Karnataka HC Declares Kodagu Homestay Owner's Arrest Illegal In Alleged US Tourist Rape Case, Awards ₹5 Lakh Compesnsation

The Karnataka High Court has declared the arrest of a Kodagu homestay owner illegal in connection with the alleged rape of a US national and directed the State government to pay him ₹5 lakh as compensation within four weeks, Live Law reported.

While granting relief to the petitioner, the court refused to quash the FIR, observing that the investigation into the case must continue.

Justice M. Nagaprasanna passed the order while partly allowing a petition filed by the homestay owner, Palecanda Ponnappa alias Vishal, who had challenged both his arrest and the criminal proceedings against him.

What the High Court Said

In its order, the High Court held that the arrest was unlawful but made it clear that the criminal investigation should proceed.

The court observed, "On summation of the preceding analysis, there is no warrant for interference at the stage of the crime. The prayer seeking quashing of the crime cannot be accepted. The arrest of the petitioner is declared illegal. The petitioner is entitled to compensation of ₹5 lakh, which the State shall pay within four weeks. The challenge to the FIR fails, as it is imperative that the investigation should continue."

The owner had sought ₹15 lakh in compensation along with quashing of the FIR. However, the court limited the compensation to ₹5 lakh while allowing the investigation to continue.

Alleged Assault at Kodagu Homestay

The case stems from an incident reported in April 2026 involving a 33-year-old US national staying at a homestay in Kodagu district.

According to the complaint, the woman was allegedly served a welcome drink that had been spiked. She claimed she lost consciousness and was sexually assaulted by a 45-year-old housekeeper employed at the property.

The complainant further alleged that the homestay owner was complicit, accusing him of disconnecting the WiFi, confining her to the premises for several days, intimidating her, and attempting to suppress the incident.

Owner Arrested, Later Released on Bail

Following the complaint, police arrested both the housekeeper and the homestay owner.

The owner spent nearly 14 days in judicial custody before securing bail.

During the investigation, however, rape and criminal intimidation charges against the owner were dropped from the final chargesheet. He continued to face other allegations, including offences related to allegedly concealing information about the crime.

Court Earlier Raised Concerns Over Homestays

During earlier hearings, the Karnataka High Court had expressed concern over the rapid growth of unregulated homestays across the state.

The court observed that authorities lacked adequate oversight regarding the location and functioning of many such establishments and highlighted concerns relating to public safety, security and hygiene. It had also urged the State government to frame appropriate regulatory guidelines for homestays.

Investigation to Continue

Although the High Court found the arrest of the owner to be illegal, it made clear that the investigation into the alleged sexual assault must proceed.

The case against the housekeeper, who is accused of sexually assaulting the US tourist, remains under investigation.