Immediate Closure of Illegal Homestays: Madras High Court Forms Special Committee to Crack Down on Unlicensed Cottages in Nilgiris and Kodaikanal
Safiya Malik
The High Court of Madras Division Bench of Justice N. Sathish Kumar and Justice D. Bharatha Chakravarthy directed a multi-agency inspection to identify and shut down unlicensed home stays and cottages operating in the Nilgiris and Kodaikanal hill regions. A committee comprising senior district officials was ordered to undertake comprehensive inspections, verify listings through booking platforms, and act on public complaints. The Court also issued directions for implementing eco-friendly transport systems, strengthening e-pass protocols, and expediting FASTag integration at checkposts. The matter was posted for further hearing with instructions to file action-taken reports.
The writ petition was filed raising concerns over the unregulated growth of home stays and tourism-linked establishments in the Nilgiris and Kodaikanal, leading to strain on the hill districts’ ecology, infrastructure, and public safety. The petition sought regulatory enforcement from various government departments including Environment, Forest, Tourism, Municipal Administration, and Transport, as well as the Union Ministry of Road Transport and Highways.
The petitioners stated that a significant number of home stays and cottages operated without any licensing from the Tourism Department or local bodies. Allegations included absence of safety protocols, lack of registration, and unchecked environmental violations. A miscellaneous petition was also filed by the Tamil Nadu Hotel Association seeking impleadment, citing the impact of illegal operations on legitimate establishments.
The respondents included municipal authorities of Udhagamandalam, Coonoor, Gudalur, Kotagiri, and Kodaikanal; state-level secretaries from tourism, transport, and municipal administration; the District Collectors of Nilgiris and Dindigul; and central authorities including the Secretary, Ministry of Road Transport and Highways.
On a previous occasion, the Court had issued orders directing the implementation of an e-pass system to regulate vehicular entry to the hill stations. The Transport Department and the Ministry of Road Transport were also tasked with installing boom barriers and integrating FASTag technology at checkposts.
Status reports were submitted by the Special Government Pleader and other authorities detailing progress made on several fronts including installation of checkpost infrastructure, implementation of green tax collection, and launch of "Hop-on Hop-off" eco-friendly bus services.
The Court was informed that steps had been taken to issue e-passes through checkposts at Kallar, Kunjappanai, Masinagudi, and Melgudalur, with provisions for real-time monitoring and quota enforcement. However, data on applications turned away due to exhausted quotas was still under compilation. The State Government also informed that a sum of ₹5 crores had been earmarked to implement eco-friendly transport solutions and electric vehicle infrastructure.
Further submissions indicated that, on average, 7,000 to 9,450 vehicles entered the Nilgiris district daily, with the demand peaking during weekends. The Tamil Nadu Government also submitted that the upper cap for vehicle entries had not been breached on any recorded day. Provisions were being made to increase the cap temporarily during events such as flower shows and fruit festivals based on the discretion of the concerned District Collectors.
In response to issues raised by the hotel association and other stakeholders, the Court permitted their impleadment and directed submission of detailed data including number of members, available rooms, and service capacity.
The Court recorded, “It is brought to our notice that there are large number of home stays/cottages which are functioning without even any license whatsoever from the Tourism Department or from the other agencies of the local bodies.” It noted the urgent need for regulatory enforcement, stating, “Immediate measures are required to crack down all those illegal operators who operate without license from the Tourism Department.”
To this end, the Court directed that “inspection shall be carried out throughout Nilgiris District as well as Kodaikanal hills by a committee comprising of District Revenue Officer, Municipal Commissioner and District Tourism Officer concerned.”
Regarding data collection, the Court observed, “The Committee shall also ascertain information through various private booking websites and ascertain whether the listed home stays, cottages are license operators or not.” It also permitted public involvement, noting, “Licensed home stay operators and hoteliers and general public can also bring to the notice of the Committee as to any persons operating illegal home stays.”
In terms of actionable outcomes, the Court stated, “Wherever the committee finds that there are illegal operations, the Committee shall in accordance with law close down such establishment forthwith.”
Addressing the e-pass and vehicle regulation system, the Court recorded, “The prohibition is also issued in respect of long chassis tourist vehicles.” It acknowledged submissions that “on no date the number of e-pass seekers have exceeded the upper cap that is fixed by this Court.”
On the special circumstances involving tourism events, the Court stated, “We confer the discretion on the District Collector, Nilgiris to increase the upper cap limit by 500 numbers of vehicles depending on the needs only on those days… Similarly, on the day of flower show in Kodaikanal… the District Collector, Kodaikanal can also increase the upper cap by another 300 number of vehicles.”
With regard to road safety and automated enforcement, the Court noted, “FASTag integration MoU has been signed and sent to the Indian Highways Management Company Limited (IHMCL) for approval… CCTV surveillance systems have been installed at all major entry points and checkposts.”
Addressing delay in the issuance of separate passes for local residents, it recorded, “Let the process be expedited,” and directed local bodies to integrate this with the central e-pass web portal.
The Court directed that a thorough inspection be carried out across the Nilgiris and Kodaikanal districts by a committee consisting of the District Revenue Officer, Municipal Commissioner, and District Tourism Officer. The Committee was tasked with identifying all unlicensed home stays and cottages, including those listed on private booking platforms, and to initiate action in accordance with law to shut down such establishments. The Court directed that complaints from licensed operators and the general public should be received confidentially and acted upon promptly, and a dedicated complaint mechanism should be publicized for this purpose.
The Committee was further directed to file an action-taken report along with photographs and videographic evidence before the next hearing date. With respect to the e-pass system, the Court took note of the ongoing implementation and permitted the concerned District Collectors to temporarily raise the vehicle cap by 500 in Nilgiris and 300 in Kodaikanal during specific festival events, based on necessity.
The Court also directed that the Ministry of Road Transport and Highways instruct the Indian Highways Management Company Limited to expedite the signing of the MoU and further FASTag integration at the remaining checkposts. The work undertaken by experts appointed by the Government was to be documented and filed in the next status report.
The Tamil Nadu Hotel Association, having filed a miscellaneous petition seeking impleadment, was directed to submit a detailed list of its members, the number of rooms, and related particulars for further consideration. The matter was posted for further hearing on 20.06.2025.
Advocates Representing the Parties
For the Petitioners: Mr. T.V. Suresh Kumar, Advocate, M/s Genicon & Associates
For the Respondents: Dr. T. Seenivasan, Special Government Pleader (Forests) ,Mrs. A. Sri Jeyanthi f Mr. K. Madhan , Advocates . Mr. V. Chandrasekaran, Standing Panel Counsel
Amicus Curiae: Mr. T. Mohan, Senior Counsel; Mr. M. Santhanaraman; Mr. C. Mohan; Mr. Rahul Balaji, Mr. R. Vishnu, Advocates
Case Title: G. Subramania Koushik v. The Principal Secretary, Environment and Forest Department & Others
Case Number: W.P. No. 15120 of 2019 and W.M.P. Nos. 8422 of 2024, 16969 of 2025 & 14765 of 2025
Bench: Justice N. Sathish Kumar, Justice D. Bharatha Chakravarthy
[Read/Download order]
