Licence for realty project cancelled over pending due of Rs 22 crore

The department of town and country planning (DTCP) has cancelled the licence of a residential plotted colony spread over 84 acres due to non-payment of external development charges (EDC) of around Rs 22 crore. The residential project, being developed by Vatika Ltd, is spread in sectors 81, 82, 82A, 83 and 84, and the licence was granted in 2014.

The order, issued by the director, DTCP, on December 3, was received by Gurugram officials on Wednesday. It observed that the developer had failed to pay the EDC along with interest update, with Rs 2,294.67 lakh outstanding, as of October 10, 2020.

The residential project is located in the revenue estate of Sihi, Shikhopur, Badha, Sikanderpur Badha, Kherki Daula and Harsaru villages. It is part of the Vatika India Next residential township.

The order (a copy of which is with HT), issued by Makrand Pandurang, the director, DTCP, stated, “Since a reasonable time and opportunity already stands granted to the company for payment of outstanding EDC, therefore, it will not be appropriate to grant further time for payment of said dues. Hence the license number 66 is hereby cancelled under section 8 of the Act of 1975 as the coloniser has contravened the conditions of the license (sic).”

A senior official of Vatika Ltd, when asked about the matter, said that they have already made payments to the department, which need to be adjusted. “This is a procedural issue and all the formalities will be completed and compliances submitted to the department at the earliest,” he said.

Pandurang also directed the formation of a committee, comprising senior town planner, district town planner, executive engineer of HSVP and representative of the deputy commissioner, Gurugram. “This committee will decide on issues like development works, execution and maintenance of public health services, electricity supply, property registrations and related matters,” the order stated.

A senior DTCP official, requesting anonymity, said that if the matter is not resolved, the colony would be taken over by the department and development works will be carried out by the director and the payment for the same would be taken from developer and plot owners. “Apart from non-payment of EDC, the developer has not got approved service plan estimates of the colony, NOC from the environment ministry and other formalities remain pending,” he said.

The official further said that multiple notices in this regard were issued to the developer since November 2017, but the replies were not found satisfactory. At a hearing in August 2020, an authorised signatory of the developer had agreed that all formalities will be completed within the moratorium period but nothing happened in this matter. “It is because of this reason that it was decided to cancel the licence,” he said.

Sanjiv Mann, senior town planner, Gurugram, said that non-payment of EDC was being seen as a serious issue by the department, as repeated relaxations have been given in the last two years. “The developers must comply with policies and directions in these matters,” he said.