Enhanced EDC Stayed by Hon'ble High Court

[tinesha]

HC modifies order on EDC, Haryana can now issue licences for construction

Express news service : Chandigarh, Fri May 10 2013, 03:58 hrs

In an interim relief for Haryana, the Punjab and Haryana High Court has modified its previous order wherein it had stayed collection of external development charges (EDC). While the order was issued in one of the petitions, the direction was misconstrued by state authorities as a blanket order on collection of EDC in the state.

Clarifying, the High Court Wednesday ordered that its order dated March 19 will not be applicable to those cases wherein fresh licences are to be given to builders for construction of colonies in Haryana. The state will now be at liberty to grant licences to builders for construction of residential and commercial institutions.

The modification was done after the Haryana government argued that because of the said order, it was unable to issue fresh licences to builders for construction as a result of which development has come to a standstill.

Meanwhile, the High Court Thursday questioned the Haryana government's rationale behind enhancement of EDC, decision it had taken in 2011, with retrospective effect from 2008 onwards.

Several aggrieved builders have moved the court alleging that state government's decision to charge EDC was unconstitutional, arbitrary and illegal.

Builders from Faridabad and Kurukshetra also alleged that the state has done no development at all in the districts and was yet charging the EDC.

Hearing the case, a division bench asked Haryana to furnish details of the decision (to enhance the EDC) taken by it in 2011 and submit an affidavit explaining under what circumstances the decision was taken.

After the Haryana law officer averred that the decision was taken by a committee set up by the state, the court summoned the detail regarding the said committee. Also, the state has been told to submit the principles used to determine the EDC.

The report submitted by the committee has also been ordered to be placed on record on the next date of hearing.

http://www.indianexpress.com/news/hc-mo ... /1113929/1

[vjkaul]

So many thanks for this update...but has the court been apprised of EEDC charged by the builders post the sale deed...

[cpthareja]

Dear Friends,

I have received final demand letter from Puri Constructions for my flat in Puri Pranayam. I spoke to them regarding the stay order of the High Court and they should not charge Enhanced EDC in light of that. However, they say that they won't give possession of the flat if I don't pay EEDC. Please can someone send me a copy of High Court stay order at cpthareja@yahoo.com . Also, please advice how should I go about it?

Regards,
Chander

[dheerajjain]

Tomorrow (21st May, 13), simultaneously, GFWA case along with 4 different associations across Haryana for reversal of enhanced EDC are listed for hearing. Some of GFWA Working Committee members are going to Chandigarh to participate in hearing.Let Justice and Truth prevail !

[brandoo]

Dheeraj, Mate all the best and I hope and sincerely pray that EEDC is reversed.

[dheerajjain]

Today (21-May-13), all EDC related cases which include 5 related to reversal of enhanced EDC in districts Faridabad (GFWA), Kurukshetra, Sonipat, Panipat and Panchkula and 1 filed by Builders Association in Faridabad for EDC linked development (which is prayer in GFWA petition too) were clubbed together. Advocate General (AG) of Haryana (seniormost advocate of Haryana Govt.) along with team of lawyers appeared for State.

AG has been asked by Judges to file a detailed affidavit with respect to policy formulation for enhanced EDC. Stay in enhancement of EDC continues in districts which are having petitions filed. Next date is July 11, 2013 (as in June, Courts are closed). Also, GFWA case is now connected with other 4 cases which are related to reversal of enhanced EDC. It has got disconnected from Faridabad Builders Association case.

[anuj_bansal]

Thanks for the update Mr Dheeraj.

Now the case is heading towards policy and laws and who has the power to put these charges.

What about the initial plea of GFWA that there is no development and an extra charge has been asked from people? This would be a separate issue for each district.

[Nikhil2802]

Dear Deeraj Ji,

Many thanks for your update. But how do we interpret this development? As the matter is now taken course to Policy Formulation and that again is a long process from proposals to approvals and implementation.

I personally feel that in real terms, we the common man has still not got any relief as the builders are still hell bent on demanding EEDC as they do not have any formal intimation of stay from DTCP and the extraction by DTCP in disguise is on.............

Request to please share your views.

WR,
Nikhil

[Monica9d]

I am one of the flat owners in BPTP's project "The Resort" and have recently got a reply from them that the Enhanced EDC stay is not applicable to them as the following. Can someone pls suggest if this stands tru or not and help me take an action against the same.

We write with reference to the stay order passed by the Punjab & Haryana High Court on 19.03.2013 in the CWP No. 5835 of 2013 titled as Balwan Singh & Ors. Vs State of Haryana & Ors. whereby the Hon'ble High Court has stayed the operation of Memo dated 14.07.2011, issued by HUDA regarding EDC rates for various urban estates.

At the outset we would like to apprise you with the fact that the said Writ Petition has been filed by customers having their properties in Kurukshetra District of Haryana and not to Faridabad region. We not being a party to the Petition filed before the Hon'ble Punjab & Haryana High Court are not aware of the circumstances in which the order dated 19.03.2013 was passed.

Since the coverage of the Order dated 19.03.2013 is not clear and the Memo dated 14.07.2011 contained inter alia the rates for Faridabad area also, as a matter of abundant caution we have vide our letter dated 02.04.2013 sought clarification from the Director General, Town & Country Planning (DGTCP) regarding the applicability of the stay order on Licenses granted in Faridabad. However, please be informed that the said Order dated 19.03.2013 is only an interim measure and the Hon'ble Court has not declared the Memo dated 14.07.2011 as inoperative or null and void.

You will appreciate that as per the terms of the License and the Bilateral Agreement, we are bound to pay External Development Charges and any enhancement thereof (EDC/EEDC) to HUDA through Director General, Town & Country Planning. The delay in making the payment of EEDC to HUDA attracts interest @ 12% + 3% (penal interest). The Enhanced External Development Charges forms the part of total sale consideration and as per the terms of the Application/Agreement you are liable to make the payment of same to the company. It is pertinent to mention that making the payment of the EEDC in accordance with the demand raised by the company shall not be prejudicial to the interest of the customers as in case the memo dated 14.07.2011 is held to be invalid the company shall refund the Enhanced amount of EDC.

However, we would like to inform you that unless and until the full consideration is received by the company the sale deeds cannot be executed.

In view of the above Order dated 19.03.2013, as a matter of abundant caution and as a goodwill gesture we give the following options to our Customers:
1. who have paid and are willing to pay the EEDC amount on the basis of the demand raised:
If the Memo dated 14.07.2011 is ultimately held to be invalid by the Hon'ble High Court or its Appellate Court then we shall refund the amount of EEDC or such part of it which is held to be invalid and shall be in a position to execute sale deed.
2. who do not wish to make the payment of
EEDC as demanded by the company:
In the circumstances the stay is set aside and the operation of Memo dated 14.07.2011 is upheld by the Hon'ble Court or in the alternative DGTCP confirms that the Memo dated 14.07.2011 is not applicable on us, the Company would be liable to make the payment of the EEDC to HUDA. If the EEDC amount is not paid to HUDA in time, the company shall be liable to make the payment of the same alongwith interest @ 15% (12% + 3% (penal interest).

In case you choose for not making the payment of the EEDC amount demanded by the company we would like to state that you shall be liable to make the payment of delayed interest @ 15% (12% + 3% (penal interest) on delayed payment of EEDC, to the company as charged by HUDA. Also we would not be in a position to execute your sale deed till such time the issue is finally determined by the court as EEDC is part of sale consideration.

Further please note that non-payment of EEDC at this stage will derail the whole development of the area since it is a condition precedent to the grant of Zoning Plans which are essential for release of building plans. We have in anticipation of your depositing the EEDC given Corporate Guarantee to the DGTCP that we shall pay the EEDC as per payment schedule given by the authorities so that the Zoning Plans be released. In case majority of the customers choose not to pay EEDC we shall not be in a position to honor our commitment with DGTCP.

[naveenarichwal]

It is strange that the court is asking this question when this question should have been asked at the very beginning of the case. For me this is just a beginning of the case.

[ashutosh]

Today (21-May-13), all EDC related cases which include 5 related to reversal of enhanced EDC in districts Faridabad (GFWA), Kurukshetra, Sonipat, Panipat and Panchkula and 1 filed by Builders Association in Faridabad for EDC linked development (which is prayer in GFWA petition too) were clubbed together. Advocate General (AG) of Haryana (seniormost advocate of Haryana Govt.) along with team of lawyers appeared for State.

AG has been asked by Judges to file a detailed affidavit with respect to policy formulation for enhanced EDC. Stay in enhancement of EDC continues in districts which are having petitions filed. Next date is July 11, 2013 (as in June, Courts are closed). Also, GFWA case is now connected with other 4 cases which are related to reversal of enhanced EDC. It has got disconnected from Faridabad Builders Association case.

I am sensing pressure from Govt on court led to this kind of judgment(affidavit on policy formulation).But any way still we can claim our victory in a sense that we kept EDC IDC stayed.Your views are solicited.

[RSHYAMGARG]

This Govt listen only the group of people which have power to vote. There are 25,000/30,000 investors in Neharpar but unfortunately we cannot connect all of them with us. If all the investors are united, Govt. will do what we want. In NOIDA U.P.Govt. (where we think corruption is frequent) first develop infrastructure than allot the land to builders for construction of houses/flat to general public. In my opinion that is real development by welfare state may be some costly. In Haryana even sector 2,3,64-65, 55-56 have not yet fully developed although plots were allotted 10-15 years back in these sectors. So we should try to connect more and more people/investor with us that is posssible only when 5-10 people in each city of NCR are authorised to fill form and taken membership fee. It will be better if we publish a monthly /quarterly magzine in which advertisement from building material shop/property dealer can be given .

[Arunava]

This Govt listen only the group of people which have power to vote. There are 25,000/30,000 investors in Neharpar but unfortunately we cannot connect all of them with us. If all the investors are united, Govt. will do what we want. In NOIDA U.P.Govt. (where we think corruption is frequent) first develop infrastructure than allot the land to builders for construction of houses/flat to general public. In my opinion that is real development by welfare state may be some costly. In Haryana even sector 2,3,64-65, 55-56 have not yet fully developed although plots were allotted 10-15 years back in these sectors. So we should try to connect more and more people/investor with us that is posssible only when 5-10 people in each city of NCR are authorised to fill form and taken membership fee. It will be better if we publish a monthly /quarterly magzine in which advertisement from building material shop/property dealer can be given .

I agree with Mr.GARG. GFWA should try to CONNECT more & more people who has invested in Greater Faridabad. Quarterly magazine/ facebook page or some banner at entrances of Nahar Paar area etc or etc are very good effective steps for making people aware regarding existance of GFWA.

People's voice is the most powerful thing in any democracy. Its People's power which forced Govt. to fly Nirbhaya to abroad for treatment or listening to Anna. There can be plenty of example. In 2014 Genreal Elections are scheduled to be held. Now if we can Make GFWA a body of 25000-30000 future residents of Greater Faridabad all political parties will have an eye for support to GFWA. And GFWA can exploit it for development of Greater Faridabad.

[akash_grover]

Reading the letter from BPTP it looks the stay is not valid for greater faridabad, as per builder.
Requesting GFWA core members to clear the the doubt if its wrong comm. from builder

[rajan]

Reading the letter from BPTP it looks the stay is not valid for greater faridabad, as per builder.
Requesting GFWA core members to clear the the doubt if its wrong comm. from builder

BPTP LTD has confirmed in one such communication that alottees can defer the payment of EDC however if the EDC becomes payable subsequently than BPTP will charge interest on the unpaid EDC amount.
The main issue with BPTP is that they have charged much more EDC and IDC than demanded by Haryana govt both in case of original EDC and enhanced EDC.
so members should also look this aspect.
regards
rajan