DTCP reschedules payment of EDC for developers

GURUGRAM: The Department of Town and Country Planning (DTCP) has rescheduled the norms for the builders to pay the external development charges (EDC) for which it has already released an official statement.

The decision to reschedule payments comes at a time when the EDC dues from the builders are not only in Gurugram but even in other major cities of Haryana is increasing every year.

In the amended clause the developers can now pay 20 per cent of the down payment of the total outstanding EDC and the balance amount can be paid in the eight half-yearly installments along with applicable interest.

The first installment will become due after one year of deposit of 20 percent downpayment and the remaining due can be recovered in the seven half-yearly installments. Further, the DTCP has also kept the provisions of paying the dues at 15 percent and 10 percent down payment.

For builders paying at 15 percent, the first installment shall become due after one year from the date of deposit and the remaining ones will become due in four-half yearly installments.

For 10 percent down-payment, the first installment shall become due after six months and the remaining amount can be recovered in three-half yearly installments.

In Gurugram only there are over 150 small and big builders that have EDC dues ranging from Rs 7000-10,000 crores.

A major source of revenue for the public agencies External Development Charges (EDC) in Gurugram is key to carrying out development works like the building of roads, setting up of electric substations and constructing drainage systems.

Most of the new projects in Gurugram lack proper roads, power connections, and sewage facilities.

The main reason cited for lack of social infrastructure is the huge EDC amount that is unaccounted for. Moreover, insufficient collections have resulted in even Gurugram Metropolitan Development Authority (GMDA) also unable to complete its development projects.

Taking strict stance even the Punjab and Haryana high court had directed the State Government to make builders pay the pending amount so that it can be used for the welfare to the homebuyers.

Subsequently, the Haryana Government has created various leeway for the builders to pay the amount. Yet, it seems that the move has not succeeded.