KARACHI: 30 plots allotted by political govts regularized
By Bahzad Alam Khan
KARACHI, Aug 29: The city government has regularized over 30 of 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, which is deemed to have come into force from Jan 1, 1985.
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.
While the current owners of the plots complain about having to pay for the "sins" of the original allottees, the city government has pocketed over Rs10 million paid as price differentials for the regularization of over 30 plots so far.
Section 3 of the Ordinance says: "Notwithstanding anything contained in any law for the time being in force or any agreement or judgment or order of a court, but subject to other provisions of this ordinance, the allotments, conversions or exchanges of government land obtained or granted for residential, commercial or industrial purposes at the rates lower than the market value in violation of law or ban from 1st of January, 1985, including the subsequent transaction in respect thereof shall stand cancelled."
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.
Justice Syed Abdur Rehman told Dawn on Tuesday that the owners of the plots would have to pay the price differential as long as the Sindh Government Land (Cancellation of allotments, conversions and exchanges) Ordinance 2000 remained in force.
"If the government amends the law in favour of the owners, we would give them relief. The National Accountability Bureau wanted us to charge the current prevailing prices, but I had a hard time convincing them that we should charge the market rates prevailing at the time of allotment," he said.
The recommendations of the committee 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, 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."
