Own property in Gurgaon? Pay Rs 4 lakh extra in fees
The Haryana government has decided to hike the external development charge (EDC) by almost 100 per cent for all projects developed after 2005, reports Sanjeev K Ahuja.india Updated: Nov 27, 2008 02:06 IST
If you’ve bought an apartment or plot in Gurgaon in the past three years, prepare to fork out lakhs in additional development charges.
The Haryana government has decided to hike the external development charge (EDC) by almost 100 per cent for all projects developed after 2005.
Developers say existing customers will have to pay between Rs 150-200 per sq feet extra for an apartment and Rs 1,500-1,750 sq yard for a plot. For a three-bedroom apartment of about 2,000 sq. ft for instance, the buyer would now have to pay between Rs 3 lakh to Rs 4 lakh extra.
Senior Town and Country Planning officials maintain the government had to introduce the hike because of the steep appreciation in infrastructure costs. “The costs of laying infrastructure have gone up,” Town and Country Planning Director SS Dhillon told Hindustan Times.
HR Bangia, who bought a 300 sq yard house in 2006 said he would move court if he was asked for more EDC. “I don’t understand why developers don’t include it in the total cost of the property initially.”
Real estate developers, too, would have to pay hundreds of crores in arrears to the government. “The charges developing civic infrastructure for developers have been hiked from Rs 1.04 crore per acre to Rs. 2.27 crore for all projects that got licences after 2005,” said Raheja Group of companies CMD Navin Raheja.
Said N K Sehgal, senior vice president Ansal API: “Since 1991, the EDC has seen a dizzy rise of 1,300 per cent as against a 200 per cent increase in the CPWD wholesale price index in the same period.”
Some developers have even threatened to withdraw applications for future projects. Haryana Chief Minister BS Hooda met DLF vice chairman Rajiv Singh, Unitech MD Sanjay Chandra and Parsavnath Developers’ Pradeep Goyal on November 19.
First Published: Nov 27, 2008 02:03 IST