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| July 25, 2005 | Monday | Jumadi-us-Sani 17, 1426 |
TMA forced to approve commercial project: Rs71m fee also waived
FAISALABAD, July 24: Contrary to its claims of good governance, the Punjab government has forced the Tehsil Municipal Administration to withdraw a notice served on a private firm for the recovery of over Rs71 million commercial fee.
The government also amended rules to exempt the firm from payment of fee.
According to details, a plan for the construction of a six-storey commercial plaza along with 74 shops under the name of Dubai Plaza was moved by the Pakistan Railways through a private person at the site of the Railway’s Rest House back in November, 2002.
A private attorney of the Pakistan Railways was directed by the TMA to deposit the commercial fee besides producing an NOC of the Punjab government, allowing the Railways to construct the plaza over a land owned by the provincial government.
The sources revealed that instead of paying the commercial fee the private firm exerted pressure upon the Punjab government for forcing the TMA not to demand commercial fee and production of NOC by the Board of Revenue.
Consequently, the Punjab government vide letter No. SOIII (LG)-51-2001 passed the following order:
“The TMA has been directed to defer the collection of commercial fee and other charges from the Ministry of Railways and not to interfere with the working”.
However, despite the Punjab government direction the TMA refused to accord approval without payment of commercial fee and NOC. On Feb 6, 2003, a letter was issued by Muhammad Hassan Iqbal, a deputy secretary of the Local Government and Rural Development department to the Tehsil Nazim, asking him to follow the government instructions.
In the meantime, Messrs Ajami & Co who had obtained the site of the commercial project from the Pakistan Railways on lease for 99 years initiated digging work which was stopped by force by the TMA.
A new application was moved by the Dubai Shopping Mall Center for the same site earlier this year to the TMA for approving the site plan. This time, too, the TMA declined to accede to the demand.
Ultimately, the Dubai Shopping Center took a U-turn and approached the Punjab Chief Minister with a claim that they intended to make foreign investment. Therefore, they be exempted from payment of commercial fee.
Accepting the request, the Punjab chief minister moved a summary to the governor for making amendments to Rule 9 of the Punjab Local Government (Commercialization) Rules, 2004, which says: “provided further that the government, may for the reasons to be recorded, exempt from payment of commercialization charges of such conversion of land use which involved foreign investment or project being undertaken with foreign collaboration/aid”.
This development forced the TMA to forego a hefty amount and approve the Dubai commercial project plan.
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