Demand for payment of enhanced External Development charges (EDC) for RPS Savana

[dheerajjain]

Hi Amitav, please note that Interest of Rs 5 sq ft will be only from May to September 2011. So,if you don't want to pay late payment charges, then RPS will tell you to pay interest from October 2011 to June 2012. That may also be the same.

[gugnani1]

Hello , thanks for updates so just had an query that should we guys go ahead an pay the increased EDC charges or should we wait for the same as i hvae not paid the same and incurred letter of payment from them

[vinodsharmaa]

Below is the email I have sent to RPS and waiting for their reply for my RPS Palms EDC claim.

To,


RPS Infrastructure Limited, 11th Floor, Tower-B, DLF Towers, Jasola District Centre, Noida.

RE: Demand of enhanced EDC in respect of Unit No D62-GF RPS Palms, Sector-88.

Dear Sir/Madam,

Thanks for your reply on my last email from vinod.sharma@tcs.com on 8 Jun 2012.

I understood now that EDC rate finalized by authorities is Rs. 58.21 Lacs per acre area of land for RPS Palms.



I have few points for which I need clarification in reference to EDC on per Sq. yard without which I won’t be liable to pay the enhanced ECD (Ref# Demand Notice for D62-GF RPS Palms, Sector-88. Dated – 01Jun2012).

1. 1. Please help me understand how EDC on per Sq. yard has been calculated for my 270 Sq floor (D62 ground floor)?

2. 2. Based on details provided on RPS Website/ Boucher relating to the Area of the RPS City and RPS Palms the EDC on per Sq. yard comes out around 33% less (excluding commercial area) than what has been demanded (Ref# Demand Notice for D62-GF RPS Palms, Sector-88. Dated – 01Jun2012)

The basis of my calculation is given below:

· The entire area of RPS City is 100 acre and RPS Palms is nearly 20 acre.

· Now, as per the letter and as mentioned on website same EDC is charged from all the floor owners (ground, first and second floor owner).

· Hence total area from where EDC collected is around 30.27 acre for RPS Palms. The commercial area is not included yet. Below is the detailed calculation.


Type Area in Sq yards Total Units Area from on Which EDC applied Remark
A 400 37 44400 Units are multiplied by 3 as each unit have 3 floor.
B 340 25 25500
C 373 12 13428
D 270 78 63180

Total Area in Yards 146508
Total area in acre (1 acre = 4840 yards) 30.27
*Commercial area is not included in above calculation

3. 3. If RPS Palms is spread in just 20 acre then your calculation can't be straight forward (Divide 58.21 lakh for 270 Sq yard). There should around 33% of difference accounted in that simplistic calculation for 20 acre actual plot vs 30.27 acre from where EDC is getting collected.


Now as you have asked for such an exorbitant amount without any disclosure of the calculation, is totally unfair and unethical. Kindly clarify, the above calculation, otherwise, such an unfair amount is not payable without any justification.

The demand of Enhanced EDC is “only” payable when RPS Palms gives transparent calculation for the same with supporting Documents, subject to the Outcome of the Decision of the Hon'ble High Court, Punjab & Haryana, Chandigarh. Also it’s my legal right to ask for the transparent calculation without which your notice and end date of 24th Jun 2012 to pay enhanced ECD would be null and void.



A Separate Query

I have also heard that recently govt had waived some interest component, thereby reducing EDC and rps had sent letters to customers informing of reduction and adjustment of credit. I haven't received any such letter. Please confirm if that news is correct.



WAITING FOR YOUR REPLY.

[ratanbirkalra]

The last date(24 Jun' 12) for payment of Enhanced EDC to RPS is approaching fast.
What are Savana members planning to do ?

Ratan Bir Kalra

[namandayal]

Below is my email and a response I received from RPS recently. I wanted to see if RPS is willing to adjust the enhanced EDC payment against the penalty that is due to late possession. As expected, they completely ignored my original question in their response.

From my side, I will probably make the payment for enhanced EDC, since non-payment may be cited by them as a legal argument against us (if we ever face-off in court).

--------------------------------------------------------------------------------
Dear Sir,

Warm greetings from RPS Group.
We are in receipt of your letter dated 13/06/2012 which is replied hereunder:

As regards possession, we would like to intimate that same is planned to be offered in a phased manner and towers covering 2 BHK and 2+1 BHK category units is expected to be offered for possession by end of this year. Possession of other towers will be given thereafter on continuous basis. Necessary updates and possession schedule will be informed/ posted on our website at least one month beforehand.

It is needless to mention that booking and allotment of every unit in project SAVANA is supported by executed document of contract i.e. Buyer’s Agreement. Both the parties to the agreement are bound by the agreed terms.

In case there is delay in offering possession; penalty clause as per buyer’s agreement will be applicable. Penalty will be calculated on individual basis and the same shall become due and adjusted against payment to be made at the time of offer for possession.

Should you require further details, you may contact us at our corporate office. You may also contact us telephonically at 011-40543200.

Regards,
RPS Infrastructure Limited
1117 – 1120, 11th Floor, Tower – B,
DLF Towers Jasola District Center,
New Delhi – 110025
Telefax : 011-40543200 (30 Lines)
E-mail : info@rpsgroupindia.com
Website : http://www.rpsgroupindia.com
--------------------------------------------------------------------------------------
From: Naman Dayal
Sent: Wednesday, June 13, 2012 1:12 AM
To: Info
Subject: Re: Demand Notice 'RPS Savana'

Dear Sir,

I would like to know what plan RPS has for payment of penalty due to the extensive delay in possession of my flat? Please respond immediately to my questions below:

1) Provide a clear calculation of the penalty that is due from RPS to me
2) Please indicate exactly what your plan is for payment of this penalty amount?
3) Can you adjust the penalty amount against your demand for extra EDC?

Important Note: DO NOT refer me back to the buyers agreement - because you have already violated that same agreement in many ways.

I am waiting for your timely response before I fulfill your latest demand notice.

Regards,
Naman
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[vinodsharmaa]

I have not received any reply from RPS even after calling in their office. Please update if any one have got transparent calculation from RPS. Also can we have a conference call on Sunday at 10 AM to take a decision? I will make arrangements for the call and will post the detail year. Interested candidates please reply. Our unity is the only strength we have.
~Vinod Sharma

[vermamm]

We too are awaiting response from RPS to take on the future course of action....a conf call is welcome

[anuj_bansal]

I had sent a letter to RPS and also sent a copy of it to Sh.T C Gupta (Director General, Town and Country Planning Head Quarters, (Haryana)) and Smt. Geeta Prakash. All the letters were sent through Speed Post. No reply received from RPS.

These were the contents of the letter.

Code: Select all

Regarding the EDC calculations, I have several questions and the answers to these questions will help in understanding the EDC calculations done by you.

1.   What is the total land area considered for calculating the EDC?
2.   What is the FSI/FAR considered for the RPS Savana Project?
3.   Did you consider the land sold to third parties like commercial space/ K R Mangalam School while calculating the EDC rate?
4.   Have you considered the waiver of interest on enhanced EDC for 2 year period from 2009 to 2011 which has been done by HUDA recently?
5.   Please provide the detailed calculations through which you have arrived at the amount mentioned in the letter sent to me.
I am living in Bangalore and therefore unable to visit your office to get the answers to the above questions as well as to check the calculations which you have done. Your early and detailed reply for the above questions will help a lot and will bring transparency regarding the payment which I need to make.

Anuj

[ddamitav]

I got the following reply from RPS on enhanced EDC:

As regards EDC enhanced by authorities, the new rate finalized by govt. for project is Rs. 174.94 lacs per acre of land against earlier rate of Rs. 94.94 lacs per acre.

The demand for Rs. 121.30 psf is worked out as follows:

Rate per acre area of land EDC dues (psf)

Rate finalized Rs. 174.94 lacs

Initial demand Rs. 94.94 lacs Rs. 125

Additional demand Rs. 80.00 lacs Rs. 105

interest for the period 25/05/2011 to
24/05/2012 on Rs. 105/- Rs. 16.30

Total demand payable by Rs. 121.30
24/06/2012

Revised EDC @ 105 is justified !!!

Any way I am going ahead with the Payment in a day or 2.

Regards,

Amitav

[dheerajjain]

Looks Good, Amitav (Sorry for missing your pings on IM, I was logged in to my mobile and driving). I think RPS has done a right thing by revising enhanced EDC as per the orders of Director General, Town and Country Planning.

[Sudhanshu]

Hi Amitav,
You Might be satisfied with this calculation as youe have agreed that 105psf is a legitimate demand.
Did you ask RPS whether 105psf/- ther are charging now and earlier also they have collected at a rate of 125psf/- on what grounds did they so.

I have raised this question and i am not surprised they never responded back. Will they ever say that they have sold ladn to KR Mangalam but the EDC of that is being collected from us. Will they say that 7 acres of land out of 48acres has been licensed to another builder. But yet we are paying EDC of that.

So if we include these facts even 105psf is too much, it is not more than 50psf.

SO 105 PSF IS NOT A JUSTIFIED AMOUNT.

Regards
Sudhanshu

[anuj_bansal]

The exact calculations that Amitav has got were given to me by RPS as well.

demand-for-payment-of-enhanced-external-development-charges-edc-for-rps-savana-t764-135.html#p9991

These don't answer some of the questions which Sudhanshu has raised.

I had also sent them a letter by speed post for further details, but they have not responded.

demand-for-payment-of-enhanced-external-development-charges-edc-for-rps-savana-t764-150.html#p10187

Mean while I have today paid the amount since RPS calculations still look much better than other builders.

What I can say is that all builders are thiefs and cheats . May be this time RPS is little bit better, but that does not promise that next time they will not cheat in a bigger way.

Regards
Anuj

[cujatin]

Hi Amitav and Anuj,

Are you guys paying EDC as per the rate 121 or 105.

What I want to know is that if RPS is doing any relaxation in panalty.

Jatin
cujatin@gmail.com

[anuj_bansal]

I have paid @121.30 psft. Since RPS has to pay interest to HUDA @15%, they are not relaxing this. But as per the letter sent they were supposed to charge it at 18%, but looks like its about 15%.

What I have heard is that RPS does some relaxation for delay of payment related to construction. But for EDC, they wont.

Anuj

[dheerajjain]

@Anuj, if that is true, then I say that RPS is doing right thing on EDC front by demanding an interest of 15% as against 18% they had demanded in original EDC demand letter. Hope other builders in Greater Faridabad too follow the example set by RPS. Some builders had mentioned interest rate as high as 24% per annum.