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DTCP Cancels Housing Project Approval as Construction Remains Incomplete

Aug 26 2026

DTCP Cancels Housing Project Approval as Construction Remains Incomplete

The Directorate of Town and Country Planning (DTCP) has cancelled the licence of another affordable housing project in Sector 69 following prolonged construction delays and alleged regulatory violations. The project was developed under the state government's Affordable Housing Policy, which requires developers to complete construction within a stipulated four-year period. However, the development remained incomplete, leading the planning authority to take regulatory action. Following the cancellation, DTCP has restricted the sale of units and the creation of third-party rights in the project. The department has also directed the senior town planner concerned to take over the colony, potentially paving the way for further measures to address the stalled development. The action has created uncertainty for existing homebuyers who are waiting for possession and completion of their homes. The regulatory takeover could now determine the next steps for the project, including how construction and buyer interests may be addressed. The developer has indicated that it plans to challenge the cancellation orders, arguing that the decision is arbitrary and contrary to applicable legal provisions and principles of natural justice. The latest action is part of a broader regulatory focus on delayed affordable housing developments. Another housing project in Sector 109 had previously faced license cancellation after remaining stalled for several years and affecting a large number of homebuyers. The development highlights the risks faced by buyers when housing projects remain incomplete for extended periods. It also underlines the importance of checking project approvals, regulatory status, construction progress, completion timelines, and buyer protections before purchasing an under-construction property.

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