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    Hospitality Laws in India: 1. Statutory Authorities Regulating Hospitality Sector

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    Priyanshu Gupta
    The hospitality sector in India is large and growing, encompassing hotels, restaurants, events, amusement parks, and cruises. It is an important source of foreign investment and employment. Hospitality businesses are regulated by various authorities and laws at both the central and state level. The key regulatory bodies are the Hotel and Restaurant Division of the Ministry of Tourism, which approves hotel projects, and the Food Safety and Standards Authority of India, which regulates food and beverages. Laws govern construction and operation of hospitality businesses, food safety and hygiene, taxation, and employment.

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    Hospitality Laws in India: 1. Statutory Authorities Regulating Hospitality Sector

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    Priyanshu Gupta
    26 views3 pages
    The hospitality sector in India is large and growing, encompassing hotels, restaurants, events, amusement parks, and cruises. It is an important source of foreign investment and employment. Hospitality businesses are regulated by various authorities and laws at both the central and state level. The key regulatory bodies are the Hotel and Restaurant Division of the Ministry of Tourism, which approves hotel projects, and the Food Safety and Standards Authority of India, which regulates food and beverages. Laws govern construction and operation of hospitality businesses, food safety and hygiene, taxation, and employment.

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    The hospitality sector in India is large and growing, encompassing hotels, restaurants, events, amusement parks, and cruises. It is an important source of foreign investment and employment. Hospitality businesses are regulated by various authorities and laws at both the central and state level. The key regulatory bodies are the Hotel and Restaurant Division of the Ministry of Tourism, which approves hotel projects, and the Food Safety and Standards Authority of India, which regulates food and beverages. Laws govern construction and operation of hospitality businesses, food safety and hygiene, taxation, and employment.

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    26 views3 pages

    Hospitality Laws in India: 1. Statutory Authorities Regulating Hospitality Sector

    Uploaded by

    Priyanshu Gupta
    The hospitality sector in India is large and growing, encompassing hotels, restaurants, events, amusement parks, and cruises. It is an important source of foreign investment and employment. Hospitality businesses are regulated by various authorities and laws at both the central and state level. The key regulatory bodies are the Hotel and Restaurant Division of the Ministry of Tourism, which approves hotel projects, and the Food Safety and Standards Authority of India, which regulates food and beverages. Laws govern construction and operation of hospitality businesses, food safety and hygiene, taxation, and employment.

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    Hospitality Laws in India

    The hospitality sector encompasses a wide variety of sub-industries, the most prominent
    of which are hotels and restaurants, as well as event organising, amusement parks, and
    cruise lines. The hotel sector is worth several billions of dollars and is largely dependent
    on the amount of spare time and money that people have available to spend on
    themselves. A hospitality establishment, such as a restaurant, hotel, or even an
    amusement park, is made up of several different groups within it. These groups include
    facility maintenance, direct operations (such as servers, housekeepers, porters, kitchen
    workers, bartenders, and so on), management, marketing, and human resources. The
    hospitality business in India is one of the most important growth drivers within the
    services sector. This crown in our services industry, though it is booming, yet has many
    thorns to wear despite being a key source of foreign direct investment (FDI) and one of
    the main providers of employment within India. The hospitality industry is a large
    subsection within the service industry and is comprised of four main areas: Food &
    beverage, travel & tourism, lodging, and recreation. In India hospitality sector is regulated
    under two arms which majorly comprises of the following:
    1. Statutory Authorities regulating Hospitality Sector

    a) Authorities Regulating Hotel Industry: The Hotel and Restaurant Division of the
    Union Ministry of Tourism is responsible for granting approvals to the online
    applications made for project level approval and also for the hotels under
    construction. Further other hotel associations manage the hotel industry which
    includes:
    - The Federation of Hotels and Restaurants Association of India
    - The Hotel and Restaurant Association of Eastern India
    - The Hotel and Restaurant Association of Norther India
    - The Southern India Hotel and Restaurant Association
    - The Hotels and Restaurant Association (Western India)
    - Hotel Association of India
    - Hotel and Restaurant Approval and Classification Committee (HRACC)
    b) Authority Regulating Food and Beverage under hospitality sector: The Food Safety
    and Standards Authority of India (FSSAI), under the Government of India's Ministry of
    Health and Family Welfare (MoHFW), is the nodal regulatory authority on all food and
    beverages matters in India.

    2. Laws Regulating Hospitality Sector in India

    - The legislation for the construction and commissioning of hotels, restaurants,


    guest houses, and other establishments is the first head. This legislation
    includes the Foreign Exchange Management Act, the industrial licencing
    policies, land laws, and various development control orders issued by the
    central and state governments.
    - Legislation governing the operation, maintenance, and administration of
    businesses, as well as food and sanitary regulations, may be found under the
    second topic. In addition to that, it regulates matters pertaining to insurance,
    fire safety, and weights and measures. A liquor licence, a dance licence, a
    lodging house licence, an eating house licence, police permits, a licence under
    the Shops and Establishment Act, or a licence under the Food and Drug
    Administration Act are among the different licences that are awarded
    annually.
    - Rules involving taxation, employment, and other types of contractual
    connections may be found under the third category. This covers laws
    pertaining to income tax, service tax, spending tax, excise duty, luxury tax,
    and entertainment tax, in addition to legislation pertaining to employment
    problems like as the Apprentice Act, the ESI Act, and other similar statutes.

    In general, the following laws applies to some or the other areas under hospitality sector:

    i. Prevention of Food Adulteration Act: The act regulates the sale of substandard
    food and protects the interest of the consumers by eliminating fraudulent
    practices.
    ii. Food Safety and Standards Act: The law regulates the manufacture, storage,
    distribution, sale and import of food articles.
    iii. The state specific shops and establishment statutes: The legislations can be made
    by state government to provide statutory obligation and rights to employees and
    employers in the unorganised sector of employment i.e., shops and establishment.
    iv. Tax laws: This regulates a wide variety of laws which majorly includes Income
    Tax, Service Tax, Luxury Tax etc.

    v. Employees State Insurance Act: The hotel unit has to be registered as per the ESI Act
    under section 1 (5) where the unit employs more than 20 or more persons.
    vi. Building Completion Certificate (CC): This document indicates that the structure
    was constructed according to the authorised plan and the regulations that were
    imposed by the development authority. It also indicates that the building has been
    completed. This certification document details everything pertaining to the
    project, including the building materials, the building plan, and other relevant
    details. The certificate in question was granted by the authority in charge of local
    development.
    vii. Under the Water Act and the Air Act with the SPCB: The State Pollution Control
    Board of every state requires hotels to obtain the "Consent to Establish" (CTE)
    and the "Consent to Operate" (CTO) in accordance with the "Air Act, 1981" and
    the "Water Act, 1974"[1] before the hotels begin their construction activities and
    start their business operations. This is a mandate that the hotels must comply with.

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