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This is exact reason why AirBnB like services cannot succeed in India. You could be in jail, as the police here will never understand why you allowed someone into your house if you are not a hotel. The attitude of police here is that if anything goes wrong, the owner of the house or business is responsible.

To illustrate, in 2004, early days of e-commerce in India, someone put up a certain CD to be sold on e-Bay. The police just arrested the CEO of eBay India. When something goes wrong police here arrests biggest possible names either to show its working or extract maximum corruption money. Any wonder why Indian startups cannot go beyond providing services to foreign businesses for cheap? To be fair, many startups are innovating in India, but the point is the kind of challenges they have to deal with are just unknown to the more developed world.

eBay news link from 2004: http://www.telegraph.co.uk/finance/2902203/India-throws-Ebay...



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