HC modifies order on EDC,Haryana can now issue licences for constructionhttps://indianexpress.com/article/india/india-others/hc-modifies-order-on-edc-haryana-can-now-issue-licences-for-construction/

HC modifies order on EDC,Haryana can now issue licences for construction

In an interim relief for Haryana,the Punjab and Haryana High Court has modified its previous order wherein it had stayed collection of external development charges.

In an interim relief for Haryana,the Punjab and Haryana High Court has modified its previous order wherein it had stayed collection of external development charges (EDC). While the order was issued in one of the petitions,the direction was misconstrued by state authorities as a blanket order on collection of EDC in the state.

Clarifying,the High Court Wednesday ordered that its order dated March 19 will not be applicable to those cases wherein fresh licences are to be given to builders for construction of colonies in Haryana. The state will now be at liberty to grant licences to builders for construction of residential and commercial institutions.

The modification was done after the Haryana government argued that because of the said order,it was unable to issue fresh licences to builders for construction as a result of which development has come to a standstill.

Meanwhile,the High Court Thursday questioned the Haryana government’s rationale behind enhancement of EDC,decision it had taken in 2011,with retrospective effect from 2008 onwards.

Several aggrieved builders have moved the court alleging that state government’s decision to charge EDC was unconstitutional,arbitrary and illegal.

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Builders from Faridabad and Kurukshetra also alleged that the state has done no development at all in the districts and was yet charging the EDC.

Hearing the case,a division bench asked Haryana to furnish details of the decision (to enhance the EDC) taken by it in 2011 and submit an affidavit explaining under what circumstances the decision was taken.

After the Haryana law officer averred that the decision was taken by a committee set up by the state,the court summoned the detail regarding the said committee. Also,the state has been told to submit the principles used to determine the EDC.

The report submitted by the committee has also been ordered to be placed on record on the next date of hearing.

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