New Delhi: The Delhi government has repealed the capital's nearly two-decade-old bed and breakfast (B&B) policy, and is studying the Centre's framework in this regard to implement a new regulatory structure aimed at better compliance and ease of doing business, minister Manjinder Singh Sirsa informed the assembly on Tuesday.
Speaking during the Monsoon Session, Sirsa said the previous policy was outdated and had several shortcomings, as the tourism and hospitality sector had undergone significant changes during the past two decades.
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"The act is very old and has several shortcomings. We also witnessed a fire incident in which many innocent people lost their lives," Sirsa said, referring to the recent Malviya Nagar tragedy.
He said Delhi has diverse tourism needs and the government wants to strike a balance between regulation, compliance and ease of doing business.
Sirsa said the government is considering replacing the existing statutory framework with a policy-based system that would provide greater flexibility while ensuring necessary checks and balances.
"The cabinet secretariat believes that instead of an act, we should have policies and regulations through which we can ensure better compliance and also move towards ease of doing business," he said.
He further said the government wanted the new framework to have long-term impact instead of imposing a rigid regulatory structure.
"We want to deregulate it to an extent and improve the compliance pattern. The Government of India also has a B&B policy, which we are studying. Based on what emerges, a framework will be prepared and a better policy will be brought for Delhi," Sirsa said.
The existing B&B Act was enacted in 2007, at a time when online accommodation booking platforms were not widely available.
"We are repealing this Act because it is old and new changes cannot be brought in," Sirsa said.
The minister said the tourism and hospitality sector had undergone significant transformation, including the emergence of new forms of accommodation and evolving policy approaches.
The repeal bill said it is necessary to discontinue the existing statutory framework governing B&B establishments and replace it with a "more flexible and facilitative policy regime".
It said the government proposed to revamp the regulation and promotion of B&B establishments through an executive policy framework that would be implemented in a more liberalised and supportive manner, while ensuring compliance with applicable laws relating to safety, public health, municipal governance and public order.
"A comprehensive policy in this regard is under formulation and will be placed before the Council of Ministers for approval," the repeal bill stated.
The repeal of the existing act is proposed to come into force in alignment with the notification of the new policy, it said.
During the transition period, fresh registrations and processing of pending applications under the existing Act will remain in abeyance, according to the bill.
At the same time, matters relating to existing registrations, certificates issued, directories, records maintained by operators, grievance redressal, pending appeals and classification standards will be addressed under the proposed policy framework, it said.
Penalties, liabilities, non-compliances or legal proceedings arising under the existing Act will continue to be dealt with in accordance with its provisions, the bill said.
Delhi BJP leader Harish Khurana said the B&B law, framed in 2007, no longer reflected the way the sector operates, particularly with the widespread use of online accommodation booking platforms.
He said the proposed framework was also aimed at bringing the informal accommodation sector into the formal system through the B&B mechanism.
Issues such as fire safety, hygiene, security and concerns of neighbouring residents would be addressed under the new framework, Khurana said.
He said the old law was not suited to the way B&B facilities operate in 2026, making a new regulatory framework necessary.
The repeal comes in the wake of the Malviya Nagar fire tragedy in June, in which 23 people, including 11 foreign nationals, were killed after a fire broke out at a B&B facility.
The facility was allegedly operating without the requisite permissions.
Following the incident, Delhi Tourism Minister Kapil Mishra had announced the withdrawal of the National Capital Territory of Delhi (Incredible India) Bed and Breakfast Establishments (Registration and Regulation) Act, 2007, and its amendment Acts of 2010 and 2021.
As of 2023, more than 2,200 rooms across 432 properties in the national capital had been registered under the Delhi government's B&B scheme.
