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Posted at: Oct 6, 2018, 12:03 AM; last updated: Oct 6, 2018, 12:03 AM (IST)

Developers can’t charge EDC

Buyers of affordable projects in Gurugram, Panchkula, other cities in Haryana to benefit
Developers can’t charge EDC
Various housing projects under construction near the MG road in Gurugram. tribune photo: S.Chandan

Sushil Manav

People in millennium city Gurugram and other major towns of Haryana, who are hoping to get homes under the Affordable Group Housing Policy, are feeling relieved after the state government clarified that builders cannot charge external development charges (EDC).

In an order issued on October 1, K Makrand Pandurang, Director, Town and Country Planning, Haryana, has clarified that the EDC is included in the rates fixed under the Affordable Group Housing Policy 2013 and cannot be charged separately from homebuyers.

“It has come to the notice of the department that colonisers, who have been granted licences under the Affordable Group Housing Policy 2013, are charging the EDC over and above the rates prescribed for apartment units in the policy. The allotment rates for apartment units approved for such projects have been prescribed in clause 5 of the policy. These rates are Rs 4,000 per square feet for Gurugram, Faridabad, Panchkula, Pinjore and Kalka; Rs 3,600 per square feet for other high and medium potential towns, and Rs 3,000 per square feet for low potential towns. Besides, Rs 500 per square feet against all balcony areas in a flat adding up to and limited to 100 square feet, as permitted in the approved building plans, are also chargeable. These rates are inclusive of the EDC,” says the order. 

The order clarifies that no coloniser is allowed to charge the EDC.  

Pandurang says that any Central tax such as the GST or taxes imposed by the state government or local bodies are not part of the rates and can be charged from the allottees separately.  

The order states that if any coloniser has charged the EDC over and above the rates, it should be refunded. The Town and Country Planning Department has said that the colonisers shall submit an undertaking/ certificate to the effect that they have not collected any amount over and above the fixed rates. Further, if any amount has been collected, it should be refunded to the allottees.

“This has come as a big relief for us, as four big developers in Gurugram have been demanding the EDC. We have given a number of complaints to the authorities concerned and have also lodged a complaint at the CM Window but nothing has happened,” says Rohit Choudhary, a homebuyer from Gurugram.

Bharat Bhushan, another homebuyer, says that the EDC comes out to be around Rs 40,000 for a one BHK unit and Rs 70,000 for a two BHK unit but after this order, they will be saved from paying the additional amount.

“We have raised the issue with the District Town Planner, Gurugram, and also represented our grievance at the CM Window. The department has clarified that the EDC is included in the prescribed rates but developers do not accept that and say that they haven’t received any notification from the department. Now, with this order, the department has clarified that even if the EDC has been charged, it will have to be refunded,” says Choudhary.

Notably, the Affordable Housing Policy Haryana passed in 2013 provides an all-inclusive maximum allotment rate of Rs 4,000 per square feet, but taxes can be charged over it. But the developers started charging the EDC separately.

There are about 60-odd projects at Sohna in Gurugram and around 80-odd projects all over Haryana.


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