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Platforms profit, guests die: The global booking economy’s Indian blind spot

By Gajanan Khergamker 
On June 3, 2026, a fire ripped through Flourish Stay, a bed-and-breakfast in Hauz Rani, Malviya Nagar, South Delhi. At least 21 people died, most of them foreign nationals from Nigeria, Mozambique, Liberia, and Bangladesh. Over 40 were rescued. Many victims were medical tourists or attendants of patients at Max Super Specialty Hospital nearby.  
The tragedy was not an accident. It was the inevitable outcome of a system that licenses six rooms but allows 25 to operate, that requires a Fire Safety No Objection Certificate but never enforces it, and that tolerates single-entry buildings with no escape routes. Flourish Stay had all these violations. When the fire spread, the building became a death trap.
A Repeat of Arpit Palace
Delhi has seen this before. In February 2019, a blaze at Hotel Arpit Palace in Karol Bagh killed 17 people. Investigations revealed locked emergency exits, no alarms, inflammable décor, and forged documents. Authorities promised reforms. Seven years later, Flourish Stay burned under the same framework, with the same failures.  
Mumbai’s Kamala Mills, Goa’s Villa Scam
The geography changes, the pattern does not. In 2017, Mumbai’s Kamala Mills fire killed 14, exposing blocked exits and unauthorised constructions. In 2025, Goa Police busted a multi-crore villa rental scam where tourists booked non-existent properties on global platforms.  
Whether it is Delhi, Mumbai, or Goa, the story is identical: approvals granted, violations ignored, inspections delayed, enforcement activated only after fatalities.  
Platforms Profit, Guests Pay
Platforms like Airbnb and Booking.com thrive on commissions, not compliance. They list properties without verifying safety or even existence. In 2023, Airbnb removed 59,000 fake listings globally and introduced AI verification in five Western markets. India, despite its massive listing density, was excluded.  
So, while a guest in California benefits from platform-backed verification, a guest in Goa relies on photographs and star ratings. The result: scams, unsafe stays, and deaths.  
Regulation Exists, Enforcement Doesn’t
The Delhi B&B scheme was meant to formalise small guesthouses and ensure safety. Licences specify room limits, fire NOCs, and building code compliance. Yet Flourish Stay operated 25 rooms on a six-room licence, without a fire NOC, and remained listed online with glowing reviews.  
This was not overregulation killing tourism. It was under-enforcement killing people.  
The Reform India Needs
The solution is not complex, only overdue:  
- Annual inspections by tourism and fire authorities.  
- Public compliance database linked to every booking platform.  
- Immediate de-listing of properties that fail inspections.  
- Platform liability for continuing to list unsafe accommodations.  
The European Union’s Digital Services Act already mandates risk-based compliance systems for platforms. India must adopt a similar framework for its hospitality sector.  
Deaths by Choice, Not Fate
The Nigerian medical tourist who booked Flourish Stay followed the system’s logic: check reviews, photos, proximity to hospital. None of these revealed the absence of a fire NOC or the illegal expansion of rooms. The platform did not check. The government did not inspect.  
At least 21 people died because a licence holder chose to flout rules, a fire authority chose not to enforce them, a platform chose not to verify compliance, and regulators chose tourism promotion over safety.  
Break the Cycle
Delhi Police will investigate, arrests may follow, audits will be announced. But unless India builds a permanent, technology-enabled, platform-integrated compliance system, the cycle will repeat.  
The Arpit Palace fire in 2019 produced promises. Flourish Stay in 2026 produced deaths. The next tragedy will produce the same unless the system changes.  
These deaths were not fate. They were choices. The inquiry must name those responsible, and the law must hold them accountable.  
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This is the abridged version of  the article which  appeared in The Draft

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