Court Cites Breach of Natural Justice and Non-Compliance with Statutory Procedures; Calls for Comprehensive Policy for Homestays
In a significant ruling, the Karnataka High Court has set aside an administrative order affecting the operation of a homestay establishment, citing breaches of natural justice and statutory non-compliance. The judgment, delivered by Justice Suraj Govindaraj on June 11, 2026, highlighted the necessity for a comprehensive regulatory framework to govern homestays in Karnataka.
The petitioner, Sri P.A. Ponnappa, challenged the order dated April 22, 2026, issued by the State authorities, arguing that it was passed without prior notice or an opportunity for a hearing, thereby violating principles of natural justice. The court concurred with this contention, noting that the impugned order was indeed issued in contravention of the principles of "audi alteram partem" — the legal maxim that ensures no person is condemned unheard.
The judgment further identified non-compliance with the mandatory procedures outlined in the Karnataka Tourism Trade (Facilitation and Regulation) Act, 2015. According to the court, the respondents failed to issue a show-cause notice or conduct a proper inquiry before taking action, thereby vitiating the decision-making process. Justice Govindaraj emphasized that adherence to statutory safeguards is indispensable to prevent arbitrary administrative actions.
Beyond addressing the immediate legal issues, the court underscored the need for a comprehensive policy framework to regulate homestays. It highlighted multiple aspects requiring attention, including fire and food safety, building compliance, guest security, and environmental sustainability. The judgment called for a coordinated approach among various governmental departments to ensure transparency, fairness, and consistency in regulatory enforcement.
The court directed the Principal Secretary, Department of Tourism, Government of Karnataka, to consider formulating such a framework in consultation with relevant departments. This initiative is aimed at minimizing litigation, promoting tourism, and ensuring the sustainable growth of the homestay sector.
The ruling allows the petitioner to respond to the administrative notice by June 24, 2026, and mandates the authorities to make a decision in accordance with the law within two weeks thereafter. The matter is scheduled to be revisited on July 20, 2026, to review progress on the policy formulation.
Bottom line:-
Principles of natural justice and adherence to statutory procedures under the Karnataka Tourism Trade (Facilitation and Regulation) Act, 2015, are mandatory before taking action affecting the operation of homestay establishments.
Statutory provision(s): Karnataka Tourism Trade (Facilitation and Regulation) Act, 2015, Section 13
P.A. Ponnappa v. State of Karnataka, (Karnataka) : Law Finder Doc id # 2925954
