The high court issued notice to the Delhi government, North MCD, Delhi Police and BJP MP Udit Raj from Northwest Delhi Lok Sabha constituency, asking them to file their replies on the petition by a local resident.
The court sought to know from the authorities the steps they have taken, if the assertions are true.
"North MCD shall inform and place on record the manner in which it issues licences to street vendors," a bench of Acting Chief Justice Gita Mittal and Justice C Hari Shankar said.
The court was hearing a PIL filed by Parveen Kumar, a resident of Rohini in north west Delhi, alleging that the parliamentarian was distributing metal tokens to unauthorised street vendors as a licence to operate in the area.
The petition sought that the MP be prohibited from doing such activities and legal action be taken against him.
It said the authorities should be directed to make public places including markets free from encroachments.
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