In a bizarre twist of urban capitalism, residents in Gurgaon have found a surprising new income stream—charging their neighbours up to Rs 40 lakh for a simple No Objection Certificate (NOC). The catch? It’s all tied to a recent change in construction rules that has quietly transformed relationships in residential colonies into transactional opportunities. As banker Sarthak Ahuja shared on LinkedIn, this booming side hustle stems from the Haryana government’s decision to re-allow the construction of stilt-plus-four (S+4) floors in licensed colonies and sectors, reversing its February 2023 freeze on fourth-floor approvals.
The policy shift, which came after residents initially demanded a halt to such vertical expansion due to stress on civic infrastructure, now permits S+4 construction—but with strings attached. According to additional chief secretary (town and country planning) Arun Gupta, the new guidelines state that if a layout plan allows only three dwelling units per plot, a fourth floor can only be added if the plot is located on roads at least 10 metres wide. And that’s not all. In such cases, the owner must either obtain mutual consent from all adjoining plot owners (excluding those who’ve already received approvals for four floors) or maintain a 1.8-metre side setback from neighbouring plots on all floors.
When someone planning to build approaches their neighbour for an NOC, they’re often met with a hefty demand—typically around Rs 40 lakh. As Ahuja pointed out, it’s essentially 10% of the Rs 4 crore value that a fourth floor can command in the current market. With the NOC being a prerequisite for approval, neighbours now hold surprising leverage over lucrative real estate gains next door.
Legally, this may not be forbidden. Morally, however, it’s a murkier debate—raising questions about community trust, urban isolation, and the monetisation of goodwill. Ahuja reflected that such dynamics highlight how relationships between neighbours have evolved from generational bonds into transactional dealings, particularly in modern urban pockets like Gurgaon where familiarity is fading.
Meanwhile, the state government clarified that any building plan approved before the February 23, 2023 order will not be restricted by the new conditions. But as Gurgaon continues to expand skyward, it’s clear that the cost of growth isn’t just concrete and steel—it’s also a matter of signatures, strategies, and social contracts between neighbours.
The policy shift, which came after residents initially demanded a halt to such vertical expansion due to stress on civic infrastructure, now permits S+4 construction—but with strings attached. According to additional chief secretary (town and country planning) Arun Gupta, the new guidelines state that if a layout plan allows only three dwelling units per plot, a fourth floor can only be added if the plot is located on roads at least 10 metres wide. And that’s not all. In such cases, the owner must either obtain mutual consent from all adjoining plot owners (excluding those who’ve already received approvals for four floors) or maintain a 1.8-metre side setback from neighbouring plots on all floors.
When someone planning to build approaches their neighbour for an NOC, they’re often met with a hefty demand—typically around Rs 40 lakh. As Ahuja pointed out, it’s essentially 10% of the Rs 4 crore value that a fourth floor can command in the current market. With the NOC being a prerequisite for approval, neighbours now hold surprising leverage over lucrative real estate gains next door.
Legally, this may not be forbidden. Morally, however, it’s a murkier debate—raising questions about community trust, urban isolation, and the monetisation of goodwill. Ahuja reflected that such dynamics highlight how relationships between neighbours have evolved from generational bonds into transactional dealings, particularly in modern urban pockets like Gurgaon where familiarity is fading.
Meanwhile, the state government clarified that any building plan approved before the February 23, 2023 order will not be restricted by the new conditions. But as Gurgaon continues to expand skyward, it’s clear that the cost of growth isn’t just concrete and steel—it’s also a matter of signatures, strategies, and social contracts between neighbours.
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