Updated 26 October 2026. This explainer covers the numbers, the notice process, how it differs from the DTCP sealing drive that the Supreme Court paused on 13 October, and what buyers, landlords and tenants should check.

How many illegal PGs are there in Gurugram?

Share of the total in HSVP sectors: about 17%; in licensed colonies about 30%; in MCG areas about 53% (our arithmetic from the MCG figures).

  • Total flagged by MCG: 1,625 (The Tribune, 17 October 2026).
  • In HSVP sectors: 276.
  • In licensed (private) colonies: 492.
  • In MCG areas: 856.
  • In the HSIIDC area: 1.
  • MCG Commissioner Pradeep Dahiya said unauthorised PGs increased population density and strained civic infrastructure (The Tribune).

Which Gurugram sectors are affected?

  • HSVP survey hotspots: Sectors 15, 17, 21, 22, 23, 31, 38, 40, 46 and 57 (The Tribune, 17 October 2026).
  • Stilt-plus-four buildings multiplying in Sectors 14, 15 and 17, some used as PGs or split into flats for sale (The Tribune).
  • Residential plots converted to clinics, dance studios, hotels and short-term rentals in Sectors 31, 43, 51 and 57 (The Tribune).
  • Residents' groups quoted include the Sector 17 RWA and United Gurugram RWAs, who described kothis being pulled down or converted into PGs (The Tribune).

What does an HSVP Section 17(3) notice mean?

HSVP's Estate Office 1, which covers Sectors 1 to 23, has issued about 100 notices under Section 17(3) of the HUDA Act, 1977, and 34 of those cases have moved to Section 17(4) (The Tribune, 17 October 2026). HSVP says it has zero tolerance for commercial misuse of residential property (The Tribune).

Section 17 is the provision under which the authority acts on breaches of the conditions of an allotted site, and its later stages can lead to resumption of the site (our reading of the Act, not a statement from HSVP). If you receive a notice, reply within the time given, stop the non-residential use, and take legal advice before the matter moves to the next stage.

How we got here: HSVP's survey and the DLF Phases tenant notice

What the ranking reports leave out, and this guide adds: the October count by authority, the Section 17(3) to 17(4) progression, how HSVP sectors differ from the licensed colonies covered by the Supreme Court pause, and checks for a buyer rather than only for tenants.

  • November 2024: HSVP announced its first door-to-door survey of commercial use of houses, starting with Sectors 17, 14 and 15, after reports of schools, hospitals, guest houses, gyms and offices run from kothis in Sectors 14, 15, 17, 31 and 46; HSVP said properties found in commercial use 'will be taken over' (The Tribune, 15 November 2024).
  • The same report said a 2023 internal HSVP survey found illegal commercialisation was the biggest issue in 70% of HSVP residential areas across Haryana, and that many earlier notices had not been followed up (The Tribune, 15 November 2024).
  • 25 June 2026: in the licensed DLF Phases 1 to 5, the District Town Planner (Enforcement) pasted notices asking occupants of PGs, guest houses, hostels and co-living units to vacate by 30 June, warning that premises would then be sealed and that tenants would bear any resulting losses (ThePrint, 25 June 2026, PTI).
  • October 2026: MCG's count of 1,625 illegal PGs and HSVP's roughly 500 notices across Sectors 1 to 57 (The Tribune, 17 October 2026).

What should a PG tenant do if a notice is pasted?

In the DLF Phases case, officials said owners often had not told occupants about enforcement notices, and advised tenants to verify the legal status of the premises and make other arrangements before the deadline (ThePrint, 25 June 2026). Practical steps: photograph the notice, ask the operator in writing for the notice and its reply, keep rent and deposit receipts, and agree in writing how the deposit is returned if the premises are sealed.

Is this the same as the DTCP sealing drive?

No. The DTCP drive covers licensed private colonies such as DLF Phases 1 to 5, Sushant Lok and South City; the Supreme Court paused it on 13 October 2026 over a jurisdiction dispute between DTCP and MCG, with a hearing on 3 November (The Tribune, 14 October 2026). HSVP sectors are developed and regulated by HSVP under its own Act, and the reports we read do not say the Supreme Court pause applies to HSVP's survey. Read our explainer: Gurugram Sealing Drive: Supreme Court Pause, Buyer Checks

Is running a PG in a residential house allowed in Gurugram?

The October reports describe these PGs as illegal or unauthorised and do not set out a registration route that would make a PG in a residential plot lawful (The Tribune, 17 October 2026). We could not find a current, published Gurugram rule for PG registration in the sources we read, so we do not state one. Until the authorities publish a clear policy, treat paying-guest use of a residential plot as a compliance risk.

Checks for buyers, landlords and tenants

  • Buyer of a house or floor in an HSVP sector: ask the seller for a written statement that no Section 17 notice is pending, and check with the estate office before paying a token.
  • Check the building against its sanctioned plan, especially in Sectors 14, 15 and 17 where stilt-plus-four rebuilds are common. Our checklist: Stilt Plus 4 Floors in Gurgaon: 2026 News and Buyer Checklist
  • Avoid buying a floor in a building where other floors run as PGs or guest houses; enforcement against one floor can affect access, parking and resale.
  • Landlords: rent to residential tenants on a standard lease, not by the bed or room.
  • Tenants in a PG: keep the agreement and rent receipts, and know that a sealing or resumption action can force a move at short notice.
  • Seniors and families choosing a sector: ask the RWA how many houses on the street are PGs; density, parking and water pressure follow from that.

Why this matters for prices and rents in old Gurgaon

Old Gurgaon's HSVP sectors trade mostly as plots, kothis and builder floors, and much of their rental demand comes from students and young professionals near offices and metro stations. A sustained crackdown on PGs can cut the rent a landlord earns from a house let room by room, while making the street quieter for families. Residents quoted by The Tribune (17 October 2026) describe seniors moving out of sectors where PG density rose; the opposite pressure, families returning once misuse is curbed, is plausible but not yet reported. We would not pay a price that assumes PG-level rental income on any HSVP plot.

For buyers, the practical effect is due diligence: the same street can hold a compliant family home and a sealed or noticed PG next door, and the sale deed of one says nothing about the other.

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