Samadhan se Vikas: Haryana | 09 Jul 2020

Why in News

Recently, the Haryana government has introduced a one-time settlement scheme called ‘Samadhan se Vikas’ for the recovery of long-pending dues on account of External Development Charges (EDC) and Infrastructural Development Charges (IDC).

  • The scheme is modeled on the central scheme of ‘Vivad se Vishwas-2020’.
  • Similar EDC Reschedulement Policy offer was also made in 2018.
  • Hundreds of real estate builders/developers in Haryana are yet to pay the State government over Rs. 10,000 crore as EDC and IDC.

Key Points

  • External Development Charges: It is the charges paid by the real estate developer to civic authorities for maintenance of civic amenities within the periphery of the developed project including construction of roads, water and electricity supply, landscaping, maintenance of drainage and sewage systems, waste management etc.
    • The EDC is decided by the civic authorities.
  • Infrastructure Development Charges: It is the charges paid by the real estate developer to the state government for development of major infrastructure projects across the state, which include construction of transportation networks including highways, bridges etc.
  • Legal Provision in Haryana: As per terms and conditions of the Haryana Development and Regulation of Urban Areas Rules, 1976, a licensee (developer) has to pay the EDC as per schedule of payment.
    • If the developer does not deposit the EDC/IDC nor avail the EDC Reschedulement Policy, then a show cause notice is issued by the Town and Country Planning Department warning such defaulters of revocating bank guarantee on account of non-payment of EDC/IDC.
      • The developers submit a bank guarantee of 15% within 90 days from the date of commencement of the project to safeguard the interest of buyers and to deal with any future misconduct.

Source: IE