Heritage Cottages, Sector 89, Faridabad

[debasishmumbai]

Today received Demand letter for Payment of Enhanced EDC charges. I would like to know from all Heritage Cottages"Ozone Square"buyers what is your stand. Whether we are paying this additional amount or not.

[kbmalhotra]

This is the matter, we all have to discuss and take action jointly. We had paid EDC+IDC @ Rs. 176/- as demanded by builder. We do not know how much was EDC and how much IDC. Now he has demanded @ Rs. 142/- which is quite high. One of my friends booked flat in Pranayam of Puri construction and is likely to get possesion soon as the construction is complete. Puri charged earlier EDC @ 110/- and has demanded 100/- .

Heritage is not doing any progress in construction. I visited 'A' block last year and again recently. There was no addition to the work during one year.

Builder demanded service tax at revised rate with penality at no fault of ours. When I raised certain queries, he gave very vague and unsatisfactory reply puting blame on Govt.

I had put my queries on GFWA also and requested members to offer their comments but got no response.

Now he is playing the the same game.

The course of action I suggest is that we should meet Mr. Khurana jointly as early as possible and ask details.

Other members to please offer their comments.

[SKD]

Yes, We need to go and collectively meet them to find out why EDC amount is so high and more importantly, We need to get commitment from them regarding possession date, otherwise looking at the construction status today, it might go on its own pace.

since he is expecting us to make the payment latest by 28th June, I guess we are left with two options either meet them in the coming weekend else we could all write a letter and courier it to them with our queries? In the latter case, we need to come up with a standard letter format.

However, in the meantime we could go ahead and send them GFWA-EDC Letter to let them know this matter is still in court. But we need to act fast.....

[kbmalhotra]

This is the matter, we all have to discuss and take action jointly. We had paid EDC+IDC @ Rs. 176/- as demanded by builder. We do not know how much was EDC and how much IDC. Now he has demanded @ Rs. 142/- which is quite high. One of my friends booked flat in Pranayam of Puri construction and is likely to get possesion soon as the construction is complete. Puri charged earlier EDC @ 110/- and has demanded 100/- .

Heritage is not doing any progress in construction. I visited 'A' block last year and again recently. There was no addition to the work during one year.

Builder demanded service tax at revised rate with penality at no fault of ours. When I raised certain queries, he gave very vague and unsatisfactory reply puting blame on Govt.

I had put my queries on GFWA also and requested members to offer their comments but got no response.

Now he is playing the the same game.

The course of action I suggest is that we should meet Mr. Khurana jointly as early as possible and ask details.

Other members to please offer their comments.

[SKD]

To,

Senior GFWA members,

Please can you let us know any development made with regard to the Enhanced EDC? Is the matter still in Court? Our builder has demanded Rs 142 per Square feet and we are not sure if it is a reasonable demand? Apparently Puri Construction has reduced the EDC Charge to Rs 100/-, there seems to be a quite bit of discrepancies in the amount demanded by the Builders.

I know that the final decision whether to pay or not is down to me, however we are interested to know what most of us have decided. Since you are closely working on this issue, any inputs from your end will help us in deciding how we should take it forward?

Regards,

[dheerajjain]

Dear SKD/All, matter is still in honorable High Court at Chandigarh. Since June is a vacation month for our High Courts and Supreme Court (Legacy inherited from British Raj), you are seeing a low activity on this front.

TO help you better,please tell the following things:

1. Licence year of project
2. Total EDC demand per sq ft
3. Any calculations shared by developer

[kbmalhotra]

Thanks a lot Mr. Jain,

I am furnishing below the information asked by you.
1. Year of licence:- 2007.
The licence is in the name of Triveni & Ferrous. Our builder Mr Praveen Khurana purchased a small land and constructed four blocks ( Three block of three bed rooms of1500 sq. ft and one block of two bed rooms).
2. EDC:- Initially they charged EDC+IDC combined @ 170/- sq. ft. Today when I inquired on phone the ratio between EDC & IDC. They said 50-50%.
3. Calculation:- They have not provided any calculation.

[dheerajjain]

This is a complex web, Mr. Malhotra and very difficult to calculate EDC amount. EDC and IDC ratio is never 50-50. IDC constitute only 7-8% of total EDC + IDC demand. But, going by EDC demand of about Rs 140, it does not look significantly higher since licence year is 2007 and it will also include 1 year interest that has to be paid by buyers since notification came in May 11.

[SKD]

Thank You for your response, Please correct me if I’m wrong but I believe interest on enhanced EDC‏ was waived off by the Govt then this amount should be less than Rs 140/- isn’t? A bit odd, but I'd like to ask it nevertheless: Do you advise us to make this payment? Should we wait for the Judgment to come? We are far away from the possession.

On a different note though, Just the other day he mention that they have access to everything that is being discussed in this forum, they know what we are planning for and they are step ahead of us

[dheerajjain]

Dear SKD/Mr. Malhotra

Interest on enhanced EDC is waived by Govt. from 10.01.2009 to May 2011 but afterwards, Interest applies. So, if your builder is making demand now for enhanced EDC, then it will add an interest of 15% on that enhanced EDC amount. I believe that licence of 2007 should have enhanced EDC rate of around Rs 110 per sq ft. Add to that 15% interest, it should come to be around Rs 125. Rs 140 is looking higher but not much higher. Decision remains on you whether to pay enhanced EDC or not.

With regards to buiders accessing our forum, that is fine and we are fully aware of that. Our forum in public and visible on Internet. We don't have rivarly with builders and we want to have good relations with them. Our concern is that they should NOT cheat and loot buyers. If you want to post information that you think should NOT be visible to builders/property dealers, then please use GFWA exclusive section which is invisible to non GFWA members and Google.

[SKD]

Thank You for your response Mr Jain.

Mr Malhotra @ please let's discuss how to take it forward as we are nearing to the deadline set by builder.

I think we should send out a letter asking them to provide us the Details of EDC Calculation and calculate what it is really worth and then try to negotiate with them; As Mr Jain indicated Rs 125/- appears to be a reasonable demand.

Else we can always send out the GFWA-EDC-Letter letting them know that this matter is with the court. But in that case we risk paying 24% interest PA. This option may not be preferred...Especially when it comes to seeing others' experience!!!Where they eventually decided to pay it and now struggling to get relaxation on Interest

More importantly, though..As you have said before, it is very important that we should jointly go and meet this guy and get their commitment with regard to possession...I’m sure they don't give damm about what all we have to go through to give them all the Money.

It would be very nice to see other investor sharing their opinions....together we can come up with a decision in the best interest of us all..

[kbmalhotra]

Please give me your contact No.if convenient.
Please make a draft so that we can lodge protest to the developer.
Developer told me on phone that EDC & IDC are 50-50% which is next to impossible. It indicates that his intentions are not good. Puri Constructions (Pranayam project) has demanded EDC+IDC @ Rs. 250/- ( Already paid Rs. 150/- and now bal to pay Rs. 100/-). I have got the copy of his demand letter. Our builder has alredy taken @170/- and is demanding Rs. 142/- now.Total amount 312/-.He has not given any proof of demand from HUDA. How much he has paid and what is the calculation. We should ask for documentry proof. Shall we not fix up a meeting with him. In case we are compelled to pay, we will pay under protest.He has stopped picking up my phone call.

You can call me on 9910990592.

[SKD]

Mr. Malhotra,

I sent out a letter to him yesterday (Copy of that letter has been sent to your Gmail ID), obviously they did not respond yet, we should not pay unless he provide us the EDC Calculation. It's good to know that you have a copy of the Demand letter sent by Puri Constructions....because today when I spoke to him he asked for an evidence to prove other builders are charging less.

[SKD]

My builder is very reluctant to share EDC Calculation details, He says I can brief on the phone but I cannot share the Calculation details with you. My question is if his demand for revised EDC Charges is legitimate then what is the point of hiding it? I've seen other builder asking for 15 to 18% interest PA but for some reason my builder is asking for 24% interest PA, How can the Interest rate varies from builder to builder in the same area.

They cannot send me a demand letter of Rs 2 /- Lakh and expect me to pay it without asking for details, if you do ask questions they will start threating you of 24% Interest.

First of all, the Construction is going on for last 5 years, Builder has already taken 90 % of the total payment and he is
shameful enough to say it might take one more year to offer possession, that too when we don’t see much activity going on at the site.. On the best of all this nonsense, he is crazy enough to ask to more money and then he expects us to trust him and pay him without asking any question.

[dheerajjain]

Yes, you must definitely ask for calculations. I have also NOT paid enhanced EDC amount yet due to complete opaqueness and total disregard of buyers in Piyush Heights, Sector 89. Piyush is also charging 24% per annum illegally and interest amount would have become Rs 30,000 plus.