GURGAON: The state government is looking at getting Rs 14,000 to Rs 15,000 crore richer in this financial year by collecting the external development charges (EDC) from real estate giants. It has already initiated discussions with the developers and is also planning to ease the burden on developers by offering various modes of payments like part-payment or installments.
“Real estate developers were directed to deposit between Rs 14,000 to Rs 15,000 crores of pending EDC,” state finance minister Captain Abhimanyu Singh Sindhu said on Saturday.
The minister said the government would further rationalise the EDC for different townships in the state. According to him, the state is in the process of categorising the areas on the basis of their commercial value, which will then help decide the EDC for each property. Currently, the charges are fixed for all properties. “A township with lower commercial value would attract lesser EDC, thereby easing the burden on developers,” said the minister.
Elaborating on pending EDC dues in the state, Captain Abhimanyu explained that the government has had several consultations with real estate developers. “The amount collected from EDC recovery will be utilised for upgrading the infrastructure,” said the minister.
In Gurgaon, a developer has a take licence from the department of town and country planning (DTCP) before commencing on a project, for which they are charged EDC, infrastructure development charge (IDC) and licence fee. According to the rule, a developer’s licence can be cancelled if it fails to pay EDC and IDC. Besides, licences can be renewed only after settling the dues.
“The real estate sector is in bad shape and developers have not paid EDC and IDC to the DTCP. The state has to recover several thousands of crores in the form of EDC and IDC from developers in Gurgaon alone,” said a DTCP official.
Credits ET Realty