Karnataka High Court Asks State To Form Policy For Regulating Homestays, Grants Relief To Owner Whose License Was Cancelled After Rape FIR

The Karnataka High Court on Thursday (June 11) granted relief to the owner of a Homestay in Kodagu whose registration/license was cancelled on account of his alleged involvement in the rape of a US national who was a guest at his property. 

The court also asked the Principal Secretary of the Tourism Department to formulate a proper, comprehensive policy for the regulation of homestays under the Karnataka Tourism Trade (Facilitation and Regulation) Act, 2015, noting that the existing framework is inadequate.

“…The Act does not cover various aspects relating thereto, namely fire clearance, FSSAI (kitchen) licenses and permissions from local municipal authorities, aspect of security provided, manner of charges levied… It will be required for the Principal Secretary, Department of Tourism to formulate a proper policy for regulation of homestays so as to enable the stakeholders to know all the Do's and Don'ts in the regulations so that they can comply with them”, the single judge bench of Justice Suraj Govindaraj said in the order.

Noting that the license cancellation order issued by Deputy Commissioner and Chairman of the District Tourism Development Committee, Kodagu, was issued 'without notice', the court directed that the order shall be 'read down as a show cause notice'.

“…The impugned order at annexure B is read down as a show cause notice. The petition to reply to the said show cause notice within 2 weeks, on or before June, 24, 2026…The respondents ought to pass necessary orders thereafter in accordance with law…” the bench clarified while allowing the homestay licensee's plea.

The court also orally remarked that the Karnataka Tourism Trade (Facilitation and Regulation) Act, 2015 primarily deals with recognition and registration alone and lacks good implementation.

“…Let them come up with a proper policy under this Act…like what we are doing with paying guests now. …people get affected…. it's a public issue… people come from various states…they have bad experiences…”, the court said.

The plea by the homestay owner, filed through Advocate Angad Kamath, claimed that the procedure envisaged under Section 13 of the Tourism Act was not followed by the Deputy Commissioner.

It was argued that Section 13 stood violated by the failure of the commissioner to serve a notice first to the tourism operator and granting not exceeding 30 days' timeline for due compliance.

The property, owned by the petitioner, obtained formal registration under Section 8 of the 2015 Act on January 15, 2024. The registration was valid until 2029. In the meantime, it was argued, that on April 22, 2026, the Kutta Police at Kodagu requested the Deputy Commissioner to cancel the petitioner's registration, owing to the criminal charges of rape levelled against him.  On the very same day, the order was allegedly passed by the Dy. Commissioner.

Section 13 of the 2015 Act prescribes (i) prior notice requiring compliance within 30 days, (ii) an opportunity to make a written reply, and (iii) a reasoned order after considering the reply, the petition stated. The plea also argued that registration of an FIR without a conviction, or at the least a chargesheet, cannot by itself constitute a ground for summary cancellation of a licence that carries civil consequences.

In a related matter, the Karnataka High Court on June 10 orally flagged the security risk concerning the "mushrooming of homestays" across the state, remarking that no one no longer knows where these accommodations are and what was happening there.

The court was hearing a plea moved by the same homestay owner challenging the FIR lodged over the allegation that a US national was raped at his homestay. The owner, who was arrested on April 19, seeks quashing of the FIR for rape and has sought Rs 15 Lakh as compensation for breaching his Fundamental Rights.

Case Title: Sri P.A. Ponnappa v. State of Karnataka & Ors.

Case No: WP 17310/2026