• Running of hotel in residential society

Is it permissible to run a full fledged hotel inside a residential complex which was not their at all in the builder's brochure at the time of purchasing the flats by the residents. The hotel is running in the areas meant to be for the residents's club & parking areas as promised at the time of sales by the builder and the residents are deprived of these facilities till date. Moreover the hotel is taking residents flats on lease and using them for commercial purpose which becomes great nuisance in terms of security, privacy and peace for the resident family with kids nextdoor. The hotel is treating itself as the sole owner of the entire complex and doing whatever it wants and wherever at its will. Please advise. Thanks and regards
Asked 3 months ago in Property Law from Rishikesh, Uttarakhand
Religion: Hindu
1) hotel cannot be run in residential complex 

2) prior consent of muncipal corporation and society is necessary for running hotel inside a residential complex 

3) complain to muncipal corporation against the hotel 

4)file complaint against builder for failure to provide residential club and parking areas inside complex as promised in the brochure 

5) seek compensation for mental torture undergone and litigation costs 
Ajay Sethi
Advocate, Mumbai
23408 Answers
1230 Consultations
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This is impermissible. The hotel can be sealed by the corporation. If the corporation is not performing its duty then a suit for injunction can be filed against it by any of the inhabitants of the area
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Ashish Davessar
Advocate, Jaipur
18275 Answers
451 Consultations
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This is impermissible. The hotel can be sealed by the corporation. If the corporation is not performing its duty then a suit for injunction can be filed against it by any of the inhabitants of the area
Ashish Davessar
Advocate, Jaipur
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451 Consultations
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Hi
The Hotel is conducting its businesses illegally in the premises, if the Building was developed and sold for residential purpose.

If your residents association is a registered one under co-operative society, you should move against the Hotel in a co-operative court to get stay for its conducting hotel.

The permission obtained and the license sanctioned to the hotel  have to be checked, whether the sanctions for the same are obtained through any sorts of bribe or influence .

 If the permission is as per the existing provisions of local municipal rules and a valid license is given to run the hotel, then  the builder may  have cheated you by promising a club house and parking which is you right as a resident. You can sue the builder for this in a consumer forum if the matter is within the limitation period of 2 years or else approach a civil court , as the builder is liable and duty bound to provide the same amenities as he promised and agreed in the sale deed/agreement.the residents who are affected collectively have to take legal steps to fight this out as it would involve a  legal battle which needs money and endurance.

For the immediate respite the hotel should be restrained from using the premise by disrupting the peaceful stay of the residents , through an injunction.No authority or officer will act in their capacity to stop the hotel from doing what they have been doing till now , so you / your resident's association have to take steps to address this issue through a court  order.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
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Running a Hotel or a commercial activity must need an NOC from the residents, if you and the other residents object to its functioning from within your residential complex, raise a dispute with the local corporation office, or better still you can bring a Permanent Injunction against the Hotel owners from carrying on  their business henceforth. Lodge a formal complaint with the society or association alleging misuse of the rules and regulations by this Hotel owner, if they fail to take any action, go ahead and do what is said in the earlier paragraphs.
Kiran N. Murthy
Advocate, Bangalore
770 Answers
52 Consultations
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Full-scale commercial use of a residential flat is often opposed by co-operative housing societies. That said, utilizing 20% of the space in a residential flat is legally permissible as long as the business in question falls within certain categories.

These cases clearly indicate that there are some instances where professional activity in a residential flat would be considered legal. However, these should not be taken as blanket rulings. Apart from the individual bye-laws of housing societies, different state laws would need to be considered.

Whatever the other aspects of the case may be, it is certainly necessary to get the approval of the housing society in a general body before using a residential flat for commercial purposes. Depending on the nature of the business and also subject to the approval of the housing society, it may also be necessary to obtain permission from the local municipal authorities for conversion of the flat into a commercial establishment.

It may be possible to obtain permission from the housing society to conduct a business that does involve any movement of people or storage of goods in the residence. Nevertheless, it is not a good idea to start any kind of business in a residential flat without getting complete clarity on the legal aspects.

Even if a housing society permits business activity in a certain case, such activity can still be deemed illegal and be notified accordingly. It is not advisable to take anything for granted, and to have the legality of such an undertaking examined by a qualified lawyer.
T Kalaiselvan
Advocate, Vellore
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