Owners outraged as Dhaka South cancels trade licences of unauthorised, rooftop restaurants

Highlights:

• DSCC revokes licences of unauthorised restaurants, citing safety risks
• 1,026 restaurants, including 100 rooftop, hold valid licences 
• Restaurant owners protest, warning of widespread job losses
• They can regain licences with proper documentation

The Dhaka South City Corporation (DSCC) has revoked the trade licences of unauthorised and rooftop restaurants operating outside approved building plans, causing widespread outrage among business owners.

In a public notice issued today (28 April), the DSCC warned that any business found operating with a cancelled licence would face legal action. 

According to the notice, several residential and commercial buildings under the DSCC's jurisdiction were found to have restaurants operating without approval from the Rajdhani Unnayan Kartripakkha (Rajuk), including illegal rooftop establishments. 

The notice further mentioned that several accidents, including loss of life and property, have occurred due to these unauthorised restaurants. 

Speaking to The Business Standard, DSCC's Chief Revenue Officer Md Muniruzzaman said, "Prioritising public safety, we have revoked the licences of these restaurants. Although this decision will lead to a significant revenue loss, it was necessary to ensure the safety of the city's residents and to build a safer Dhaka. 

"Licences have been cancelled where restaurants provided incorrect information. However, building approvals have not been cancelled. If any restaurant can provide proper documentation proving its compliance with the building's approved design, we will reinstate their licence upon physical verification by officials."

He also mentioned that separate letters would be sent to each affected restaurant.

DSCC's target

According to DSCC, there are currently 1,026 hotels and restaurants operating in Dhaka South under valid trade licences, and at least 100 rooftop restaurants.

Shahjahan Ali, DSCC's deputy chief revenue officer (current charge), said, "We have not yet completed a full list, but we will take action step-by-step against these restaurants. Hotels and restaurants contribute around Tk4 crore annually to our revenue. 

"Before renewal, we will verify that all establishments have obtained the necessary clearances. Failure to provide required documents will result in licence revocation, while illegal restaurants will be shut down through enforcement drives."

Owners condemn 

Bangladesh Restaurant Owners' Association Secretary General Imran Hasan expressed strong resentment over DSCC's decision, calling it "reckless and one-sided". 

Imran told TBS, "Without any consultation with us, the authorities have made a decision that will throw business owners onto the streets. Our businesses were not built overnight. If such a decision is enforced, nearly 30 lakh people in the country will lose their livelihoods."

He further stated, "After the Bailey Road incident, during the tenure of the previous government, a task force was formed to resolve this complex issue. Two meetings were held, but after the change of government, no further discussions were conducted with us. 

"We strongly condemn this decision, and we will hold a meeting tomorrow (today) to decide on our course of action against it."

Imran also questioned the government's motive, saying, "By shutting down our businesses and allowing street food vans to block roads, what kind of change is the government aiming for? This decision could pave the way for new forms of extortion."

The deadly fire at Green Cozy Cottage on Bailey Road in February last year, which killed 46, highlighted safety concerns. Investigations revealed that none of the eight restaurants inside had proper authorisation. DSCC and Rajuk later launched crackdowns, but enforcement faded.

Licensing process

To legally operate a restaurant in Bangladesh, owners must obtain registration and clearance from at least seven different government agencies, including a trade licence from the respective district commissioner.

According to March 2024 data from the Dhaka District Commissioner's office, only 134 restaurants in Dhaka have all the necessary approvals and clearances from government authorities. Of these, 128 are located within the two city corporation areas of the capital.

According to the Bangladesh Bureau of Statistics (BBS) 2021 survey, there are approximately 450,000 hotels and restaurants across the country, a 58% increase from the 2009-10 fiscal year. Only 852 of these are government-owned, while the vast majority are privately operated.

Rajuk, DSCC join hands

Md Harun Ar Rashid, member (Development Control) of Rajuk, told TBS, "We support the DSCC's efforts. This will make it easier for us to take action, with mobile courts imposing fines and other measures against illegal restaurants and unapproved businesses."

He added, "Only buildings with visible restaurant permits in their designs will be approved. A drive will take place in Dhanmondi Sat Masjid Road in May, targeting unauthorised hotels and restaurants lacking approvals and trade licences. The operation will involve multiple agencies, including the City Corporation and Fire Service."

"Rajuk has compiled a list of risky buildings in Dhaka, especially those housing restaurants. Unauthorised restaurants will eventually be caught, either today or tomorrow."