Action of South Delhi civic body without sanction of law: Delhi HC

South Delhi Municipal Corporation (now Municipal Corporation of Delhi) had issued a Public Notice that no parking fee should be charged in parking areas in commercial offices / malls / hospital complexes in NCR (Delhi) on the ground that such collection of fee amounts to violation of the sanctioned plans and is not permissible. In pursuance of this Notification the MCD had erected a signage “Free Parking” outside the entry gate of Apollo Hospital, Sarita Vihar, New Delhi. 

It therefore became open to the general public and visitors to the Hospital to park their vehicles in the designated area for parking within the Hospital complex without payment of any parking fee. This became a cause of concern for the Hospital because of unregulated entry and overcrowding of the parking area, resulting in grave inconvenience to the patients and visitors. This also became a security issue. 

The Hospital by way of a Writ Petition challenged the Public Notice and Show Cause Notices issued to the Hospital and erecting these signages of Free Parking by MCD. Hon’ble Justice Mini Pushkarna, Judge, Delhi High Court, vide Order dated 9th September 2025, set aside the show Cause Notices issued by the MCD and held that the issue of parking fee to be charged by various entities is decided in favour of the Petitioner Hospital. In this significant judgment, the Hon’ble Court held that collection of parking fee cannot be challenged by the Municipal Corporation. 

The jurisdiction of Municipal Corporation is limited to compliance with the building bye laws and any violation of approved building plans. Whether the parking areas of the Hospital can be put to commercial use would not be within the jurisdiction of the Municipal Corporation. Accepting the submission of Dr. Lalit Bhasin, who appeared for the Petitioner Hospital, the Court held that the action of MCD is without the sanction of law, with the result that the Hospital may, in its discretion collect parking fee. The Petitions were allowed. 

Sidharth Gupta, Standing Counsel for MCD, appeared on behalf of the Corporation.