Haryana Extends Settlement Scheme for Faster EDC Recovery


GURUGRAM: The Haryana government has extended its one-time settlement scheme while tightening financial terms to discourage developer delays.

The extension of the “Samadhan Se Vikas” scheme until March 31, 2026, addresses long-overdue external development charges (EDC) related to licensing and land use across the state. EDCs are mandatory fees imposed by local governments on developers to support essential infrastructure and amenities outside project boundaries—like roads, water, sewage, and parks—ultimately passed on to homebuyers.

According to officials, this decision by the Department of Town and Country Planning (DTCP) came after assessing the “slow pace of recovery under earlier deadlines” amid rising infrastructure demands in fast-growing districts like Gurgaon, Faridabad, and Sonipat. Under the new framework, developers who opt for full, immediate settlement must pay 100% of the principal EDC, plus all outstanding and penal interest.

The interest rate, currently concessional, will increase by 1% monthly after September 15, 2025, making delayed compliance increasingly costly. Developers who take the partial-payment option will also face higher upfront costs, needing to pay 50% of the principal EDC plus a greater share of interest and penal interest.

The remaining 50% will be recoverable in four six-monthly installments, at an interest rate of 8% per annum. An additional 2% penal interest will apply in case of default.

A senior DTCP official mentioned that the monthly escalation in interest is designed to discourage developers from viewing the extension as just another soft deadline.

The official remarked, “The aim is not merely to extend the timeline but to incentivize prompt settlement. EDC is vital for financing external infrastructure such as roads, drainage, water supply, and sewerage.”

The Samadhan Se Vikas scheme was originally launched in 2021 as a one-time relief initiative to resolve longstanding EDC dues, many of which had accumulated due to stalled projects, legal issues, or financial troubles among developers. Subsequent extensions achieved partial success, but a significant portion of EDC remains unpaid, hindering planned infrastructure development in licensed colonies.

Urban planning experts interpret the revised terms as a firmer stance from the state. “By linking delays to monthly interest increases, the government has effectively assigned a cost to inaction,” noted a Gurgaon-based real estate analyst.

All other conditions of the original scheme will remain as they are. The government hopes that this extended window, combined with rising interest costs, will finally resolve a considerable portion of delayed EDC dues prior to the end of the 2025–26 financial year, bolstering Haryana’s urban infrastructure pipeline.

  • Published On Dec 19, 2025 at 09:55 AM IST

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