In a first-of-its-kind move, the Department of Town and Country Planning (DTCP) in Gurgaon has decided to allocate permissions for operating guesthouses in the upscale DLF 3 area through a public auction. This decision comes after the department received a flood of applications that drastically surpassed the number of establishments allowed under the current policy framework.
Overwhelming Response Triggers Auction Route
The core issue stems from a significant mismatch between demand and supply. Officials confirmed that 12 property owners in DLF 3, specifically Sector 24, have formally applied for permission to run guest houses. However, the notified guest house policy for the area strictly permits only two such establishments in this sector. The total land area covered by all the applications is approximately 5,500 square metres (about 1.36 acres), which exceeds the maximum cap set by the policy.
Faced with this scenario, where the number of willing applicants is six times the permissible limit, the DTCP has opted for a competitive bidding process to ensure fairness. This marks the first instance where the department is using an auction mechanism to grant guest house permissions. An official stated that with limited permissions available and multiple interested parties, the auction route guarantees a transparent and objective allocation system, conducted in strict adherence to guidelines from the town planning headquarters.
Mechanics of the Gurgaon Guest House Auction
The auction process has been carefully structured. A three-member committee, led by the senior town planner, has been formed to supervise the entire exercise. The department has set a reserve price of Rs 1,000 per square metre for the bidding. The highest bidders will be granted the permissions, but crucially, only within the overarching limits prescribed by the policy.
The policy itself caps the total area that can be used for guest houses in any residential sector at 1.25 acres (roughly 5,058 square metres or 6,000 square yards). Since the cumulative area from applications is already over this limit, the auction will effectively determine which applicants get to operate within this scarce commercial space.
Ensuring Transparency and Legal Compliance
Officials emphasized that this initiative is not just an administrative choice but also aligns with directives from the Punjab and Haryana High Court. The primary goals are to inject transparency and fairness into the process of allotting permissions for a lucrative but restricted commercial activity within a residential zone. Initially, the auction will be conducted manually by the department.
This move by the DTCP highlights the high demand for commercial guest house operations in premium residential sectors like DLF 3. It also sets a potential precedent for how urban planning authorities in Haryana and beyond might handle similar situations of excessive demand for limited commercial licenses in the future, ensuring a level playing field for all stakeholders.
