EDC : External Development Charges.
EDC is a charge paid by developer for the maintenance of civic amenities to the civic authorities.
Real Estate ( Regulation and Development) Act, 2016 states that external development works include roads and road systems, landscaping, water supply ,sewage and drainage systems , electricity supply, sub-station,transformer, solidwaste management and disposal or any other work that may have to be done within the periphery of or outside a project for its benefit as may be provided under the local laws.
Civic authorities of a city set these charges.
These charges are levied by developer on the homebuyer.
EDC depends on the size of apartment . A homebuyer has to pay ten per cent of the base cost of the apartment they are buying.
Developer has to pay development charges at the time when he is granting development permissions.
EDC is levied both on land area and built up area.
Local authorities receive EDC money from developers.
If developers do not pay the money they have to pay a penalty which cannot be pass to homebuyers.
Check the EDC rates in your local town planning authority and be sure that developer does not charge more rates than set by authorities and if he does so complaint must be registered against him and the homebuyer must receive the refund of extra EDC he has paid to the developer.
For more info on subject, please dial 7888-356908.