Alert : T&CP Increase EDC charges in Greater Faridabad

[dheerajjain]

Thanks, Ajay for sharing Indian Express news. Below is text version and link to Indian Express website. HUDA's affidavit has come in response to Public Interest Litigation (PIL) filed by Society for Urban Regeneration of Gurgaon. We may also have to take a legal route. Help required from advocates on forum. HUDA failed to account for estimated Rs 1000 crores interest that it may have earned on EDC amount.

Indian Express, 11th June, 2011, Raghav Ohri

http://www.indianexpress.com/news/have- ... t/802193/0

Chandigarh: Acknowledging that it had collected a sum of Rs 5,702 crore till December last year from residents of Gurgaon on account of external development charges (EDC), the Haryana Urban Development Authority (HUDA) has admitted that it has nearly Rs 2,700 crore lying unspent. Significantly, the “surplus”money is lying in the form of fixed deposits in as many as 19 banks.

In another significant development, HUDA justified the amount spent on Metro out of the EDC, much to the disapproval of the Punjab and Haryana High Court.

The affidavit was filed by HUDA during the resumed hearing of a public interest litigation (PIL) filed by the Society for Urban Regeneration of Gurgaon. The petitioner contended that HUDA had collected Rs 5,000 crore from Gurgaon societies since 2001 as EDC, but never spent the money for the purpose. The affidavit was filed in the last week of April. Terming the affidavit ¿defective”and HUDA’s response “not satisfactory”, the High Court directed the Authority to file a better affidavit.

In its latest affidavit filed by S C Kansal, Chief Controller of Finance, HUDA, the Authority submitted that it has a surplus of Rs 2,657 crore and, of the Rs 5,702 crore collected on account of EDC, an amount of more than Rs 1,400 crore has been received from April 1, 2010, to December 31, 2010.

“The amount has been collected with respect to the Urban Estate, Gurgaon, and of the Rs 1,400 crore, an amount of Rs 1,100 crore relates to new areas that are yet to be occupied. We have only issued licences so far,” the affidavit read.

The affidavit further read that “as far as the interest on EDC collection is concerned, the interest on delayed and deferred payments is included in the amount of EDC collected. The interest earned on unspent amount of EDC collection is utilised to bridge any gap in the funds available for the projects and actual costs”.

It may be noted here that the affidavit is silent, as to from which date the amount of Rs 2,657 crore is lying as fixed deposits with HUDA. Some of the prominent banks are ICICI, Sector 11, Panchkula; HDFC, Sector 8, Chandigarh; Punjab National Bank (PNB), Manimajra; IDBI, Sector 11, Panchkula; Axis Bank, Sector 10, Panchkula.

Simple calculations would suggest that with an average of 8 per cent per annum since 2001, the interest which HUDA may have earned till now comes out to be over Rs 1,000 crore.

Faced with the query as to how “the cost on account of Metro services could legitimately form part of the external development charge”, HUDA submitted that the money spent on Metro can be included in EDC. The query was put after the petitioner objected that money collected from the public on account of EDC cannot be spent on the Metro.

The affidavit states: “The Director (Town and Country Planning) under Section 2 (g) of the Haryana Development and Regulation of Urban Areas Act, 1975, can include such services under external development works that are external or outside of colony, which are for the benefit of the colony. As far as the Metro is concerned, it is submitted that in order to decongest roads and provide safer, faster and cleaner modes of transport to the people, Haryana had entered into an agreement with the Delhi Metro Rail Corporation Limited to seek extension of the Delhi Metro Rail to Gurgaon over a length measuring 7.05 km.”

It further states that major beneficiaries/organisations of the State government, such as HUDA and Haryana State Industrial Development Corporation (HSIDC), will contribute to the Metro project.

“The State government has also incurred a cost of Rs 604 crore for implementation of this project, out of which HUDA has contributed Rs 200.80 crore as per the decision of the government. Accordingly, HUDA has deposited Rs 200.80 crore towards extending the Delhi Metro to Gurgaon,” the affidavit added.

[akhil.kumar]

I agree that we should file PIL and as it is we are only suffrer for inefficiencies of HUDA, DTP and builders specialy EDC is decreased for Gurgaon why it should be increased for Faridabad. No increase is acceptable for old buyers as it was the case for service tax. After PIL it was restricted to new buyers. HUDA collected EDC but no developement work is not done so far. We have paid EDC for devlopement andHUDA dint spend it for developement. Department should be responsible not we. Thy cant pass burden on us for thier no action. Rather HUDA is answerable why they have not done devlopement when the money/resources were available.

I am feeling looted in day light for ineffciency of HUDA.

Thx

[murlik]

Instead of contemplating amongst ourselves , Can GFWA, take a legal opinion on this notification. Anyway we must have good lawyer on board of GFWA on retainership basis because it seems legal recourse agst HUDA and Builders is not far away. We cannot silently suffer and share sorrows

murlik

[Nibha28]

I concern is same as, some of the members that, is it for new buyers or all owners? I called up my builder (Puri Constructions) and they said they are not aware of any such development.
Can someone clarify?

[drajitpratap]

We will win the case in 2-3 hearings. HUDA can not increase EDC from back date. This is against law of natural justice. Most of the buyers have purchased the flat after scanning whole NCR and according to their paying capacity at the time of booking and now extra payment in any form most of us can not afford. We have to present our case accordingly. This back dated increase in EDC appears to be a stupid decision only to harass demanding GFWA members.

[dalmiadalmia@hotmail.com]

Hi Akhil,
While going through your post, you mentioned that service tax is applicable to new buyers only. Can you elaborate further as i have purchased BPTP in 2007 but builder raising fresh demands with service tax.

Regards

[VishalBansal]

Dear All,
1) My suggestion is, first we should check the impact of this notice on us. EDc is revised but it is not clear whether it is increase or decreased and by what percentage.
2) Which date will be consider for EDC rate i.e Regsitry date/ Possesion date / project initation date/project license date? If it is registry date then how they have charged from us in the begining of the project. For any collection of money,rate should be fixed and if it is fixed then how they can revise rate.

If rate revision is correct, then we should be gratefull to builders who has not revised thier BSP rate from us.

Some of the builder has increase the super built up area but they are collecting EDC as per old rate and from new booking , same builder is taking EDC at new rate.

We don't pay the registry charges again and again as per revsion of circle rate.


When the builder can not revise the rate once he has taken the booking, same must be for HUDA also. Only they can charge the interest for delay in payment.

Lets anaylsis it first, then only we can decsion for action.

[dheerajjain]

Dear All/Vishal

1. EDC has surely increased for Greater Faridabad. Planned Increase was informed to GFWA by Town and Country Planning Officials on 20th May meeting with DC and builders. For revised EDC calculation, please refer to post below on IndianRealEstateForum. Just replace parameters by Faridabad and project values

http://www.indianrealestateforum.com/181539-post7.html

2. Regarding why builders have not yet increased or in denial mode, notifcation has just come out on Friday (10-Jun). Let them do calculations based on their projects and they can come with revised figures in next 15-20 days.

[gauravarora]

Dear Dheeraj / Ajay / All friends,

Let us have an approximation of the expense which has to be incurred in going the legal way and begin with collecting money and start the process before this gets too late. The issue is fresh and there are recent precedent court judgements also so its the right time to file.

Regards,
Gaurav

[dalmiadalmia@hotmail.com]

Hi All,

We should look for the lawyers fought the case of Gurgoan EDC and initial discussion should start immediately with lawyers.
In regards to not increase of EDC by builder, in my opinion, they will increase rate after receipt of 95% payment as all super area and other charges (hidden-increased area) are done at that stage.

[dheerajjain]

Dear All/Gaurav/Mr. Dalmiya

GFWA executive met yesterday and has planned to meet Gurgaon association who filed PIL coming weekend. I also request professional lawyers in MyFaridabad forum to come forward and help us. You can please contact by posting on forum or sending e-mail to info@myfaridabad.in

[ssp142000]

from the very early days I have been reiterating that we need to initiate legal action against the HUDA and the concerned authorities.

Recall that we all have invested lacs (all our hard earned money). But, we are abstaining from contributing tiny amount.

We need funds for this and lets call upon all the members to contribute as soon as possible.

I assure all the members that we will end up no where if we do not handle things legally.

HUDA, Administration, DTP, authorities are all malfunctioning units of Government. They need to be dealt legally.

350 complaints = no results (even lacs of complaints won't do anyting)
notices by DTP to builders = no results

One Legal notice to HUDA, Authorities, DTP (Individuals must be held accountable) = see the consequences.

[Nibha28]

I think we all should act fast on this and not hesitate in our share of contribution. Pl lets us have estimated cost/procedures and move to the next step. I am with you all.
best

[skanand1961]

I too agree with ssp142000 that it is legal process which can come to the rescue of thosand of investors. Let's contribute whole heartedly to appoint a suitable lawyer to file the case against HUDA on behalf of GFWA.

Regards
S.K.ANAND

[dheerajjain]

Thanks a lot for your support. There is only one time GFWA voluntary membership fee of Rs 500. Link with instructions for contributing to the same is flashing on top of each forum page.

Regarding complaints against builders filed with authorities, GFWA will aggressively demand strict action in coming days.