Oberoi Realty shares fall 2% as court restrains Gurugram project

Mumbai-based Oberoi Realty Ltd has achieved a significant milestone in its Delhi-NCR market entry, recording gross bookings of approximately ₹8,109 crore at its newly launched luxury residential project. According to the latest regulatory filing, the company sold 13.52 lakh sq ft of RERA carpet area (23.10 lakh sq ft of saleable area) in the 14.8-acre project located at Golf Course Extension Road in Gurugram. The strong consumer demand drove this record performance for the company's first project in the National Capital Region, marking a significant milestone in Oberoi Realty's expansion into North India. As per Business Standard, the project is spread across 14.8 acres on Golf Course Extension Road, in Sector 58 of Gurugram.

The court restraint stems from a legal challenge by Advance India Projects Ltd (AIPL), which has sought a stay on Licence No. 69 of 2025, issued on May 12, 2025, and the subsequent order dated June 17, 2025, approving the transfer of the development licence to another developer. According to Zee Business, the matter is also linked to a complaint pending before the Department of Town and Country Planning (DTCP) regarding the validity of the project's licence. AIPL has claimed rights over the project and sought cancellation of the sale deed executed in favour of Oberoi Realty. The dispute relates to a 14.816-acre land parcel in Sector 58, Gurugram, where a residential colony with a commercial component is proposed. The petitioner alleged that the grant and subsequent transfer of the licence were contrary to the provisions of the Haryana Development and Regulation of Urban Areas Act, 1975, and that the transaction breached conditions governing foreign direct investment (FDI). The Haryana government informed the court that the petitioner's representation seeking cancellation of the licence remains pending before the DTCP director, with the matter listed for hearing on July 20, 2026.

According to Zee Business, during the hearing, counsel for the petitioner submitted that the project's estimated value is around ₹8,000-10,000 crore and will be developed in multiple phases. The petitioner stated that nearly 350 units had already been allotted and around ₹750 crore had been collected from buyers. The court has now directed that no fresh allotments should be made in the Oberoi 360 North project until further developments in the matter. The company has also claimed rights over the project and sought cancellation of the sale deed executed in favour of Oberoi Realty. AIPL informed the court that it had got an FIR registered in 2024 against IREO and Oberoi Realty, alleging collusion and cheating in connection with the same land parcel, though proceedings are currently stayed by the Supreme Court. The petitioner argued that permitting further sales before adjudication of the licence dispute could complicate the rights of prospective homebuyers.

Following the court development, Oberoi Realty shares were trading lower on Thursday, quoted at ₹1,842.50, down 1.55% from its previous close of ₹1,871.50 at around 2:03 pm. As per Zee Business, the court development comes just days after Oberoi Realty announced strong sales numbers for the project on July 6. Despite the legal overhang, brokerage Nomura retained its 'Buy' rating and maintained its target price at ₹2,090. According to Moneycontrol, Nomura noted that Oberoi Realty's management has said the order "does not impact any existing sales already concluded" and that there is no stay on the construction of the said project. The brokerage added that the next phase launch was anyway scheduled for FY28-29, implying a limited near-term impact on pre-sales. Nomura also highlighted two reasons that indicate the proceedings could go in favour of Oberoi - DTCP Haryana has previously ruled in the company's favour on multiple occasions, and the company has maintained that there was "no violation of the FDI policy or any other provisions of law."

According to Mint, Vikas Oberoi expressed confidence about building a strong portfolio in the NCR region, including Gurugram and Noida, stating that "We think NCR will be as big if not bigger than Mumbai for us going ahead."** The robust response adds to the growing list of blockbuster luxury housing launches in Gurugram, where demand for premium residences has remained resilient over the past two years, driven by high-net-worth individuals, entrepreneurs, senior professionals and non-resident Indians. With bookings of ₹8,109 crore, Oberoi Realty has already achieved around 51% of the project's estimated revenue potential of ₹16,000 crore. The master-planned development will eventually comprise seven residential towers, landscaped open spaces, Club Three Sixty North and a curated boulevard with retail and cafés. Nomura believes that any adverse ruling would have limited impact on valuation, though it cautioned that it could pose a reputational risk and affect the company's future growth plans in Gurugram.

Gurugram has emerged as the country's fastest-growing high-end luxury residential market, with Gurugram recording ₹24,120 crore in transactions for homes priced at ₹10 crore and above in 2025, according to a February report by India Sotheby's International Realty and CRE Matrix. The luxury housing segment saw 1,494 homes priced at ₹10 crore and above sold during 2025, with the total transaction value surging from 155 units sold for ₹4,004 crore in 2023. DLF Ltd has dominated the market, with the company selling 56 residential units in its super-luxury project named The Dahlias in Gurugram for ₹4,824 crore in 2025-26. Veteran investor Madhusudan Kela recently purchased a 6,233 sq ft flat in The Dahlias for ₹120 crore, highlighting the premium pricing in the market.