Kolkata, March 2026 – The New Town Kolkata Development Authority has escalated enforcement action against the growing practice of converting residential buildings into commercial event venues and ceremonial houses without statutory permission, serving stop-activity and show-cause notices to more than ten multi-storey buildings operating in violation of their approved land-use designations. The majority of violations identified in the current enforcement cycle are concentrated in Action Area I, where buildings sanctioned for residential, use have been partially or fully repurposed as banquet halls and event spaces, generating sustained complaints from neighbouring residents about noise, traffic congestion, and fire safety risks.
The Regulatory Framework and the Violations
NKDA rules permit a maximum of 40% of a residential building’s floor area to be used for commercial purposes, subject to prior approval from the authority. In the buildings currently under notice, commercial activity either exceeds this threshold, has been established without any approval, or involves structural modifications to sanctioned building plans, all of which constitute independent violations of NKDA’s development regulations. Two buildings have been flagged specifically for exceeding even the permissible 40% commercial threshold. A provisional NOC system has been introduced by NKDA to regulate limited commercial use going forward, though existing violators must first regularise or cease operations.
A Pattern of Enforcement
The current crackdown follows a prior round of legal notices issued to 13 homeowners running commercial establishments including guest houses, restaurants, private offices, kitchens, and pre-schools within residential buildings. NKDA officials noted that several of these properties had undergone physical modifications to their sanctioned building plans including partition changes and additional access points that posed fire hazard risks and required action under the NKDA Act independent of the land-use violation.
Location Context: New Town as Kolkata’s Planned Growth Corridor
New Town, also known as Rajarhat, was developed as a planned township with clearly demarcated residential, commercial, and institutional zones. It houses major IT campuses, the Biswa Bangla Convention Centre, and a growing mid-to-premium residential stock. Unauthorised commercialisation of residential buildings in this context directly undermines the zoning framework and creates safety risks in densely occupied buildings designed without commercial egress or fire suppression infrastructure.