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No trade licence sans legal requirements: HC

PNN & Agencies
Updated: March 7th, 2026, 09:18 IST
in Business, Metro, Top Stories
0
Orissa High Court
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Cuttack: Orissa High Court issued directions asking the government departments to ensure that no trade licence or business permission should be granted for any building that does not comply with legal requirements.

If the structure is claimed to be an old residential house, it cannot be used for commercial activity without proper approval. If any part of the building is unauthorised or deviates from the approved plan, the authorities must take action as per law.

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This may include demolition of the unauthorised portion or compounding where legally permissible, the court ordered while taking cognisance of a writ petition. The writ petition, seeking judicial intervention, alleged that commercial buildings are being operated in narrow residential areas without proper infrastructure and approvals in Hemraj Lane, Nayasadak in Cuttack city, which is a very narrow road of about 13- ft and located in a dense commercial and residential locality.

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The building contains around 50 to 60 shops but does not have proper parking space, fire safety clearance, or environmental approvals. Because of this, vehicles of customers and shop owners are parked on the narrow stretch, creating severe traffic congestion and blocking the entry and exit of nearby residents.

The obstruction also affects emergency services such as ambulances and fire vehicles, the petition pointed out. The narrow public roads are not rendered dysfunctional by unchecked commercial activity. The obligation of the state is to secure orderly urban governance and prevent obstruction of public streets, the single bench of Justice Sanjeeb Panigrahi noted in the order.

When a private commercial establishment uses public roads for parking, loading, and customer movement because it has no internal facilities, it is effectively using public property for private business. This amounts to misuse of public space, stated the order. The HC held that commercial establishments must be self-sufficient and cannot shift their operational burden onto public roads.

The court further directed the Commissioner of Police, Cuttack, to strictly regulate traffic in Hemraj Lane, stating that no vehicles will be allowed to park or stop on the road. Vehicles parked illegally must be immediately removed, towed, or impounded. Proper ‘No Parking / No Stopping’ signboards must be installed. Police must ensure free movement for residents, ambulances, and fire services.

A compliance report must be submitted to the court within eight weeks. The Cuttack Municipal Corporation (CMC) and the Housing and Urban Development department must conduct a complete inspection of the buildings, the court said.

They must verify whether the building has a sanctioned building plan, completion or occupancy certificate, a valid fire safety ‘no-objection certificate’ and required environmental approvals, the order read.

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