Real estate body steps in to help broke authority
The once cash-rich Huda now struggles to pay its employees as it has been unable to recover external development charges (EDC) from developersgurgaon Updated: Oct 02, 2015 01:12 IST
Gurgaon: The National Real Estate Development Council (NAREDCO) has decided to prepare a feasibility model that will help the cash-strapped Haryana Urban Development Authority (Huda) to complete its long-pending development projects.
Huda has not been able to execute several projects in Gurgaon - construction of roads, drainage and sewerage system, apart from acquiring land for laying public utility services in upcoming sectors - due to shortage of funds. Once a cash-rich agency with over Rs. 11,500 crore collected from private developers as external development charges (EDC), Huda currently has not been able to pay salaries to its Gurgaon employees. This is because the state-run development authority has failed to recover EDC dues worth Rs. 10,000 crore from private developers, Haryana chief minister Manohar Lal Khattar had recently disclosed.
“The proposed feasibility model will be tabled in the office of the chief minister amid senior officials of the state town and country planning (TCP) department. The model will seek the intervention of the TCP officials to align Huda with the Municipal Corporation of Gurgaon (MCG). We will suggest that the MCG, which is comfortably placed financially, utilise its resources and help Huda complete the pending development projects,” said Parveen Jain, the newly elected president of NAREDCO.
MCG, which was formed in 2008, had quashed panchayats in about 36 urban villages under its jurisdiction. This gave the civic body ownership of prime land worth hundreds of crores, Jain said. MCG also earns a lot in the form of property tax.
“The MCG should be given with the responsibility of either providing Huda with funds or financing its projects. Huda has run out of money and does not have funds enough to construct roads and take up new projects. Infrastructure in Gurgaon is crumbling,” Jain said.
The Gurgaon chapter of Huda has sought financial help of Rs. 65- crore from its headquarters in Panchkula to fund the pending projects and pay contractors.
Last month, several contractors threatened to go on strike as they were not paid their dues for months. The authority owes them a total of Rs. 160 crore. Following this, Huda managed to get Rs. 15 crore from the headquarters, which it used to pay some portion of dues.
“We are facing financial crunch and have sought funds from our department. However, we would ensure that none of the development projects get affected for the need of funds,” said Anita Yadav, Huda administrator, Gurgaon.