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Buyers Say Gurgaon Builders Charging EDC On Affordable Homes

Buyers Say Gurgaon Builders Charging EDC On Affordable Homes

Buyers Say Gurgaon Builders Charging EDC On Affordable Homes

In order to maintain the affordability of units constructed under its 2013 housing policy, the Haryana government had decided that buyers of such properties will not have to pay any external development charge (EDC).

EDC is a charge a developer pays to the civic authorities for the maintenance of civic amenities outside of a project, including roads. Invariably, this burden is transferred to homebuyers.

However, under its affordable housing policy, the Chief Minister Manohar Lal Khattar-led Haryana government has asked builders to sell units at Rs 4,000 per square foot (psf) (Rs 500 psf for the balcony area) and leave the EDC. Buyers are now complaining developers are transferring this burden on them at the time of giving possession. Builders are adding up the EDC, which significantly raises the cost of the purchase, say buyers.

In their defence, developers say that the licence policy does mention that they could charge EDC from homebuyers. Since no notification has been issued in this regard by the state government, say builders, they are right in charging the fee.

“We have taken up the matter with the government at different levels. This is a bilateral issue between developers and buyers and a notification on this has still not been issued,” NAREDCO Vice-Chairman Parveen Jain was quoted by Hindustan Times as saying.

Also read: Haryana Builders Can Pay Development Charge Dues In Installments

To end the confusion, the Gurgaon town and country planning department has written to authorities in Chandigarh to issue a notification in this regard, specifying the ruling. The city department has suggested a clarification over the matter be uploaded on the state website "so that ambiguity on this issue ends".

Of the total 90 affordable housing projects that are being developed across Haryana to provide housing for all by 2022, 60 are located in Gurgaon.

Last Updated: Wed Oct 03 2018

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