Chandigarh Administration to Formalize Bed & Breakfast Policy with Strict Regulations
Chandigarh, a city already experiencing a boom in bed and breakfast (B&B) facilities, is poised to establish a formal legal framework for this sector. The Chandigarh administration is preparing to notify the Bed & Breakfast Policy 2026, aiming to bring structure and oversight to the thriving accommodation market.
Current Landscape and Past Challenges
Presently, numerous national and international online platforms offer a wide range of accommodation options in Chandigarh, from affordable single rooms to luxury farmhouses catering to tourists and travelers. This informal growth follows the administration's initial introduction of a B&B scheme in 2008, which was withdrawn the following year due to widespread violations. In many instances, residential houses were illegally converted into mini hotels, blatantly flouting the scheme's basic norms and causing disruptions in neighborhoods.
Key Provisions of the Draft Policy
This time, the administration plans to implement a tightly regulated framework with clearly defined rules. The draft B&B policy, released for public feedback, emphasizes that establishments must maintain a residential appearance. Specifically:
- The owner shall not maintain a front office, and the entire house should look like a normal residential property.
- Commercial activities such as tours, travel services, sight-seeing, transport, handicrafts sales, cloud kitchens, or dine-in food facilities for non-guests are strictly prohibited.
- Establishments must not engage in any activity that adversely affects the privacy and rights of neighbors and local residents.
- Misrepresentation to potential guests and touting activities are banned.
Enforcement and Penalties
The prescribed authority will have significant powers to ensure compliance. Registration can be revoked if the owner is convicted of an offence punishable with imprisonment exceeding one month, declared an undischarged insolvent, violates policy provisions, or if the establishment negatively impacts neighboring residents. Such revocation does not preclude prosecution under applicable laws.
The policy introduces a graded penalty structure to deter violations:
- Failure to provide promised services to guests can result in a fine of up to Rs 5,000.
- Furnishing false or misleading information during registration may lead to a fine of up to Rs 10,000, immediate cancellation of registration, and reporting to police authorities.
- Illegally lending, transferring, or failing to surrender the registration certificate upon expiry or cancellation can draw a penalty of up to Rs 20,000, along with cancellation and potential legal action.
Registration and Operational Requirements
Homeowners intending to rent out their residential premises as B&B units will need to apply for registration in a prescribed format and pay the stipulated fee. A classification committee will be constituted to inspect and evaluate establishments, ensuring they meet standards. Adequate parking arrangements, either within the premises or in the immediate vicinity, will be mandatory for all registered B&Bs.
Benefits for Registered Establishments
Importantly, registered B&B establishments will continue to be treated as residential units. This means they will be charged electricity and water tariffs applicable to domestic use, along with property tax as per residential or residential-tenanted premises, providing financial incentives for compliance and formalization.
This comprehensive policy aims to balance the growth of tourism with community welfare, offering a structured approach to B&B operations in Chandigarh.
