DTCP, Haryana revises payment norms for enhanced EDC

GURGAON: The Department of Town and Country Planning (DTCP) has revised the payment norms for enhanced EDC in Haryana which will benefit the builders who are reeling under real estate slowdown.

In a recently held meeting with the top brass in Chandigarh, the builders had said that they were facing difficulties in depositing outstanding dues on account of EDC and enhanced EDC due to slow market conditions. The builders, mainly those having projects in Gurgaon, had argued that enhanced EDC payment schedule should be revised due to downswing of the market conditions.

The enhanced EDC runs into crores, which is to be paid by the builders all over Haryana. A real estate industry insider said: "The revision will de-stress builders since, now they don't need to pay in short duration and have breathing space, though they will pay interest as per the agreed norms."

During the meeting, DTCP officials said, it was decided that the period of one year as provided in the policy dated April 12, 2012 for payment of outstanding EDC by submitting bank guarantees may be extended to two years

The official said the request was accepted and it was decided that this extended period will also be applicable to the renewals already granted under policy dated April 12, 2012. The colonizer shall deposit bank guarantee to the tune of 25% of the total outstandingamount (including overdue and not yet due installments) at the time of request for consideration under this policy. Bank guarantees already deposited shall be adjusted.

At present, the enhanced EDC is being charged in four half-yearly installments, but now it was decided to recover enhanced EDC in six half-yearly installments. The cases for grant of licenses for additional area adjoining the already licensed land and approval of building plans shall be processed on merits after observing the performance of the colonizers regarding payment ofoutstanding dues of the main licence