Following complaints that builders were illegally collecting External Development Charges (EDC) from flat owners in affordable group housing projects, the Department of Town and Country Planning (DTCP) has clarified that they are not allowed to charge above the rates fixed under the policy.
The order also said that EDC charges collected illegally must be refunded.
2013 policy
In an order dated October 1, Town and Country Planning Director K.M. Pandurang said it had come to the knowledge of the Department that the builders, who were granted licences under Affordable Group Housing Policy, 2013, were charging EDC over and above the rates prescribed in the policy. He clarified that besides the allotment rates fixed for such projects for different cities, additional ₹500 per square feet were allowed for balconies and their rates were inclusive of the EDC.
However, Mr. Pandurang clarified in his order that any Central taxes like Goods and Services Tax or taxes imposed by the State government or local authorities were not part of these rates and the same were liable to be paid by allotees.
Mr. Pandurang said that the colonisers must furnish an undertaking to the effect that they have not collected any amount over and above the said rates.
Aam Aadmi Party Haryana media incharge and RTI wing head Sudhir Yadav had last month raised the matter, in a press conference, saying that the Haryana government had fixed a rate of ₹4,000 per square feet for the flats under its Affordable Housing Scheme in Gurugram, but the builders were illegally charging EDC from the flat holders over and above this.
Showing the photocopies of “demand letters” sent to a couple of flat holders in two different projects in Gurugram, Mr. Yadav had claimed that several complaints were made to the local DTCP officials, but had failed to elicit any response.
He had alleged that no action had been initiated against the erring builders.