Mumbai-based luxury real estate developer Oberoi Realty is facing a significant legal hurdle for its ambitious ‘Three Sixty North’ project in Gurugram. The Punjab and Haryana High Court has issued an order preventing the company from making any new apartment allotments to homebuyers until Haryana’s Department of Town and Country Planning (DTCP) resolves a pending complaint.
The court's directive, issued on July 7, stems from a writ petition filed by local developer Advance India Projects Ltd (AIPL) against the Director, Department of Town and Country Planning, Haryana, and other parties involved. AIPL's complaint revolves around the 14.8-acre land parcel upon which Oberoi Realty plans to construct the ultra-luxury development. Oberoi Realty acquired this land from the Gurugram-based Ireo Group for Rs 597 crore in 2023.
Court Orders Expedited Resolution
The High Court has instructed the Director, Town and Country Planning, Haryana, to decide on AIPL's complaint on July 20, after hearing all stakeholders. Should the matter not be resolved on that date, the authority is mandated to proceed with daily hearings and issue a reasoned order within two weeks. Crucially, pending this decision, the court has explicitly directed all respondents, including Oberoi Realty, not to make any fresh allotments or create third-party rights in the project. This order highlights the project's substantial scale and the interests of both existing and prospective allottees.
Background of the Dispute
The land in question was originally part of an agreement between the beleaguered Ireo Group and AIPL. However, Ireo Group, which has faced multiple chargesheets from the Enforcement Directorate in a money laundering probe, terminated its agreement with AIPL and subsequently sold the unfinished Grand Hyatt Residences project to Oberoi Realty. This transaction, and the underlying land dispute, now form the crux of AIPL’s legal challenge.
Oberoi Realty's Stance
In a statement filed with the stock exchanges, Oberoi Realty confirmed its intention to pursue all necessary legal courses of action as advised by its professional legal counsel. The company clarified that the court order does not impact any sales already concluded and, importantly, there is no stay on the ongoing construction of the ‘Three Sixty North’ project.
Project Details and Future Plans
‘Three Sixty North’ marks Oberoi Realty’s inaugural venture outside its home market of Mumbai. The developer plans a total investment of Rs 6,000 crore in the Gurugram project. The first phase alone involves an investment of Rs 4,000 crore for approximately 832 apartments. Launched at Rs 35,000 per square foot (excluding GST and other charges), the bare-shell apartments range from Rs 19 crore to Rs 60 crore, depending on the area. Configurations include 3 BHK plus studio, 4 BHK plus studio, duplex, and penthouse units, with saleable areas spanning from around 5,500 sq. ft. to over 13,000 sq. ft. The initial phase comprises six towers, with approval for up to 36 floors, and plans for expansion upon securing further permissions. The second phase will include additional floors and another tower.
Vikas Oberoi, Chairman and Managing Director of Oberoi Realty, expressed strong optimism regarding the Delhi-NCR real estate market. He indicated the company's interest in acquiring more land parcels in Gurugram, stating, "We want our Gurgaon business to be as big as Mumbai." The total revenue potential for the entire project is estimated at Rs 16,000 crore at current launch prices.