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Saturday, 15 August 2020

Settlement scheme for defaulting builders

Tribune News Service

Chandigarh, August 14

In wake of the ongoing Covid pandemic, the state government has unveiled a one-time settlement scheme for builders who have defaulted on payment of external development charges (EDC).

Under the ambitious scheme called "Samadhan se Vikas" (development through solution), defaulting colonisers, who pay 100 per cent outstanding principal EDC amount and 25 per cent of the accumulated interest and penal interest within six months, will get waiver on the rest of the 75 per interest and penal interest.

Slabs for waiver

  • Builders can pay 100 per cent outstanding EDC, 25 per cent interest and get 75 per cent waiver on interest
  • Builders can also pay 50 per cent EDC, 50 per cent interest and get 50 per waiver on interest

Similarly, the colonisers paying 50 per cent of the outstanding principal amount and 50 per cent interest and penal interest will get a waiver on 50 per cent interest and penal interest.

However, they will have to deposit the rest of the outstanding principal amount through four six-monthly instalments with 8 per cent interest. AK Singh, Principal Secretary, Town and Country Planning, said the builders would be benefitted as they would not have to pay any penalty in case of default of instalments within the prescribed period of two years for deposit of instalments.

However, if any amount of the balance 50 per cent principal amount and interest is not deposited within two years, the coloniser would lose all benefits under the policy and the original schedule of the EDC payment would be restored, he added.

from The Tribune

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