Leasing Policies & Guidelines
Comprehensive policy framework governing the leasing of tourism properties to operators, including eligibility, terms, payment rules, and compliance requirements.
Quick Navigation
Download Full Policy Document
1. Eligibility Criteria for Lease Operators
Who can apply for leasing tourism properties
The applicant must be a registered company, LLP, firm, or individual with a valid business registration certificate.
Minimum 5 years of experience in hotel, hospitality, or commercial property management is required.
The applicant must not have any pending dues or disputes with any government department.
Financial soundness: annual turnover of at least 3x the annual lease amount for the previous 3 years.
The applicant must not be blacklisted by any government authority in India.
Possession of all required licenses: FSSAI (for food properties), trade license, GST registration, and PAN card.
2. Application & Tender Process
-
1
Step 1
Obtain tender document from the portal or department office after payment of non-refundable tender fee.
-
2
Step 2
Submit the completed tender form along with all required documents within the specified deadline.
-
3
Step 3
Technical evaluation of applications based on experience, financial capacity, and proposal quality.
-
4
Step 4
Financial bid opening for technically qualified applicants on the specified date and time.
-
5
Step 5
Letter of Intent (LOI) issued to the successful bidder within 7 working days.
-
6
Step 6
Lease agreement execution within 30 days of LOI issuance, along with submission of Bank Guarantee.
3. Rent & Payment Rules
Monthly Rent Due Date
10th of every month
Accepted Payment Modes
NEFT, RTGS, UPI, Cheque, Demand Draft
Annual Rent Escalation
5-10% per year as specified in lease agreement
Late Payment Penalty
2% per month on outstanding amount
Advance Rent Required
3 months advance rent before possession
GST Applicability
As per prevailing GST rules on lease/rental income
⚠️ Important: Failure to pay rent for 2 consecutive months will result in issuance of default notice. Continued default may lead to lease termination and invocation of Bank Guarantee.
4. Bank Guarantee Requirements
Bank Guarantee equivalent to 6 months of annual rent must be submitted before taking possession of the property.
BG must be from a Scheduled Commercial Bank in India, in favor of the Department.
BG must remain valid for the entire lease period plus an additional 6 months.
Renewal of BG must be done 30 days before expiry and submitted to the department.
Failure to renew BG will result in invocation of the existing BG and issuance of default notice.
On satisfactory completion of lease period, BG will be released within 60 days after all dues are cleared.