Himachal: Fine will be imposed for living in house illegally

Himachal Pradesh: Homestay owners running their units illegally without proper registration and required permissions will be fined Rs 1 lakh and their electricity-water connection will be disconnected for repeated violations. Although the tourism department had notified the Himachal Pradesh Home Stay Rules 2025 on June 25, 2025, complaints are still being received that many homestays and bread and breakfast (B&B) units are being run illegally across the state. Although it is mandatory for homestays to register with the tourism department in many rural and remote areas, people are still running homestays illegally. To curb this trend, the department has now made it mandatory that all homestays are registered not only with the tourism department but also with the local urban local bodies such as municipal corporations, committees and councils and the concerned panchayats.

The urban local body or the concerned panchayat will be responsible for maintaining a record of homestays and B&B units operating in their jurisdiction. The state government had framed the Himachal Pradesh Home Stay Rules 2025 to curb illegal homestays. A sub-committee of the Cabinet had made recommendations to frame these rules in consultation with stakeholders. Hotel owners across the state had put pressure on the state government to regulate homestays. They said that homestays have taken away a large part of their business, causing them losses. They lamented that while they are paying several taxes to the government, homestay owners are making huge profits without paying any taxes. There are about 4,500 homestays and guest houses registered with the tourism department across the state. Of these, the highest number of homestays are in Kullu, Kangra, Shimla, Solan and Chamba districts. However, a large number of these homestays are running illegally.