Relief for realtors, EDC recovery put on hold

Chandigarh : The state government today announced a 12-month amnesty for developers who defaulted on the payment of external development charges (EDC).
After Chief Minister Capt Amarinder Singh’s nod to accept one of the main demands of the Confederation of Real Estate Developers Association of India (CREDAI) and other bodies representing realtors, the Department of Housing and Urban Development (HUD) has put on hold the collection of Rs574.44 crore, which the realtors owe to the department on account of EDC. HUD Additional Chief Secretary Vini Mahajan said the government had also decided to allow the approval of layout plans and building plans during the moratorium period.
“The amount outstanding up to December 31, 2016, and the payment of principal EDC falling due in 2017 has been deferred till January 1, 2018,” she said. Kulwant Singh, president, CREDAI, Punjab, said: “We welcome the government’s decision, which will not only help revive the real-estate market but also give much-needed relief to the realtors as well as investors. The projects stuck due to non-payment of EDC will get approval. The developers will be able to collect money from the investors and clear their EDC dues in future.”
Charges highest in Mohali
EDC rates are highest in GMADA area. These are Rs27 lakh per acre for residential (plotted) development, Rs87 lakh per acre for group housing and Rs60 lakh per acre for commercial projects. EDC for developing recreational, sports, cold stores, godowns, institutions vary between Rs4.5 lakh and Rs6.75 lakh per acre.