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DTCP orders Colonizers to stop collecting enhanced EDC

Postby dheerajjain » Wed Nov 13, 2013 7:12 am

As informed by Mr. Umesh Prabhakar, DTCP (Department of Town and Country Planning, Haryana) has issued order to Colonizers in accordance with High Court stay on enhanced EDC to STOP collection of enhanced EDC from residential buyers. Same has been put up by DTCP on its website publicly to inform all colonizers. Order basically says 3 things:

(1) Stop collecting enhanced EDC as Department is not insisting for the same
(2) If some enhanced EDC already collected from buyers, then deposit that immediately to Department and
(3) If builder forces customers to pay enhanced EDC, then builders themselves have to face consequences.

Order is on TCP Haryana website on front page on right side under "WHAT'S NEW !!"

http://tcpharyana.gov.in/

Please also find attached HUDA Memo which has been stayed. Faridabad is on No 16
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Govt suspends collection of enhanced EDC from builders

Postby Jayanta » Thu Nov 14, 2013 8:05 pm

Tribune News Service, Chandigarh

In a relief to the builders and house owners, the state government has suspended the collection of enhanced external development charges (EDC).

Acting on the judgement of the Punjab and Haryana High Court, the Director-General of the Department of Town and Country Planning, in a recent order, said: “In view of the high court orders, the department is not insisting for payment of the enhanced EDC from the licencees for the time being.”

The order, however, warned the licencees that “in case of any violation of the said order, the entire onus shall lie on the colonisers.” “However, the licencee shall be bound to deposit any amount collected against enhanced EDC either directly or indirectly from its allottees with the department,” the order said.

Earlier, the high court had stayed the operation of the order issued by the Haryana Urban Development Authority (HUDA) on July 14, 2011, hiking the EDC with effect from 2008.

Several builders had moved the court alleging that the state government's decision to charge EDC was unconstitutional, arbitrary and illegal.

Builders from Faridabad and Kurukshetra had alleged that the state had done no development at all in the districts and was yet charging the EDC.

Against the backdrop of unprecedented urban development, particularly in the districts falling in the National Capital Region (NCR) bordering Delhi, HUDA had revised EDC charges to be collected from the licencees of the housing and commercial projects.

While the EDC for yet-to-be-started housing and commercial projects is paid by the builders, the investors and end users pay the EDC to the builders in case of the projects which are under progress. The licencees collect the EDC from the investors and end users and deposit it with the state government.

http://www.tribuneindia.com/2013/20131113/haryana.htm#2
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby anujft » Fri Nov 15, 2013 9:52 am

Hi,

Those who have already paid enhanced EDC they can not claim it back??

Also will they give it after final judgement which will take another 5-10 years ( I assume that this will also go in Supreme court).

Please confirm,
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby amitkd.pharm » Fri Nov 15, 2013 11:45 am

Hi
I have the same Question as of Anuj (above post).

Dheeraj's post above states - If some enhanced EDC already collected from buyers, then deposit that immediately to Department. How would the buyer benefit from the decision if the amount collected goes to the dept.? For him it does not matter if the money is with X Y Z dept of Govt. or the builder. Both contributes to the agony equally.

Please respond

Regards
Amit
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby naveenarichwal » Fri Nov 15, 2013 1:26 pm

amitkd.pharm wrote:Hi
I have the same Question as of Anuj (above post).

Dheeraj's post above states - If some enhanced EDC already collected from buyers, then deposit that immediately to Department. How would the buyer benefit from the decision if the amount collected goes to the dept.? For him it does not matter if the money is with X Y Z dept of Govt. or the builder. Both contributes to the agony equally.

Please respond

Regards
Amit

Also i think 80- 90% of the Flat buyers have already paid the EEDC so DTCP has done a deliberate delay between Courts order and issuing the Circular. This shows the Control of Builders over both Politicians & Beurocracy.
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby dheerajjain » Fri Nov 15, 2013 2:10 pm

Courts will take their own sweet time to arrive at decision. Currently, enhanced EDC is stayed and not withdrawn. I think it is better to have enhanced EDC amount with Department because High Court cases for rollback of enhanced EDC are between Buyers Assocication & Govt. Departments (DTCP & HUDA). Builders are not involved. High Court can direct Govt. to refund the amount to buyers in case of favorable decision but can't direct to builders.
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby ddamitav » Fri Nov 15, 2013 2:19 pm

Hi Dheeraj,
Is there any mechanism in place to know whether eedc has been deposited with the Govt or not ? Who is going to ascertain that the amount collected by builders are deposited with govt?

Why dont we pray high court to direct the DTP to refund the amount to buyer with a undertaking that if required buyer will deposit the amount in future?

Regards,

Amitav
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby gokulam » Fri Nov 15, 2013 6:05 pm

one more thought which could be considered/prayed to Hon'ble High Court.

Builder should be instructed to publish the list on their web site with the EDC & EEDC amount collected by each individual buyer per project. This shall actually provide full transparency for both buyers and DTP, buyer shall know/confirm the amount, payed by him to builder and DTP shall get a total amount collected by all buyer per project, which builder is suppose to deposit to DTP.

Any discrepancy in amount, should be directly reported to DTP with proof, for further course of action. A strong action should be demanded against the builder, who after collecting huge amount against EDC/EEDC is showing wrong data on the web site.

Request Learned people in the forum to further through some light.





ddamitav wrote:Hi Dheeraj,
Is there any mechanism in place to know whether eedc has been deposited with the Govt or not ? Who is going to ascertain that the amount collected by builders are deposited with govt?

Why dont we pray high court to direct the DTP to refund the amount to buyer with a undertaking that if required buyer will deposit the amount in future?

Regards,

Amitav
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby umesh.prabhakar1965@rediffmail.com » Fri Nov 15, 2013 6:22 pm

FRiends,

In my opinion it is better that recvered EEDC is still lying in the wallet of colonizer. As the same can be returned along with the interest to the home buyers. Once the EEDC is submitted to DGTCP it is really difficult to take from the wallet of GOVERNMENT ant that to without interest.

The only thing we need to take a proactive action is that we are aware whether colonizer has submitted the EEDC to the government?

Regards

Umesh Prabhakar
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby umesh.prabhakar1965@rediffmail.com » Fri Nov 15, 2013 6:31 pm

Dear Amitav,

The same is not the prayer as petitioners have objected the concept of EEDC. Therefore it is understood that EEDC is not deposited to the colonizers.

The contention is against concept of EEDC.

Regards

Umesh Prabhakar
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby Hemant » Wed Nov 27, 2013 1:01 pm

Is there any way to check that the Builders have deposited the EEDC (Enhance external development charges) to Govt?
I understand the EDC or EEDC charges are deposited at the time of obtaining license or renewel of license.
The builders who have compunded thier dwelling unit in the month of may may have deposited the EEDC.

Can some one guide how we will come to know this?

With Best Regards,

Hemant Kumar Pandey
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Re: DTCP orders Colonizers to stop collecting enhanced EDC

Postby Jayanta » Wed Nov 27, 2013 1:16 pm

You need to file RTI to find the EEDC information.

You can use this sample rps-savana-occupation-certificate-received-for-2-towers-through-rti-t2173.html

or any other sample from the RTI section

rti-section.html
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