DTCP orders Colonizers to stop collecting enhanced EDC

[dheerajjain]

As informed by Mr. Umesh Prabhakar, DTCP (Department of Town and Country Planning, Haryana) has issued order to Colonizers in accordance with High Court stay on enhanced EDC to STOP collection of enhanced EDC from residential buyers. Same has been put up by DTCP on its website publicly to inform all colonizers. Order basically says 3 things:

(1) Stop collecting enhanced EDC as Department is not insisting for the same
(2) If some enhanced EDC already collected from buyers, then deposit that immediately to Department and
(3) If builder forces customers to pay enhanced EDC, then builders themselves have to face consequences.

Order is on TCP Haryana website on front page on right side under "WHAT'S NEW !!"

http://tcpharyana.gov.in/

Please also find attached HUDA Memo which has been stayed. Faridabad is on No 16

[webmaster]

Tribune News Service, Chandigarh

In a relief to the builders and house owners, the state government has suspended the collection of enhanced external development charges (EDC).

Acting on the judgement of the Punjab and Haryana High Court, the Director-General of the Department of Town and Country Planning, in a recent order, said: “In view of the high court orders, the department is not insisting for payment of the enhanced EDC from the licencees for the time being.”

The order, however, warned the licencees that “in case of any violation of the said order, the entire onus shall lie on the colonisers.” “However, the licencee shall be bound to deposit any amount collected against enhanced EDC either directly or indirectly from its allottees with the department,” the order said.

Earlier, the high court had stayed the operation of the order issued by the Haryana Urban Development Authority (HUDA) on July 14, 2011, hiking the EDC with effect from 2008.

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

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

Against the backdrop of unprecedented urban development, particularly in the districts falling in the National Capital Region (NCR) bordering Delhi, HUDA had revised EDC charges to be collected from the licencees of the housing and commercial projects.

While the EDC for yet-to-be-started housing and commercial projects is paid by the builders, the investors and end users pay the EDC to the builders in case of the projects which are under progress. The licencees collect the EDC from the investors and end users and deposit it with the state government.

http://www.tribuneindia.com/2013/20131113/haryana.htm#2

[anujft]

Hi,

Those who have already paid enhanced EDC they can not claim it back??

Also will they give it after final judgement which will take another 5-10 years ( I assume that this will also go in Supreme court).

Please confirm,

[amitkd.pharm]

Hi
I have the same Question as of Anuj (above post).

Dheeraj's post above states - If some enhanced EDC already collected from buyers, then deposit that immediately to Department. How would the buyer benefit from the decision if the amount collected goes to the dept.? For him it does not matter if the money is with X Y Z dept of Govt. or the builder. Both contributes to the agony equally.

Please respond

Regards
Amit

[naveenarichwal]

Hi
I have the same Question as of Anuj (above post).

Dheeraj's post above states - If some enhanced EDC already collected from buyers, then deposit that immediately to Department. How would the buyer benefit from the decision if the amount collected goes to the dept.? For him it does not matter if the money is with X Y Z dept of Govt. or the builder. Both contributes to the agony equally.

Please respond

Regards
Amit

Also i think 80- 90% of the Flat buyers have already paid the EEDC so DTCP has done a deliberate delay between Courts order and issuing the Circular. This shows the Control of Builders over both Politicians & Beurocracy.

[dheerajjain]

Courts will take their own sweet time to arrive at decision. Currently, enhanced EDC is stayed and not withdrawn. I think it is better to have enhanced EDC amount with Department because High Court cases for rollback of enhanced EDC are between Buyers Assocication & Govt. Departments (DTCP & HUDA). Builders are not involved. High Court can direct Govt. to refund the amount to buyers in case of favorable decision but can't direct to builders.

[ddamitav]

Hi Dheeraj,
Is there any mechanism in place to know whether eedc has been deposited with the Govt or not ? Who is going to ascertain that the amount collected by builders are deposited with govt?

Why dont we pray high court to direct the DTP to refund the amount to buyer with a undertaking that if required buyer will deposit the amount in future?

Regards,

Amitav

[gokulam]

one more thought which could be considered/prayed to Hon'ble High Court.

Builder should be instructed to publish the list on their web site with the EDC & EEDC amount collected by each individual buyer per project. This shall actually provide full transparency for both buyers and DTP, buyer shall know/confirm the amount, payed by him to builder and DTP shall get a total amount collected by all buyer per project, which builder is suppose to deposit to DTP.

Any discrepancy in amount, should be directly reported to DTP with proof, for further course of action. A strong action should be demanded against the builder, who after collecting huge amount against EDC/EEDC is showing wrong data on the web site.

Request Learned people in the forum to further through some light.

Hi Dheeraj,
Is there any mechanism in place to know whether eedc has been deposited with the Govt or not ? Who is going to ascertain that the amount collected by builders are deposited with govt?

Why dont we pray high court to direct the DTP to refund the amount to buyer with a undertaking that if required buyer will deposit the amount in future?

Regards,

Amitav

[umesh.prabhakar1965@rediffmail.com]

FRiends,

In my opinion it is better that recvered EEDC is still lying in the wallet of colonizer. As the same can be returned along with the interest to the home buyers. Once the EEDC is submitted to DGTCP it is really difficult to take from the wallet of GOVERNMENT ant that to without interest.

The only thing we need to take a proactive action is that we are aware whether colonizer has submitted the EEDC to the government?

Regards

Umesh Prabhakar

[umesh.prabhakar1965@rediffmail.com]

Dear Amitav,

The same is not the prayer as petitioners have objected the concept of EEDC. Therefore it is understood that EEDC is not deposited to the colonizers.

The contention is against concept of EEDC.

Regards

Umesh Prabhakar

[Hemant]

Is there any way to check that the Builders have deposited the EEDC (Enhance external development charges) to Govt?
I understand the EDC or EEDC charges are deposited at the time of obtaining license or renewel of license.
The builders who have compunded thier dwelling unit in the month of may may have deposited the EEDC.

Can some one guide how we will come to know this?

With Best Regards,

Hemant Kumar Pandey

[webmaster]

You need to file RTI to find the EEDC information.

You can use this sample rps-savana-occupation-certificate-received-for-2-towers-through-rti-t2173.html

or any other sample from the RTI section

rti-section.html

[webmaster]

Contributed by Ashok Rajan Agarwal:

DGTCP in this order dated 17.09.2014 has asked the builder that if they want a completion certificate, they have to give an affidavit that the EEDC has not been collected from the consumers.


SUBJECT: GRANT OF COMPLETION CERTIFICATE AFTER RECOVERY OF ENHANCED EDC.

It has been observed that the communication of HUDA dated 14.07.2011 conveying the EDC stands stayed by the Hon’ble High Court in CWP No. 5835 of 2013 titled as Balwan Singh and others Vs State of Haryana for more than a year now, there are some cases wherein the licencees had applied or would have applied for Completion Certificate of their Colonies and pending due to decision on Enhanced EDC. Once Completion Certificate for the entire colony is issued it may become difficult for the Department to recover the pending dues of enhanced EDC, as the instant project would be completed and it is possible that the same may also be sold out by the licencee, till the time the stay orders are vacated. Necessary instructions be grant of Occupation Certificates stands already issued. However while dealing with cases of Completion Certificates or colonies, the following may be followed:-

1. In cases, where enhanced EDC dues are pending, Completion Certificate will not be considered without payment of Enhanced EDC.

2. Licencee may either wait for the decision of the Hon’ble High Court or have the option to seek Completion Certificate for the entire Colony after clearing the enhanced EDC dues and submission of an undertaking to the effect that he will not charge the enhanced EDC amount to be paid by him to the Department from his allottees as long as there is stay on the notification by the Hon’ble High Court.

3. The amount of outstanding enhanced EDC deposited by the licencee, would be refunded by the Department if the decision of Hon’ble High court comes against the Department.

[dheerajjain]

By giving this order, DTCP is acting against home buyers/real estate industry and its only intention is collecting all its money (even EEDC which is illegal and has been stayed by High Court). DTCP is protecting itself from all sides. DTCP crazy argument is that if it gives completion certificate and later High Court upholds EEDC, then it will be hard for him to catch colonizer. Same crazy agrument can be given by builder for collecting money from home buyer. Builder can arm twist home buyer too that if he does not give money, then he does not have money to give it to Govt. and hence, project will not get completion certificate and home buyer will not receive possession. So, process here is that DTCP will exploit builders and then builders will exploit home buyers. Builders are just middle-men in exploitation which is being carried out by DTCP. This order of DTCP should be challenged in High Court.

[bienpanda]

I believe it is good. If the EEDC is collected and retained by Builder, there is little chance that we will get it back. By asking the builder to deposit same ( what ever has been collected from flat buyers, I presume) , our money at least is in safe custody.
Three things needs to be done:
1. The money collected from each flat buyer must be credited to his a/c for the purpose of identification and subsequent return.
2. People who have not paid can pay directly to DTCP a/c the Builder and

3. DTCP should pay interest on the money collected.