Context: Recently, the Haryana government has introduced a one-time settlement scheme called ‘Samadhan se Vikas’ for the recovery of long-pending dues on account of External Development Charges (EDC) and Infrastructural Development Charges (IDC).
Background 

• Several real estate giants in Haryana have not deposited hundreds of crores of rupees worth mandatory External Development Charges (EDC) and Infrastructural Development Charges (IDC) for the residential and commercial colonies they have built across Haryana. 

Key Points

• The documents reveal that in certain cases, the bank guarantee for several developers is nil, while their outstanding EDC is in crores. The outstanding amount continues to get accumulated over the years.  
• The new scheme is called ‘Samadhan se Vikas’. It is modelled on the central scheme of ‘Vivad se Vishwas-2020’. The scheme will be applicable to the full outstanding EDC including interest as well as penal interest. 
• In case a coloniser deposit 100 percent of the outstanding principal amount against EDC as well as 25 percent of the accumulated interest and penal interest within six months from the date of notification of this scheme, the balance 75 percent of the accumulated interest and penal interest shall be waived off. 
• In case a coloniser deposits at least 50 per cent of the outstanding principal amount against EDC as well as 50 per cent of the accumulated interest and penal interest, within six months from the date of notification of this scheme, the balance 50 per cent of the accumulated interest and penal interest shall be waived off. 
• In case the coloniser does not clear alleged EDC dues within the said two-year period, the waiver of balance 50 per cent of the accumulated interest and penal interest will stand annulled and the original EDC schedule shall come into play.

EDC &IDC

• These are charges that have to be compulsorily paid by all home buyers.
• All those buying houses in any housing project have to bear these charges, usually based on the size of their apartment.
• These charges are for the development work in and around the housing project.

External Development Charges (EDC)

• The developer of a housing project collects it from home buyers and is supposed to pay to civic authorities for maintenance of civic amenities within the periphery of the developed project.
• According to the Real Estate (regulation and development) Act, 2016, (RERA) external development works includes: roads and road systems, landscaping, water supply, sewage and drainage systems, electricity supply, transformer, sub-station, solid waste 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.
• The EDC is decided by the civic authorities.

Infrastructure Development Charges (IDC)

• It includes the cost of developing major infrastructure projects such as highways, bridges, and transport systems in the city in which project is located. It is collected by the state government.
• These funds are utilized for socio-economic growth including construction of highways, bridges, and transportation network etc.

Legal Provision in Haryana

• As per terms and conditions of the Haryana Development and Regulation of Urban Areas Rules, 1976, a licensee (developer) has to pay the EDC as per schedule of payment.
• If the developer does not deposit the EDC/IDC nor avail the EDC Reschedulement Policy, then a show cause notice is issued by the Town and Country Planning Department warning such defaulters of revocating bank guarantee on account of non-payment of EDC/IDC.
• The developers submit a bank guarantee of 15% within 90 days from the date of commencement of the project to safeguard the interest of buyers and to deal with any future misconduct.

About Vivad se Vishwas scheme

• It is a direct tax scheme announced in Budget 2020, for settling tax disputes between individuals and the income tax department.
• As per the scheme income tax disputes settled under it cannot be reopened in any other proceeding by the income tax department or any other designated authority.
• Earlier, the scheme offered complete waiver on interest and penalty to the taxpayers with a full and final settlement of the dispute if the scheme was availed by March 31, 2020. 
• An individual opting for settlement after March 31, 2020, was required to pay an additional 10 per cent penalty on the disputed tax amount but now till December 31, 2020, individuals do not have to pay any penalty.