Gurugram Civic Body Seeks ₹690 Crore FAR Revenue From HSVP for Infrastructure
Gurugram, Haryana | September 24, 2026: Gurugram's civic infrastructure could get a major funding boost if nearly ₹690 crore collected through purchasable Floor Area Ratio (FAR) is transferred from Haryana Shahari Vikas Pradhikaran (HSVP) to the Municipal Corporation of Gurugram (MCG).
MCG has formally sought the portion of the funds attributable to areas within its jurisdiction, arguing that the additional construction enabled by purchasable FAR increases pressure on roads, drainage, sewerage, street lighting and other civic services that the corporation is responsible for maintaining.
Why MCG Is Seeking the ₹690 Crore
According to details cited by MCG, the Directorate of Town and Country Planning (DTCP) transferred ₹689.8 crore to HSVP on September 10, 2024.
The issue was also discussed at a meeting chaired by the Additional Chief Secretary, Town and Country Planning, on February 9, 2026.
MCG Commissioner Pradeep Dahiya subsequently asked HSVP to identify how much of the collection relates to areas falling within MCG limits and transfer the applicable amount to the civic body.
MCG Wants Year-Wise and Sector-Wise Records
MCG has sought detailed financial information before determining the amount attributable to Gurugram.
The corporation has asked HSVP for:
- Year-wise FAR/PDR collections
- Sector-wise collection details
- Details from March 8, 2016 onwards
- Information on how the funds have been utilised
- The amount attributable to areas within MCG limits
MCG followed up with a reminder in July 2026 after saying the requested information was still awaited.
Why Purchasable FAR Matters for Gurugram
Purchasable FAR allows developers or property owners to construct additional built-up area within applicable planning rules.
Higher permissible construction can increase the number of homes, offices and other uses accommodated on a given parcel, potentially increasing population and traffic density.
That can also increase demand for municipal infrastructure such as:
- Roads
- Stormwater drainage
- Sewerage networks
- Street lighting
- Waste and sanitation services
- Other civic facilities
MCG's position is that revenue generated from additional FAR should help fund the infrastructure required to support that higher development intensity.
MCG Says It Is Already Carrying the Infrastructure Cost
Several HSVP-developed sectors were transferred to MCG in phases between 2016 and 2021.
Since taking responsibility for these areas, MCG has been responsible for maintaining and upgrading civic infrastructure, along with services in licensed colonies falling within its jurisdiction.
The corporation has argued that when FAR-related revenue is held by one agency while another agency is responsible for delivering municipal services, the additional infrastructure expenditure ultimately has to be met from MCG's broader resources.
Rising Construction Is Increasing Infrastructure Pressure
The funding dispute comes as Gurugram continues to see substantial construction and increasing development intensity.
MCG has highlighted the need to strengthen infrastructure in areas where higher FAR and additional construction are increasing pressure on existing systems.
The issue has also become relevant to discussions around additional floors, including stilt-plus-four-floor construction, where questions around infrastructure capacity and development intensity have been under consideration by the Haryana government and courts.
What It Means for Gurugram Property Owners and Developers
The outcome could matter beyond government finances.
If FAR-related revenue is made available for local infrastructure, funds could potentially support improvements in areas experiencing higher development intensity.
For property owners and developers, the key areas to watch include:
- Road capacity and connectivity
- Drainage upgrades
- Sewerage infrastructure
- Street lighting
- Local sanitation
- Infrastructure capacity in high-density sectors
Better infrastructure capacity can also influence the practical usability of residential and commercial developments, particularly in rapidly urbanising areas.
What Happens Next
MCG is currently awaiting detailed records from HSVP before determining the exact amount attributable to Gurugram's sectors.
The corporation will then seek transfer of the applicable funds.
The immediate focus is therefore on financial reconciliation rather than an automatic transfer of the entire ₹689.8 crore. The final amount available to MCG will depend on the year-wise and sector-wise records provided by HSVP.
For Gurugram's property market, the larger issue is how revenue generated from higher development intensity is converted into the infrastructure needed to support that growth.