Task force to recover pending charges from developers

The Department of Town and Country Planning (DTCP) has formed a task force comprising senior officials, to recover pending external development charges (EDC) to the tune of ₹8,000 crore from developers across the state. The task force will look into revocation of bank guarantees, identification of unsold inventories of developers, and also devise measures to take over the property and sell it, as per current laws.

The Department of Town and Country Planning (DTCP) has formed a task force comprising senior officials, to recover pending external development charges (EDC) to the tune of ₹8,000 crore from developers across the state.

HT Image

The task force will look into revocation of bank guarantees, identification of unsold inventories of developers, and also devise measures to take over the property and sell it, as per current laws.

Despite extending the deadline for payment several times, according to the DTCP officials, the developers did not pay the dues. Due to this, many external developmental works in and around the licensed colonies have been put on hold, they said.

As per the directions issued by the DTCP director, Makrand Pandurang, the task force — formed in the second week of June — will comprise Haryana chief town planner, IT and Monitoring chief town planner, chief accounts officer (headquarters), senior town planners and district town planners concerned.

“Above ₹8,000 crore interest is pending on account of the EDC, that the developers from across Haryana got to pay. No doubt, there is a slowdown, but the department had extended the deadline several times, and also gave rebates against interest payment to the developers. Earlier, we had cancelled licences of some of the developers, but that also did not work out. This task force will look into different aspects, and find out a solution to recover the dues,” said Pandurang.

As per the details shared by the DTCP, around ₹4,000 crore EDC charges to be paid by the developers in Gurugram is also pending, apart from the interest. The issue of EDC collection assumes significance, as in a recent meeting, the Haryana government had asserted that EDC collected from the district should be given to the Gurugram Metropolitan Development Authority (GMDA) to carry out developmental works.

According to the DTCP officials in Gurugram, licences of many developers had been cancelled in the past two years for the non-payment of EDC, but due to the creation of third-party rights, they face a lot of issues in closing these projects. “This task force can take a holistic view, and since senior officials from Chandigarh are involved, decisions could be taken quickly,” a DTCP official said.