Use of basement for commercial purpose what to do

527 votes

This question has always been of a great concern. People usually want to use their properties for commercial purposes because it saves time and money. Moreover, running a business in a commercial building would cost them heavy rents, taxes and electricity charges. Legal experts say that professionals like Doctors, Lawyers and Chartered Accountants among others can use residential properties for commercial purposes. Also, yoga, dance, music and other classes can be taken up.

Yes, it is legal to use residential property for commercial purpose, provided that, the prior permission of Municipal authorities of that area should be taken and if the professional is a tenant then landlord’s permission is required.

Any activity relating to the purchase and sale of goods is called a commercial activity. The work done by professionals involves element of service and is not a commercial activity. Hence, it is not illegal.

Activities allowed in Residential basements in Delhi

According to the National Building Code regulations or building by-laws, a basement can be used only for the purpose of storage, dark room, bank cellar, or parking space. Kitchens, bathrooms and toilets are also not allowed in a basement, unless the sewer levels permit the same.

Commercial purposes

The government allows building offices in basements. However, the existing state laws would apply and the permission of various authorities are sought before carrying out with the commercial activities. The building by-laws provide that storage and parking, basement space cannot be a part of FAR but commercial space will be included in the calculation of FAR usage, in this case.

According to The Hindustan Times report; The Capital’s master plan 2021 now permits professionals like Lawyers, Engineers and Doctors to carry out their activities in the residential basements which, earlier were under threat of demolition and sealing.

Earlier, the Municipal Corporation was not clearing applications as DDA had not notified the conversion charges. However, with the DDA notifying the new charges MCD started the process of clearing all such applications which are now permissible under the Master Plan.

Advocate Siddhant Sharma LawRato

236 votes

1. Check Local Regulations:
   • Start by checking the local municipal regulations in Delhi regarding the use of basements for commercial purposes. These rules can vary depending on the area and zoning. Generally, residential basements cannot be used for commercial activities, however, it depends upon the kind of commercial activity as well. 
2. Permitted Activities:
   • Review the list of commercial activities that are allowed in basements in Delhi. Municipal authorities often have specific guidelines on the types of businesses that can operate in basements.
3. Compliance with Zoning Laws:
   • Ensure that the intended commercial use of the basement is in compliance with zoning laws and land use regulations in your specific locality.
4. Basement Rules and Regulations:
   • Familiarize yourself with the basement rules and regulations set by the Municipal Corporation of Delhi (MCD). These regulations may cover issues such as fire safety, structural integrity, and sanitation.
5. Municipal Approval:
   • If your planned commercial activity is permitted, you may need to seek approval or permits from the local municipal authority, such as the MCD. The application process typically involves submitting necessary documents and paying applicable fees.
6. Fire Safety Measures:
   • Ensure that your basement commercial space complies with fire safety standards. This may involve installing fire extinguishers, emergency exits, and adhering to electrical safety guidelines.
7. Structural Integrity:
   • Assess the structural integrity of the basement to ensure that it can safely accommodate commercial activities. Any necessary modifications or reinforcements should be made.
8. Taxation and Licensing:
   • Register your commercial venture with the appropriate government authorities and obtain any necessary licenses. Ensure that you pay the requisite taxes associated with your business.
9. Legal Consultation:
   • Consider consulting with a property lawyer or a legal expert well-versed in municipal regulations to guide you through the process and ensure full compliance.
10. Neighborhood Consideration:
    • Be mindful of the impact of your commercial activity on the neighborhood, including issues related to traffic, noise, and parking.
11. Ongoing Compliance:
    • Once your basement is being used for commercial purposes, continue to adhere to all rules and regulations to avoid any legal issues in the future.

It's crucial to approach the use of a basement for commercial purposes with full knowledge of the relevant laws and regulations to prevent potential legal complications

Advocate Chikirsha Mohanty LawRato

345 votes

Minimum height of 2.4m (soffit) from the bottom of the beam. Minimum width is 2.4m. Ventilation should be a priority. It is important to ensure that the surface drainage of the basement does not enter it. The basement walls and floor must be waterproof.

Advocate Chikirsha Mohanty LawRato