Reasons to Blacklist, Cancel, Refuse, Remove Sikkim Home Stay Unit

Adventure Travel Blog Magazine

Sep-Oct 2016


The Sikkim Registration of Home Stay Establishment Rules 9, 10, 11, and 12 have provisions for blacklisting, canceling, rejecting, and removing the name of a Sikkim home stay owner from the official register.

Read on to understand these four Sikkim home stay rules.

3 Reasons to Cancel, Refuse Registration of Home Stay (Rule 9)

The Rule 9 discusses reasons for cancelling or rejecting a home stay registration application.

The prescribed authority may reject the home stay registration application if the home stay owner has been found guilty

1. Under XIII and XIV chapters of the Indian Penal Code, 1860 (Rule 9-1)

2. Under any law preventing the following offences:

  • Drugs
  • Food adulteration
  • Hoarding
  • Profiteering
  • Smuggling

3. If the convicted owner has undergone the punishment but the wait period of three years between the date of expiry of the punishment and the date of the new application is not completed.

However, the Rule 9-2 gives an opportunity to the applicant to present his / her side of the story in case of cancellation or rejection of the certificate.

That means the prescribed authority has to hear the applicant’s view before cancelling or rejecting the application.


5 Reasons to Remove Names of Home Stays from Register (Rule 10)

The prescribed authority has power to remove the name(s) of the registered home stay unit(s) from the register and cancel the certificate in the following circumstances:

  • If the unit (s) stops catering to tourists. (Rule 10-1a)
  • If the unit owner has been found guilty for a punishable offence defined in the related sections of the Indian Penal Code, 1860. (Rule 10-1b)
  • If the owner has been found guilty for a punishable offence specified in any law preventing corruption, drugs, food adulteration, hoarding, profiteering, and / or smuggling. (Rule 10-1b)
  • If the authority has already black listed the owner. (Rule 10-1c)
  • If the owner overcharges, misbehaves, fails to meet the prescribed home stay standards, indulges in malpractices, and / or offers unhygienic units. But in this case, the owner is given an opportunity to present his/her side of the story before cancelling the registration (Rule 10-2).

The authority may order cancellation and removal in writing.

The units that have been removed from the register under the Rule 10-1 cannot be called home stay establishments. (Rule 10-3)


What is a malpractice?

According to the Sikkim Registration of Tourist Trade Act, 1998, a malpractice (2-e) includes following activities related to shopping, stay, and / or travel arrangements:

1. Cheating
2. Dishonesty
3. Impersonation
4. Obstruction

5. Overcharging i.e. asking for
remuneration more than that fixed by a competent authority or mentioned in the Act,
price higher than that is printed on the label of a good. However, the price on the label shall be reasonable. Each label shall feature a stock number that matches the number mentioned in the stock books of the manufacturers.

6. Touting means to coerce or pester a visitor to stay in a hotel, shop, rent transportation means, hire a luggage carrier, and / or go for sightseeing for the personal benefit of an individual, establishment, or a manufacturer.

7. Unable to fulfill the promise within the agreed time period


Blacklisting Home Stay Owner (Rule 11)

The prescribed authority may blacklist a Sikkim home stay owner in the following situations by adopting the principles of natural justice:

  • If the complaint against the owner has been proved. (Rule 11-1)
  • If the malpractices by the owner have been established. (Rule 11-1)
  • If any other offences committed by the owner have been proved. (Rule 11-1)

What is a blacklist?

The 2-a section of the Sikkim Registration of Tourist Trade Act, 1998 defines the term blacklist as a list of travel agents, hotel-keepers, and dealers who have been black-listed in accordance with the provisions. The Department of Tourism maintains and exhibits the list for the reference of the concerned parties.

A dealer (2-b) is a retailer or wholesaler who sells notified article (s) in a tourist area. This definition also includes employees and agents (if any) of the retailer and wholesaler.

A notified article (2-f) means an article (s) specified by the Sikkim Government in its gazette especially for the Act.

The authority may take into account the type of malpractices before removing the name of the unit and cancelling the registration. (Rule 11-1)

After issuing a written order for black listing the unit (s), the order shall be distributed to all travel trade businesses and related organizations. (Rule 11-2)

The blacklisted home stay unit owner can also be put on trial as per the relevant provisions of the law if required. (Rule 11-3)


How Can Home Stay Unit be Removed from Black List? (Rule 12)

Black list is not a permanent list, according to the Rule 12. After reviewing the requests, the authority may remove the name of the home stay unit from the black list, if the authority is satisfied with the justifications offered. The authority shall record the reasons to strike of the name from the black list. After removing the name, the authority shall notify the changes to all related stakeholders.


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