Punjab and Haryana HC restrains Oberoi Realty from fresh allotments in project

The Punjab and Haryana High Court has restrained Oberoi Realty from making any fresh allotments or creating third-party rights in its ‘Oberoi 360 North’ residential project in Gurugram until the Haryana Department of Town and Country Planning (DTCP) decides a pending complaint challenging the validity of the project’s licence.

The complaint alleges violations of foreign direct investment (FDI) norms and other provisions. Oberoi 360 North is the company’s first project in Gurugram. The order was passed by a division bench of Justices Jasgurpreet Singh Puri and Sanjiv Berry while hearing a plea filed by Advance India Projects Ltd (AIPL) in an ongoing writ petition against the director of the DTCP, Haryana, and others. AIPL has sought a stay on License No. 69 of 2025, issued on May 12, 2025, and the subsequent order dated June 17, 2025, approving the transfer of the development licence to another developer.

The company has also claimed rights over the project and sought cancellation of the sale deed executed in favour of Oberoi Realty.

According to the court order, the dispute relates to a 14.816-acre land parcel in Sector 58, Gurugram, where a residential colony with a commercial component is proposed. The petitioner alleged that the grant and subsequent transfer of the licence were contrary to the provisions of the Haryana Development and Regulation of Urban Areas Act, 1975, and that the transaction breached conditions governing foreign direct investment (FDI).

The bench recorded these as the petitioner’s allegations and did not express any finding on their merits.

The petitioner further argued that FDI in such projects is intended for development and construction activities and not for facilitating an exit through the sale of the project, an allegation that was contested by the private respondents.

During the hearing, counsel for the petitioner submitted that the project’s estimated value is around Rs 8,000-10,000 crore and will be developed in multiple phases.

It was also stated that nearly 350 units had already been allotted and around Rs 750 crore collected from buyers.

The petitioner argued that permitting further sales before adjudication of the licence dispute could complicate the rights of prospective homebuyers.

The Haryana Government informed the court that the petitioner’s representation seeking cancellation of the licence under Section 8 of the 1975 Act remains pending before the DTCP director, with the matter listed for July 20.

The state assured the bench that all stakeholders would be given an adequate opportunity of hearing before any decision is taken.

AIPL also informed the court that it had got an FIR registered in 2024 against IREO and Oberoi Realty, alleging collusion and cheating in connection with the same land parcel. However, proceedings in the FIR are currently stayed by the Supreme Court, and the matter remains pending.