Malviya Nagar fire incident: Restaurant was running under the guise of ‘tea stall’, owner faces serious allegations of fraud and violation of rules
A major revelation has come to light during the investigation into the death of 21 people in the massive fire that took place at ‘The Flourish Stay’ homestay located in Malviya Nagar, South Delhi. It is alleged that not only the alleged fraud of the hotel owner but also the lack of coordination between various government departments and the flaws in the monitoring system were responsible for this accident. According to sources, as the investigation is progressing, questions are being raised on the roles of Delhi Police, Municipal Corporation of Delhi, Fire Department and Tourism Department. According to initial information, there is a lack of clear coordination between departments in the process of licensing, inspection and implementing safety standards. Now the situation is such that various agencies, while clarifying their respective roles, seem to be shifting the responsibility to each other. While on one hand the building approval and licensing process is being scrutinized, on the other hand serious questions are being raised regarding fire safety standards and inspection system.
A major revelation has come to light in the investigation of the horrific fire. According to reports, before the fire in ‘The Flourish Stay’, a full restaurant was being operated in a part of the building and a commercial kitchen in the basement without valid permission. According to sources, hotel owner Lavkesh Bajaj had reportedly applied for an instant license from the Municipal Corporation of Delhi only for “tea stall on the ground floor”. Licenses in this category usually have a quick approval process and in many cases do not require detailed physical verification on the spot.
Taking advantage of this alleged process, it is alleged that a complete restaurant and commercial kitchen with heavy LPG cylinders was later constructed in the same premises without any additional approval. Investigating agencies say that the Municipal Corporation was not aware that a large-scale food business was operating there.
According to the documents, this homestay is located in Hauz Rani area and is said to be originally registered in the name of Jai Mishra. It was registered in Silver category by the Department of Tourism under the ‘Delhi National Capital Territory Bed and Breakfast (Registration and Regulation) Act, 2007’. As per the rules, only 6 rooms (3 on the first floor and 3 on the second floor) were allowed to operate under this license. This license was issued in 2024 and was valid till 2027. As per the terms of the B&B (Bed and Breakfast) scheme, the owner must reside in the same building and can make commercial use of only a limited number of rooms. At the time of the application, the report given by Delhi Police mentioned that the owner was living in the same premises since 2021.
MCD officials, in their initial response, have said that the property in question falls under the “Lal Dora” zone, which limits their direct role in many building regulation and construction related matters. The MCD argues that buildings falling in the Lal Dora area and built before 2014 are in some cases legally considered to be in a different category, due to which direct action against them under building bylaws may be limited in practice.
However, other departments have raised questions on this claim. Fire safety and licensing officials say that for any business activity, especially restaurant and homestay operations, it is the responsibility of the concerned agencies to check the necessary permissions, fire NOC and building usage. The role of MCD and police is also considered important in this. For this reason, now the question is being raised during the investigation that even if this area came under Lal Dora, whether the commercial activities going on there and the safety standards were monitored adequately or not.
Limited role of tourism department
The Tourism Department has clarified its position saying that before issuing the license under the ‘Bed and Breakfast (B&B) Act’, a joint team inspects the spot, which includes representatives of DTTDC, Delhi Police and Tourism Department. According to the department, this joint inspection is limited in scope and mainly remains to ensure whether the basic facilities like rooms, bedding, furniture and washrooms are clean and in usable condition. The Tourism Department has also clarified that it neither has the authority to issue fire NOC nor the responsibility to approve the building plan. Furthermore, the Department is also limited in its authority to conduct regular detailed safety inspections unless a written complaint is received.
As per rules, under the B&B scheme, operators have to submit detailed information about the guests, both Indian and foreign, staying there to the local police station every 15 days. Its purpose is to maintain a record of the people staying in the premises and keep an eye on any suspicious or illegal activity. According to sources related to the investigation, the primary responsibility of monitoring this system rests with Delhi Police. The police have to regularly verify and monitor these registers to ensure compliance with the rules. Now after the facts revealed, the question is arising whether this reporting and monitoring system was followed effectively or not. Initial investigation has also indicated that there may have been serious flaws in this process, due to which violations of rules could continue without any interruption for a long time.
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