ISLAMABAD: The Capital Development Authority (CDA) is unable to receive over Rs9.5 billion from the auction of residential and commercial plots due to pending litigations.

The National Assembly standing committee on cabinet secretariat was informed on Thursday that the amount related to 38 plots - three residential and 35 commercial – which were auctioned in 2013-14.

“The successful bidders moved the courts for one reason or the other, leaving enormous receivables unpaid,” said the CDA chairman, Maroof Afzal, in reply to questions by the members of the committee.

However, the chairman of the standing committee, Rana Mohammad Hayat Khan, called for an inquiry to determine the facts. The committee members noted that the information provided in the third week of December 2014 about the sale of commercial and residential plots by the CDA since July 2008 was different from the figures provided to the committee on Thursday.

NA body told successful bidders had approached courts to get payment delayed

With no reply to offer, the chairman CDA not only tendered an apology but also assured the committee members that an inquiry into the issue would be held to determine who tried to mislead the committee through the fudged figures.

The committee members said there were also lacunas in the CDA’s system of land procurement. The meeting also discussed the issues related to the payment of compensation to the affected people of residential sectors H-16 and I-17.

The meeting was informed that the CDA acquired land from local inhabitants whenever it intended to develop new residential sectors.

The award for different villages falling within the limits of these sectors was announced in 2009 and it was announced that cash compensation would be given to 5,719 local inhabitants.

“So far, cash compensation amounting to Rs2.1 billion has been distributed among 1,284 affected people while 4,435 are yet to be compensated,” the chairman CDA said. “But the payment process got disturbed due to hindrances created by big land owners, as they claimed that the compensation of Rs830,000 per kanal was insufficient.”

The committee was also informed that in 2009 soon after the announcement of the award, a cash payment of over Rs1 billion was made within a few days to a famous property tycoon of the area. However, nobody bothered to name the builder.

But the chairman of the committee directed the secretary cabinet division to constitute a committee, consisting of senior officers of the cabinet division, the CDA and the National Assembly Secretariat, to probe the affair.

Meanwhile, Malik Abrar, MNA from Rawalpindi, suggested that since the CDA did not have funds to give cash compensation to the local people, a land-sharing formula be adopted for these sectors too.

“Why not form a committee having representation from the locals to determine the option of the land-sharing formula as it is being done in other sectors,” Mr Abrar said.

Under the ‘Land-sharing formula’ the CDA gives a plot of one kanal to the local who gives four kanals to the CDA for launching a housing project.

Published in Dawn, January 9th, 2015

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