Delhi Is Scrapping Its 20-Year-Old B&B Law: What Changes Now

Delhi is set to replace the law that has governed bed-and-breakfast establishments for nearly two decades, after the Assembly approved a proposal to repeal the 2007 framework.

The Delhi Bed and Breakfast Establishments (Repeal) Bill, 2026, seeks to do away with the National Capital Territory of Delhi,  Bed and Breakfast Establishments (Registration and Regulation) Act, 2007, along with subsequent amendments. The government says the hospitality sector has changed significantly since the law was enacted and requires a more “flexible and facilitative policy regime”.

The overhaul has acquired greater significance after the June fire at Flourish Stay, a B&B in Malviya Nagar. At least 23 people were killed in the fire, making it one of Delhi’s deadliest recent fires.

Why Was Delhi’s B&B Law Introduced In 2007?

The 2007 law was designed to regulate residential properties where homeowners provided paying guests with accommodation and breakfast.

Under the Act, a B&B was specifically defined as a residential premises registered for providing bed-and-breakfast services. Hotels, motels, guest houses and other conventional forms of transient accommodation were excluded.

The idea was to supplement Delhi’s hotel accommodation while allowing tourists to stay in residential homes. Under the original law, the property had to remain residential and the owner and family were required to live there. It also prescribed conditions relating to guest rooms, bathrooms, water and electricity supply, ventilation, cleanliness, fire safety and parking. Registration required assessment by a classification committee.

The framework was subsequently amended, including in 2009 and 2021.

What Did The Malviya Nagar Fire Expose?

The June 3 fire brought shortcomings in enforcement of the B&B regime under scrutiny. Flourish Stay had received a Tourism Department licence in May 2024 to operate six rooms, valid until 2027. According to The Indian Express, subsequent investigations found that it had expanded to 26 rooms, including additional floors and basement spaces.

The newspaper reported that the Tourism Department was not required under the existing framework to periodically inspect the property during the three-year licence period. Other agencies, including the MCD and police, also did not alert the department about the alleged expansion, Indian Express had reported.

Tourism Minister Kapil Mishra had said after the fire: “We are going to officially withdraw the Bed and Breakfast scheme, and all establishments licensed under it will be checked.”

He added that action would be taken against operators violating licence conditions.

Why Is The Government Scrapping The Law Now?

The government says the nearly 20-year-old statutory framework no longer reflects the way Delhi’s tourism and hospitality market operates.

The repeal Bill says new forms of accommodation and changing policy approaches have made it necessary to replace the old framework with a more flexible system. A comprehensive policy is to be placed before the Council of Ministers for approval.

Delhi minister Manjinder Singh Sirsa has similarly said the Act is being repealed because it is outdated and has shortcomings, citing Delhi’s tourism activity, compliance requirements and the government’s push for ease of doing business.

The government had already released a draft B&B Policy, 2026, in May, before the Malviya Nagar fire. The fire therefore did not originate the policy overhaul, but it brought the regulatory and safety questions surrounding B&Bs into sharper focus. Delhi Tourism’s website continues to list the draft policy

What Could The New B&B Policy Change?

The May draft proposes limiting B&Bs to eight lettable rooms and 16 beds and allowing only lawfully constructed residential properties to register. Hotels, lodges, guest houses, serviced apartments and properties containing commercial hospitality facilities would remain outside the scheme.

It also proposes Gold and Silver categories. Gold rooms would have to be at least 120 sq ft, while Silver rooms could be 100 sq ft. Registration would become mandatory and applications would move to an online system. The draft also proposes self-certification, self-renewal and deemed approval within seven working days for complete applications.

 However, the government has not said that the May draft will be adopted unchanged, so these provisions should not yet be treated as the final rules.

Will Safety Requirements Become Stricter?

The draft contains more explicitly listed safety requirements. Properties would have to comply with Delhi Fire Service norms, municipal and building bylaws, and police-verification requirements.

It also specifies fire extinguishers, first-aid kits, functional locks, emergency-contact displays and CCTV at entrances or common areas. Emergency provisions include keeping fire-evacuation paths clear.

For existing operators, the repeal will not immediately wipe out registrations or pending legal liabilities. The Bill says existing certificates and approvals can continue where they do not conflict with the new framework, while penalties and proceedings under the old law will survive.

Fresh registrations and pending applications under the old Act will remain in abeyance during the transition.