KARACHI, Oct 5: The Sindh High Court has asked the military estate authorities to constitute an evaluation committee to determine market rates for conversion of a plot from old grant to lease.

A partnership firm stated that it was the holder of occupancy rights in respect of the plot bearing survey number 73, N.I. Lines, Karachi, measuring 0.95 acre. The rights were purchased in 1998 from earlier occupants. In 1996, the federal government initiated a policy for conversion of old grants into regular leases.

The policy provided for the constitution of an evaluation committee comprising local garrison commander, station commander and cantonment officers to determine market prices of old grant properties for the purposes of their conversion within six months. All formalities were to be completed within a year.

The petitioner complained that instead of following the procedure prescribed by the policy, the estate authorities resumed 617.22 square yards of the plot and demanded Rs180.39 million for leasing out the remaining area of 4,895 square yards. The rate, it claimed, was arbitrarily fixed at Rs80,000 per square yard by the estate authorities without forming an evaluation committee as required by the 1996 federal government policy.

A division bench consisting of Justices Sabihuddin Ahmed and S. Ali Aslam Jafri directed the respondents to observe the procedure provided by the 1996 policy.