Mandatory licensing, rent regulations: Proposal for bill seeks to regulate 200,000 PGs in Delhi

The proposal estimates that around 200,000 PG accommodations operate across teh city without any formal documentation with state authorities.

A proposal for a bill to regulate paying guest (PG) accommodation in Delhi seeks to bring thousands of establishments under a formal licensing and inspection regime, making registration mandatory and introducing rent bands, security requirements and a grievance redressal mechanism for students, officials aware of the plan said on Monday.

The move come following a fatal building collapse at a PG in Delhi's Satya Niketan area. (ANI)

The proposal document for the “Paying Guest Accommodation Regulation and Safety Bill, 2026”, accessed by HT, requires PG operators to obtain police verification and a no-objection certificate (NOC), municipal clearance covering structural and fire safety, and clearance from regional administrative officials.

The draft acknowledges implementation challenges, including limited enforcement capacity, bringing informal PGs into the regulatory system, maintaining the digital portal and resistance to rent controls. It recommends phased enforcement and a single-window system to coordinate the multiple clearances required.

To be sure, the document is scant on details regarding enforcement mechanisms. It also does not prescribe specific fire and emergency preparedness measures such as fire alarms, extinguishers, emergency exits, evacuation plans or periodic fire drills.

Largely unregulated housing market

The proposal estimates that around 200,000 PG accommodations operate across Mukherjee Nagar, Laxmi Nagar and Rajendra Nagar, with no records of them currently maintained by the police, fire department or Municipal Corporation of Delhi (MCD). It describes Delhi’s PG sector as a “housing market operating largely without a regulatory framework”.

The document cites several incidents to underline the need for regulation. A survey following a fire at a PG in Mukherjee Nagar in September 2023 found 104 PG units operating in violation of building bylaws, while only one of the surveyed establishments had a Delhi Fire Services NOC, according to the proposal.

While the proposed security standards mandate CCTV cameras, security guards, visitor registers and wardens, the absence of corresponding minimum standards for fire and emergency preparedness could allow establishments to comply with security requirements while still falling short on basic life-safety measures, experts said.

“The issue is not about PG accommodations or coaching centres. It is about structural safety of buildings. Big announcements are made after such incidents. What will norms do if you do not have adequate equipments and mechanisms to implement them. There are multiple agencies in Delhi, how will they implement these norms without the police being under their control. You need to chalk out a holistic plan, one that takes into account the pros and cons of the system, the multiplication of agencies and how there has been an overexpansion of the sector,” said Jagdish Mamgain, urban planning expert and former MCD works committee chairman.

An official said, “The Delhi government’s urban development department is studying the draft and is likely to finalise it within the next three days. It will be introduced in the cabinet within a fortnight.”

The proposal says the absence of regulation has resulted in arbitrary rent practices, poor living conditions, inadequate safety measures and limited accountability of PG operators.

PG operating license

Under the proposed law, every PG would have to obtain a “PG operating licence” from the local zone authority within 90 days. Registered establishments would receive a unique registration number and be listed on a proposed government portal.

It also cites incidents involving harassment and privacy, including a 2022 case involving a security guard at a Karol Bagh PG and a 2024 case in Shakarpur in which an IAS aspirant allegedly found hidden cameras in her bedroom and bathroom.

The proposed GovPG portal would list registered PGs and provide details such as occupancy, rent changes and audit dates. Students would be able to verify registration and capacity certificates, lodge anonymous complaints and track their status.

The bill proposes zone-wise rent bands to be determined by a Rent Regulation Committee based on market rates, occupancy type, amenities and proximity to educational and transport hubs. Security deposits would be capped at three months’ rent and returned within 30 days.

Operators would be barred from charging above the notified rent band without approval, demanding more than three months’ advance rent or evicting students without 30 days’ written notice, except in cases of documented misconduct.

Other reform measures

Colleges and universities would have to constitute Institutional Accommodation Committees comprising faculty members, student representatives, an NSS/NCC representative, a municipal representative and a police liaison officer. The committees would conduct quarterly inspections, issue improvement notices and arbitrate student-owner disputes within 15 working days. Similar committees are proposed for coaching and skill-training institutions.

PGs would have to install CCTV cameras at entrances and common areas and retain footage for at least 30 days. Facilities housing 15 or more students would require a licensed night security guard between 10pm and 6am. Visitors would be allowed only between 8am and 9pm and would have to sign an entry register. A designated warden would also have to remain within 500 metres of the premises and be available during emergencies.

The proposal also envisages incentives for compliant operators, including property-tax and GST rebates, easier loans for safety upgrades and a “Certified Student-Friendly PG” recognition.

Urban development minister Ashish Sood blamed previous Congress and AAP governments for what he described as decades of neglect following the Satya Niketan building collapse.

Sood alleged that successive governments had failed to regulate PG accommodation around colleges and universities, allowing students to be exploited. He said the present government was preparing a comprehensive law covering areas including rent control, food quality standards and local businesses, with a focus on accountability, systemic reform and student safety.