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Licence Registered in Accountant’s Name: Probe Reveals How South Delhi Hotel Circumvented Regulations

Investigators have now started probing the process by which the proprietor of the Flourish Stays B&B in South Delhi, where 21 people lost their lives in a devastating fire on Wednesday, acquired its operating licence.

The building was bought in 2022 by businessman Lavkesh Bajaj of Saket, officials in the know of the investigation said. The building would be a three-story building at the time of the transaction.

Once taken over, Bajaj used the land to run a Bed and Breakfast Inn to accommodate the increasing number of medical tourists and patients from abroad in the vicinity, investigators allege.

The license was granted under the name of Jay Mishra, a businessman who works for Bajaj’s business operations, according to the police, so that people could stay at a hotel that falls under the category of B&B, as set out by the Delhi government. Mishra is also said to be in charge of a few other houses allegedly linked to Bajaj.

The documents provided when the application for a licence was made reportedly said Mishra was the owner and “lived in” the premises and allowed the application to comply with the requirements.

The building opposite the property at Max Hospital was a place that interested visitors who wanted to stay there; Bajaj allegedly added more floors to the building over time. The building originally included six rooms, and eventually expanded to a six story building with 26 rooms, including a lower level and five upper floors.

The concept of the Bed and Breakfast Scheme was devised in anticipation of the 2010 Commonwealth Games, and was designed to encourage people to provide tourist accommodation from their homes. Several houses in Karol Bagh, Paharganj, etc. have been transformed into guest houses as part of the programme. Delhi Tourism Department is responsible for issuing licences under the scheme.

The current investigation is focused on determining if the licensing of the property and subsequent expansion of the property infringed on regulations.

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