It also sought a report on the steps taken by the police and senior MCD officials to enforce its various previous orders on the issue of stopping encroachments in the area in the walled city.
"The Delhi Police commissioner is directed to deploy larger force to ensure the area is kept free from illegal hawkers and squatters and people are free to walk," a bench of justices G S Sistani and V Kameshwar Rao said.
The court asked the officials of the Delhi Police and civic bodies involved in the matter to consult Sharma who would also convene meetings with them.
The bench listed the matter for January 17 next year.
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During the hearing, Delhi Police standing counsel Rahul Mehra submitted that serious steps were regularly taken to make the area encroachment-free but vendors resurfaced after the conclusion of a drive.
The court was hearing a petition filed by the Chandni Chowk Sarv Vyapar Mandal against encroachments in the area.
Advocate Sanjeev Ralli, appearing for the mandal, said parking of vehicles was one of the problems but hawking and squatting activities going on in the area should not be permissible.
He also said that roads and areas must be kept vehicle- free to ensure relief activity could be carried out in case of an emergency.
It had warned of serious action against the MCD and the police if they failed to stop encroachments there.
It had said that despite an apex court order that the police would be held responsible for encroachments in the area, it found that the orders were not being complied with.
Chandni Chowk is one of the oldest and busiest markets in Old Delhi. It is located close to the historic Red Fort.
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