Monday, April 15, 2013

Policy parameters on EDC Recovery and Relief Policy defined



By Haryananewswire
CHANDIGARH, APRIL 15
The Haryana Government has defined policy parameters on External Development Charges (EDC) Recovery and Relief Policy for low potential towns lacking EDC services.
          While stating this here today, a spokesman of Town and Country Planning Department said that these are in accordance with Haryana Development and Regulation of Urban Areas Act, 1975.
He said that the  objective of the policy is to encourage the private sector agencies to participate in the planned urbanization process of towns falling in low potential zones. Besides,  help achieve the stated objective of National Housing Policy 2007,  that is  ‘to accelerate the development of small and medium towns which could serve as generators of economic momentum while at the same time striving to reduce the rate of migration to existing large cities.
          He said that as per the policy parameters , besides projects that would be licenced in future, the policy would also apply to existing licenced projects in the low potential towns of the State.  In existing projects where rates of EDC were not finalized at the time of grant of licence, the rates of EDC as prescribed in the agreement at the time of grant of licence would remain applicable till the actual provisioning of services by Haryana Urban Development Authority (HUDA). He said that  EDC rates finalized subsequent to the grant of licence would not be applicable unless it coincides with the due date as defined in this policy. The EDC rates for future licences would be either as finalized by HUDA or average rates as worked out by the Department as applicable under existing policy.
The spokesman said that as per  policy parameters, any colonizer willing to avail the benefit of this policy would submit an application along with 25 per cent of the principal amount of EDC and bank guarantee equivalent to 50 per cent of the balance principal amount of EDC ( both, in case not deposited earlier) to the Director General, Town and Country Planning (DGTCP) with an affidavit specifying the quantum of EDC installments recovered from its allottees with commitment to deposit such amount of EDC as collected in past or future immediately, and in no case later than 30 days period after collection. Also, an affidavit undertaking to execute a fresh agreement with its allottees detailing the rate of EDC applicable, the benefits availed by the licencee under this policy and also allowing commensurate benefits to the plot or flat allottee. An affidavit undertaking would also be given to deposit the EDC dues on such rates and terms as communicated to it by the DGTCP under the present policy.  
After the applicant has fulfilled all the conditions laid down in this policy to the satisfaction of the DGTCP, he might convey the acceptance of such application under this policy, and prescribe conditions as considered necessary. In such case the approval of zoning plan, service plans, building plan, renewal of licences etc. would be considered without insisting for any further payment of EDC, he further added.
          He said that the balance amount of EDC would become due at the end of a period of two years from the date of announcement of award referred to as due date for the purpose of this policy for acquisition of land reserved for sector road or green belt along sector boundary containing the colony for laying trunk services, viz, water supply, sewerage, roads etc. by HUDA. No interest would be due for payment till the due date. He said that  HUDA would work out fresh EDC rates for such sector or sectors on the due date, to be made applicable for projects where valid application for Occupation Certificate (for complete project in case of integrated projects) or Part-Completion Certificate (in case of plotted colonies) has not been received before the due date.
          The spokesman said that starting from the due date, the payment of balance EDC would be made in 10 equated six monthly installments.  For grant of Occupation Certificate or Completion or Part-Completion Certificate, balance EDC would be required to be paid in full, which would be considered as full and  final payment of EDC. In case such application was received by the DGTCP before the due date of EDC, balance EDC would be recovered without interest at rates prescribed in the agreement at the time of grant of licence. 
          He said that interest at the rate of 12 per cent on all delayed payments would be levied.  In case the EDC payments already made either before the commencement of this policy or subsequently exceeds the due amount of EDC, the same would be eligible for refund after reconciliation of EDC accounts at the time of grant of part-completion certificate.
          The spokesman said that after obtaining a No Objection Certificate (NOC) from Chief Engineer, HUDA, the colonizer would be free to procure services from other agencies like Municipal Bodies, Department of Public Health and to claim exemption of proportionate amount from payment of EDC to HUDA. He said that the Chief Engineer, HUDA, would not deny such NOC in case the internal development works stand completed by the licencee and acquisition proceedings of land reserved for sector road along sector boundary

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