PUDUCHERRY: The unlicenced Guest houses operating in Puducherry have come under the scanner with Puducherry Municipality issuing show cause notice to 27 of them in the town limits. The move comes following complaints that several hotels and guest houses are operating without proper permissions.
Based on information from the Puducherry Superintendent of Police (East) and municipal investigations, the unauthorized operations were identified and a show cause notice was issued, Commissioner of Puducherry Municipality M Kandasamy said. The concerned owners have been given a seven-day deadline to obtain the necessary trade licenses. Failure to comply will result in the immediate sealing of the establishments under the Puducherry Municipal Act.
The Municipality has advised hotel and guest house owners to adhere to regulations by securing the appropriate licenses. Those who fail to comply will face closure. For unauthorized guest houses seeking regularization, their applications for trade licenses will be evaluated, and licenses will be granted if they meet eligibility criteria, said the Commissioner.
Even for the Home stay under Bread and Breakfast scheme of the Tourism department, a trade licence is mandatory, but several of them are promoted without a trade licence. There are around 80 Home stays, with trade licenses issued to 35 of them.
The others, the moment they get recognition from the Tourism Department, fail to get a trade license, said the Commissioner. “We have advised them to get a trade license “, said the Commissioner. While some are catering to the conditions of homestay , others are promoting the place as a guest house.
The crackdown aims to prevent potential misuse of unlicensed accommodations by criminals, which could pose security risks due to the lack of official oversight. Moreover, these unregulated establishments result in a significant loss of revenue for the government.
Ever since Puducherry's growing popularity as a weekend getaway, unauthorized guest houses and homestays have proliferated, evading regulations from the Municipality, Police Department, and Tourism Department.
Licensed hotels and guest houses are required to submit guest information to local police and immigration authorities (for foreign nationals), including identification documents. However, unlicensed establishments bypass this process, making it difficult for authorities to monitor the activities of guests.
A few years back foreign made currency printing machines, currency paper and printing materials along with some fake currency notes (dollar) were found on the roadside at Uppalam in the town area. There are suspicions that a guest house in Colas Nagar in Uppalam area has been used for printing fake currency by foreign nationals, The CBCID wing of police investigating the case has not been able to crack the case as it was detected only after those involved in the incident have left Puducherry.
The hospitality industry estimates that around 80 to 90 unauthorized guest houses, providing 500 to 700 rooms, operate within the main town area. While some have signboards, many rely on word-of-mouth promotion by guests and auto rickshaws or cab drivers. Beyond security concerns, these establishments avoid municipal license fees, garbage disposal charges, and commercial tariffs for electricity and water.
Although a few years back there has been some discussion on implementing regulatory measures similar to those in Goa and the Andaman and Nicobar Islands, no legislation has been enacted to date. The lack of a regulatory framework continues to challenge the efforts to control and standardize the hospitality industry in Puducherry.