Chandigarh Allows Bed-and-Breakfasts in Large Homes, Drawing Mixed Reactions

The Chandigarh Administration has formally approved a policy that allows owners of large residential houses to operate bed-and-breakfast (B&B) accommodations, a move officials say will boost tourism and provide homeowners with an additional income stream.

The notification, issued by the Estates Department under Rule 9(i) of the Chandigarh Estate Rules, 2007 and cleared by UT Administrator and Punjab Governor Gulab Chand Kataria, permits residential units of 500 square yards and above to be used as paid B&B establishments.

Properties must be registered under the Tourism Department’s policy, and only the property owner may apply after obtaining all required permissions and No Objection Certificates (NOCs).

Administration officials framed the policy as a way to promote “clean, affordable and authentic” homestays that complement the city’s existing hospitality infrastructure. They say the measure requires minimal investment from homeowners while creating regulated income opportunities and expanding lodging choices for visitors.

Yet the decision revives concerns raised earlier by resident welfare associations (RWAs) and citizens. When a draft of the policy was circulated, more than 200 RWAs rejected it.

Critics argued that permitting commercial hospitality in residential sectors risks diluting the planned residential character, increasing traffic and parking pressure, and compromising privacy and security. Some warned that this could open the door to broader commercialisation of Chandigarh’s carefully zoned neighbourhoods.

Officials contend the policy includes safeguards intended to limit such impacts. Eligibility is confined to larger properties, mandatory registration and compliance with Tourism Department conditions are required, and owners must secure local permissions and NOCs before starting operations. The administration says these controls will keep B&B activity regulated and prevent disruption to residential life.

The policy marks a notable policy shift for Chandigarh, a city known for its planned residential sectors. For homeowners with suitable properties, it offers a structured route to supplement income while hosting visitors. For residents and RWAs, the coming months will be a test of whether the safeguards are enough to preserve neighbourhood character and civic amenities.

Tags: Chandigarh, BNB, Bed and Breakfast, Chandigarh Reviews, Mixed Reactions, New Policy