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130 notices slapped on Mohali builders as EDC dues pile up to ₹275 crore
Of the total defaulting builders, those in Zirakpur owe the local civic body a total of ₹160 crore, while those in Kharar have not paid ₹95 crore; another ₹20 crore are owed by builders in Dera Bassi
Taking note of unpaid external development charges (EDC) dues mounting to around ₹275 crore, additional deputy commissioner (Urban Development) Damanjit Singh Mann has served 130 notices against colonies in Dera Bassi, Zirakpur and Kharar.
Among these colonies are projects of some prominent realtors in the district.
Of the total defaulting builders, those in Zirakpur owe the civic body a total of ₹160 crore, while those in Kharar have not paid ₹95 crore. Another ₹20 crore are owed by builders in Dera Bassi.
Notably, no action was taken against the builders for the past five years either by the respective municipal councils or the higher authorities concerned. As a result, some builders, according to the officials, had handed over possession to homebuyers even without paying the mandatory EDC charges.
The realtors have been given 15 days to deposit the pending amount or face strict action.
“After 15 days of receiving notice, in case a realtor or coloniser fails to clear the dues, the bank guarantee deposited by the former with the department will be seized. Moreover, the department will be authorised to auction the hypothecated flats or plots kept as guarantee against EDC by the builder. Department will cancel the building permit pertaining to the defaulting project besides taking legal action,” shared a senior official, not wishing to be named.
Sources said many officials were also likely to face action for not taking any initiative to recover the pending dues.
Full EDC payment mandatory before handing possession
Under Section 5 of the Punjab Municipal Act (PMA), 1911, builders are liable to pay 15% EDC to the MC concerned in lieu of licence for development of the colony. The remaining 85% is to be paid half yearly in total 10 instalments in five years, before handing over possession to buyers.
According to sources, a few prominent transfers were ordered in the local government department recently after an internal departmental probe regarding pendency of EDC worth ₹275 crore was initiated.
After the probe, strict instructions were issued by the state government to calculate the pending EDC across Mohali district, following which over 130 notices were issued to the builders over the past 20 days.
“There was a criminal nexus between politicians, officers and promoters. Builders after paying 15% EDC commenced their work and didn’t pay the pending 85% amount, causing huge revenue loss to the state government. Yet, no show-cause notice was served on the defaulters over the pending dues,” said an official.
ADC (Urban Development) Damanjit Singh Mann said,“Notices have been sent to the promoters and strict action will be taken in case they don’t clear the dues, as the instructions from the state government are very clear.”
Builders blame govt for not keeping agreement
However, Parveen Kansal, a Zirakpur-based realtor, blamed the local bodies department and municipal authorities for charging fees without fulfilling conditions regarding external development of projects.
“While the agreement clearly states that the municipal authorities will provide us adequate water pipelines, proper sewerage and drainage system, besides electricity and water treatment facility, builders keep submitting pleas for proper amenities, but to no avail. As a result, realtors eventually stop paying development charges to the civic bodies,” said Kansal.
He added that due to the lack of adequate arrangement by the municipal councils of Zirakpur and Kharar to ensure zero discharge of sewage into Ghaggar river, the Punjab Pollution Control Board had restricted construction or development of new projects till adequate sewage treatment plants were installed. “Instead of just collecting fees, authorities should also focus on development to avoid legal battles,” added Kansal.
