Gurgaon: Last chance for builders to clear EDC dues by April 22
State announces extension of deadline to mop up pending External Development Charges from defaulting realtors. A response to an RTI query says that the dues from realtors amount to ₹12K crgurgaon Updated: Dec 04, 2017 23:12 IST
In a bid to mop up the pending EDC (External Development Charges) from the realtors in the state, particularly in Gurgaon, the Haryana government on Monday gave defaulters another five months, till April 22, 2018, to clear their dues.
This is the last chance for defaulters to pay up and if dues are not cleared, their licenses could be cancelled, sources in department of town and country planning said.
According to information revealed in response to an RTI query filed by activist Aseem Takyar in 2016, an amount of ₹12,000 crore is pending as EDC charges from developers in Gurgaon. As a result, many infrastructure projects, particularly sector roads and related civic works, are pending in new Gurgaon sectors. Most the defaulting developers have projects in these sectors.
A top DTCP official, who refused to be named, said that notices have already been issued to defaulters and it is imperative that 55% payment is made upfront, failing which strict action is likely to be taken.
EDC is paid to the government for development of external infrastructure including roads, sewerage, drainage, green belts, open areas and related infrastructure.
However, in some respite for defaulters, a spokesperson for the department of town and country planning on Monday stated that as part of a relief offer, the defaulting builders can deposit the pending EDC till April 22, 2018. However, to avail of this benefit, the realtors will have to deposit 10% of the outstanding as pending on January 22, 2017 along with applicable interest, at a rate two-and-a-half times the amount due, till the money is deposited at the time of application.
Also, the instalments due on July 22, 2017 and January 22, 2018 (if applicable) shall be deposited with 10% of the money owed.
Under this offer, the instalments would become due on January 22, 2018, July 22, 2018 and January 22, 2019. There would be no extension of the policy beyond April 22, 2018, the government spokesperson said on Monday.
Haryana government had come out with the relief policy for recovery of EDC on April 12, 2016, under which the developers were given the option to mortgage the project land or submit the bank guarantee to enable them to pay their outstanding EDC or IDC.
Praveen Jain, vice chairman, NAREDCO, welcomed the move saying that many developers who could not opt for this scheme earlier could avail of it now.
“Many developers want to pay the charges and this scheme will enable them to do so. Stuck infrastructure projects could get a new lease of life with this money.”
The Huda had to forego the acquisition of 1,300 acres needed to develop green belts in new sectors from sectors 81 to 115 due to lack of funds. The RTI by Takyar also revealed that 718 projects in Gurgaon had EDC pending.
It also mentioned that top 10 developers in the city, who failed to make statutory payments of external development charges and infrastructure development charges, owe ₹700 crore, ₹407 crore, ₹374 crore, ₹207 crore, ₹206 crore, ₹158 crore, ₹156 crore, ₹153 crore, ₹145 crore and ₹125 crore respectively to the state.