Blab Business
Delhi Repeals 20-Year-Old Bed-and-Breakfast Law, Plans New Flexible Framework
In a move aimed at modernising the city’s hospitality sector, the Delhi government announced the repeal of the National Capital Territory of Delhi (Incredible India) Bed and Breakfast Establishments (Registration and Regulation) Act, 2007, and its amendments of 2010 and 2021. The decision was made during the Monsoon Session of the Delhi Legislative Assembly on 8 November 2026 and was presented by Minister Manjinder Singh Sirsa.
The 2007 Act was introduced at a time when online accommodation booking platforms were not widespread. Over the past two decades, the tourism and hospitality landscape in Delhi has evolved dramatically, with the rise of digital platforms, new accommodation formats, and changing safety expectations. Sirsa said the existing statutory framework was “outdated and had several shortcomings” and that the city needed a system that could accommodate these changes while maintaining safety and regulatory oversight.
The repeal follows the tragic fire at the Flourish Stay bed‑and‑breakfast in Malviya Nagar on 3 June 2026, which killed 22 people, including several foreign nationals. The incident highlighted gaps in fire safety compliance and prompted the Delhi Tourism Minister Kapil Mishra to announce the withdrawal of the 2007 Act and its amendments. The new policy framework is intended to replace the Act with a “policy‑based system” that offers greater flexibility and a more facilitative regulatory regime.
According to the repeal bill, the new framework will be developed by studying the central government’s B&B policy and will be presented to the Council of Ministers for approval. The bill states that the repeal will come into force in alignment with the notification of the new policy. During the transition period, new registrations and the processing of pending applications under the old Act will be put on hold. Existing registrations, certificates, directories, and records will be maintained, and any pending appeals or classification standards will be handled under the new policy.
The bill also clarifies that penalties, liabilities, or legal proceedings arising under the old Act will continue to be enforced as per its provisions. This approach is intended to preserve legal continuity while allowing the new policy to address contemporary issues such as fire safety, hygiene, security, and neighbour concerns.
Harish Khurana, a Delhi BJP leader, welcomed the repeal and noted that the 2007 law did not reflect the current operation of B&B facilities, especially given the widespread use of online booking platforms. He said the new framework would bring informal accommodation operators into the formal system and address safety and regulatory gaps.
As of 2023, more than 2,200 rooms across 432 properties had been registered under the Delhi B&B scheme. The repeal is expected to streamline compliance and reduce bureaucratic hurdles for operators while ensuring that safety and public health standards are upheld.
The Delhi government has indicated that the new policy will be designed to balance regulation with ease of doing business. The policy will be guided by principles of flexibility, facilitation, and compliance with applicable laws on safety, public health, municipal governance, and public order.
The repeal and the forthcoming policy framework are part of a broader effort by the Delhi administration to enhance the city’s hospitality sector, improve safety standards, and respond to the evolving needs of tourists and operators. The next steps will involve drafting the policy, seeking approval from the Council of Ministers, and notifying the new framework to the public.
The Delhi Legislative Assembly’s decision to repeal the 2007 Act and replace it with a policy‑based framework reflects the city’s response to recent safety concerns and the changing dynamics of the hospitality industry. The new framework is expected to provide a clearer, more adaptable regulatory environment for bed‑and‑breakfast operators while maintaining essential safety and compliance measures.
The final policy is anticipated to be announced in the coming months, after which the repeal will take effect. The Delhi government will also monitor the implementation of the new framework to ensure that it meets its objectives of improving compliance, safety, and business facilitation.
The repeal of the 2007 B&B Act and the introduction of a new policy framework mark a significant shift in Delhi’s approach to regulating the hospitality sector, aiming to align legal structures with contemporary industry practices and safety requirements.
The 2007 Act was introduced at a time when online accommodation booking platforms were not widespread. Over the past two decades, the tourism and hospitality landscape in Delhi has evolved dramatically, with the rise of digital platforms, new accommodation formats, and changing safety expectations. Sirsa said the existing statutory framework was “outdated and had several shortcomings” and that the city needed a system that could accommodate these changes while maintaining safety and regulatory oversight.
The repeal follows the tragic fire at the Flourish Stay bed‑and‑breakfast in Malviya Nagar on 3 June 2026, which killed 22 people, including several foreign nationals. The incident highlighted gaps in fire safety compliance and prompted the Delhi Tourism Minister Kapil Mishra to announce the withdrawal of the 2007 Act and its amendments. The new policy framework is intended to replace the Act with a “policy‑based system” that offers greater flexibility and a more facilitative regulatory regime.
According to the repeal bill, the new framework will be developed by studying the central government’s B&B policy and will be presented to the Council of Ministers for approval. The bill states that the repeal will come into force in alignment with the notification of the new policy. During the transition period, new registrations and the processing of pending applications under the old Act will be put on hold. Existing registrations, certificates, directories, and records will be maintained, and any pending appeals or classification standards will be handled under the new policy.
The bill also clarifies that penalties, liabilities, or legal proceedings arising under the old Act will continue to be enforced as per its provisions. This approach is intended to preserve legal continuity while allowing the new policy to address contemporary issues such as fire safety, hygiene, security, and neighbour concerns.
Harish Khurana, a Delhi BJP leader, welcomed the repeal and noted that the 2007 law did not reflect the current operation of B&B facilities, especially given the widespread use of online booking platforms. He said the new framework would bring informal accommodation operators into the formal system and address safety and regulatory gaps.
As of 2023, more than 2,200 rooms across 432 properties had been registered under the Delhi B&B scheme. The repeal is expected to streamline compliance and reduce bureaucratic hurdles for operators while ensuring that safety and public health standards are upheld.
The Delhi government has indicated that the new policy will be designed to balance regulation with ease of doing business. The policy will be guided by principles of flexibility, facilitation, and compliance with applicable laws on safety, public health, municipal governance, and public order.
The repeal and the forthcoming policy framework are part of a broader effort by the Delhi administration to enhance the city’s hospitality sector, improve safety standards, and respond to the evolving needs of tourists and operators. The next steps will involve drafting the policy, seeking approval from the Council of Ministers, and notifying the new framework to the public.
The Delhi Legislative Assembly’s decision to repeal the 2007 Act and replace it with a policy‑based framework reflects the city’s response to recent safety concerns and the changing dynamics of the hospitality industry. The new framework is expected to provide a clearer, more adaptable regulatory environment for bed‑and‑breakfast operators while maintaining essential safety and compliance measures.
The final policy is anticipated to be announced in the coming months, after which the repeal will take effect. The Delhi government will also monitor the implementation of the new framework to ensure that it meets its objectives of improving compliance, safety, and business facilitation.
The repeal of the 2007 B&B Act and the introduction of a new policy framework mark a significant shift in Delhi’s approach to regulating the hospitality sector, aiming to align legal structures with contemporary industry practices and safety requirements.
