Three months on, GMADA yet to release developers’ approved layout plans
Notably, the Punjab government in a bid to ease the payment process for builders had allowed them to pay the pending EDC in four instalments over a period of a year and a half in March this year
The Greater Mohali Area Development Authority (GMADA) has not yet released developers’ approved layout plans despite them having paid the first instalments of External Development Charges (EDC).
Notably, the Punjab government in a bid to ease the payment process for builders had allowed them to pay the pending EDC in four instalments over a period of a year and a half in March this year. The projects for which payments were to be made includereal estate and other mega projects.
Following this, around eight real estate developers paid the first instalment, but GMADA has not released their layout plans. Even after three months, the files have not been sent to the Tehsildar for hypothecation of plots in lieu of the pending EDC.
Buyers are also worried as they are not able to get timely possession of their properties.
Moneesh Kumar, chief administrator of GMADA, said there was some issue with the patwari, but they are going to expedite the matter soon and are hopeful it will be resolved within a week. The EDC is collected by development authorities from the promoters of projects according to the rates notified by the government from time to time.
These charges are utilised by the authorities to provide new infrastructure and strengthen the existing infrastructure in the vicinity of these projects.
Jagjit Singh Majha, president of the Confederation of Real Estate Developers Association of India, Punjab, (CREDAI), said the real estate sector has been severely impacted, with projects worth ₹35,000 crore being stalled due to non-compliance by the authorities.
Now the builders have paid their first instalment of EDC, hoping to start the projects, but the insensitive approach ofofficers is causing sufferingfor many stakeholders, he added. Another developer, who wished to remain anonymous, said it is very unfortunate that despite paying the first instalment, GMADA is sitting on the files. “It has been almost three months since I paid the amount and now I am worried about how I will pay the next instalment as my project is already stuck,” he said.
Naveen Manglani, vice president of the Chamber of Chandigarh Industries said their expansion plans for mega industrial projects in Mohali are facing a setback due to unnecessary delays in releasing the approved layout plans by GMADA.
Despite developers depositing the EDC, the delays are causing losses not only to the proposed industrial units but also to the government.
Once the IT/industries come into operation, they will generate employment and bring revenue to the state, Naveen Manglani said.
Parveen Kansal, managing director of Chandigarh Royale City, Zirakpur, said it showed the high-handedness of GMADA officers. “They are not realising that along with the builders, even end users are being harassed. It is very surprising that the money collected from promoters on account of EDC has been diverted to other works, which have no connection with the said projects,” he said.
