Gurugram, July XX: Oberoi Realty’s maiden luxury residential project in Gurugram has encountered a legal hurdle after the Punjab & Haryana High Court directed that no further allotments or third-party rights be created in the project until the Director, Town & Country Planning (DTCP), Haryana, decides a complaint challenging the grant and transfer of the development licence.
The interim order came in a writ petition filed by Advance India Projects Limited (AIPL), which has challenged the legality of the licence granted for the 14.816-acre residential project in Sector 58, Gurugram. The licence was initially issued in favour of an IREO Group entity and was subsequently transferred to Oberoi Realty.
The High Court, however, did not stay the licence or halt construction of the project. Instead, it directed the competent authority—the Director, Town & Country Planning—to decide the complaint filed by AIPL under Section 8 of the Haryana Development and Regulation of Urban Areas Act, 1975, after granting an opportunity of hearing to all stakeholders.
The Court observed that while development projects should ordinarily not be stalled, it was equally important to protect the interests of prospective homebuyers, particularly in projects involving investments running into thousands of crores.
According to the order, the complaint is scheduled to be heard by the DTCP on July 20, 2026. If the matter is not concluded on the scheduled date, the authority has been directed to hear it on a day-to-day basis and pass a reasoned order within the following two weeks.
Pending the decision, the High Court has restrained the developer from making any fresh allotments or creating any further third-party rights in the project.
During the proceedings, counsel appearing for the respondents informed the Court that around 350 units have already been allotted and collections of nearly ₹750 crore have been made from homebuyers. The respondents also stated that the proposed luxury residential project has an estimated value of ₹8,000–10,000 crore, with investments of around ₹500 crore already made in the development.
AIPL contended before the Court that the licence and its subsequent transfer were in violation of the Haryana Development and Regulation of Urban Areas Act, 1975. The petitioner argued that the licence had been granted to an entity that was not the owner of the land at the relevant time and alleged that the process also violated conditions governing foreign direct investment (FDI). It sought cancellation of the licence and interim relief restraining further development of the project.
Opposing the plea, the respondents argued that AIPL had no locus standi to maintain the petition, contending that its dispute arose out of a failed Memorandum of Understanding between the parties and ongoing commercial litigation. They also submitted that there had been no violation of the FDI policy or any provision of law and cautioned that any interruption to the project would result in substantial financial loss.
After hearing both sides, the High Court held that the question of whether the licence and its subsequent transfer were legally valid should first be examined by the Director, Town & Country Planning, before whom the complaint is already pending.
The main writ petition is listed for further hearing before the High Court on August 19, 2026.
