Illegal water extraction: DPCC starts collecting fines from hotels, guest houses in Paharganj
Initially, notices were issued to only 257 guest houses, as 185 of the total cited Delhi Jal Board’s voluntary disclosure scheme (VDS), but they have also been fined now, DPCC clarified
New Delhi

Environmental damage compensation (EDC) penalties to the tune of ₹2 lakh, of a total of ₹4.42 crore, have been collected from hotels and guest houses in Paharganj for illegally extracting groundwater, the Delhi Pollution Control Board (DPCC) informed the National Green Tribunal (NGT).
DPCC, in its submission dated August 20, said they are in the process of collecting fines from 442 establishments, of which two paid the penalty of ₹1 lakh each. Of the 440, 260 establishments responded to a show cause notice and fine issued by the Delhi Jal Board (DJB), while 180 units were yet to respond.
In November 2023, DPCC inspected 536 guest houses and hotels in Paharganj, of which 442 were found to be extracting groundwater. Seventeen guest houses were found non-operational and 77 were not using groundwater, DPCC said.
Initially, notices were issued to only 257 guest houses, as 185 of the total cited Delhi Jal Board’s voluntary disclosure scheme (VDS), but they have also been fined now, DPCC clarified.
“Despite declaring under VDS, due permissions were not taken from the DJB and thus, a fine of ₹1 lakh each and a show cause notice has been issued. The guest houses have time to respond,” an official aware of the matter said.
Owners of the hotels and guest houses, however, said they will contest the penalty.
Sourabh Chhabra, from the Paharganj Guesthouse Owner’s Association, said the problem stems from lack of water availability in the area, due to which many declared extraction under VDS.
“Even after declaring it, based on a scheme the DJB introduced, we are still being fined. A number of guest houses also paid ₹1,670 per month as boring charges to DJB for several years. Most guest houses are fairly small in size, but are still being fined such a huge amount, which will impact business,” he said.

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