Isn't EDC include the charges for roads , sewer and lights that builder do inside the coloney

Q: I bought a plot, on agreement its mentioned that price per sq. yard including EDC.
Now its possession time, builder asks for 1,30000 INR as development charges. He says its not EDC, the charges are for the roads, sewer and lights we made/worked inside the society.

Doesn't EDC include all these charges, do I need to pay these charges, are these separate from EDC?

Jaspa, Mohali

7th March 2015

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Replies (2)

Thanks everyone for answering this. As per my agreement , EDC is included. OK, I won't be paying the asked charges and will talk to the builder in detail.

Jaspa, Mohali

10th March 2015

Comment

Hello Jaspa,
EDC is levied by the developer and includes maintenance of street lights, roads, sewerage, water and electricity supply. This should not be ignored as it accounts up to 10% of the base cost.

External Development or services include the following:water charges, sewerage, storm water drainage, widening of road, street lighting, public health maintenance, community building, road maintenance, street lighting maintenance, horticulture etc.

khushisha, Mumbai

9th March 2015

Comment

Right Khushi,
EDC which means External Development Chargesis in addition to BSP and are calculated on pro-data 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. Further these charges are paid direct to state government by the developer for developing the infrastructure and external areas for the project. The charges vary from state to state.

Miraniyatin, Mumbai

9th March 2015

Right Miran,
Since, investing in a property is the biggest buy of our life, one should be aware of a host of hidden charges. With these hidden charges, the same Rs 50 lakh apartment at the end would cost around Rs 75-90 lakh.

khushisha, Mumbai

9th March 2015

If builder is charging for internal roads, sewer and lights, you don't need to pay the amount for the same facilities which you have paid earlier at the time of agreement of the property.

Miraniyatin, Mumbai

9th March 2015