In one of India’s fastest-growing cities, owning and building a home has never been easy. Skyrocketing land prices, regulatory hurdles, and high construction costs already make Gurugram a challenge for homeowners. But a new rule by the Haryana Government has added yet another obstacle: the requirement of a neighbor’s No Objection Certificate (NOC) before building certain types of houses.
The rule, introduced under the Stilt + 4 Policy, was meant to improve housing availability and urban planning. Instead, it has created a wave of disputes, financial demands, and rising frustration among citizens. What was supposed to be a pro-housing policy is now being called by many a “neighbor tax.”
The Policy in Brief
The Stilt + 4 Policy allows residents to construct four-storey homes on their plots. This comes as part of Haryana’s larger effort to meet growing urban housing needs. However, the policy includes a catch:
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To build the fourth floor, homeowners need written consent (NOC) from neighbors.
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Without NOC, they must leave a setback of 1.8 meters, reducing usable space.
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A reduced plot utility also means lower property value and fewer returns on investment.
The Ground Reality: Negotiation Over Construction
The intention of the policy may have been positive, but its real-world impact is quite different. In practice:
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Neighbors are using the NOC requirement to demand money.
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Homeowners are forced to negotiate, sometimes paying ₹20–40 lakh just for a signature.
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The amount demanded often equals 10% of the property’s worth.
This has turned construction into less of an architectural process and more of a business deal between neighbors.
A Case Study: When a Signature Costs ₹40 Lakh
A recent case shared online by investment banker Sarthak Ahuja illustrates the problem. He revealed that in Gurugram, neighbors have begun demanding as much as ₹40 lakh for signing the NOC.
The reasoning is simple:
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A fourth floor can push the property’s market value up to ₹4 crore.
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Neighbors feel entitled to claim a share, demanding 10% as their cut.
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If refused, the homeowner loses valuable construction space and suffers financial setbacks.
This growing practice has split opinions. Some see it as practical negotiation, while others call it legalized extortion.
Is It Legal or Exploitative?
The debate has two sides:
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Legally: Since the government has made NOC compulsory, neighbors have the authority to give or deny it. Asking for money in return does not fall under corruption laws.
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Ethically: It undermines community spirit and replaces trust with transactions. What was once a relationship of cooperation has now become a financial tug-of-war.
Expert Opinions
Urban Planners
Planners argue that while the intention was good, the policy has ignored human behavior. Instead of fostering community planning, it has opened doors to misuse.
Legal Experts
Lawyers point out that the absence of clear checks makes it difficult to challenge such demands. Unless the government revises the policy, neighbors can legally withhold NOC or monetize it.
Real Estate Analysts
Analysts warn that this policy could make housing even more expensive. For buyers and builders already under financial pressure, paying neighbors lakhs of rupees is an additional, unregulated cost.
How It Affects Neighborhood Relations
Beyond economics, the rule is straining social fabric:
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Before: Goodwill, mutual respect, and cooperation defined neighborly relations.
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Now: Suspicion, bargaining, and disputes dominate conversations.
The requirement of NOC has effectively turned neighbors into unofficial stakeholders in each other’s construction projects.
Economic Implications
For Homeowners
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Loss of space due to setbacks.
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Reduced return on investment.
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Increased construction cost due to payouts.
For Neighbors
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Potential windfall income with no investment.
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Opportunity to leverage location and rights for personal gain.
The outcome is an uneven playing field where one party bears costs while the other reaps unearned benefits.
Social Media and Public Reaction
The issue has become a hot topic online.
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Some argue that neighbors should benefit if construction impacts their property value or privacy.
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Others believe the policy has legitimized extortion, calling it a dangerous precedent.
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Many citizens describe the system as discouraging for genuine homeowners while favoring opportunism.
Possible Alternatives and Solutions
To fix the growing discontent, experts suggest the following:
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Government Reforms
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Make NOC advisory, not mandatory.
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Restrict NOC only to structural safety and not to personal demands.
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Independent Mediation
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RWAs or municipal authorities should act as neutral mediators when disputes arise.
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Fixed Compensation
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If compensation is to be given, it should be fixed by government guidelines rather than left open to negotiation.
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Larger Lessons from Gurugram
This episode highlights a broader issue in Indian urban policymaking:
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Well-intentioned policies often lack practical safeguards.
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Loopholes create opportunities for exploitation.
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Citizens pay the price through stress, conflict, and rising costs.
Gurugram’s housing policy may have aimed to improve living spaces, but instead, it has raised questions about fairness, legality, and governance.
Conclusion
The Gurugram housing NOC controversy is a telling example of how urban policies, when not thought through, can create unexpected challenges.
On paper, the Stilt + 4 Policy was designed to support urban growth. In reality, it has shifted focus from construction quality and design to bargaining with neighbors. A homeowner’s ability to build now depends not just on government permissions, but also on a neighbor’s willingness — and sometimes greed.
Unless reforms are introduced soon, Gurugram may see rising housing disputes, declining social harmony, and further escalation in construction costs. What was once a dream of building a home has, ironically, turned into a negotiation table — where a single signature can cost lakhs of rupees.
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