Sector 109 Housing Licence Cancelled After Decade-Long Delay; Buyers Seek New Developer

By Sumit Arora6 min read
Stalled residential construction site in Gurugram Sector 109
An incomplete residential project in Gurugram, where buyers are seeking a time-bound path to completion after licence cancellation.

GURUGRAM: The Department of Town and Country Planning has cancelled the licence for Expressway Towers, a stalled affordable-housing project spread across 7.5 acres in Sector 109. The August 7 order cites prolonged delay, non-compliance and the absence of substantial construction progress, ten years after the original licence was granted.

For homebuyers, cancellation is not an ending. It is the start of a difficult transition from action against the licensee to a workable plan for the homes they paid for. The buyers' association has sought an alternate developer, a full account of collections and time-bound completion.

Land and third-party rights are now restricted

The order says the licensed land and buildings are deemed to vest with the government and bars the licensee from further transfer or creation of third-party rights. That protection is important because fresh sale or encumbrance could make recovery harder. The next significant step is the Rule 19 process through which an agency may be appointed to complete the project.

DTCP has also directed the developer to disclose payments received from allottees who allegedly did not receive receipts. The order records a prima facie concern about diversion of funds collected for construction. That is an initial regulatory observation, not a final criminal finding, and any recovery or prosecution will require its own process.

Inspections found little movement

The licence was granted in June 2016 and expired in June 2021 without a valid renewal, according to the department. A joint inspection on July 6 this year reportedly found no meaningful improvement from the condition recorded in March 2025. The department says repeated notices and hearings did not produce substantial work.

An alternate developer will need more than possession of the site. Engineers must assess completed structures, revised costs, outstanding approvals and the gap between buyer collections and money required to finish. Buyers need that viability report before another completion promise is announced.

The handover needs a public timetable

DTCP should publish milestones for claims verification, structural assessment, selection of a completion agency and treatment of existing buyer agreements. A single help desk can prevent conflicting information and ensure allottees who live outside Gurugram receive the same updates.

Licence cancellation is a strong regulatory measure, but buyers did not invest for an enforcement order. They invested for a home. The success of this intervention will be measured by whether the project moves into credible construction under accountable management, with collected funds traced and every family given a transparent path forward.

Sources and reporting

Based on the DTCP cancellation order dated 7 August 2026 for the 7.5-acre Sector 109 project, inspection findings, licence history and demands raised by the buyers' association.

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