Read this excerpt on Gurgaon issue:
This describes situation 1997 onwards
Ordinarily, such a wild building boom would have had to hew to a local government master plan. But Gurgaon did not yet have such a plan, nor did it yet have a districtwide municipal government. Instead, Gurgaon was mostly under state control. Developers built the infrastructure inside their projects, while a state agency, the Haryana Urban Development Authority, or HUDA, was supposed to build the infrastructure binding together the city.
And that is where the problems arose. HUDA and other state agencies could not keep up with the pace of construction. The absence of a local government had helped Gurgaon become a leader of India's growth boom. But that absence had also created a dysfunctional city. No one was planning at a macro level; every developer pursued his own agenda as more islands sprouted and state agencies struggled to keep pace with growth.
I agree with above points. In Developed countries, Governments allow private businesses to flourish with least intervention and at the same time taking care of interest of citizens. But in India, story is completely different. We have witnessed an unprecedent growth but at a cost of rampant corruption.
Before 1991, It was all government controlling everything but as we hit the wall due to that model, our government had to allow private investment and sold its stake in the business. Modi has rightly said: "Government has no business to do a business". Government should be there for welfare schemes like education, healthcare etc but should not poke its nose into other busineesses. In India, it started happening. We allowed private investments but at the same time we did not take care of interest of citizens. Politicians have found a way to mint money through changing rules as per their interests not as per people's interest. And we can see now a mess.