The MCD is likely to terminate the services of two contractual public health inspectors and initiate departmental action against a district health officer (DHO) as part of its probe into the deadly fire at an illegally run bed-and-breakfast in south Delhi’s Hauz Rani, sources said.
The action by the Municipal Corporation of Delhi (MCD) follows a preliminary inquiry, which found that the premises, operating as Flourish Stay, had been inspected twice, once in 2025 and again in 2026, and a health trade licence for running a tea-and-snack outlet was cleared based on the inspectors’ recommendations.
According to sources, the contracts of the two public health inspectors will be terminated, while a show-cause notice issued earlier to the DHO will be followed by a decision to transfer the officer after completion of a departmental inquiry.
The inquiry found that the licence issued to the establishment permitted only a tea-and-snack outlet. However, the premises were allegedly functioning as a full-fledged restaurant in addition to operating as a bed-and-breakfast facility at the time of the incident.
Officials said the health trade licence had also expired on March 31 this year, weeks before the fire.
Sources said the inquiry is examining whether the commercial activities being carried out at the premises conformed with the permissions granted and whether any violations were overlooked during inspections.
The fire has triggered scrutiny of the licensing and inspection process, with civic authorities looking into the role of officials involved in clearing and monitoring the establishment, sources added.
A Bangladeshi woman who was injured in the fire succumbed to her injuries during treatment on Wednesday, taking the death toll in the tragedy to 23.
