GURUGRAM: The Haryana government has expanded its one-time scheme while tightening financial conditions to discourage delays by developers.The extension of the scheme – Samadhan Se Vikas – till March 31, 2026 is applicable for long-term external development charges (EDC) in licensing and change of land use (CLU) cases across the state. EDC are mandatory fees levied by local governments on developers to fund essential public infrastructure and amenities beyond the project’s boundaries – such as roads, water, sewerage and parks – so that the surrounding area can support the new development, with the costs often passed on to the home buyer.
Officials said the decision, communicated by the Department of Town and Country Planning (DTCP), was taken after evaluating the “slow pace of recovery under previous deadlines” even as demand for infrastructure continues to rise in rapidly urbanizing districts such as Gurgaon, Faridabad and Sonipat. Under the revised framework, developers who opt for full and immediate settlement will have to pay 100% of the EDC principal amount along with outstanding interest and penalty interest. Although the interest component is currently at a concessional level, it will now increase by 1% every month after September 15, 2025, making deferred compliance increasingly expensive. For developers who choose the partial payment route, upfront charges have also increased. They will have to deposit 50% of the EDC principal, along with a larger portion of the interest and penalty interest.
The remaining 50% principal is repaid in four six-monthly installments, with an interest rate of 8% per year.
In the event of default, an additional penalty interest of 2% will be charged over the delay period.
A senior DTCP official said the monthly escalation of interest rates has been deliberately built into the plan to prevent developers from treating the extension as a soft deadline.
The official said: “The intention is not just to extend the time but to provide a financial boost for an early settlement. EDC is critical for financing external infrastructure such as roads, drainage, water supply and sewerage.”
The Samadhan Se Vikas scheme was first introduced in 2021 as a one-time relief mechanism to clear stalled EDC dues, much of which had accumulated over the years due to stalled projects, lawsuits or financial problems among developers. Subsequent expansions have met with partial success, but a significant portion of the EDC remains unpaid, impacting the planned rollout of infrastructure around licensed colonies.
Urban planning experts say the revised conditions indicate a tougher stance from the state. “By linking deferment to a monthly interest rate hike, the government has effectively put a price on inaction,” says a Gurgaon-based real estate analyst.
All other conditions of the original arrangement remain unchanged. The government hopes that the extended window – coupled with rising interest costs – will finally free up a significant chunk of stalled EDC dues before the end of the 2025-26 fiscal, thereby strengthening Haryana’s urban infrastructure pipeline.
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