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Delhi PG Mafia Exposed: Inflated Rents & DU Hostel Shortage Crisis | India Today Investigation

Delhi PG Mafia Exposed: Inflated Rents & DU Hostel Shortage Crisis | India Today Investigation

Business Today
Business Today
  • New Delhi,
  • Sep 10, 2026,
  • Updated Sep 10, 2026, 2:10 PM IST

Delhi’s booming PG market hides a stark reality: Delhi University does not have enough hostel accommodation for its massive student population. India Today’s special investigation exposed inflated rents, hefty security deposits and the desperate scramble students face while searching for a room in the national capital. Delhi University has around 2.51 lakh students, but only about 6,500–7,000 hostel seats are available — meaning fewer than 4% of students can access accommodation through DU and its colleges. This massive shortage pushes thousands of students into the private PG market, where limited supply becomes a lucrative business opportunity. Now, the government is proposing rules to regulate PGs, including rent caps, mandatory registration, area-wise rent bands, a 30-day notice period and a security deposit cap of three months’ rent. But will regulation actually rein in Delhi’s PG mafia? And who will enforce these rules? Students say the real solution goes beyond regulation: Delhi needs more hostels. The PG crisis may be the symptom. The hostel shortage is the root.