Chandigarh July 6: Haryana Cabinet which met under the Chairmanship of Chief Minister, Mr Manohar Lal here today accorded approval to a proposal of Town and Country Planning Department regarding alternative security against bank guarantee for Internal Development Works (IDW)/ External Development Charges (EDC) as well as devising stringent measures for recovery of EDC from Colonizers including mortgage of proportionate land of built up area and auto debit for the compulsory 70 percent escrow receipts from the allottees.
Owing to issues involved in issuance of bank guarantee to colonizers by the scheduled banks, detailed policy parameters have been formulated for obtaining part of licensed land built up area as security in lieu of bank guarantee across all categories of licenses including existing licensed colonies.
As meeting the cost of construction of external development works is a vital cost component for any such real estate project and the payments to be made against EDC shall be eligible for payment from the dedicated 70 per cent receipts account, at the time of grant of licence. In future, all colonies will be directed to integrate 70 per cent receipts accounts created under Section 4 (2)(1)(D) of the Real Estate (Regulation and Development Act, 2016. Apart from this, directions will be issued under section-83(1) of the Real Estate (Regulation and Development) Act, 2016 to the Real Estate Regulatory Authorities at Gurugram and Panchkula in this regard.
A clause will be added in the bilateral agreement to be entered into with the colonizers at the time of grant of all licenses in future that against each license , the colonizer shall integrate its bank account in which 70 per cent allottee receipts are credited under Section 4(2)(I)(D) of the Real Estate(Regulation and Development Act, 2016, with the online application/payment gateway of the Department, in such manner, so as to ensure that 10 per cent of the total receipt from each payment made by an allottee is automatically deducted and gets credited to the EDC head in the State treasury.
Such 10 per cent of the total receipts from each payment made by an allottee, which is received by the Department shall get automatically credited, on the date of receipt in government treasury, against EDC dues of the concerned licence of the coloniser. Such 10 per cent deduction shall continue to operate till the total EDC dues get recovered from the colonizer against the said licence.
The implementation of such mechanism shall, however, have no bearing on the EDC installment schedule conveyed to the colonizer. The colonizer shall continue to supplement such automatic EDC deductions with payments from its own funds to ensure that the EDC installments that are due for payment get paid as per the prescribed schedule.