Developers give ₹436-cr post-dated cheques to clear dues

Chandigarh Private developers have given post-dated cheques amounting to ₹435.85 crore to Greater Mohali Area Development Authority (GMADA) to clear their outstanding dues.

The developers deposited the amount outstanding either against some of their projects or all of their projects after the housing and urban development department notified a policy allowing them to clear their outstanding dues as on December 31, 2019 in six half-yearly instalments along with applicable interest in the shape of post dated cheques, according to an official spokesperson.

The policy was notified on November 28 in view of the recession in the real estate sector and to bring uniformity in dealing with different categories of real estate projects.

The first instalment of the outstanding payment will be due on 31-03-2020 and the developers are required to submit all the cheques by December 31 to avail the benefit.

However, the benefit extended under the policy has been made applicable only in those cases, where security in the form of bank guarantee or hypothecation of plots has been provided for the amount due. The dues are on the account of external development charges (EDC), license fee (LF), social infrastructure fund (SIF) and PR-4/7 cess of various mega/super mega projects and projects licensed under the Punjab Apartment and Property Regulation Act 1995.