In a letter issued to states and Union Territories on Saturday, the Union Health Ministry said, "vaccination being carried out in star hotels is contrary to the guidelines and must be stopped immediately".
The development came after various media reports highlighted the ongoing violation in which some private hospitals were offering package for Covid-19 vaccination in collaboration with luxury hotels.
The Centre directed states to stop the violation of guidelines and take action against such institutions.
"Necessary legal and administrative actions should be initiated against such institutions. Therefore, you are also requested to monitor and ensure that National Covid Vaccination drive is carried out as per the prescribed guidelines."
It is directed that the officials should monitor and ensure that Covid vaccination guidelines are followed while carrying out the world's largest exercise.
Under the guidelines, vaccination can be carried out at "government and private Covid vaccination centres, workplaces, near to home covid vaccination centre for elderly and differently-abled persons to be organised at group housing societies, RWA offices, community centres, panchayat bhawans, school and colleges, old age homes etc on a temporary basis."
Covid vaccination packages by luxury hotels - which include a comfortable stay, healthy breakfast, dinner and wifi, along with "vaccination by experts from a renowned hospital and clinical consultation on request" - have drawn criticism on social media.
Raising acute vaccine shortage, Delhi Deputy Chief Minister Manish Sisodia on Saturday said, "how private hospitals were getting the doses if centre does not have enough stocks for states".
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Sisodia said it was vaccine shortage that has forced the state government to suspend the inoculation programme for the 18-44 years age group.
Over 21 crore doses have been administered so far since the world's biggest vaccination drive began in India on January 16 this year. The government aims to vaccinate the entire country by the end of December this year.