Rs 10,627 crore due in development fee in Haryana, builders notified
The department of town and country planning (DTCP), Haryana, issued show-cause notices to developers of over 443 real estate projects across the state earlier this week for failing to deposit outstanding external development charges (EDC) and not availing the relief they are entitled to under the EDC reschedulement policy.
As per the notice, the developers owe Rs 10, 627 crore to the department. But they have submitted bank guarantees only to the tune of Rs 1,067 crore. The department has asked the developers to reply within 15 days explaining why action should not be taken against them.
DTCP director K Makrand Pandurang said the notice, which was sent on February 25, is a warning to developers to either deposit the total outstanding amount or opt for the EDC rescheduling policy, which has flexible norms.
“If the developers don’t come forward, then the department will be forced to encash the bank guarantees to the tune of Rs 1,067 crore,” he added.
The external development charges are collected from developers to carry out development works, including building roads, setting up electrical infrastructure, laying down water and sewerage lines, constructing drains and related infrastructure.
The charges are calculated by the department based on the area being developed by a particular builder.
“Through this public notice the licencee, who have defaulted, are called upon to show cause within 15 days of the date of issue of this notice as to why further action for revocation/encashment of bank guarantees on account of non-payment of EDC/IDC dues be not taken as per provisions of the Act/Rules. List of licenses along with licence number who have not paid EDC or not have availed the EDC Reschedulement policy dated 21.09.2018 is hosted on the departmental website. No separate notices will be issued to the individual licensee[sic],” stated the notice.
Officials said that maximum number of projects were in Gurugram and Faridabad, because these two cities had witnessed large-scale urbanisation in the past two decades.
They also said that a very flexible policy for re-scheduling the payment of EDC has been introduced. However, despite such moves, the response by the developers has been lukewarm so far.
This was why the government issues a notice in this regard. As per the notice, of the 443 projects under scanner, 246 are in Gurugram, as the highest amount of EDC dues is pending against projects based in the city.
Of the remaining projects, 32 are in Faridabad,13 in Rewari,11 in Palwal, 15 in Panipat, 15 in Sonipat, 17 in Karnal, 15 in Bahadurgarh, 13 in Rohtak, six in Panchkula, 10 in Yamunanagar and nine are in Dharuhera.
A number of smaller projects are scattered across the state.