Summary
The top court gave this order on Wednesday on petitions filed by the Haryana chapter of CREDAI and several developers. The petition complained about the EDC’s demand by the state government and warnings to initiate punitive action against them.
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Expansion
The top court has directed the Haryana government to keep a record of the latest data on EDC collected from builders and the amount spent for development of various districts of the state. The top court said that it would be a legitimate expectation of the residents and developers of an area to look after the development of their area with the money given to the authority.
A bench of Justices Sanjay Kishan Kaul and MM Sundaresh said, “Prima facie we are of the view that there should be a matching between the collection of EDC for development works and the expenditure in that area.” The top court has said that where excess expenditure has been incurred, the state government should recover it from the developers. The top court has asked the Haryana government to file an affidavit in this regard within four weeks.
The top court gave this order on Wednesday on petitions filed by the Haryana chapter of CREDAI and several developers. The petition complained about the EDC’s demand by the state government and warnings to initiate punitive action against them.
In fact, during the hearing, the bench had questioned the state government on the huge difference between the EDC collected from different districts and the money spent on infrastructure development. The bench observed that the amount collected as EDC from Gurugram district was spent in excess of about Rs 7155 crore.
Similarly, in Faridabad more than several hundred crore rupees were spent. On the other hand, not more than two-third of the EDC collected in Karnal, Yamunanagar, Pinjore districts was spent. Clearly, developers in Gurugram are paying less and spending more in the area. The bench said that instead of getting funds for the development of other cities and using it in Gurugram, the state should spend on the development of those areas where EDC is taken from the builders.
EDC received from developers is used for civic amenities
EDC is collected by the state government from the developers to complete several civic amenities and is used for civic amenities like roads, electricity, water supply, sewerage drains within the periphery of a single area. The builder charges EDC from home buyers on a per square foot basis.