Dedicated locality research platform

Haryana Town Planning Department puts 300 colonizers on notice for non-payment of IDC

The Haryana Town And Country Planning Department's recent move to put 300 colonizers on notice, while barring them from floating new projects and extending their existing ones, comes as a response to their failure to clear arrears of infrastructure development charges (IDC) pending against them. The department has identified those colonizers whose default amount is Rs 20 crore or above and who have sought license renewals or applied for new projects.

The outstanding amount of Rs 15,000 crore in non-payment of IDC by these builders has raised serious concerns regarding the development of the region. IDC is a crucial component that ensures necessary infrastructure development takes place, and the department's efforts to incentivize the clearing of dues through amnesty schemes have had limited success. Despite launching various schemes over the past five years, only a few builders have availed them, resulting in a meagre recovery of Rs 1,100 crore, mostly due to personal intervention by field staff.

While the department's actions may seem drastic, they are driven by the urgent need to clear outstanding arrears so that development projects can resume and basic amenities can be provided to occupants or owners of existing dwellings. By targeting those with significant defaults, the department aims to signal its seriousness and encourage prompt action.

Some argue that the department's leniency in the past has contributed to the accumulation of default amounts. By allowing projects to proceed without strict adherence to clearing dues, the department may have inadvertently contributed to the problem it now faces. Critics claim that earlier enforcement of payment could have prevented the current situation.

Another counter viewpoint revolves around the impact on smaller builders who might be struggling financially. While some major builders in prominent districts are among those on notice, there could be smaller developers facing challenges due to market conditions or other factors. The blanket approach of barring all 300 colonizers may inadvertently affect smaller players who are already facing difficulties in the competitive real estate sector.

However, despite these contrasting viewpoints, it is essential to recognize the department's stance to prioritize the larger issue of outstanding dues. The amount at stake is substantial, and if left unaddressed, it could significantly impede the development of the region. Moreover, the department has attempted to encourage compliance through amnesty schemes, but the response has been lukewarm, indicating the need for more assertive measures.

© Propscience.com. All Rights Reserved.