Delhi scraps BnB scheme after 21 die in fire: What is the BnB scheme all about

The deadly fire at a Malviya Nagar guest house that killed 21 people has forced Delhi to confront a policy it had long left unchecked. Within days of the tragedy, Tourism Minister Kapil Mishra announced the government would pull the plug on its Bed and Breakfast scheme entirely.

"We are going to officially withdraw the Bed and Breakfast scheme, and all establishments licensed under it will be checked," Mishra told PTI. "Action would be taken against operators found violating the terms of the licence."

The announcement effectively ends a policy that had allowed homeowners to register residential properties as small tourist accommodations, but which, in practice, had become a cover for commercial hotel operations with little oversight.

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The Flourish Stay B&B at the centre of the fire was a stark example. It held a permit for six rooms under the scheme. It was allegedly running 25, including rooms in the basement, without a Fire Safety NOC.

What the old B&B scheme allowed

The original policy was designed to let residents earn income by hosting tourists in spare rooms, a globally common model that blends hospitality with community living.

In Delhi's case, however, the scheme was poorly monitored, and the line between a registered homestay and a commercial hotel often blurred beyond recognition.

What the new draft proposes

The Delhi Department of Tourism had released a draft B&B Policy 2026 for public comment, under which it invited suggestions in over 30 days before it was finalised.

Under the proposed policy, homeowners could register residential properties as B&B units and host paying guests, but within clear limits. A registered unit could have a minimum of one guest room and a maximum of eight, with no more than 16 beds in total. Only lawfully constructed residential properties will qualify.

Crucially, the policy draws a hard line between homestays and commercial hospitality. Hotels, guest houses, lodges, serviced apartments, resorts and banquet facilities will not be eligible. Operators will also be barred from running commercial restaurants, bars open to outsiders, or using hotel-style signage.

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Gold and Silver: A New Grading System

The draft introduced two classifications, Gold and Silver, to help guests identify what they are booking.

Gold-category units must meet higher standards: rooms of at least 120 sq ft with wardrobes, study tables, televisions, filtered drinking water and proper ventilation. Bathrooms must be a minimum of 40 sq ft and include hot and cold running water and western-style toilets.

Silver-category units have a lower bar, rooms of at least 100 sq ft with clean bedding, cooling facilities, filtered drinking water and a dedicated or attached bathroom.

Safety at the centre

Given the circumstances that prompted the policy review, safety provisions in the draft were notably detailed. All registered operators were required to maintain guest registers, record identity documents, upload guest details to a tourism portal and comply with police verification norms.

Fire extinguishers, smoke or heat detectors, first-aid kits and functional door locks were mandatory across all units. Higher-category establishments may also be required to install CCTV cameras at entrances and common areas.

Authorities will have the power to conduct surprise inspections. Repeated violations could lead to suspension, cancellation of registration, or blacklisting.

Registration will be digital

The draft also proposed a self-certification model with online applications through a Tourism Department portal. A complete application, once submitted with fees, would receive deemed approval within seven working days.