Gurugram stilt-plus-four policy stay raises homebuyer concerns

The Gurugram stilt-plus-four policy is facing renewed legal scrutiny after the Punjab and Haryana High Court stayed a 2024 notification, raising questions about building approvals, occupation certificates and property transactions.

The Haryana Department of Town and Country Planning (DTCP) told the court that it had granted 32,024 permissions for stilt-plus-four construction in Gurugram up to April 2, 2026.

The department has opposed a blanket halt to construction, arguing that alleged violations should be addressed individually rather than invalidate every permission granted under the policy.

DTCP director-general Dr J Ganesan submitted the affidavit before a division bench of Acting Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor on October 14. The proceedings relate to a public interest litigation challenging the policy.

The dispute has implications for homebuyers, developers and property transactions, particularly where construction or occupation approvals remain pending.

What is Gurugram’s stilt-plus-four policy?

The stilt-plus-four model permits four residential floors above a stilt level intended for parking. The arrangement has gained popularity in Gurugram’s plotted colonies, allowing owners and developers to create multiple independent homes on one plot.

Supporters view the model as a way to expand housing supply. However, residents’ welfare associations have raised concerns about rising population density and pressure on roads, water supply, sewerage, drainage and parking.

Complaints have also included alleged conversion of stilt parking into residential or commercial spaces and the operation of paying guest accommodations in areas with narrow roads.

These concerns have intensified the debate over whether existing civic infrastructure can support additional residential units.

How the policy changed before the court stay

Haryana’s S+4 framework has undergone several changes since 2019.

• March 2019: State instructions allowed the fourth floor to be treated as an independent residential unit.
• September 2019: Further instructions addressed the purchase of additional development rights.
• February 2023: The government froze approvals and appointed an expert committee headed by retired bureaucrat P Raghavendra Rao to examine the implications of additional construction.
• July 2, 2024: The government revived the policy following the committee’s recommendations, introducing additional restrictions.
• April 2, 2026: The Punjab and Haryana High Court stayed the July 2024 notification and restrained further approvals and occupation certificates under the policy.

Under Clause 8 of the 2024 instructions, building-plan approvals and occupation certificates could be withdrawn if the stilt area was enclosed, either fully or partially.

The litigation has since focused on the policy’s legality, infrastructure adequacy and the treatment of permissions granted before the stay.

How many buildings and buyers are affected?

The DTCP affidavit reported 32,024 permissions in Gurugram up to April 2, 2026. These comprised 18,719 building-plan approvals in private licensed colonies and 13,305 in Haryana Shehri Vikas Pradhikaran sectors.

Within private licensed colonies in the Gurugram-Manesar Urban Complex, 15,447 building plans had been approved.

Of these, 9,625 were sanctioned before July 2024. Another 5,822 were approved between July 2, 2024, and the April 2, 2026, stay.

The department also reported that occupation certificates had been issued for 8,602 buildings.

These figures represent different stages of development. Some properties are completed and occupied, while others remain under construction or await further clearances.

Consequently, the legal and financial implications will vary according to each property’s sanctioned plan, construction status, occupation certificate, sale agreement and registration documents.

What does the dispute mean for property registration and stamp duty?

The controversy also has implications for property transactions and government revenue.

In December 2024, Haryana increased stamp duty rates applicable to independent-floor registrations alongside revisions in circle rates. Published reports cited an increase in the rate used for floor registrations from Rs 7,150 to Rs 9,300 per square foot.

For buyers, higher stamp duty increases acquisition costs. For the state, property registrations generate revenue, while additional residential development also increases demand for civic infrastructure.

However, building-plan approval, an occupation certificate and registration of a sale deed are distinct legal and administrative processes.

A building-plan approval permits construction subject to applicable conditions. An occupation certificate concerns compliance and eligibility for occupation. Registration records the property transaction in accordance with the law.

The court’s interim directions have created uncertainty for properties that still require approvals or occupation certificates. The position of individual transactions depends on the relevant documents and applicable directions from the authorities.

The available information does not establish that every existing S+4 registration has been stopped or that all previously registered floors have become invalid.

The impact on stamp duty collections will depend on the number of transactions delayed and the eligibility of individual properties for registration.

What should existing and prospective homebuyers do?

Buyers who have already invested in S+4 properties should establish the legal status of their specific units rather than assume that all properties face the same outcome.

Owners of completed floors should verify:

• The sanctioned building plan and any approved revisions.
• The occupation certificate, where applicable.
• The registered sale deed and property documentation.
• Whether the building complies with its sanctioned plans and applicable conditions.

Buyers of under-construction properties should check:

• Which approvals have already been obtained.
• Whether further approvals or an occupation certificate remain pending.
• The possession timeline and relevant clauses in the sale agreement.
• The implications of possible delays for home loans and resale plans.

An S+4 classification alone does not establish that a property is illegal. Equally, an earlier building-plan approval does not prove that all subsequent construction complies with the sanctioned plan.

Buyers should obtain an independent legal review before making further payments, entering into resale agreements or assuming that pending documentation will be resolved automatically.

Legal clarity remains central to the S+4 dispute

Advocate Ritu Bhariok, legal adviser to the Federation of Affordable Home Buyers, said the uncertainty had highlighted the need for clear regulations that protect purchasers while ensuring compliance with building norms.

She called for clarity on existing approvals and occupation certificates, particularly for buyers who had invested their savings in these properties.

Bhariok said any resolution should balance homebuyers’ interests with the need to ensure that civic infrastructure can support higher residential density.

The distinction between a challenge to the overall policy and a finding against an individual property remains important. The litigation’s outcome and subsequent directions from the authorities will determine how different categories of properties are treated.

What lies ahead for Gurugram’s housing market?

The dispute centres on how Gurugram can accommodate residential growth without placing excessive pressure on existing infrastructure.

The DTCP has argued that alleged violations should be addressed on a case-by-case basis rather than invalidate every S+4 permission. The wider challenge is to determine whether existing infrastructure can support the additional population and what safeguards future development requires.

For residents, adequate roads, water supply, sewerage and parking remain central concerns. For developers and investors, clarity on approvals and registrations is essential for planning transactions.

Until the legal position becomes clearer, buyers must distinguish between a sanctioned plan, a completed building, an occupation certificate and a registered property. These distinctions will be critical in assessing the risks associated with Gurugram’s S+4 housing market.