Oberoi Realty: No Impact from Court Order on Gurugram Project

New Delhi, Jul 9 (PTI) Oberoi Realty Ltd on Thursday said there will be no adverse impact on its business operations from a court order that has restrained the company from making any further allotment of flats in its newly launched Rs 16,000 crore worth luxury housing project in Gurugram.

In a regulatory filing on Thursday, the Mumbai-based Oberoi Realty, which recently announced a foray into the Delhi-NCR market, said the court ruling has not stayed construction of this upcoming project and the order does not impact sales already concluded.

The company said it would "pursue necessary legal course of action".

On June 29, Oberoi Realty announced that it will invest Rs 6,000 crore to develop its first housing project.

"Three Sixty North in Sector 58, Gurugram, and expects a total revenue of Rs 16,000 crore. On July 5, the company informed the stock exchanges that it sold housing properties worth Rs 8,109 crore in this 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 court has directed the Town and Country Planning to decide on the complaint filed by the petitioner as per the law.

"Considering the magnitude of the project and the fact that the rights of various allottees/prospective allottees are involved, it is further directed that till the complaint/ representation is decided, no further allotment shall be made by the respondent Nos 3 to 14 to any further prospective allottee nor shall any further third-party rights be created by them," said the order, shared by the company on the bourses.

Oberoi Realty clarified that the order does not impact any existing sales already concluded.

"We would also like to clarify that there is no stay on the construction of the said project," the company added.

Oberoi Realty said the order does not have any adverse material impact on the business and operations of the company.

Oberoi Realty has taken this nearly 15-acre land from crisis-hit real estate company IREO group. IREO had done some construction on this project, which is now being demolished by Oberoi Realty.

Before selling this land parcel to Oberoi Realty, IREO had roped in Advance India Projects Ltd to complete this project.