₹40 lakh for a signature? Gurugram neighbours cash in on new 4th-floor construction rule
The law doesn’t bar neighbours from demanding money for an NOC, nor does it cap how much they can ask. Refusing consent can mean the builder must leave a 1.8-meter setback—reducing usable space and hurting project economics.
- Jul 9, 2025,
- Updated Jul 9, 2025 7:53 AM IST
In Gurgaon’s property market, a new kind of deal is playing out between neighbours—and it’s perfectly legal. With Haryana’s new “Stilt + 4” policy, a fourth floor can fetch ₹4 crore. But before construction begins, your neighbour may ask for ₹40 lakh just to sign a No Objection Certificate.
Investment banker Sarthak Ahuja recently highlighted the growing trend on LinkedIn, noting how Gurgaon residents are monetising proximity. Under Haryana’s revised building rules, owners can now construct four floors plus stilt parking. But in many cases, building the fourth floor requires an NOC from the adjacent property owner.
That’s where things turn transactional.
“The moment a person builds another floor, that extra floor can be sold at a current market price of ₹4 crore,” Ahuja wrote. “The neighbour essentially commands 10% of the extra income.”
The law doesn’t bar neighbours from demanding money for an NOC, nor does it cap how much they can ask. Refusing consent can mean the builder must leave a 1.8-meter setback—reducing usable space and hurting project economics.
Some call it shrewd negotiation. Others see it as soft extortion.
Urban planners say the policy is aimed at easing housing pressure in land-starved cities like Gurgaon. But on the ground, it has turned quiet residential lanes into high-stakes bargaining tables.
“As neighbours begin to not know each other… such interactions become opportunities to monetise,” Ahuja noted.
Legal experts confirm there’s no prohibition on such payments. Morally, though, the debate is wide open—shaped by how one views capitalism, community, and the changing nature of Indian urban life.
In Gurgaon’s property market, a new kind of deal is playing out between neighbours—and it’s perfectly legal. With Haryana’s new “Stilt + 4” policy, a fourth floor can fetch ₹4 crore. But before construction begins, your neighbour may ask for ₹40 lakh just to sign a No Objection Certificate.
Investment banker Sarthak Ahuja recently highlighted the growing trend on LinkedIn, noting how Gurgaon residents are monetising proximity. Under Haryana’s revised building rules, owners can now construct four floors plus stilt parking. But in many cases, building the fourth floor requires an NOC from the adjacent property owner.
That’s where things turn transactional.
“The moment a person builds another floor, that extra floor can be sold at a current market price of ₹4 crore,” Ahuja wrote. “The neighbour essentially commands 10% of the extra income.”
The law doesn’t bar neighbours from demanding money for an NOC, nor does it cap how much they can ask. Refusing consent can mean the builder must leave a 1.8-meter setback—reducing usable space and hurting project economics.
Some call it shrewd negotiation. Others see it as soft extortion.
Urban planners say the policy is aimed at easing housing pressure in land-starved cities like Gurgaon. But on the ground, it has turned quiet residential lanes into high-stakes bargaining tables.
“As neighbours begin to not know each other… such interactions become opportunities to monetise,” Ahuja noted.
Legal experts confirm there’s no prohibition on such payments. Morally, though, the debate is wide open—shaped by how one views capitalism, community, and the changing nature of Indian urban life.