22 July 2004	Thursday	04 Jamadi-us-Saani 1425

KARACHI, July 21: The city government has started to regularize the 685 plots allotted by political governments between 1990 and 1996 to people at rates lower than the ones then prevailing in the market.

The Sindh government cancelled all such residential, commercial and industrial plots under the Sindh Government Land (Cancellation of allotments, conversions and exchanges) Ordinance 2000.

City government officials explained that the plots were being regularized by getting the owners, who might not necessarily be the original allottees, to pay price differentials.

They said the city government would earn over Rs50 million through the regularization of the plots. They added that these plots were all over the city. They were in Gulistan-i-Jauhar (268 plots), North Karachi Township (196), Surjani Town (73), Korangi Township (50), Gulshan-i-Iqbal (46), Clifton (34), Metroville I & III (9), North Nazimabad (7), F.B. Area (1) and Old Nazimabad (1).

They recalled that a committee was formed by the Sindh governor to assess the market value of the cancelled residential, commercial and industrial plots. Headed by Justice Syed Abdur Rehman, the committee noted that most plots had changed hands and only in rare cases the original allottees were available, they said, adding that the committee put forward four recommendations.

The recommendations were: "The committee was of the view that average auction price may be charged for the plots measuring 600 square yards and above for the year when the plots were allotted.

As the cost of the plots differ due to corner and other situations, it was decided that 25 per cent of the occupancy value may be charged on corner plots in addition to the average auction price for allotment year.

"In case no plot had been disposed of through auction in a particular year, the mean of the last year's auction price and the next coming year be considered to determine the average auction price. In case no auction took place, the differential amount may be charged in accordance with the valuation table under Stamp Act 1899.

"As regards plots measuring from 121 square yards to 599 sq yards, it was recommended to charge according to valuation table issued under the provision of Stamp Act 1899 by the government of Sindh, for the period of allotment in the concerned schemes/townships, as no such plot was auctioned in that area, except Surjani Town where a summary had already been approved by the competent authority.

However, where the occupancy value is more than the valuation table, the differential shall be charged at the rate of occupancy value. In case of Surjani Town, the composition charges equal to 10 per cent of total occupancy value of the plot shall be applicable on A&B category plots.

"The committee was of the view that majority of 120 sq yards below plots belong to low-income group persons and the plots have changed hands also. Though the plots may have been purchased from open market but majority of the plots are meant for the low- income group.

As such, it was recommended that plots up to 120 square yards may be restored/defreezed at the prescribed rates of O.V. (occupancy value) at the time of allotments in the concerned scheme/townships and no difference above O.V. may be charged.

"Any plot in the possession of a builder/land developer regardless of the plot size should be charged average auction price of the relevant year to recover differential. In case no auction took place, the differential amount may be recovered in accordance with the valuation table under Stamp Act 1899."

The city government officials explained that if the government had allotted a plot in Gulshan-i-Jauhar to a person at Rs100 per square yards while the prevailing market rate determined through auctions was Rs1,000, the person now possessing the plot would have to pay a price differential of Rs900 per square yards.