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The Lucknow Municipal Corporation (LMC) is set to propose a major increase in licence fees for hotels, restaurants, nursing homes, hospitals, pathology labs, liquor outlets and other commercial units, with some categories expected to see charges rise by up to five times under a draft fee structure slated for approval on 27 January and implementation from the 1st of April next fiscal. The proposal, framed under the Municipal Corporation bye-laws, 2003, was initially approved by the civic body in 2025 and refined after a public feedback period. Fees for nursing homes and hospitals are likely to double, while hotels and restaurants could face a five-fold increase. Penalties for late renewals are also proposed. Officials have said the revision aims to enhance compliance and regulatory oversight as fewer than half of the required establishments currently hold valid licences.
The Lucknow Municipal Corporation (LMC) is preparing to present a proposal to its House meeting that would significantly raise licence fees for a wide range of commercial establishments, including hotels, restaurants, nursing homes, hospitals, pathology labs, liquor shops and other units operating within municipal limits. The revised fee structure, if approved, will take effect from the beginning of the next financial year. Advertisement
Under the draft framework, which was first endorsed by the civic body's House meeting in September 2025 and subsequently reviewed by the executive committee, some licence categories may see fees increase by as much as five times current levels. The LMC has framed the proposal under bye-laws adopted in 2003, which require annual licences for a broad range of commercial and hospitality establishments. Operations without valid licences are not permitted, and fees vary based on the size and type of business.
Data from the corporation indicates that there are approximately 1,800 medical establishments, including hospitals, nursing homes, clinics and diagnostic centres, along with around 800 liquor outlets such as English and country liquor shops, beer bars and model liquor stores, within municipal boundaries. Fewer than half of these units are reported to hold valid licences for the current period, according to civic records, highlighting a compliance gap that the fee revision seeks to address.
Under the proposal, licence fees for nursing homes and hospitals could nearly double, while charges for hotels and restaurants are expected to rise sharply, in some cases up to five times existing rates. Fees for pathology labs, liquor shops and beer bars are also set to increase under the draft structure. For example, model liquor shop licences could be revised upward from existing fee levels to reflect the enhanced regulatory cost structure.
In addition to the revised fee schedule, the proposal includes stricter penalties for late renewals. Establishments that fail to renew licences within the specified window between April 1 and June 30 may face fines for delays, and repeated non-compliance could trigger enforcement action, including potential sealing of premises. Stakeholders were invited to submit objections and suggestions over a 15-day period before finalisation of the draft.
Once approved by the municipal House, the new licence fee structure is expected to be notified and enforced from the start of the 2026-27 fiscal year, with the aim of improving compliance, expanding the municipal revenue base and strengthening regulatory oversight over commercial and hospitality establishments in Lucknow.
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