24 February 2004	Tuesday	03 Muharram 1425

KARACHI, Feb 23: A sharp increase in the charges for different services on the land allocated to the Karachi Cooperative Housing Societies Union (KCHSU) and additional charges by the federal government have been withdrawn with immediate effect , through the efforts of Governor Ishratul Ibad.

The federal government's decision of Sept 6, 2002, through which it had increased these charges had been contested by the Bahaduryar Jang Society's President, Dr Fahim Ansari.

According to a Governor House press release, Dr Ishratul Ibad had taken up the reservations expressed by the KCHSU with the concerned minister for corrective steps.

The increase in charges ranged between 400 and 19,900 per cent in Karachi. Nowhere else in the other provinces had such an increase been allowed, which was surprising and had raised many questions.

The impugned circular and the purported increase were claimed to be without lawful authority and were liable to be quashed and set-aside, Dr Ansari had maintained.

He had taken the plea that since the federal government had not spent a dime on the development and provision of services on the land, it had no right to levy such charges. In a letter addressed to the federal Minister for Housing and Works, Syed Safwanullah, he had demanded the withdrawal of these charges.

After the creation of Pakistan 1,175 acres were allocated to the KCHSU under survey sheet No 35/1, whereby the possession of the land was handed over to it. Mr Ansari pointed out that the allocated land was barren and undeveloped and the licensee union and the housing societies concerned had to spend crores of rupees on its development to make it habitable.

The expenditure was met from the development costs paid by the affiliated societies and their individual members. The town planning services were acquired from the Karachi Development Authority and the-then Karachi Improvement Trust.

It was emphasized that "the federal government, after the allocation, had not rendered any service, until the entire process of development, both internal and external, erection of buildings, provision of necessary amenities, allotment of lands, and erection of houses by the members was completed. Nor was it rendering any such service to the union, the societies or to the individual members even now".

It was maintained that civic and other services were being provided by the local authorities and agencies, the town planning services, which included approval of building and structural plans, scrutiny, conversion of plots, bifurcation, sub-division and amalgamation of plots, etc were being rendered by the local town planning authorities. As such all necessary charges, cess and taxes as assessed from time to time in terms of clause 10 of the agreement were being paid.

The societies had maintained that as the federal government was not providing any such services or even contributing or assisting the local agencies in providing such services, for these reasons it could not claim any charges, cess or taxes in respect of town planning or other services. However, it was pointed out that the federal government had been demanding increased rates under threat of revoking the licence, realizing mutation and charges through the societies and the KCHSU.

Dr Ansari, in his letter, had also maintained that the increase was out of proportion of the existing charges and demonstrated the volume of high-handedness.

It was claimed that there was no lawful authority vested in the federal government to levy, impose, realize the enhance or revise any service or other charges and thus the impugned order was clearly without lawful authority and of no legal effect and must be so declared.

In the Licence Agreement also there was no right vested or reserved for the government to improve any service charges and for that also, the impugned order was outside the scope of the agreement, he contended.