MCG Seeks Share of Rs 690 Crore FAR Funds

GURUGRAM: The Municipal Corporation has asked Haryana Shahari Vikas Pradhikaran to identify and transfer the city's share of nearly Rs 690 crore collected through purchasable floor area ratio charges that have sat with the development agency for almost two years.

According to figures cited in MCG's correspondence, the Department of Town and Country Planning transferred Rs 689.8 crore to HSVP on 10 September 2024. That transfer was also noted in a 9 February 2026 meeting chaired by the additional chief secretary for town and country planning. MCG says it maintains civic infrastructure in several HSVP-developed sectors and licensed colonies even while the FAR receipts remain outside its books.

What the commissioner asked for

In a letter dated 26 May 2026, Commissioner Pradeep Dahiya asked the HSVP administrator to identify how much of the pool relates to areas inside MCG limits and to transfer that portion to the civic body. He also sought year-wise and sector-wise details of collections and how the money had been used. A July 2026 reminder said those details were still awaited and asked for year-wise FAR collection figures from 8 March 2016 onwards so records could be reconciled.

Purchasable FAR lets builders buy additional built-up area, which can raise construction intensity and population density on the same plot. MCG's letters argue that the revenue is meant to pay for the infrastructure upgrades that denser construction demands. Several HSVP sectors were handed to MCG in phases between 2016 and 2021. The corporation is responsible for roads, stormwater drainage, street lighting, sewerage, sanitation and related municipal services in those pockets and in licensed colonies under its charge.

When one agency holds the FAR receipts and another pays for everyday civic work, MCG says the gap is filled from its general resources. That pressure is sharper as construction intensity rises and debates continue over additional floors, including stilt-plus-four configurations, and what those mean for road, water and drain capacity. State authorities and courts have been examining aspects of such development. For MCG, the immediate ask is narrower: get the Gurugram-attributable share identified and moved to the body that already runs the services.

Until HSVP supplies the sector-wise break-up, MCG cannot finalise the exact transfer claim. Officials framed the letters as a reconciliation step rather than a finished invoice. Residents in older HSVP sectors that now depend on MCG for pothole repairs, drain clearing and streetlight fixes are the ones who feel the funding split most directly when monsoon and density stress hit the same network.

Purchasable FAR and related premium charges have grown as builders seek extra floors and denser footprints. MCG's position is that the agency which inherits the denser load should also inherit a matching share of the premium that densification earned. HSVP still holds the transferred pool until that split is documented. The May letter and July reminder put timestamps on how long the civic body has been waiting for the year-wise and sector-wise tables. What happens after those tables arrive will decide how much of the nearly Rs 690 crore actually moves into MCG's infrastructure budget.