Delhi Government to Scrap B&B Policy After Malviya Nagar Fire Tragedy, Orders Probe Into Officials’ Role

New Delhi: The Delhi government has announced that it will withdraw its Bed and Breakfast (B&B) policy and launch a review of establishments operating under the scheme.

Speaking after the tragedy, Tourism Minister Kapil Mishra said the government had decided to officially withdraw the Bed and Breakfast scheme following concerns raised after the deadly fire.

“We are going to officially withdraw the Bed and Breakfast scheme, and all establishments licensed under it will be checked,” Mishra said.

He also warned of strict action against establishments found violating rules.

“If any establishment registered under the scheme is found running more than six rooms, its licence will be cancelled,” he added.

The move comes after investigators found that the Malviya Nagar property had permission for only six rooms under the B&B category but was operating many more.

High-Level Probe Ordered Into Fire Incident

Further, Delhi Mayor Parvesh Wahi has directed the Municipal Commissioner to conduct a detailed inquiry into the tragedy.

In an official communication issued after the incident, the mayor sought a report within three days and ordered officials to investigate possible violations and accountability.

The letter specifically asked authorities to examine whether there were violations of municipal regulations and whether MCD officials could be held responsible in any manner.

Four Major Questions Under Investigation

The inquiry committee formed by municipal authorities is expected to examine several critical issues surrounding the fire, including:

• Whether the hotel possessed all required licences and approvals
• Which municipal officials, if any, were negligent
• Whether officials from other departments may also be held accountable
• Why regular inspections and surveys were allegedly not conducted
• Authorities have also been directed to submit an action taken report along with findings from the inquiry.

What is Delhi Government’s bed and breakfast license? 

The Bed and Breakfast scheme was originally introduced by the Delhi Government's Department of Tourism ahead of the 2010 Commonwealth Games to address a severe shortage of affordable tourist accommodation by then CM Sheila Dixit.

Championed as a way to promote neighbourhood-based tourism, the policy allowed local homeowners to earn extra income by renting out underutilised residential spaces.

To ensure these establishments maintain a purely domestic character, the rules strictly dictate that a property must be purely residential, the owner or a caretaker must reside on the premises, and the setup must have a minimum of one room and a maximum of eight guest rooms, with a total cap of 16 beds.

21 Killed in Deadly Fire

The massive blaze broke out early Wednesday morning inside the multi-storey Flourish Stay building in Malviya Nagar, which led to the death of the 21 people, including several foreign nationals who were staying in the area for medical treatment.

Of the 21 people killed, 18 were foreign nationals, including citizens from Bangladesh, Afghanistan and several African nations. 

According to officials, the fire reportedly started around 8:45 AM to 8:50 AM near the basement kitchen area associated with Lemon Green Restaurant before thick smoke rapidly spread through upper floors housing hotel guests.

Over 40 people were rescued from the building, while several survivors remain hospitalised. 

The incident has since exposed alleged safety violations, overcrowding concerns and possible failures in regulatory oversight.

With hotels in nearby areas reportedly shutting operations out of fear of action and agencies facing questions over enforcement, the decision to withdraw the B&B scheme marks one of the biggest policy responses since the tragedy.

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