Why External Development Charges Are Taken From the Buyer

What Are External Development Charges (EDC)?

When buying a flat or duplex, buyers often encounter additional costs besides the property price. One such cost is the External Development Charge (EDC). This charge is levied on builders by the state government to facilitate the development of public infrastructure like roads, water supply, electricity, and sewerage.

Builders include this charge in the property price because these facilities are essential for residents. Essentially, EDC ensures that the township or project is well-connected, livable, and complies with government regulations.

Why Buyers Pay EDC

Even though the government collects EDC from builders, this cost is ultimately passed to the buyer. The rationale is simple:

• The builder ensures quality infrastructure for the project, benefiting all residents.
• EDC contributes to roads, sewage, water supply, electricity, and other civic amenities.
• Without EDC, the builder cannot obtain approvals or complete legal formalities for the project.

Impact on Property Buyers

Understanding EDC helps buyers plan their budget effectively. For example, when purchasing 3BHK Flats in Bhopal, knowing the breakdown of property price and additional charges like EDC avoids surprises and financial stress.

Key Takeaways

• EDC is a standard part of buying properties in planned townships.
• It ensures the development of necessary civic infrastructure.
• Buyers should verify EDC details in the agreement to understand total investment.

Paying EDC is a step towards legally approved, safe, and livable properties. Awareness of such charges ensures you make informed investment decisions while buying property online or offline.