RIICO cancels land allotments, industry says running guest houses within law

Jaipur: RIICO has cancelled over a dozen residential land allotments in its Kukas area citing violation of land use. However, the industry claimed that running guest houses and home stays in the residential part of the industrial areas is within the law.
RIICO’s letters to the owners mentioned that they were running ‘hotels’ which is a clear violation of land use rules.On the other hand, the industry said that as per the policy, guest houses of up to 20 rooms are allowed in any residential area.
A senior official in RIICO said that they are not aware of the guest house policy of the government. “RIICO doesn’t have any policy to allow guest houses in residential sections of the industrial areas,” said the official.
Representatives of Hotel Federation of Rajasthan (HFR) on Friday went to meet RIICO MD Shivprasad Nakate and submitted a representation urging RIICO to not take such drastic steps.
Hussain Khan, president of HFR said, “The accommodations are residential in nature as the homeowners themselves reside in the premises and they merely rent out rooms. These operations do not include public bars or restaurants, maintaining the residential character of the locality.”
It is not just the guest house policy, RIICO does not even accept the state government’s policy that accorded industrial status to warehouses. RIICO still treats them as commercial activity despite several representations by the industry.
In fact, the govt of India has also accorded industrial status to warehouses. Additionally, guest houses come under the tourism policy. Two years ago, the state government recognized tourism as industry.
Suresh Agarwal, president of Federation of Rajasthan Trade and Industry, said, “Tourism units including hotels and guest houses are industrial units as per the government policy. RIICO should accept hotels and guest houses as industrial units.”
Moreover, representatives of the business community said RIICO has been asleep on the wheel and doesn’t recognize how the industrial dynamics is changing.
“The demand for such facilities is rising and the new reality should be factored into planning. In the case of Kukas, the area has become home to a number of colleges, factories and hotels. Students, lower-level staff visiting factories, subordinate employees of business leaders, ministers staying in the star hotels nearby need cheaper accommodations. These guest houses are playing that role,” said an industry representative.