NEW DELHI: India’s government is expected to make new laws to regulate hotels, including those in the financial sector, to stop the unscrupulous practices of unscrupulous operators who are charging a high rate of hotel occupancy without offering any reason for doing so.
The new rules are expected to be announced on Tuesday as part of the government’s effort to curb the exploitation of the unregulated financial sector by unscrupulous hotel operators.
The move comes a day after the government said it is cracking down on unscrupulous foreign currency traders who charge high rates of occupancy without any justification and have been targeting Indian hotels.
In response to a query on the possible new regulations, Finance Minister P Chidambaram said he would not comment on such matters.
The government said the rules would target operators of financial institutions that charge high occupancy rates, such as foreign currency brokers and money transmitters, and also those that charge higher rates, including foreign currency brokerages, brokers, money transmitter and money transfer services.
It said that the new rules would also apply to foreign currency and gold dealers and their employees, as well as brokers, dealers, traders and money conveyors.
“The rules would prohibit operators of such institutions from engaging in practices which, in any manner, are inconsistent with the provisions of law,” the finance ministry said in a statement.
It also said it would take appropriate action against any person who violates the rules.
The Finance Ministry did not elaborate on how the rules could be enforced.
The law will come into effect on January 1.