A business location should be assessed by more than its rent, frontage or convenience. One question must come first: is the proposed activity permitted there?
The Supreme Court’s order dated 22 September 2026 in Loganathan v. The State of Tamil Nadu brings this responsibility into focus.
The Court directed authorities to prioritise preventing commercial activity in areas specifically designated residential, where permission allows only residential use. Premises carrying on commercial activity in such areas are to be sealed in the first instance.
The order also makes an important distinction. Where an area’s use is not clearly specified, the Court directed that the existing position should remain undisturbed for the time being, while proceedings on paper may continue. Pending property disputes do not, by themselves, prevent sealing for use contrary to the allotment and sanctioned plan. Authorities must act without discrimination.
It would therefore be inaccurate to describe this as a blanket ban on every business operating anywhere within a residential neighbourhood. The property’s permitted use and applicable approvals matter.
In my view, this issue goes beyond enforcement. Residential neighbourhoods need an environment where families can live comfortably. Business premises need infrastructure suited to their activity. When actual use ignores planning, residents and businesses can both face uncertainty.
For entrepreneurs, my practical message is straightforward: verify the location before committing money. Ask for the applicable land-use designation, sanctioned building plan and written permissions relevant to your intended activity. Where the position is unclear, obtain property-specific professional advice.
Property owners also have a responsibility to explain the approved use honestly. A tenant should be able to make an informed decision before investing in interiors, equipment and operations.
I believe authorities should make compliance easier to understand through accessible records, clear guidance and consistent enforcement. Responsible businesses need certainty, while residents deserve protection from unauthorised use.
A sustainable business needs suitable premises and clear permissions from the beginning. That is part of building a business responsibly.
—Tushar Kumar
This article expresses my personal perspective and provides general information, not property-specific legal advice.
Source
Supreme Court order, 22 September 2026 — Loganathan v. The State of Tamil Nadu, paragraphs 19–22 · Order copy