Chandigarh Allows Bed & Breakfasts in Residential Areas

Chandigarh: In a move that could significantly alter the quiet character of the city’s residential sectors, the Chandigarh administration has permitted bed and breakfast (BnB) establishments to operate inside large residential houses under the BnB policy framed by the department of tourism.The new policy allows eligible homeowners to host tourists in their properties, effectively introducing commercial hospitality activities into areas originally designed for families, though, within laid down restrictions in the BnB policy.Under the policy, only residential houses measuring at least 500 square yards are eligible to run B&Bs. The property must be registered under the department of tourism’s Bed & Breakfast Policy.

Only the owner can apply, and applicants must secure all mandatory permissions and No Objection Certificates (NOCs), while adhering strictly to the prescribed conditions.The notification comes in the backdrop of the many objections raised by resident associations and citizen groups against the policy.Many warned that allowing commercial activities in residential areas would permanently change the character of Chandigarh’s meticulously planned neighbourhoods and pave the way for commercialisation.

Residents had raised fears of increased traffic, parking congestion, noise pollution, and security issues due to the regular inflow of short-term visitors. Several also questioned the 500-square-yard eligibility criterion, calling it arbitrary and favouring owners of bigger properties.Citizen groups demanded stricter safeguards, including caps on the number of guest rooms, mandatory on-site parking, regular inspections, and effective monitoring to ensure B&Bs do not function as unregulated guest houses or hotels.They had urged the administration to keep the policy strictly tourism-oriented without compromising the residential character, privacy, and planned urban environment of the city.UT officials maintained that the policy would boost tourism by offering clean, affordable, and culturally authentic homestay experiences while providing homeowners with an additional source of income. Officials believe it will complement the existing hotel infrastructure, provided the properties are used responsibly.BOX1: Mandatory Conditions for opening BnBMinimum Plot Size | The residential house must be on a plot of at least 500 square yards.Registration Requirement | The property must be registered as a B&B establishment under the Bed & Breakfast Policy framed by the department of tourism, Chandigarh administration.Permissions & NOCs | The owner must obtain all necessary permissions and No Objection Certificates (NOCs) as required under the B&B Policy.Applicant Eligibility | Only the owner(s) of the residential property can apply. Third parties or tenants are not allowed to apply.Full Compliance | All mandatory conditions prescribed under the Bed & Breakfast Policy of the department of tourism must be strictly followed.BOX2: 2008 BnB policy was withdrawn in 2009-- Chandigarh first introduced a Bed & Breakfast scheme in 2008. It was withdrawn in 2009 due to widespread violations--Many homeowners misused the scheme by converting their residential houses into mini-hotels or full commercial guest houses--They flouted the basic norms of the scheme (which was meant for genuine homestays offering a cultural/family experience)--This led to misuse of residential properties for commercial purposes, prompting the administration to cancel the permissions and withdraw the schemeBlurb“The 2008 scheme failed due to poor regulation and rampant commercial misuse. The 2026 version tries to learn from those mistakes by imposing stricter eligibility, clearer boundaries, and better monitoring mechanisms,” said a senior UT official.