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Pay dues or lose licences, Haryana government warns builders

gurgaon Updated: Feb 14, 2017 23:08 IST
Abhishek Behl
Abhishek Behl
Hindustan Times
Haryana government,real estate,Gurgaon

Projects, including road maintenance, are pending because of paucity of funds with the Huda.(HT File)

The Department of Town and Country Planning has decided to act tough on Haryana developers who have failed to deposit external development charges (EDC) . The department is considering cancelling the licences for projects in which the EDC is pending and no third party rights have been created.

As per the reply to an RTI query, the developers owe Rs 12,000 crore as pending EDC to the government and it is for this reason that several infrastructure projects such as roads and sewers, and developing green belts are suffering. The Haryana Urban Developement Authority (Huda) is facing an acute paucity of funds, the RTI reply said.

TL Satyaprakash, director, Department of Town and Country Planning said the huge outstanding amount has become a major cause of concern and crucial infrastructure projects were being held up because of the lack of funds. “The department will soon issue notices and ask developers to deposit the dues as early as possible. We are considering to cancel the licences of projects in which third party rights have not been created if EDC is not paid,” he said.

The Huda had to forego the acquisition of almost 1,300 acres of land needed to develop green belts in new sectors from 81 to 115 due to the lack of money. The top 10 developers, who have not made statutory payments of external development charges and infrastructure development charges owe Rs 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.

The RTI query filed by activist Aseem Takyar also revealed that there are 718 projects in Gurgaon, which have pending EDC charges till March 31, 2016. After this period, very few new project launches have taken place in the city.

The Haryana government had come out with a relief policy for defaulting developers in 2016. The policy allowed them to mortgage land to the state government for new projects in lieu of payment of the EDC/IDC even if dues were pending.

First Published: Feb 14, 2017 23:08 IST