Here's why Oberoi Realty's Gururgam project is facing legal challenges 

Days after Mumbai-based luxury real estate developer Oberoi Realty’s foray into Gurugram with the Rs 6,000 crore ‘Three Sixty North’ project, the Punjab and Haryana High Court has ordered the developer not to make fresh allotments of apartments to homebuyers until Haryana’s Department of Town and Country Planning (DTCP) decides a pending complaint filed by local developer Advance India Projects Ltd (AIPL).

The order was passed on a writ petition filed by AIPL against the Director, Department of Town and Country Planning, Haryana, and others. 

Don’t Miss | Oberoi Realty forays into NCR market with Rs 6,000 crore ‘Three Sixty North’ project in Gurugram

In an order dated July 7, the court directed the Director, Town and Country Planning, Haryana, to decide AIPL’s complaint on July 20 after hearing all stakeholders. If the matter cannot be decided on that date, the authority has been asked to hear it on a day-to-day basis and pass a reasoned order within two weeks.

Don’t Miss | Oberoi Realty’s first NCR project clocks ₹8,109 crore in bookings. Here’s what ₹18 crore buys you

Pending the decision, the court directed respondents, including Oberoi Realty, not to make any fresh allotments or create third-party rights in the project, citing the project’s scale and the interests of existing and prospective allottees.

Oberoi Realty had purchased the 14.8-acre land parcel on which it plans to build ‘Three Sixty North’ from Gurugram-based Ireo Group for Rs 597 crore in 2023. The beleaguered Ireo Group, which faced multiple chargesheets from the Enforcement Directorate in a money laundering probe, had ended an agreement with AIPL and sold the unfinished Grand Hyatt Residences project to Oberoi Realty.

Oberoi Realty, in a statement filed with the stock exchanges, said it will pursue the necessary legal course of action as may be advised by professional legal counsel. “We wish to further clarify that the said order does not impact any existing sales already concluded,” the Mumbai-based realty major said. “We would also like to clarify that there is no stay on the construction of the said project,” it added.

The ultra-luxury ‘Three Sixty North’ project in Gurugram is Oberoi Realty’s first launch outside its home market Mumbai. Oberoi Realty plans to invest Rs 6,000 crore on the Gurugram project. In the first phase, about 832 apartments are being built with an investment of Rs 4,000 crore.

Launched at Rs 35,000 per square feet excluding GST and other charges, the price of a bare shell apartment starts from Rs 19 crore and goes up to Rs 60 crore, depending on area. The developer is offering 3 BHK plus Studio, 4 BHK plus Studio, duplex and penthouse configurations ranging from around 5,500 sq. ft. to over 13,000 sq. ft. in saleable area.

The first phase of the Three Sixty North includes six towers. While the developer has gotten approval only up to 36 floors, it plans to expand it after it gets requisite permissions. The second phase will have the remaining floors and one more tower.

“The total revenue potential for the entire project is Rs16,000 crore at the prices we have launched,” Vikas Oberoi, Chairman and Managing Director of Oberoi Realty, told reporters at a press conference on the sidelines of the launch.

The billionaire real estate tycoon is bullish on Delhi-NCR’s realty market. “We are looking for more land parcels in Gurgaon. We see potential. We love the market,” Oberoi said. “We want our Gurgaon business to be as big as Mumbai,” he added.