ISLAMABAD: The Capital Development Authority (CDA) is facing resistance from the villagers in procuring land for the development of the I-17 and H-16 sectors.

The civic agency has started buying land in the sectors as its financial condition improved after receiving payments from the recent auction of commercial plots.

“Spending money only on development ventures instead of focusing on our main business of launching new housing sectors was a mistake,” said CDA spokesman Asim Khichi.

The sector I-17 and H-16 fall in the Jhangi Syedan area near the motorway at the Fatehjang Interchange.

The CDA has already released Rs500 million to procure land from those villagers who owned up to two kanals. But to the astonishment of the CDA, many large landowners asked the civic body to buy from them two kanals of land and leave the rest of the land for future acquisition.

“These people who own more than two kanals will actually get the money and also keep their property as the CDA is currently not in a financial position to purchase all the land,” a senior official of the CDA added. “But we want to buy land from those who have a maximum of two kanals as it would be easy to buy the land in phases and take possession.”

The most serious challenge for the management of the civic body would be to keep a vigil on its own field staff who usually connive with the landowners and manipulate documents.

The other main issue faced by the CDA is that the locals are resisting in giving possession of the land for which the payment is being made.

In a meeting held with the CDA member estate Shaista Sohail on Friday, the landowners asked the civic agency to also settle the award for the built-up property (BUP) as a basic demand for handing over their land.

Meanwhile, after a meeting of senior officials, the CDA is likely to convey to the small landowners that payments would be made only to those who would give possession of their land.

“They live on the land but not on all the two kanals. So they can vacate their houses after the award for the BUP but give possession of the remaining land,” said the senior official.

The CDA has spared Rs500 million to pay to the 3,123 small landowners in H-16 and I-17 sectors at the rate of Rs830,000 per kanal.

This amount is being paid mainly out of the money received from the auction of commercial plots on April 2 and 3.

An amount of Rs840 million was deposited with the civic agency by the investors who bought commercial plots in the auction.

“This was the initial payment at the rate of 20 per cent of the total value of the plot,” the spokesman added.

Out of the 33 plots offered for sale on April 2 and 3, the investors bought 24 plots. But the CDA board rejected the bids of two plots for being less than the targeted price.

As opposed to the previous auction held in November 2013 in which the investors had decided not pay the initial payments despite their bids, this time the initial payments for 19 plots were paid to the CDA.