BPTP reply for EDC Calculations and Analysis

[Manoj3112]

Recently I have received the following clarification from BPTP in r/o a plot in sector 85 Fbd reg EDC / IDC etc demand raised by them:

Letter of BPTP

Dear Mr. Rastogi,
Greeting of the day!
We apologize for the inconvenience and thank you for your patience.
This is in regards to your query for enhanced EDC calculation.
We would like to inform you that the demand for Enhanced EDC has been raised in accordance with the Memo No. HUDA-CCF-ACTT-I-2011/17903 dated 25.05.2011 issued by the Haryana Urban Development Authority (HUDA) wherein HUDA had revised the EDC rates from Rs. 18,19,000 lacs per gross acre to Rs. 39,75,821 per gross acre for the year 2005. We have received demand notices from the Director General Town and Country Planning, Haryana (DGTCP) demanding the EDC amount which have been made applicable retrospectively along with interest.


Since the authorities were in the process of determining the revised EDC rates that was to be levied on the colonizers /developers, therefore the EDC rates charged were interim. The same was mentioned in the plot buyer agreement, clause 2.2.

The computation of Enhanced EDC being charged from you is detailed below-
S. No. Particulars Amount (Rs.)
1 Interim EDC Rate (per acre) - As per LOI/Licence for year 2005 1,819,000
2 Enhanced EDC Rate - For the Year 2009* 5,821,000


(A) Revised EDC for the year 2005 -computed as per Memo Dt. 25-05-2011* 3,975,821
(B) Interest on Enhanced EDC @ 12% p.a. for 28 months 603,910
(Period July, 2009 to October, 2011)
(C) Interest on interim EDC @ 15% p.a. for 2 years 586,628
(D) Bank Guarantee and Other Charges 139,165
Total 5,305,524

Area efficiency - 42.53% = 2058 Sq. Yds.
Enhanced EDC rate (per sq. yd.) 2,578
Less : Interim EDC already conveyed (per sq. yd.) 1,024
EDC rate to be charged (per sq. yd.) 1,554

On the basis of enhancement in EDC for plotted development, revised EDC is payable by each of the customer, a calculation of which is given above.


Should you require any further assistance, feel free to contact us at customercare@bptp.com.

Thanks & Regards
Kamal Sareen
Senior Executive -Customer Care
Office Phone: +91-124-3852023
BPTP Limited | BPTP Crest | Plot # 15, Udyog Vihar-IV | Gurgaon 122 015 | India
Email: customercare@bptp.com
Website: _www.bptp.com

[Adarsh Aggarwal]

Dear Manoj

so finally BPTP has responded and given calculation of ED.
Firstly, Can any Chartered Accountant check the calculation. Are they as per law?
Secondly, Any Architect can check the calculations of Area efficiency, so it can be seen whether exactly it is the same as is being quoted?
Thirdly charges of Bank Guarantee has been wrongly aportioned to Buyer, if who has paid earlier full interim EDC as builder has taken EDC from them and has not deposited that in the DTCP Account and given only Bank Guarantee for the same.

Regards
Adarsh Aggarwal
Advocate

[shubhohere]

Thanks Manoj for your effort...
Lets crosscheck this information through RTI too.

[rajan]

DEAR ALL
The calculation which has been given by bptp is all bogus.
initially they had given a calculation where in they had built up on the original edc amount and has not mentioned about the area effeciency.after there account has been audited by an audit team of DTCP chandigarh,they are now taking shelter of area effiency.we have document to proove on records that the area effeciency is around 54% as per there own admission.I have given them a point wise reply of this bogus calculation.As it is about three pages it can not be posted on this site.
any one interested in knowing my reply may contact me at
rajan1503@gmail.com
rajan/9810005486

[dheerajjain]

Created new topic for this very good discussion and placed in appropriate project area forum

[SMalhotra]

I beleive that Area Efficiency is related to the area allotted for construction.If it is wrong,please clarify.

How do they account for the area in case of multi storey buildings.As such owner of each flat does pay his due part of EDC ??
In my opinion the area of each flat must be covered under Area Efficiency.

The Area should also cover the area under allotment as of now plus the area that may come in future as well.


Is it upto BPTP to decide the Area Efficiency or an outside agency can be appointed to ascertain the same??

[dheerajjain]

Posting on behalf of Rajan Ji. Please find attached reply given by him to BPTP

[rajan]

to s malhotra
The area effeciency is the salable area out of the total area.There is always a permissibel salable area in a housing project,whether a group housing (it is normaly 1.2 times the permmisibel FAR)or plotted development where it is 55% of total area .The importance of this area in case of EDC/IDC is that the total amount to be paid by builders are divided by this area to arrive as per unit rate.In case you say my area effeciency is less than permissibel area ,it means you want to claim more EDC/IDC per sq yd/per sq ft as the case may be.In the case under reference the BPTP is wrongly (fraudlently)claiming the less area so that they can justify the LOOT MAR they want to do in the name of EDC/IDC.if u go through my reply to BPTP you will understand the point.
rajan

[Manoj3112]

Dear Friends,

I have again written to BPTP to explain me the calculations / period etc. Since I am a practicing CA I should be able to see their calculations. Shall share with you the details as soon as I get from them.

I am getting an invitation from Rajan for a meeting of Owners Group. I should be joining the meeting.

CA Manoj Gupta
9810182124

[SMalhotra]

Dear Mr.Rajan

Thanks for your reply.

Regards
SMalhotra

[Diamond]

Dear Members

I got my offer of possession PH2 and found similar inconsistencies and have been asked to inform about any discrepancies within 10 days.
Please advise.

Thanks in Advance

[Diamond]

Dear Members

I checked with BPTP and was informed 600 possession offers for plots are planned.

They are sure that all the demands for edc/idc, substation and STP are as per agreement. I requested them to send me the workings for the figures as they are too high and was never explained earlier and have come as a shock.

Questions are
1] if I don't pay, I will have to pay penalty of 18% pa compounded quarterly interest and 5psy as holding charges. How can I avoid till the members are satisfied?
2] I am told the internal roads, sewerage, electricity, water are not connected/ not in service.. so whats the point in offering possession if registration is offered "after" 60 days of payment. Substation and sewerage treatment plan are yet to be built what if the actual cost to be prorated is more or less than being demanded??
3] What is meant by " in case seller party fail to offer possession of the plot withing the time stipulated hereinabove, but subject to force Majeure circumstances, seller/confirming party shall also be liable to pay the purchaser an amount of Rs 6 psm per month for a period of such delay (from service plan of entire colony)", as mentioned in 22.3 of agreement??
4] If possession is not taken "the plot shall lie at the risk and cost of purchaser" 22.3 of agreement, what is the risk apart from cost? Can a secure boundary wall be built/allowed and when??

These and many more relevant questions may be asked by many holders as BPTP will send more "offer of possession" in coming days.

Request seniors to advise and request any other question that needs to be considered.

Thanks in advance

[Sharmas2]

I have received a similar reply from BPTP on my questions. This is what i got from them. dillemma continues....


Furthur, please find the details below:
Demand for the enhanced EDC
The demand for Enhanced EDC has been raised in accordance with the Memo No. HUDA-CCF-ACTT-I-2011/17903 dated 25.05.2011 issued by the Haryana Urban Development Authority (HUDA) wherein HUDA had revised the EDC rates from Rs. 18, 19,000 lacs per gross acre to Rs. 39,75,821 per gross acre. We have received the demand notices from the Director General Town and Country Planning, Haryana (DGTCP) demanding the EDC amounts which have been made applicable retrospectively alongwith interest. A copy of the said notification is enclosed herewith for your ready reference, although the said Notification is within your knowledge, the same having being challenged by you in CWP No. 14886 of 2011.
It is pertinent to remind you that you had been duly informed and made aware of the fact that you are being charged EDC at the interim rates of the year 2005 and that the rates mentioned in the Plot Buyer Agreement are only tentative and since the authorities are in the process of determining the revised EDC rates to be levied on the colonizer therefore you shall be charged the revised EDC rates as and when the same will be communicated by the authorities to us. You had acknowledged, agreed and accepted to make the payment of the revised EDC amount as is evident from the duly executed Plot Buyer Agreements which contain a clause 2.2 incorporating the aforesaid understanding. The said Plot buyer’s Agreement is sacrosanct and binding on both of us and has been duly acted upon by us in good faith. Thus, we made allotment of the plot Parklands, Faridabad to you and also issued the offer for possession to you
On the basis of the above said revision, the Company has calculated the cost being incurred by the Company for making the payment of EDC charges to HUDA, as per revised rates inclusive of interest, and demanded the proportionate enhanced charges from each of the allottees of the plots in Parklands, (Sectors 75 to 89) Faridabad, Haryana.
Electrification Charges and Sewerage Treatment Plant
With respect to the demand raised towards setting up the Sewerage Treatment Plant (STP) and Electric Sub Station and your contention that the same was never mentioned in the Plot Buyer Agreement executed between the parties, your attention is drawn to clause 2.5 of the Agreement. The scanned copy of the relevant extracts of the duly executed Plot Buyer Agreement is enclosed herewith for your reference.
In order to clarify the queries raised by you, please note as below-
“Electrification Charges” includes the cost of creation of Electrical infrastructure comprising of creation/ installation of Main sub-station, distribution sub stations, feeding arrangements and land for grid substations and distribution substations, EHT/HT/LT distribution networks, Electrical transformers, electrical switch gears, electrical panels/ feeder panels and other required electrical infrastructure to be created.
Cost of Sewerage Treatment Plant includes Civil and Mechanical Work/ equipment to be installed in compliance to the conditions of the Environmental Clearance granted by the Ministry of Environment and Forests, Government of India.
Whereas Utility Connection Charges with respect to sewer connection refers to cost of laying and providing sewer connection from Plot’s manhole to the Trunk sewer line of the Colony.
The above costs are the proportionate costs of the works.
"Should you require any assistance please feel free to contact us at 0124-3852787 or email - customercare@bptp.com ”
Thanks & Regards
Kamal Sareen
Senior Executive -Customer Care
Office Phone: +91-124-3852023
BPTP Limited | BPTP Crest | Plot # 15, Udyog Vihar-IV | Gurgaon 122 015 | India
Email: customercare@bptp.com

[Diamond]

Dear Members

Request recommendations as my objective was to take possession, and if possible build a house in future.

Any answers to questions in previous post regarding post possession charges and penalty clauses?
or
would it be wise to get out of this investment and look elsewhere after duly considering current news about master roads?

Thanks in advance

[gauravarora]

My opinion is that what BPTP is demanding is not at all a justified amount and hence we should not pay them this amount till the time a clear answer is given to all the queries because getting a refund from these buggers is impossible.

As far as future prospects of the area are concerned, no doubt that the development has got very delayed and is way behind schedule but i think if someone has waited till now then it is worth to wait for some more time because things have now started moving on ground and things will be in a better shape in coming time. The plots should become inhabitable in the next 2-3 years, once people start moving in the Elite floors and other housing socities then people can start building independent houses as well.

Regards,
Gaurav