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Haryana govt gives realtors installment scheme as EDC dues touch Rs 20,000 crore

Haryana govt gives realtors installment scheme as EDC dues touch Rs 20,000 crore

Haryana govt gives realtors installment scheme as EDC dues touch Rs 20,000 crore

Haryana will allow real estate developers to pay external and internal development charges (EDC and IDC) in instalments as it looks to recover dues that have reached a mammoth Rs 20,000 crore.

Through a policy amendment notified on September 21, the government has given developers three payments options. Make an upfront payment of 20% and clear the remaining dues in eight half-yearly instalments, pay 15% upfront and avail of five half-yearly instalments, or pay 10% upfront and the rest in four half-yearly instalments.

The developer will, however, have to pay interest on the instalments. At the same time, the government has decided to provide a one-year window between the upfront payment and the instalment cycle to give developers breathing space. Once a developer accepts the scheme, the town and country planning department (DTCP) will provide the payment schedule, officials said.

But all the three instalment schemes come with one common rider — developers will have to initially deposit 25% of the pending amount as bank guarantee. In case, a developer fails to pay the first instalment in his opted scheme, this security deposit will be forfeited by the department.