Tension prevailed at Orchid Petals, Sector 49, as locality residents held a meeting with the builder to sort out the dispute - regarding management and security issues - outside the Sadar police station on Saturday night.
Area SHO Yashvant Kumar was also present at the spot.
The settlement reached between both the sides was that the residents of Orchid Petals will give an individual undertaking that they have no objections in taking over charge from the builder.
Also, the builder will hand over the assets along with a list of inventories to the residents and the latter will have no objection in managing the society affairs.
The settlement was also mediated by the Joint Action Forum of Residents' Welfare Association (Jafra) chairman Ratan Singh, local councillor Rajender Singh, while Ajay Goel and Dhruv Gupta were from the builder's side.
"Things are fine. The builder and residents will now act in cooperation to solve the dispute mutually," said the SHO.
A meeting was also scheduled with senior town planner (STP) of Gurgaon, RK Singh, on Sunday.
However, the Orchid Infrastructure Developers Private Limited (OIDPL), which developed the society but is yet to hand over charge to the residents' welfare association, denied the peace agreement.
"The residents have sought more time. We will wait for a positive gesture from their side till Monday evening," Ajay Goyal, senior official, OIDPL.
"We have shot letters to the Director General of the town and country planning (DG-TCP), Chandigarh, and all other competent authorities to expedite the transfer process of the locality by pressuring the builder," said a resident.
Early in the afternoon, residents of Orchid Petals staged a protest when the police came up with a list of 68 unsold flats in the locality and informed that 68 guards will be deployed to guard each flat.
However, things were eased after the settlement was reached. On Saturday, residents held a protest in front of the corporate office of the builder on MG Road and forcibly removed security staff, while deploying their own guards.