Punjab & Haryana High Court Restrains Fresh Allotments at Three Sixty North Pending DTCP Ruling on AIPL's Licence Complaint
High Court Restrains Fresh Allotments at Three Sixty North
The Punjab and Haryana High Court has directed Oberoi Realty not to make any fresh allotments or create third-party rights in its Three Sixty North residential project in Gurugram until the Haryana Department of Town and Country Planning (DTCP) decides a complaint challenging the project's licence.
A Division Bench of Justice Jasgurpreet Singh Puri and Justice Sanjiv Berry directed the DTCP to decide AIPL's complaint under Section 8 of the Haryana Development and Regulation of Urban Areas Act, 1975, after granting an adequate opportunity of hearing to all stakeholders, including the petitioner. The Court said that if the matter is not decided on the scheduled date of July 20, 2026, the authority shall hear it on a day-to-day basis and pass a reasoned speaking order within two weeks thereafter.
AIPL's Allegations and Background
The complaint, filed by Advance India Projects Ltd (AIPL), alleges violations of foreign direct investment (FDI) norms and provisions of the Haryana Development and Regulation of Urban Areas Act, 1975.
According to the writ petition, AIPL has alleged that the Haryana authorities illegally permitted the transfer, commercial monetisation and regularisation of development rights relating to the IREO Group's 'Grand Hyatt Residences' project in Sector 58, Gurugram, in violation of the Foreign Direct Investment (FDI) Policy, the Foreign Exchange Management Act (FEMA) and the Haryana Development and Regulation of Urban Areas Act.
AIPL refers to a Memorandum of Understanding executed in its favour in March 2021, followed by an Agreement to Sell in November 2023 and a Sale Deed executed in May 2024. According to AIPL, despite these transactions, approvals were subsequently granted in favour of Oberoi Realty in respect of the same licensed land and development rights.
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 petition challenges Licence No. 69 of 2025 dated May 12, 2025 and the subsequent approval dated June 17, 2025 permitting the change of developer in favour of Oberoi Realty.
IREO Group Background
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. According to the petition, certain IREO Group entities are under investigation by agencies including the Enforcement Directorate (ED), the Serious Fraud Investigation Office (SFIO) and the Economic Offences Wing (EOW) over alleged diversion and siphoning of funds, money laundering and misuse of homebuyers' money.
Extent of Sales at Three Sixty North
According to counsel appearing for AIPL, the project has an estimated value of around INR 8,000 crore to INR 10,000 crore and is planned to be developed in multiple phases. Nearly 350 units had already been allotted and around INR 750 crore collected from homebuyers.
Oberoi Realty's Response
Oberoi Realty has clarified that the order does not affect existing sales or construction activity and believes it will not materially impact its business operations. In a statement filed with stock exchanges, the developer said the order does not impact any existing sales already concluded, and there is no stay on the construction of the said project.
Court's Rationale
The High Court held that the legality of the licence and its subsequent transfer should first be examined by the competent statutory authority. Without expressing any opinion on the merits of the dispute, it directed expeditious disposal of the pending complaint while protecting the interests of prospective allottees by restraining further allotments and the creation of third-party rights until the complaint is decided.
About Three Sixty North
The ultra-luxury 'Three Sixty North' project in Gurugram is Oberoi Realty's first launch outside its home market Mumbai. The first phase of the Three Sixty North includes six towers. The second phase will have the remaining floors and one more tower. The project spans 59,956.20 square meters (14.816 acres) situated at village Ghata, tehsil Wazirabad, sector 58, Gurugram-Manesar Urban Complex, district Gurugram, Haryana.