LG Sinha Reveals 90 Percent of Recent Kashmir Hotel Construction is Unauthorized

Widespread Regulatory Violations in Hospitality Sector

During a conference titled Ethical Approach Towards Tourism held at Srinagar’s Sher-i-Kashmir International Convention Centre on July 27, 2026, Lieutenant Governor Manoj Sinha delivered a blunt assessment of the region’s hospitality industry. Out of 5,000 hotels constructed over the past six years, Sinha asserted that 90% were built illegally. These projects represent a massive capital injection of between ₹80,000 crore and ₹1 lakh crore, with roughly 90% of the funding coming from local investors and the remainder from outside entities in the travel sector.

Sinha specifically highlighted prominent hotelier Mushtaq Ahmad Chaya, whose properties the LG estimated to be worth approximately ₹100 crore. Chaya, who was in attendance, was among nine industry leaders issued notices by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA) this past June. The Lieutenant Governor criticized major industry players, labeling them as the primary encroachers who Paradoxically lead complaints regarding public land encroachment.

Economic Disparity and Pricing Concerns

The administration warned that the benefits of the current tourism boom are concentrated among a small group of high-capacity hotel owners. Sinha emphasized that for the industry to be sustainable, profits must reach small-scale participants, such as homestay operators in Gurez and artisans in Pulwama. To ensure long-term stability, the LG identified several factors currently damaging the region's reputation:

• Aggressive room rates ranging from ₹10,000 to ₹25,000 per night.
• Exorbitant taxi fares in Srinagar that deter repeat visitors.
• Concentration of wealth within large enterprises rather than the community at large.

A Mandate for Ecological and Social Responsibility

While acknowledging that tourist arrivals have reached record levels and restored international confidence, Sinha argued that raw numbers should not be the sole metric for success. He called for a social movement centered on the protection of Kashmir’s forests, lakes, and rivers. The LG framed this environmental stewardship as a moral obligation, or 'dharma,' necessary to preserve the natural beauty that attracts visitors in the first place.

The Lieutenant Governor moved to redefine tourism as a collective responsibility, urging stakeholders to move beyond discussions and implement concrete action plans. He stressed that while the peace-building demographic in Kashmir is growing to include more craftsmen and shikara owners, the industry must prioritize 'development with responsibility' to ensure natural resources thrive alongside economic growth.

Source: The Hindu — National