Days after the deadly collapse of a paying guest (PG) accommodation in Delhi’s Satya Niketan that claimed seven lives, the Delhi government is considering a comprehensive law to regulate the city’s rapidly expanding PG sector.
The proposed ‘Paying Guest Accommodation Regulation and Welfare Bill’ aims to bring PG operators under a formal regulatory system covering registration, rent, security deposits, safety measures, grievance redressal and monitoring.
The proposed rules are particularly significant for areas such as Mukherjee Nagar, Laxmi Nagar, Rajendra Nagar and North Campus, where thousands of students, including those preparing for competitive examinations, rely on private PG accommodation.
PG Operators Could Need Licence Within 90 Days
Under the proposed framework, all PG establishments operating in Delhi would have to register with the relevant zoning authority and obtain an operating licence within 90 days.
Operators would also need No Objection Certificates (NOCs) from the police, municipal corporation and local administration.
Once approved, each property would receive a unique Paying Guest Registration Number (PGRN). Details of licensed accommodations are proposed to be uploaded to a central digital platform, allowing students and other tenants to check whether a PG is officially registered before moving in.
Three-Month Cap Proposed on Security Deposits
The proposed legislation also seeks to curb disputes over rent and deposits.
A Rent Regulation Committee could be established to determine locality-wise rent bands for PG accommodation.
Among the proposed financial safeguards:
- Security deposits could be capped at three months’ rent.
- Advance rent could also be limited to three months.
- Tenants would be required to provide 30 days’ notice before vacating.
- Operators would not be allowed to impose different rents on the basis of gender, caste, religion or state of origin.
The government’s proposal is aimed at making rental agreements more transparent and reducing arbitrary financial demands on students.
CCTV and Night Security Could Become Compulsory
Safety provisions form a major part of the proposed bill.
Registered PGs would be required to install CCTV cameras at entrances and in common areas, with recordings retained for 30 days.
PGs accommodating 15 or more students could also be required to deploy security guards during night hours.
Other proposed requirements include maintaining visitor records, ensuring a warden is available within a 500-metre radius and complying with prescribed fire, structural and general safety standards.
GovPG Portal Could Help Students Check PGs
The government is also proposing a dedicated GovPG digital portal where students could find verified accommodation.
The platform is expected to provide information including rent, facilities and security arrangements. It could also allow residents to submit complaints anonymously.
A proposed compliance-rating system would further give prospective tenants an indication of a PG’s regulatory and safety record before they sign an agreement.
Colleges and Coaching Centres May Get Monitoring Role
The proposed system could also involve educational institutions in PG oversight.
An Institutional Accommodation Committee (IAC) has been proposed, comprising representatives from educational institutions, students, police and municipal authorities.
These committees could conduct inspections every three months, while disputes would have a proposed resolution target of 15 working days.
The government is also considering incentives for PG operators that maintain consistent compliance. Operators with a satisfactory record for two consecutive years could potentially qualify for property tax benefits, easier loan access and a ‘Certified Student-Friendly PG’ recognition.
The proposal also suggests approaching the GST Council for possible relief for compliant PG operators.
Satya Niketan Collapse Puts Spotlight on Safety
The proposed legislation follows the fatal collapse of a five-storey building housing a boys’ PG in Satya Niketan, where repair work was reportedly being carried out in the basement.
A rescue operation continued for nearly 27 hours, with 12 people eventually pulled from the debris. Seven people died while five others suffered injuries.
The incident prompted arrests and intensified scrutiny of construction practices and safety compliance in buildings being used as student accommodation.
Among those arrested were building owner Hari Ram Gupta, his wife Urmila Gupta, their son Mahesh Gupta, labour contractor Sanoj and PG operator Sudhanshu. Another PG operator, Shubham Tyagi, has reportedly remained absconding.
The Municipal Corporation of Delhi also began demolishing portions of neighbouring structures after safety concerns were raised. Nearby PG properties were evacuated following reports of cracks and possible structural instability.
Earlier Incidents Add to Concerns
The government’s proposal also comes amid a series of safety and welfare concerns surrounding Delhi’s PG sector.
Officials have cited incidents including the 2024 basement tragedy in Old Rajendra Nagar, fire-safety violations in Mukherjee Nagar and complaints involving sexual harassment, alleged hidden cameras and disputed electricity charges.
If approved and implemented, the proposed legislation could fundamentally change how Delhi’s PG accommodation sector operates by bringing informal properties into a licensing system while giving students greater access to safety information, rental protections and complaint mechanisms.
However, enforcing the proposed rules across thousands of small and informal PG establishments could remain a major challenge, particularly because registration would involve multiple government agencies and the proposed rent bands would have to account for substantial differences between localities.
