From

Principal Secretary to Govt. Haryana,

Town and Country Planning Department
Haryana, Chandigarh.

To
The Director,
Town and Country Planning Department
Haryana, Chandigarh.

Memo no. Misc-BG(EDC)-202/2020/3674 Dated:- 14.08.2020

SUBJECT:- POLICY FOR MORTGAGE OF LICENCED LAND / BUILT-UP-AREA (BUA) IN LIEU

OF BANK GUARANTEE OF EDC / IDW FOR COLONIES OTHER THAN DDJAY.

The proviso to Section 3(a) of the Haryana Development and Regulation of Urban
Areas Act, 1975, provides for an option to the applicant to mortgage part of the land for which
licence has been granted or is being granted in lieu of submission of bank guarantee (BG) against
cost of Internal Development Works (IDW) and External Development Charges (EDC). The
present policy addresses the issues involved in obtaining bank guarantees from scheduled banks
and makes it possible for colonisers to mortgage in favour of the Government a specified portion
of saleable area or built-up area in lieu of submission of BG against cost of IDW and EDC.
Accordingly, as per the powers conferred under Section 9-A of the Act, ibid, the
Governor of Haryana is pleased to introduce the following policy parameters in this regard:
i. Applicability of the policy: The policy parameters may be made applicable to all
existing licences as well as those to be granted in future. However, the benefit of EDC BG
substitution shall be available only to compliant licencees and the defaulters shall have to
first avail the EDC Re-schedulement policy or otherwise become up-to-date and current in
dues.
ii. Quantum of area to be Mortgaged: The licensee shall have an option to furnish
mortgage deed against 10% of the saleable area/built up area each against IDW as well as
EDC. Thus in case a licensee does not wish to submit any BG, he shall mortgage 20% of
saleable area/built-up area in the same licenced colony.
iii. Built-up area mortgage in case of Integrated Projects: The option of mortgage shall be
allowed in case of Group Housing Project /Commercial Project by way of mortgage of
flats / shops in addition to proportionate licensed land.
iv. Procedural requirements: Such mortgaged saleable area/built- up area shall be marked as
“frozen” on the layout plan/building plan with restriction on any further sale/allotment
to any third party without the approval of Director. However, development/construction
activities can be carried out by the colonizer on such “frozen” area.
v. Priority development: In case of integrated projects, where phase-wise/ block-wise/
tower-wise construction is taken up by the coloniser, such mortgaged built-up area shall
be completed and fit for issuance of occupation certificate along with the first half of the
project considered for grant of occupation certificate. In plotted colonies also the
development of such plots shall be taken up along with the remaining colony in the
first phase itself.
vi. Disclosures: The details of mortgaged land/flat/shops should be updated on the
departmental website against the License and proper notice board mentioning details of
mortgage land/flat/ shops should be displayed prominently on the mortgaged site.
Such disclosure shall also be made in the documents filed with RERA for obtaining
registration and for regular updation purposes.
In case of integrated projects, provisional approval of building plans shall be
conveyed to enable updation of details on websites as well as installation of boards as per
above. Upon receipt of confirmation regarding all such updations/ installations, final
approval/ release of building plans shall be conveyed.
 vii. Procedure for release from Mortgage: Such mortgaged land/built up area can be got
proportionately released/defreezed against proportionate payment of EDC and
proportionate occupation certificate/part completion certificate obtained by the licensee.
The release of BG or proportionate BG to that extent qua Internal Development Works
should be possible subject to the proviso that the licencee shall maintain the internal works
for a period of at least 5 years and provide a performance/bank guarantee for the purpose
only to the extent required for such maintenance.
viii. Action in case of default of EDC: In case of default of EDC by a coloniser, the
Director shall take effective steps to take possession of the mortgaged property and get it
auctioned in order to realise the EDC dues.
ix. Action in case on lapses in undertaking IDW works in a colony: In case the Director
comes to a conclusion that there are severe lapses in undertaking IDW works by the
coloniser, the Director shall take effective steps to secure possession of the mortgaged
property and get it auctioned in order to get the internal development works
completed to the extent of resources mobilized.
This policy has been issued as per the approval given by Council of Ministers in
its meeting held on 06.07.2020 and conveyed vide U.O No. 9/107/2020-2Cabinet dated
06.07.2020

(A.K. Singh,IAS)
Principal Secretary to Govt. Haryana
Town & Country Planning Department

Endst. No. Misc-BG(EDC)-202/2020/3675 Dated: 14.08.2020

A copy is forwarded to the Secretary, Council of Minister, Haryana with reference to their
U.O No. 9/107/2020-2Cabinet dated 06.07.2020 affirming the implementation of the decision of
CMM to the extent as detailed above.

(A.K. Singh,IAS)
Principal Secretary to Govt. Haryana
Town & Country Planning Department