13 of 22 Local Illegally Running Hotels Shut Down Within 24 Hours After Malviya Nagar Tragedy Exposes Safety Lapses

The investigation into the tragic fire at a Malviya Nagar hotel in South Delhi has reached a critical juncture. The establishment's owner, Lovkesh Bajaj, has admitted to significant safety lapses during police interrogation. Delhi Police arrested Bajaj hours after a massive fire claimed the lives of 21 people at the bed-and-breakfast (B&B) establishment. The arrest followed the issuance of a Look-Out Circular (LOC) against Bajaj, who had been evading the authorities since the tragedy occurred. 

Following the incident, Bajaj fled the scene in a state of panic. He revealed to investigators that rather than returning home, he spent his time wandering the streets.

Owner Claims Delegation of Duty

During questioning, the accused attempted to distance himself from the day-to-day operations of the facility. Bajaj claimed that he did not have the time to personally oversee the establishment and had delegated all responsibilities—including billing, accounts, and overall management, to other individuals.

Republic Investigation: Corruption and Illegal Hotels Exposed

A parallel investigation has highlighted systemic issues within the area's hospitality sector, exposing how illegal operations managed to persist through open corruption:
 

• "They managed the system" – Witness admissions reveal bribes were paid to keep unsafe structures open.
• Delhi death traps exposed – A network of unauthorized establishments operated without basic safety compliance.
• Mass closures – Following the tragedy, 13 illegal hotels in the same vicinity lowered their shutters within 24 hours.

The investigation identified several prominent properties operating across local neighborhoods:

Expansion of Inquiry Into “The Flourish Stay”

A massive investigation into the fire at ‘The Flourish Stay’ hotel in Malviya Nagar has exposed a broader web of illegal expansions, systemic safety failures, and a loophole-ridden licensing process.
Following his arrest, Bajaj deflected blame during police interrogation, reportedly telling detectives that he was assured by an associate that: “In Delhi, anything goes.”

Operating Without a Fire NOC

Bajaj also reportedly admitted during interrogation that the premises did not possess a Fire No Objection Certificate (NOC). Sources state that the Delhi Police are now verifying records from the electricity department and other regulatory agencies. Investigators are checking all approvals, permissions, and compliance metrics related to the premises, including potential structural alterations.

Lack of Accountability and Licensing Loopholes

Investigators have revealed that Bajaj originally utilized the municipal corporation's 'Tatkal' instant licensing category to apply for a permit to run a simple tea shop. He later secured a Bed & Breakfast license for the property in 2024, which was slated to remain valid until 2027.

Authorities Trade Blame Over Jurisdiction

The incident has triggered an aggressive blame game among the Municipal Corporation of Delhi (MCD), the Tourism Department, and the Delhi Police, with each agency attempting to shift accountability. The MCD claims that the building fell completely outside its jurisdiction because it is situated within a 'Lal Dora' area, while simultaneously alleging that Bajaj obtained his permit by misrepresenting key facts.

Meanwhile, the Tourism Department stated that while a joint team comprising the Police, the DTTDC, and the Ministry of Tourism conducts an initial inspection before issuing a B&B license, they do not conduct regular follow-up audits unless a specific complaint is formally received.

Also Read: 'No Time To Oversee': Malviya Nagar Hotel Owner Admits Lacking Fire NOC, Shifts Blame To 'Another Person' After Deadly Blaze