Do anyone have any idea about how EDC/IDC determined for a project?
Q: Also I believe government had reduced the EDC/IDC rates 6 months ago. will the builder pay back the amount during final settlement. Builder is not entitled to charge anything beyond the government approved rate. Please comment.
IN ONE PROJECT THE BUILDER IS CHARGING FROM SOME BUYERS AND NOT CHARGING FROM OTHER BUYERS,IS THIS ON THE OPTION OF BUILDER OR CAN HE CHARGE FROM SOME AND DO NOT CHARGE FROM OTHERS SURESH DELHI
Hi friends!!! I know most of you are not aware about the EDC and IDC charges while you buy property from builder. Because there is a lot of confusion about EDC and IDC charges in Real Estate. Builders are not interested in educating the buyers and in fact are charging extra from customers for lack of information and knowledge. Even the government departments have not done a good job in clearly explaining the meaning & calculation of EDC IDC charges. Can anybody explain the terms and why builders keep it hidden?
Hi Indranil!!! I am not expert of real estate but as of now what i know, i am trying to explain it to you. State governments collect various types of development charges from builders such as scrutiny fee, institution of land use, change of land use, license & permission fees and infrastructure charges. EDC IDC charges are part of infrastructure charges which is collected by the state to build infrastructure in the local area and across state.
Hi all,
Here are the detail description of EDC/IDC . EDC means External Development Charges (EDC) and Infrastructure Development Charges (IDC) are in addition to Basic Sell Price and these are calculated on pro-rata basis as per rates applicable at the time of issuing of license to this Group Housing site and interest thereon at the rates payable till the date of payment. In case of any upward revision thereof by the Government agencies in future, the same would be recovered on pro-rata basis.
Hi Nishat,
You are absolutely right and then these charges are paid to state government by the developer and builder for developing the infrastructure as well as external areas for project. The charges may be different from state to state.
Hi Samar, EDC and IDC depends on the area. It is calculated for units and plots. This is the charge which is decided by the developers and you have to pay along with the price of the unit.
Hi Hitesh are you sure that the EDC is decided by developers?? i know this for a fact that in Gurgaon this amount collected as EDC needs to be deposited to the Department of Town and Country Planning, Haryana and in last years high court ruling in 2011 collection of enhanced EDC was stopped also.
Hey Lekshmi, EDC means External Development Charges and IDC means Internal Development Charges. EDC is charged from the builders who get license from the Govt. for development of land in Urban Estates developed by a State development authority and use/requires the services like sewage, roads and other town level facilities.