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Punjab & Haryana HC Halts Further Allotments in Gurugram Realty Project Pending DTCP Adjudication of License Validity
The , bench comprising Justice Jasgurpreet Singh Puri and Justice Sanjiv Berry, has issued a landmark placing a on fresh real estate allotments in an upscale project in Gurugram. The decision comes in response to a petition filed by (AIPL) concerning a residential-commercial project located in Sector 58.
The Conflict: FDI, Licenses, and Ownership The dispute centers on a 14.816-acre plot of land in Gurugram. The petitioner, AIPL, challenged the administrative approval of a consolidated license—and its subsequent transfer—granted to the project developer. According to AIPL, original licenses were granted to the (Respondents No. 3-13) based on (FDI) inflows, which carried specific mandates regarding construction and development.
AIPL alleged that the license transfer process violated Section 3 of the , arguing that the license was granted to an entity that allegedly did not hold clear ownership of the land at the time. The petitioners emphasized that with a project valuation estimated between ₹8,000 to ₹10,000 crores, the procedural integrity of these regulatory approvals is paramount for investor and public safety.
Arguments from the Bar The respondents, including legal representatives for (identified as Respondent 14), contended that the petitioner lacked due to the prior termination of a and the dismissal of related litigation in commercial courts. They maintained that the FDI norms were fully observed and that the project is a legitimate effort involving ₹500 crores of investment. They argued that stopping the process would result in "" to the developers and potentially impact approximately 350 existing allottees.
The State of Haryana, represented by the Additional Advocate General, confirmed that a formal complaint regarding license cancellation under is currently pending before the (DTCP). The State expressed no objection to a court-mandated deadline for deciding the representation.
Key Observations The Court recognized the need for a delicate balance between encouraging development and protecting the interests of prospective homeowners. Highlighting the weight of such massive developments, the bench observed:
"The Court cannot close its eyes to the fact that in the cases of Mega projects where thousands of crores of rupees are involved and innocent allotees are sometimes also affected... their rights are also required to be protected."
Addressing the legal scrutiny of the license, the Court noted:
"We are of the considered opinion that this aspect as to whether the license along with its amendment... is in accordance with law or not, has to be considered and decided by the competent authority, who is the ."
The Court’s Mandate In its directed order, the Court stipulated that the DTCP must decide the pending representation (Annexure P-11A) on a war footing:
- Expedited Adjudication: The DTCP is directed to hear the complaint on . Should an adjournment be necessary, the authority must hear the matter on a day-to-day basis and conclude the proceedings within two weeks.
- on Allotments: Until the DTCP delivers its final, reasoned, and on the validity of the licenses, the respondents are strictly restrained from making any further allotments or creating new .
While the order serves as a major setback to the immediate commercial momentum of the project, representatives for have maintained that existing sales and ongoing construction activities remain unaffected by the ruling. The case will now be monitored for the DTCP’s response, as the high-stakes battle over Gurugram’s premium real estate landscape continues.
