Explain external development charge better: HC to HUDA

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Express News Service Posted online: Wed Apr 27 2011, 00:52 hrs

Chandigarh : The Punjab and Haryana High Court on Tuesday fined Haryana Urban Development Authority (HUDA) Rs 50,000 for furnishing incomplete information on the use of external development charges (EDC) collected in Gurgaon.
A Division Bench comprising Chief Justice Ranjan Gogoi and Justice Augustine George Masih reproached HUDA for “double charging” the public and wasting the court”s time. It refused to entertain HUDA”s “lip service”, and expressed displeasure over the authority”s “vague” affidavits.

The Society for Urban Regeneration of Gurgaon (SURGE) has brought a public interest case against the government seeking an explanation for not spending the over Rs 5,000 crore that it has collected as EDC since 2001.

“External development” includes the creation and maintenance of water supply, sewerage, roads, street lighting, community buildings, etc. The court had sought a detailed affidavit from the government on the collection and use of EDC.

The court told HUDA today that it would not wait for it to file “innumerable” affidavits - and that should it fail to explain the collection of the EDC and its claimed spending of Rs 4,000 crore of it, it might stand to suffer a stiffer penalty. It gave HUDA two weeks to file a “better” affidavit.

Counsel for SURGE M L Sarin alleged that HUDA had recycled old information already rejected by the court, and withheld facts in its affidavit filed today. He argued that the expenditure of over Rs 2,000 crore shown by Haryana as “land cost” and another Rs 200 crore under the head “Metro services” could not be included as part of EDC spending.

The Bench asked HUDA how an amount collected on account of EDC be shown under the cost of acquisition of land. Sarin also submitted that HUDA had collected over Rs 228 crore on account of a 10 per cent administrative charge on the EDC.

The Bench expressed surprise that the authority had charged for a service that it was supposed to provide.

http://www.indianexpress.com/news/Expla ... DA/781994/

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Hindustan Times
Gurgaon, April 27, 2011

The Punjab and Haryana High Court imposed a Rs 50,000 fine on Haryana Urban Development Authority (Huda) for wasting judicial time in a case alleging that external development charges (EDC) collected from the residents of Gurgaon were not spent for providing amenities.

The division bench comprising of chief justice Ranjan Gogoi and justice Augustine George Masih fined Huda after observing that even after two hearings, the civic body had failed to satisfactorily answer queries raised by the court.

Huda has been asked to deposit the money before the next hearing and also file a detailed affidavit with answers to the queries.

http://www.hindustantimes.com/Court-sla ... 90099.aspx

[dheerajjain]

It is a GOOD news and strong defence against any increase in EDC charges planned by HUDA. Court rightly observed that cost of acquisition of land cannot be treated as an expense under EDC and amounts to double taxation of honest citizens of India.

[gauravarora]

Dear Dheeraj,

This will set a good preceedent for us, once we get a reply on the RTI which has been filed by you. One it directly correlates to the usage of funds collected so far and second it restrains from collecting more money under the same head.

Most of us were thinking that HUDA would site the reason of increased compensation being paid to farmers as the reason for increase in EDC (if they do so), but now by this judgement atleast this point has a legal backing and a preecedent.

Regards,
Gaurav

[sendtomanish]

We shd also seek appointment of SURGE lawyer Mr Sarin and discuss our Neharpar case.I am sure based on that we can start preparing legal documentation and required fund for PIL.

[hellong]

I agree with all of you. This decision is in our favor. Now HUDA can't increase the EDC. Infact HUDA should reply for the alreday collected EDC charges. Now HUDA will have to reply as Most of the EDC was collected 5 years back plus interest is not a small amount. I believe that HUDA has not spent a single penny for the developement of Neharpar. Also HUDA can't claim that EDC amount is being used in land aquisition. EDC can only be used for Roads, water lines, sewerage, street lighting, community buildings etc.
Any news for the next meeting which was cancelled last week. I will join that.

Regards,
Nitin Gupta