'Rs 11k cr as EDC yet to be collected from Haryana developers'

A whopping Rs 11,048 crore is yet to be collected as External Development Charges (EDC) from real estate developers in Haryana, according to a white-paper released by state government.
This amount was outstanding against the licences granted by the Department of Town & Country Planning in various Urban Estates in Haryana, which was not collected from the licensees.
Expressing serious concern over the non-receipt of EDC from real estate developers, Haryana Finance Minister Captain Abhimanyu said: "In last 10 years, a sum of Rs 11,048 crore should have been credited into the account of Haryana Urban Development Authority (HUDA) which has become overdue now and not collected so far.

"It is also a matter of serious concern that no collateral security has been taken from these developers against sum of Rs 11,048 crore," he added.
HUDA collects receipts from colonizers for change of land use permission etc through Directorate of Town and Country Planning.
HUDA spends this money as external development works as defined in Haryana Development & Regulations of Urban Areas Act, 1975.

HUDA generated resources, including External Development Charges (EDC), of Rs 32,039 crore between 2004-05 to 2013-14 against, which the expenditure on land acquisition and development works aggregated Rs 29,051 crore.
The Minister said that because of some accounting "anomally", the Income Tax department charged HUDA tax amounting to Rs 3,488 crore.

"It is a matter of concern that HUDA neither rectified its mistake nor contested with Income Tax Authorities for recovering Rs 3,488 crore," he said.
"In last 10 years, HUDA received Rs 15,000 crore less funds (Rs 11,048 crore EDC and Rs 3,488 crore Income tax). Had it been available with us, it could have been spent on state's development," the state Finance Minister said.
According to the white paper, "HUDA has paid income tax to the tune of Rs 3,488 crore on its turnover rather than on its profit due to non-compliance of accounting standards.