EDC collection to resume; occupancy certificates linked to basic amenities as government tightens grip on residential projects
Shimla: The Himachal Pradesh government has decided to re-implement the Himachal Pradesh Apartment and Property Regulation Act, 2005 after a gap of nine years, following serious irregularities flagged at the Chester Hill project in Solan. The move aims to curb arbitrary construction and enforce stricter accountability among builders across the state.
The decision comes after repeated reports highlighted blatant violations of rules and poor conditions on the ground at the Chester Hill site. Issues such as lack of basic amenities and non-compliance with planning norms triggered protests from residents and buyers, pushing the government to act.
Town and Country Planning Minister Rajesh Dharmani confirmed that the Act will soon be brought back into force. He said the Director of the Town and Country Planning Department will be empowered to take punitive action against developers violating regulations.
With the reintroduction of the Act, the government will also start collecting External Development Charges (EDC) from builders. These charges will be fixed on a per-square-meter basis, with separate rates for Municipal Corporation areas, planned zones, and special designated areas. The funds collected will be used to develop infrastructure such as roads, sewerage systems, water supply, and street lighting.
The Apartment Act was originally enforced in 2005 to regulate residential construction, with oversight handled by HIMUDA. However, it was repealed after the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA) to avoid overlapping laws.
Under the new framework, developers will not be issued an Encumbrance Certificate (EC) unless they ensure essential facilities such as water supply and road connectivity. Occupancy certificates will also be granted only after these services are in place.
The government has also decided to constitute a special committee to inspect existing and under-construction projects. The committee will identify deficiencies and suggest corrective measures.
In addition, registration of builders undertaking residential projects has been made mandatory. Any violation during construction will invite strict action under the reinstated Act.
The move signals the government’s intent to tighten regulation in the housing sector and address growing concerns over unplanned construction and lack of basic infrastructure in residential projects across Himachal Pradesh.
