Huda reduces EDC; relief for property owners, developers
There is some good news for people who purchased property in Gurgaon during or after the year 2009 as the Haryana Urban Development Authority (Huda) has reduced external development charges (EDC) for urban areas.india Updated: Apr 21, 2011 00:48 IST
There is some good news for people who purchased property in Gurgaon during or after the year 2009 as the Haryana Urban Development Authority (Huda) has reduced external development charges (EDC) for urban areas.
Real estate developers have to pay the government for external infrastructure such as roads, sewerage and drainage system in private colonies. The EDC in turn is imposed on buyers. Every year, Huda revises the amount to the tune of 10-15%. In 2009, the levy was hiked up to 70% and the developers approached the government seeking a rollback.
As per the new orders, Rs 58.76 lakh per gross acre would be charged as EDC for plotted houses and Rs 176.28 lakh per acre for group housing societies with a population density of 300 per acre and low cost housing schemes with a population density of 600, a spokesperson said.
Commercial areas, including local shopping markets, with a floor area ratio (FAR) of 1.75 will now have to pay Rs 274.41 lakh per acre. The spokesperson added that the rates will be applicable retrospectively from the year 2009 and would increase at the rate of 10% annually on compoundable basis.
Similarly, the new charges for Gurgaon-Manesar Urban Complex-2021 may be made applicable from July 11, 2006 which would be calculated at the rate of 10% per annum on compoundable basis. The arrears would be given to plot owners.