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Lucknow Civic Body to Propose Steep Hike in Licence Fees for Hotels and Restaurants

Commercial Units and Hospitality Outlets in Lucknow Face Up to Fivefold Increase in Annual Fees Starting April 2026

Khwaish Hingad by Khwaish Hingad
January 29, 2026
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Lucknow Civic Body to Propose Steep Hike in Licence Fees for Hotels and Restaurants

-KH News Desk (editorial1@imaws.org)

The Lucknow Municipal Corporation (LMC) is preparing to table a significant proposal to increase licence fees for hotels, restaurants, nursing homes, and other commercial units. The proposed revision, set to be presented at the LMC House meeting on January 27, could see fees for hospitality outlets and commercial establishments rise by as much as five times the current rates.

Under the Municipal Corporation bye-laws of 2003, all hotels, guesthouses, restaurants, and bars within city limits are required to obtain and renew annual licences from April to March. The current move is aimed at enhancing revenue and strictly regulating commercial operations. If approved, the new fee structure will be enforced from April 1, 2026.

LMC data reveals a stark gap in compliance; out of the thousands of units operating in the city—including 1,800 medical facilities and 800 liquor outlets—fewer than half currently hold valid licences. To address this, the corporation has also proposed penalties for late renewals. Fines of ₹1,000 will be imposed from August for delays between April and June, while repeat offenders may face the sealing of their premises or confiscation of goods.

The proposed hikes vary by category. While nursing homes and hospitals may see their fees double, hotels and restaurants face the steepest increases. Specifically, model liquor shops could see annual fees jump from ₹60,000 to ₹85,000. Pathology labs are slated for a hike from ₹5,000 to ₹10,000 per year. The meeting scheduled for late January will also address enforcement strategies against unlicensed operations to ensure city-wide compliance.

Tags: Business RegulationCommercial UnitsHospitality NewsHotelsLicence FeesLucknowLucknow Municipal CorporationRestaurants
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