating to former Chief Justice of India Y K Sabharwal) and that is why we should not be hauled up for contempt."
Timeline of the drive
The demolition and sealing drive was started in February 2006, and ran until early 2007.Some of the major events are as follows::
On 16 February 2006, the Delhi High Court sent a notice to the MCD to remove all the commercial ventures in residential areas in the city.
On 25 February, after some violent reactions the demolition activities are suspended.
During 18 March through 21 March Traders protested the 26 March date for SC hearings and there was a call for a bandh
Bandh
Bandh , originally a Hindi word meaning 'closed', is a form of protest used by political activists in some countries like India and Nepal. During a Bandh, a political party or a community declares a general strike....
.
On 24 March the SC extended the deadline to 28 March 2006 after seeing the tense situation in the capital. It ordered violating traders to submit affidavit
Affidavit
An affidavit is a written sworn statement of fact voluntarily made by an affiant or deponent under an oath or affirmation administered by a person authorized to do so by law. Such statement is witnessed as to the authenticity of the affiant's signature by a taker of oaths, such as a notary public...
s stating that they will shut down their businesses or face action from 29 March. Over 40000 traders file the affidavits.
On 29 March, under tight security, MCD started sealing the commercial establishments whose owners had failed to file affidavits before the deadline set by the court.
On 25 April, the union urban development minister, Jaipal Reddy
Jaipal Reddy
Sudini Jaipal Reddy is a member of the 15th Lok Sabha of India. He represents the Chevella constituency of Andhra Pradesh and is a member of the Indian National Congress. He is currently the Cabinet Minister of...
, said that the central government would provide a bill concerning regularisation of commercial establishments. MCD announced the end of the sealing drive on 20 May after the central government introduces a bill to suspend the action of municipal authorities. President Kalam
Abdul Kalam
Avul Pakir Jainulabdeen Abdul Kalam usually referred to as A. P. J. Abdul Kalam, is a renowned aerospace engineer, professor , and first Chancellor of the Indian Institute of Space Science and Technology Thiruvananthapuram , who served as the 11th President of India from 2002 to 2007...
gave his assent to the bill to make it a law on 21 May. And on 23 May the MCD started desealing shops in the capital.
In response to a petition moved jointly by the Delhi Residents Welfare Associations
Resident Welfare Association
A Resident Welfare Association is a civic body that represents the interests of the citizens of a specific urban or suburban locality in Indian cities. Membership is voluntary, and the leadership is usually elected by fee-paying members...
Front and an NGO Citizens Forum, which alleged that the new legislation was politically motivated keeping in view the coming municipal elections, and was illegal, the SC issues notices to the centre and the MCD on 23 May.
The SC termed the new law, which was putting a moratorium on demolitions and sealings in the capital, as invalid on 10 August. The court also ordered the MCD to restart sealing in the capital. The MCD resumed the sealing of shops in residential areas on 1 September, after a gap of three months. The All Delhi Traders Association filed a petition in the SC demanding the implementation of the Delhi Special Provisions Act that suspended the demolitions for a year. The monitoring committee appointed by the SC in consultation with the MCD decides that no day-to-day-need shops will be sealed.
In another effort to avoiding a confrontation with either the judiciary or the protesting trading bodies, the delhi government's Delhi Development Authority
Delhi Development Authority
The Delhi Development Authority was created in 1955 under the provisions of the Delhi Development Act "to promote and secure the development of Delhi".-History:...
(DDA) makes several amendments to the 2001 Delhi Master Plan on 7 September. According to the proposed amendments:
- Professionals can use their basements as offices, except in 70 upmarket localities.
- MCD or government-recognised pre-primary schools will not be sealed.
- Commercial activity will be permitted in Delhi's 350 villages, except polluting or hazardous units.
-
- The amendments however offer no relief to Delhi's upmarket areas.
MCD expanded its sealing drive on 19 September; traders protest at nearly 100 locations across the city. The SC refused to stay the sealing drive.
Four people died in police firing after the bandh called by the traders in Delhi turns violent on 20 September.
On 21 September the Prime Minister, Manmohan Singh
Manmohan Singh
Manmohan Singh is the 13th and current Prime Minister of India. He is the only Prime Minister since Jawaharlal Nehru to return to power after completing a full five-year term. A Sikh, he is the first non-Hindu to occupy the office. Singh is also the 7th Prime Minister belonging to the Indian...
, set up a Group of Ministers (GoM) to look into the issues pertaining to sealing in Delhi. The MCD suspended all sealing operations in the capital for the time being, following the violence. It said it wanted more security to carry out the sealing drive.
On 29 September the SC declared that there would be no sealing of shops or commercial establishments till 31 October after which it shall resume. The court also asks the owners of the illegal shops to submit affidavits stating that their businesses were being run on illegal premises. The court also clarifies that it will not tolerate the government's continued attempts to pass new laws that dilute its orders to remove shops in residential areas.
On 18 October the Supreme Court further extended, till 31 January 2007, the last date for filing of affidavits by traders in the capital who are using residential premises for commercial activities for those who had not done so till yet and thus in a way temporarily postpones the sealing of their shops. Sealing is however not stopped for the 44000 traders who have already submitted the affidavits. On 25 October the Delhi Traders Association decides to intensify its protests against the sealing drive, which was scheduled to restart from 1 November. And on 30 October The traders started a three day strike against sealing drive.
On 31 October the traders tried to resolve the case and meet Jaipal Reddy
Jaipal Reddy
Sudini Jaipal Reddy is a member of the 15th Lok Sabha of India. He represents the Chevella constituency of Andhra Pradesh and is a member of the Indian National Congress. He is currently the Cabinet Minister of...
and Delhi chief minister Sheila Dikshit
Sheila Dikshit
Sheila Dikshit is the Chief Minister of Delhi. She is from the Indian National Congress. Dikshit was sworn in as the Chief Minister for a third consecutive term of the Government of Delhi state in January 2009 after pulling a victory in November 2008 state elections...
.
On 1 November the centre moves the SC seeking relief for the 44,000 traders in Delhi who are now facing sealing. The centre tells the Supreme Court's monitoring committee that sealings cannot go on because the law and order situation cannot be handled. They claim that protests are threatening to become extremely violent, and could seriously affect the whole city.
On 2 November the SC decides to hear the sealing case on 6 November. The GoM decides not to carry out any sealing operations until 6 November.On 3 November The MCD approached the SC with a fresh petition asking for an indefinite postponement of sealing citing the law and order situation. The Delhi Police adds that it needs reinforcements to deal with the law and order situation, which it will only have by 6 November.
On 6 November the SC refuses to grant any relief to traders from the sealing drive.
The court dismisses applications of the Centre, Delhi government and the MCD, seeking relief for the traders. A meeting of the GoM decides that the SC's order on sealing would be implemented. After this statement, traders announce that they will hold a 24-hour bandh in Delhi on 7 November and then decide their future course of action.
On 7 November the traders protested against the Supreme Court's order to resume the sealing drive by holding a one day strike. On 8 November the MCD restarted the drive amidst protests. 25 companies of paramilitary forces are deployed in New Delhi to assist in sealing drive.
On 9 November the Telecom Regulatory Authority of India's office is sealed as it was operating from a posh residential colony.
On 27 November the government said that a master plan for Delhi, addressing all of its civic problems, would be finalised by January in 2007.ndtv.com
On 4 December traders held a 'Sealing Chetna Week' (Sealing Awareness Week) against the sealing drive.
On 18 December the showrooms of several top designers were sealed in the Ambawata complex mall near Qutub Minar in South Delhi.
On 24 January the government filed a petition in the Supreme Court seeking to finish the drive as according to it the decisions passed by the court would become irrelevant once the Delhi Master Plan comes into force in February 2007. (The plan allows mixed land use in various circumstances according to which land can be used both for commercial and residential purposes.)
On 31 January thousands of traders filed affidavits that they will abide by the courts verdict as demanded by the SC even as the government claims that the soon to be notified Delhi Master Plan will finish off the drive. The new Master Plan allows far more liberal guidelines for construction and commercial development. Shops on streets across Delhi, that were forced to shut down, will have the right to reopen if they can provide parking. Under the new Masterplan, an extra floor can be added and the landlord can rent out each floor if he provides parking of two cars. Fifty per cent of the house can be used for an office and so can the basement.
On 7 February confusion prevailed on the issue as the government said that due to the provisions in the Master Plan there is no need for sealing. The SC appointed monitoring committee had demanded that sealing should continue.
On 8 February the Delhi Master Plan was notified which identifies a mixed land use policy according to which shops on over 2000 roads can function. The SC said that sealing should be suspended until 12 February.
On 9 February an NGO, The Delhi Pradesh Citizen Council, challenged the Masterplan in the Supreme Court saying that it is a move only to appease the traders ahead of incoming municipal elections.
On 13 February the Supreme Court stays the sealing of commercial establishments in residential areas on 2,183 roads covered by the Master Plan Delhi-2021 until further orders are issued.