EDC Relief Policy

From
Additional Chief Secretary to Govt. Haryana,

Town & Country Planning Department,
Haryana, Chandigarh.
To
Director General,
Town & Country Planning Department,
Haryana, Chandigarh.
Memo No. 5/32/2009-2TCP
Dated: 21/07/2016
Subject:
Addendum to the Relief Policy for recovery of External Development

Charges (EDC) and interest dues as well as Infrastructure Development
Charges (IDC) from existing colonizers in case of default in payment of
scheduled installments and alternative measures for ensuring the EDC/IDC
payments in future in case of new licences.
Reference:
In continuation to memo No. PF-37/2016/7485 dated 12.04.2016.
In order to streamline the recovery of outstanding EDC/IDC from the

colonisers, the Government has formulated a policy bearing Memo No. PF-37/2016/7485
dated 12.04.2016. Suggestions have been received on this policy from the stakeholders
indicating that in the existing licences either the colonizers have created third party rights or
they have already mortgaged the land with the financial institutions and there are no
significant encumbrances free chunks of land available for mortgage to the Government for
obtaining relief under the above stated policy. Considering the suggestions, the Governor of
Haryana, in accordance with the powers conferred upon him under Section 9A of the
Haryana Development & Regulation of Urban Areas Act, 1975, is pleased to make following
amendments in the policy Memo No. PF-37/2016/7485 dated 12.04.2016:
1. The sub-clause (ii) of clause 2.1 under the head Existing Licences shall be
substituted as below:
(ii) The colonizer shall have the choice to avail any one of the following options:
(a) The colonizer shall deposit Bank Guarantee equivalent to 25% amount of the
balance 90% outstanding dues (EDC & IDC plus the interest accrued upto date).
If the colonizer has already submitted Bank Guarantee (BG) for seeking relief
under policy dated 12.04.2012, the same shall be considered to be part of 25% BG
subject to its validity. The BGs so deposited and the original BG shall have
validity for a period concurrent with the validity/ renewal of licence. The BG
shall not be released in parts. The entire BG shall be released in one go after the
receipt of overdue amount. The colonizer shall submit an undertaking to clear
the overdue amount in four half yearly equal installments. The first installment
shall be due after six months from the date of such approval alongwith
applicable interest. A fresh schedule of payment of EDC and IDC shall be
conveyed to the colonizer at the time of such approval.
OR
(b) One or two compact pieces of licenced land of an area specifically approved by
DGTCP and to the extent specified in the Table A, shall be mortgaged by the
coloniser in favour of the Govt. in the Department of Town & Country Planning.
Table A
Outstanding EDC and IDC in existing
licences
More than original EDC and IDC
75 to 100% of original EDC and IDC
Less than 15% of original EDC and IDC
Percentage of the area of licenced

land to be mortgaged
35
30
25
20
15
10
5
Note: In case of plotted licenced colony (residential/industrial) the land to be mortgaged

shall have commensurate percentage of saleable area, e.g. if total area of the
licenced colony is 100 acres (having 55 acres permissible saleable area) and the
outstanding EDC and IDC is 50% of the original EDC and IDC, then the
coloniser shall mortgage 20 acres of the licenced land which shall include 11 acres
saleable area (20% of permissible). Further, in case of group housing/commercial
colony /cyber park/city, the colonizer shall be allowed to achieve Floor Area Ratio
(FAR) applicable on non-mortgaged land only. It is clarified that colonizer of
group housing/commercial colony /cyber park/city will not be allowed to raise
construction on the land which is mortgaged, thus the FAR on the said land shall
be allowed once the land is de-mortgaged.
2. The sub-clause 4.1 under the head Other Conditions (for Existing and New
Licences) is substituted as under:
4.1 A coloniser opting for this policy shall strictly adhere to the payment schedule
under this policy. In case of default in payment of EDC and IDC, the Govt. shall
be at liberty to dispose off the mortgaged land or any portion thereof for the
purpose of recovery of payment of outstanding EDC and IDC. Similarly, where
the colonizer has opted to deposit 25% Bank Guarantee, the DGTCP may take
measures to encash the Bank Guarantee to recover outstanding dues in case of
any default in payment of installments. The DGTCP may also revoke any
permission/approval granted under this policy if the coloniser defaults in two
successive EDC and IDC installments or rescheduled EDC and IDC installments
if DGTCP is satisfied that the coloniser is not intending to adhere to the
original/rescheduled payment of EDC and IDC.
Sd/(Arun Kumar Gupta, IAS)
Secretary
For: Additional Chief Secretary to Govt. Haryana
Town & Country Planning Department
Endst. No. 5/32/2009-2TCP
Dated: 21/07/2016
A copy is forwarded to the Chief Administrator, HUDA, Sector-6, Panchkula for
information and record.
Sd/(Arun Kumar Gupta, IAS)
Secretary
For: Additional Chief Secretary to Govt. Haryana
Town & Country Planning Department

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EDC Relief Policy

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From

Additional Chief Secretary to Govt. Haryana,

Addendum to the Relief Policy for recovery of External Development

In continuation to memo No. PF-37/2016/7485 dated 12.04.2016.

In order to streamline the recovery of outstanding EDC/IDC from the

Percentage of the area of licenced

Note: In case of plotted licenced colony (residential/industrial) the land to be mortgaged

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