Mohali builders accuse GMADA of violating property regulation Act
As per the provisions of the PAPRA Act , the EDC paid by the promoters was to be spent on the development of external services including water supply, sewerage system and electricity grid, but the promoters said, GMADA has not laid even a single brick
Slamming the Greater Mohali Area Development Authority (GMADA) for violating provisions of the Punjab Apartment and Property Regulation Act (PAPRA) in utilization of external development charges (EDC), the builders have said that GMADA also breached the agreement with the promoters.
Under the Act, GMADA is stated to have issued notices to 24 builders on the account of EDC amounting to ₹263 crore, however, the builders said that they have already paid around 70% of the charges.
GMADA issued notices under Section 5 of the PAPRA Act asking builders to deposit the EDC and licence fee. The EDC is calculated on the basis of area of land to be developed, and can be paid in instalments, failing which interest at 10% normal and 3% penal interest is charged.
As per the provisions of the PAPRA Act , the EDC paid by the promoters was to be spent on the development of external services including water supply, sewerage system and electricity grid, but the promoters said, GMADA has not laid even a single brick from EDC charges in 90% of the project.
GMADA fails to utilise funds
The policy for utilization of EDC mandates the GMADA to utilize the funds on the project on priority and then on any other common infrastructure development.GMADA was to open a separate account for each project for EDC utilization,form an advisory committee with promoters as members and prepare a project action plan, however nothing was done by GMADA.
A case regarding the same is pending in Punjab and Haryana court. In March this year, the court had directed GMADA to give a written reply — regarding fulfilling its responsibilities to execute external development of the projects — within two months, but GMADA has failed to reply.
Managing director, Chandigarh Royale City, Zirakpur, Neeraj Kansal, who got the notice to pay balance EDC charges said, “When GMADA has breached the contract, on what grounds are they seeking the balance amount.”
Director Suntec City, Mullanpur, Ajay Sehgal who also got the notice, said, “It is surprising that the money collected from promoters on account of EDC was diverted to other works, which have no connection with the project.”
CEO, Altus Space Builders private Limited, Mullanpur, Avatar Singh who got the notice said, “I have already paid over ₹125 crore as EDC and even given 20 acres to GMADA free of cost to construct roads, but nothing has been done till date.”
However, GMADA chief engineer Sunil Kansal said, “We carry the development works only when we get directions from the concerned authorities. There are several wings in GMADA which carry out different works.”
