Gujarat HC delivers blow to unauthorised PG operations
The judgment stems from a contentious dispute in Ahmedabad’s bustling Shivranjani area, where the Amdavad Municipal Corporation (AMC) sealed two flats operating as PG housing, sparking a legal battle that has now clarified the regulatory landscape.

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Ahmedabad, Gujarat — In a pivotal ruling set to reshape urban living, the Gujarat High Court has unequivocally declared that residential premises cannot be used for Paying Guest (PG) accommodations without proper authorisation. The judgment stems from a contentious dispute in Ahmedabad’s bustling Shivranjani area, where the Amdavad Municipal Corporation (AMC) sealed two flats operating as PG housing, sparking a legal battle that has now clarified the regulatory landscape.
This hard-hitting decision comes amidst increasing friction between residential societies and property owners converting flats into commercial PG units, often leading to complaints about nuisance, overcrowding, and a decline in residential peace.
The case in question involved a property owner in Skylark Apartments near Shivranjani Crossroads who had rented out two flats to eight PG occupants. The residential society, citing a breach of decorum and bylaws, promptly issued a notice for vacation, escalating the matter to both the police and the AMC. While police intervention reportedly remained elusive, the AMC took decisive action on June 11, issuing notices and subsequently sealing the two flats.
“Our society’s tranquility was completely disrupted,” stated a long-term resident of Skylark Apartments, who wished to remain anonymous due to ongoing tensions. “The sheer number of people, the constant coming and going at all hours – it fundamentally changed the nature of our peaceful residential complex.”
The property owner, in their writ petition to the High Court, attempted to argue that the flats functioned as a ‘homestay’ under the Gujarat government’s 2020 policy, claiming they caused no inconvenience to existing residents. Disturbingly, the owner also alleged harassment by society members, contending that female PG residents faced unwarranted comments about their clothing and character. In response, some PG residents voiced concerns about being unfairly targeted and judged, describing it as part of a broader pattern of moral policing frequently encountered by single working women in the city.
However, the AMC’s counter-argument in court proved decisive. The corporation revealed that the owner’s ‘homestay’ application had already been rejected. Justice Mona M Bhatt, in her ruling, underscored a critical distinction: “A PG is not a homestay.” Under the Gujarat government’s 2020 homestay policy, a property owner must reside on the premises and can only host guests for short durations. In this specific instance, the flats were being used for long-term PG housing, and the owner did not reside there, rendering the operation explicitly unauthorised.
“This ruling provides much-needed clarity for residential societies across Gujarat,” remarked a legal expert specializing in property law. “It firmly establishes that commercial activities like PG accommodations cannot simply piggyback on residential permissions. Proper procedures and adherence to the policy are paramount.”
While the High Court had initially issued an interim order allowing temporary use of the sealed flats following the owner’s petition, the AMC’s revelations ultimately swayed the court’s stance. The High Court has now directed the state government, AMC, and other relevant authorities to publicize the rules governing PG and homestay operations widely. This directive aims to ensure that both property owners and residents are fully aware of the applicable policies and regulations, preventing future disputes and promoting harmonious cohabitation.
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