GMADA issues notices to 24 mega project owners for not paying external development charges and licence fee of ₹263 crore
Greater Mohali Area Development Authority (GMADA) has issued notices to owners of 24 mega projects for not paying external development charges (EDC) and licence fee owing to ₹263 crore.
The authority has uploaded the list of defaulters who had been issued licences between 2005 and 2019, on its website www.gmada.gov.in. In the list which has been updated till August 2019, most of the builders have not paid the amount since past five years.
A senior GMADA official said, “Notices have already been issued and we have given them one-month time, failing which legal action will be taken. Also non-recovery of EDC and licence fee has resulted into blockage of funds and affected developmental works in the area.”
WHAT PAPRA 1995 SAYS
Under Section 5 of the Punjab Apartment and Property Regulation Act (PAPRA), 1995, EDC and licence fee is to be deposited by builders. It is calculated on the basis of area of land to be developed and can be paid in lump sum or instalments, failing which interest @ 10% normal and 3% penal rates is charged.
The major defaulters include Altus Space Builders Private Limited with their projects in Bhagat Majra village and Palheri of Mohali, owing ₹50 crore; Bajwa Developers, Sector 123, owes ₹48 crore; Shiwalik Site Planners Private Limited, Sector 121, owes ₹27 crore; RKM Housing Society, Sector 112, owes ₹17 crore, Chandigarh Royale City Promotors Private Limited, Dera Bassi, owes ₹17 crore; and Geetu Construction Private Limited, Sector 113, Landran, owes ₹15 crore.