Regarding your query. As per the normal bye-laws of the Delhi Municipality, living in the basement for residential purposes are usaully counted as illegal. However, this is not the rule.
It is dependant on the locality in which you are residing. The police shut down and sealed several stores in Defence Colony, New Delhi in January 2018 on account that the basements had been allotted only for residential use, whereas the owners were operating them under Commercial purposes without having paid the conversion charges.
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 landlordÕs 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.
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.
With regard to all the provisions to be followed and permissions to be obtained from various competent authorities in order to carry out professional activities in residential areas, we have understood that, in all cases whether it is Delhi, Noida or Gurgaon, the services rendered by Lawyers, Doctors, Chartered Accountants and Architects to name a few, have remained unaffected when it comes to usage of basement for commercial activities.
These services as discussed earlier do not fall within the ambit of commercial activities as they are service activities and do not involve sale and purchase of goods. However, for all other kinds of commercial activities as per the prevalent building laws or bye- laws, municipality laws; specific permissions are required to be obtained before taking up a commercial activity in a residential basement.
Reference: By- laws, New delhi