Delhi Hotel Fire: Probe Reveals Regulatory Gaps Allowed Deadly Expansion
A fire at a hotel in Delhi's Malviya Nagar area on June 3 killed 23 people, including 14 foreigners. An investigation has uncovered regulatory failures that allowed the establishment to expand illegally without proper oversight.
The Delhi Tourism department issued a licence to Flourish Stay on May 3, 2024, to operate as a six-room Bed & Breakfast (B&B). Under the B&B Act, the department was not required to conduct periodic inspections during the three-year licence period.
Sources say this loophole allowed the owner to convert the B&B into a 26-room hotel. The fire that followed resulted in the deaths of 23 people. The matter has been flagged to senior government authorities.
While the Tourism department was not obligated to inspect regularly, it could intervene if another agency reported violations. However, no agency—including the Municipal Corporation of Delhi (MCD), power and water departments, or the local police—alerted the department about the unauthorised expansion.
The MCD conducts inspections when renewing health and trade licences annually. Power and water consumption patterns could have indicated usage inconsistent with a six-room B&B. The local police verify guest records periodically. The Foreigners Regional Registration Office (FRRO) also receives updates on foreign nationals staying at B&Bs. None raised concerns.
The Tourism department's internal report attributed the fire to operational safety issues, fire prevention failures, building misuse, occupancy mismanagement, and non-compliance with statutory obligations. It said these were primarily the responsibility of the owner and other regulatory authorities.
Owner Lavkesh Bajaj had leased the property to his accountant, Jay Mishra, for six years. Under B&B rules, the lessee may be treated as owner for licensing if the lease exceeds three years. Mishra was to reside on the property. Bajaj submitted police verification, Aadhaar, ownership documents, and a building layout plan.
Three Tourism department officials inspected the property before issuing a licence valid until May 2, 2027. At that time, the three-storey building had 10 rooms. They approved a six-room B&B—three each on the first and second floors.
After receiving the licence, three additional floors and 20 more rooms were illegally added on upper floors and in the basement. A full kitchen was started on the ground floor, though only tea and snacks were permitted under MCD licence.
The department sent copies of the registration certificate to multiple agencies, including Delhi Police, MCD, Delhi Jal Board, BSES Yamuna Power Limited, Delhi Tourism and Transportation Development Corporation, and India Tourism. None informed the department that the property was operating as a hotel.
The police investigation continues.
