Crackdown forces over 300 Bengaluru PGs to shut shop amid new BBMP rules

More than 300 paying guest (PG) accommodations in Bengaluru have ceased operations following the enforcement of stringent regulations by the Bruhat Bengaluru Mahanagara Palike (BBMP), escalating concerns among investors and tenants alike.

Also read: Here are new BBMP guidelines that aim to improve safety and standards for PGs in Bengaluru

Despite only around 2,500 PGs having official licences, over 10,000 are estimated to be functioning without proper authorization. The BBMP’s revised rules, introduced under Section 305 of the BBMP Act, 2020, aim to bring order to the largely unregulated sector. The updated norms require mandatory CCTV surveillance in all common areas, a minimum living space of 70 square feet per person, a daily water provision of 135 litres per resident, and an FSSAI licence for food-providing establishments within three months of obtaining a trade licence.

In April 2025 alone, kitchens in 100 PGs in the Mahadevapura Zone were sealed due to zoning violations. Current regulations prohibit commercial operations on residential roads narrower than 40 feet—a clause frequently breached by many operators.

PG owners report significant financial strain, citing losses of 20–30% driven by rising water tariffs, commercial electricity rates, and stagnant rental ceilings between ₹10,000 and ₹15,000. Once a promising sector with 6–8% returns, the PG business is now grappling with regulatory pressure and falling profitability.