On May 3, 2024, the Delhi Tourism department issued a licence to Flourish Stay in Malviya Nagar to operate as a six-room Bed & Breakfast (B&B). The licence was valid for three years and as per the Bed & Breakfast Act, the department was not required to carry out periodic inspections during this period.
This loophole in the law, sources said, led to the hotel flouting norms by expanding the B&B into a 26-room hotel, where a fire on June 3 led to the deaths of 23 people, including 14 foreigners. According to sources, the same has been flagged to senior government authorities who are probing the matter.
According to officials, while the department was not needed to carry out periodic inspections, it had to intervene if any other government agency reported violations or raised
a red flag about the B&B’s functioning.
Sources citing official records said that none of the agencies that dealt with the B&B since May 2024 alerted the Tourism department about the unauthorised expansion.
These included the Municipal Corporation of Delhi (MCD), which is scheduled to conduct inspections when health and trade licences are renewed every year. Power and Water departments, too, could have noticed consumption inconsistent with a six-room B&B and more in line with a larger hotel operation.
Further, the local police are supposed to periodically verify guest records before major events and festivals, including Independence Day and Republic Day.
Sources also said that for security reasons, B&B operators are required to inform the Foreigners Regional Registration Office (FRRO) about the stay of foreign nationals, periodically.
None of these agencies raised a red flag.
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Sources in the government said the Tourism department’s internal report has said that the fire was related to “issues concerning operational safety, fire prevention measures, building usage, occupancy management and compliance with statutory obligations that are primarily the responsibility of the owner and the authorities empowered under the relevant municipal, fire safety, police and other regulatory laws.”
According to official records, while obtaining the licence, owner Lavkesh Bajaj told the Tourism department that he had leased the property to his accountant, Jay Mishra, for six years.
Under the B&B rules, if a property is leased for more than three years, the licence-issuing authority may treat the lessee as the owner for licensing purposes. The licence application stated that Mishra would reside on the property.
Bajaj had also submitted documents, including police verification documents issued by the local Malviya Nagar police station, Aadhaar card, ownership papers and the building layout plan.
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Sources said three Tourism department officials, including an assistant director, inspected the property before issuing the licence for three years, valid until May 2, 2027. They found Mishra living there and approved a six-room B&B – three each on the first floor and second floor. At the time, the three-storey building had 10 rooms.
The registration certificate was issued under the Silver Category of the National Capital Territory of Delhi (Incredible India) Bed & Breakfast Establishments (Registration and Regulation) Act, 2007.
According to the probe, after getting the licence, three additional floors and 20 more rooms were illegally added on the upper floors and in the basement. A full kitchen was also started on the ground floor despite Bajaj having permission only to serve tea and snacks under a licence issued by the MCD.
The department sent copies of the registration certificate to several agencies, including the Delhi Police, MCD, Delhi Jal Board, BSES Yamuna Power Limited, Delhi Tourism and Transportation Development Corporation (DTTDC) and India Tourism.
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However, none informed the department that the property was allegedly operating as a hotel.
The police probe has, meanwhile, found that the blaze originated in the B&B’s kitchen after chef Keshav Negi switched on a stove to heat oil for frying.
“As the oil became excessively hot, fumes came into contact with plastic panelling installed behind the cooking area, igniting the fire and allowing it to spread rapidly through the building,” said an officer.
As per police, Negi initially tried to control the situation by shutting off the source of the fumes, but the flames intensified within moments and he fled. At the time, the receptionist, a sanitation worker and two housekeeping employees were present at the B&B. It was the receptionist who informed Bajaj of the fire.
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Police are now awaiting the final forensic reports before filing a chargesheet, which is expected to be submitted in the coming days, said officers.





