The Haryana government has decided to extend its one-time settlement scheme for recovering long-pending dues from real estate developers, but with stricter financial conditions designed to discourage further delays. The scheme, named Samadhan Se Vikas, will now be valid until March 31, 2026, giving builders more time to clear their outstanding External Development Charge (EDC) liabilities.
What Are EDC Dues and Why Do They Matter?
External Development Charges (EDC) are mandatory fees that developers must pay to local authorities. This money is crucial as it funds essential public infrastructure outside a housing project's boundary. This includes the construction and maintenance of roads, water supply lines, sewage systems, parks, and drainage networks. These amenities ensure the surrounding area can support the new residential or commercial development. Ultimately, these costs are often factored into the final price paid by homebuyers.
The scheme covers pending EDC dues linked to licence and Change of Land Use (CLU) cases across the entire state. Officials from the Department of Town and Country Planning (DTCP) stated the extension was necessary after reviewing the "slow pace of recovery under earlier deadlines." The need for infrastructure funding is particularly acute in rapidly urbanising districts like Gurgaon, Faridabad, and Sonipat, where demands continue to rise.
Revised Financial Terms: A Carrot and Stick Approach
While the deadline has been pushed forward, the financial terms have been made significantly more stringent to compel early action. The revised framework introduces a progressive penalty system for delays.
For developers opting for a full and immediate settlement, the requirement is to pay 100% of the principal EDC amount along with all outstanding interest and penal interest. The key change is that the interest component, currently at a concessional rate, will now increase by 1% every month after September 15, 2025. This makes procrastination increasingly expensive.
For those choosing a partial-payment route, the upfront burden has been raised. They must now deposit 50% of the principal EDC along with a higher proportion of interest and penal interest upfront. The remaining 50% principal can be paid in four instalments every six months, but it will carry an annual interest rate of 8%. A default on these instalments will attract an additional 2% penal interest for the delayed period.
Government's Intent and Expert Analysis
A senior DTCP official explained that the monthly interest escalation was deliberately incorporated to prevent developers from treating the extended deadline lightly. "The intention is not merely to extend time, but to create a financial push for early settlement," the official said. "EDC is critical for funding external infrastructure such as roads, drainage, water supply and sewerage."
Originally launched in 2021, the Samadhan Se Vikas scheme was a relief mechanism to unlock EDC dues stuck due to stalled projects, litigation, or developer financial distress. While previous extensions saw some success, a substantial amount remains unpaid, hampering planned infrastructure work around licensed colonies.
Urban planning experts view the revised terms as a sign of a tougher state stance. A Gurgaon-based real estate analyst noted, "By linking delay with a monthly interest hike, the government has effectively put a price on inaction." All other conditions of the original scheme remain unchanged.
The government's hope is that this extended window, combined with the rising cost of inaction, will finally unlock a significant portion of stalled EDC dues before the end of the 2025–26 financial year, thereby strengthening Haryana's urban infrastructure pipeline.
