Buyers at odds with builder over payment of development charge

GURUGRAM: Payment of external development charges (EDC) by buyers in the affordable housing segment has become a bone of contention as the Haryana affordable housing policy is unclear on the issue.

The buyers of Signature Global’s Solera project in Sector 107, where flats are ready to be offered for possession, are at loggerheads with the developer as they have refused to pay EDC.

The department of town and country planning (DTCP) has sought clarification from its headquarter in Chandigarh but it will take time, officials said.

“The Haryana affordable housing policy is not clear on payment of EDC by buyers. The buyers have now raised this matter, as a number of projects are nearing completion. We have sought clarity from the headquarters in Chandigarh and the matter will be resolved soon,” district town planner RS Bhath said.

Signature Global’s Solera project was launched in 2014 and a draw of lots was held in the same year. It comprises of 1,000 flats of various sizes—308 square feet (sqft), 489sqft and 548sqft.

Buyers said that under the affordable housing policy, the developer had agreed to sell the flats at ₹4,000 per square feet, all inclusive. However, now when the project is ready to be handed over, the builder has asked buyers to pay EDC, they said.

Rohit Chowdhary, one of the buyers in Solera, who has lodged a complaint with the DTCP, said, “I have bought a house in Solera, for which I took a loan and dedicated a certain budget. They have charged VAT, GST and all other levies, but suddenly the EDC has cropped up. Why should we pay the EDC when the price fixed by the government is all inclusive?”

For a 308 sq feet, one-BHK flat, the buyers are being asked to pay ₹43,000 as EDC, which they claim is neither allowed nor mentioned in the initial offering made by the developer.

According to the DTCP, the EDC is paid by the developer to the state government for development and maintenance of civic amenities.

The government demands EDC as land use fee, scrutiny fee and institution fee along with fees related to permission, license and infrastructure. These are calculated on the basis of the area of the flat or plot.

The developer, meanwhile, said that they have paid EDC to the state government and this was the reason they have demanded this money from flat owners.

“The builder-buyer agreement clearly mentions that any charge paid to the government, like EDC, will have to be borne by buyers,” said Jayant Baruah, a senior official with the Signature Global.