Where is Rs 16,000 crore collected as EDC, asks HC

GurugraM: Taking a strict stance on non utilisation of Extra Development Charge (EDC), the Punjab and Haryana High Court has questioned that where the huge amount collected in form of EDC has been utilised by the developers.

The high court has observed that even after the collection of huge amount of money, the maintenance of the areas around the residential building projects is not up to the mark as promised.

Taking cognisance of the situation, the judiciary has sought an explanation not only from the private builders who have their projects in Gurugram but also from the senior officials from Haryana government.

The next hearing of the matter is slated to be held on August 23.

According to the report presented in the court, a staggering amount of Rs 16,000 crore have been collected in form of Extra Development Charge by the builders since 2008.

However, majority of the builders have shied away in utilising the amount in providing proper roads, sewage and providing other key maintenance services.

Various resident groups for long have been protesting over the huge charges being levied yet no services being provided in return.

"It's excellent if the court has stepped into the matter because there is huge scam involved into this matter.

"Most of the builders in their heydays were in a position to charge exorbitant Extra Development Charges from the buyer and not be transparent in their dealings. Because they feel they could get away they used in some other activities and today many of us buyers are suffering," said Ranjith Rai, a city resident who resides in Sector -85.

"Not only should the private builders but even the role of the government be fixed in this issue," he further added.

"We have been raising this issue for a long time and we have been able to keep this issue relevant because of the persistence of homebuyers who want to know how their money has been spent.

"Those who ha ve cheated the homebuyers on pretext of selling them their dream homes should be brought to book," said Dhruv Bansal of Gurugram Citizens Council.