Restaurant trade license cancellation in Dhaka is a pressing issue for many restaurant owners, particularly after recent crackdowns by city corporations on unauthorized establishments. This article outlines the legal grounds for cancellation, the procedural steps involved, and potential legal remedies available to restaurant owners facing this situation.

Grounds for Restaurant Trade License Cancellation in Dhaka

Authorities may initiate restaurant trade license cancellation in Dhaka under several circumstances to ensure public safety, regulatory compliance, and ethical business operations. Key reasons include:

1. Unauthorized Operations Without Proper Approval

• Operating in buildings not approved by RAJUK for restaurant use, especially rooftop restaurants.
• Using premises in violation of building design increases safety hazards and breaches zoning regulations.

2. Violation of Applicable Laws and Ordinances

• Breaching provisions of the Bangladesh Hotels and Restaurants Ordinance, 1982 or other local government rules.
• Ignoring safety, sanitation, or operational guidelines may trigger restaurant trade license cancellation in Dhaka.

3. Public Safety and Nuisance Issues

• Maintaining unhygienic environments, generating excessive noise, or disturbing public peace.
• Declared fire hazards or unsafe business premises are significant grounds for restaurant trade license cancellation in Dhaka.

4. Fraudulent Procurement of License

• Submitting false or incomplete information during application.
• Misrepresentation or concealment during the licensing process.

5. Suspension or Discontinuation of Business

• Temporarily or permanently ceasing operations without notifying the authority, except for legitimate renovations or seasonal closures.

6. Non-Compliance with Registration or Renewal Requirements

• Failure to renew the license within the legal timeframe often results in restaurant trade license cancellation in Dhaka.
• Not conforming to classification standards or failing to maintain required guest records (in the case of hotels).

7. Zoning and Structural Violations

• Running a restaurant in areas or buildings that violate zoning ordinances.

8. Business Misconduct and Financial Defaults

• Engaging in fraudulent practices, non-payment of government dues, or evading taxes may prompt restaurant trade license cancellation in Dhaka.

Recent Policy Emphasis by Dhaka South City Corporation (DSCC)

As of April 28, 2025, the DSCC announced the restaurant trade license cancellation in Dhaka for rooftop restaurants and establishments in buildings not approved for restaurant use. This move was prompted by safety concerns and unethical licensing practices.

Process of Restaurant Trade License Cancellation in Dhaka

The typical administrative process for restaurant trade license cancellation in Dhaka involves:

1. Identification of Violations: Authorities inspect premises and identify non-compliant businesses.
2. Issuance of Show-Cause Notice: A formal notice outlining reasons for potential cancellation is served.
3. Opportunity for Response: Owners are often given a chance to explain or rectify the issue.
4. Final Cancellation Decision: If compliance is not achieved, the trade license is revoked.
5. Legal Consequences for Continued Operation: Businesses continuing without a valid license may face legal action, fines, or closure.

Legal Remedies Against Restaurant Trade License Cancellation in Dhaka

Restaurant owners have several options to challenge or reverse the restaurant trade license cancellation in Dhaka:

1. Providing Proper Documentation

• If the premises are approved for restaurant use but wrongly flagged, submitting RAJUK-approved designs or other documents may reverse the cancellation.

2. Requesting a Hearing

• A formal response to the notice and a request for a hearing before the City Corporation can help clarify misunderstandings and offer corrective measures.

3. Filing Internal Appeals

• Most licensing authorities, including DSCC or DNCC, have appellate mechanisms for license holders to challenge administrative actions.

4. Filing a Writ Petition in the High Court

If all administrative avenues fail, a restaurant owner may file a writ petition before the High Court Division of the Supreme Court of Bangladesh. Legal grounds include:

• Violation of natural justice (e.g., no hearing).
• Arbitrary decision-making.
• Action without lawful authority.
• Infringement of fundamental rights under the Constitution.

Practical Advice for Restaurant Owners

To prevent or respond to restaurant trade license cancellation in Dhaka, restaurant operators should:

• Keep documents updated: Maintain all legal approvals, building usage permissions, fire safety certificates, and sanitation reports.
• Act quickly: Time is critical once a notice is served.
• Hire legal counsel: A qualified lawyer can help draft responses, represent at hearings, and file legal petitions when necessary.
• Focus on compliance: Regular inspections, employee training, and investment in hygiene and fire safety help avoid penalties.

Conclusion

The trend of restaurant trade license cancellation in Dhaka—especially targeting rooftop and unauthorized restaurants—is part of a broader move toward ensuring public safety and lawful urban planning. While the city corporations have the authority to cancel licenses, affected business owners are not without recourse. By understanding the legal grounds, responding promptly, and utilizing the available legal channels, restaurants can protect their business and reputation.

For businesses that rely heavily on foot traffic and daily operations, securing and retaining a valid trade license is not just a regulatory obligation—it’s essential for survival. Understanding the nuances of restaurant trade license cancellation in Dhaka can help operators stay prepared, compliant, and resilient in an increasingly regulated environment.