P&H High Court moots stay on purchasable FAR in Haryana, citing destruction of Gurugram and Noida

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Published 4 November 2026

Case: Court on its Own Motion v. State of Haryana and Ors.
Court: High Court of Punjab and Haryana
Bench: Acting Chief Justice G.S. Sandhawalia and Justice Lapita Banerji
Decided: 9 May 2024
Source: Bar & Bench

Bottom Line Up Front (BLUF)

In Court on its Own Motion v. State of Haryana and Ors., the Punjab and Haryana High Court, on May 9, 2024, mooted a stay on purchasable Floor Area Ratio (FAR) in Haryana, observing that it is destroying cities like Gurugram and Noida. The Court highlighted concerns regarding infrastructure strain and environmental impact.

Ratio Decidendi · Legal Principle Established

The Court observed that the policy of allowing purchasable Floor Area Ratio (FAR) is leading to the destruction of cities by placing undue strain on existing infrastructure and causing environmental degradation, thereby necessitating a potential stay on such policies.

Practice & Procedural Impact for Advocates

Advocates should prepare for potential changes in urban development policies in Haryana, particularly concerning FAR. Litigants involved in real estate development may face delays or revised project plans if a stay is imposed. Counsel should monitor further orders from the High Court regarding the implementation of any stay.

Key Legal Takeaways

1The Punjab and Haryana High Court is concerned about the impact of purchasable FAR on urban infrastructure.
2The Court has mooted a stay on purchasable FAR in Haryana.
3The decision highlights potential future restrictions on real estate development in the region.

The Legal Issue The Punjab and Haryana High Court, in a suo motu proceeding titled Court on its Own Motion v. State of Haryana and Ors., addressed the issue of purchasable Floor Area Ratio (FAR) in Haryana. The Court expressed grave concerns that the policy allowing purchasable FAR is contributing to the destruction of cities such as Gurugram and Noida, primarily due to the immense strain it places on existing infrastructure and the environment.

Court's Reasoning The bench, comprising Acting Chief Justice G.S. Sandhawalia and Justice Lapita Banerji, observed on May 9, 2024, that the current policy of allowing developers to purchase additional FAR is leading to unsustainable urban growth. The Court noted that this practice results in increased population density without commensurate development of essential services like roads, sewage systems, and green spaces. The judges specifically highlighted the adverse effects on the quality of life for residents and the overall ecological balance of these rapidly expanding urban centers. The Court's observations indicate a judicial inclination towards intervening in urban planning policies that are perceived to be detrimental to public welfare and sustainable development.

What Follows The Punjab and Haryana High Court has mooted a stay on purchasable FAR in Haryana. The Court has directed the State of Haryana to respond to these concerns and present its arguments regarding the continuation of the purchasable FAR policy. Further hearings will determine whether an interim or permanent stay will be imposed, which could significantly impact ongoing and future real estate projects in the state.