Over 200–300 paying guest (PG) accommodations in Bengaluru have shut down recently following the Bruhat Bengaluru Mahanagara Palike (BBMP) enforcing stricter operational norms, according to Sukhi Seo, Secretary of the Bengaluru PG Owners’ Association. While only around 2,500 PGs are licensed, over 10,000 operate without approval, raising investor concerns amid the threat of raids.

The BBMP regulations, introduced under Section 305 of the BBMP Act, 2020, mandate key reforms:

  • CCTV installation at all entry, exit, and common areas
  • Minimum 70 sq. ft. space per resident
  • 135 litres of water per person daily
  • FSSAI licence for PGs offering food (within 3 months of trade licence)

In April 2025, BBMP shut down kitchens in 100 PGs in Mahadevapura Zone due to zoning and licensing violations. Zoning laws restrict commercial operations on residential roads narrower than 40 feet, which many PGs flouted.

PG owners claim 20-30% losses due to rising water charges, commercial electricity rates, and inability to raise rents beyond ₹10,000–15,000 for shared rooms without losing tenants. What was once a 6–8% ROI sector is now facing a crisis.

Civic experts describe the sector as “a complete mess.” Sandeep Anirudhan, a water security advocate, highlighted rampant rule violations, unauthorised vertical expansion, and illegal commercialization in residential zones, particularly in Whitefield. He emphasized the need for fire NOCs and bureaucratic enforcement to regulate the unplanned growth.

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