ISLAMABAD: Amid strong opposition from two members, the CDA board has restored a commercial plot at D-12 Markaz to its former successful bidder after he failed to make the payments on time.

Member Estate Khushal Khan presented the case before the board meeting held on June 9 and convinced Mayor and temporary CDA Chairman Sheikh Anser Aziz and Member Planning Asad Mehboob Kayani to restore the plot.

But sources said two members of the board - Member Administration Yasir Pirzada and Member Finance Dr Fahad Aziz - opposed the move, saying there was no justification for the restoration of the plot as the allottee had not paid the dues within the stipulated time.

CDA board restores plot to successful bidder who had failed to clear dues

These two members were of the view that the plot should be put for a new auction so that the authority could receive more revenue.

“Technically speaking, the views of the member finance should have been given weightage. But the board hurriedly decided in favour of the former allottee,” said a senior CDA officer, who requested not to be named.

He said the decision deprived the CDA of millions of rupees as the plot in a new auction could have attracted a much higher rate than the Rs230 million for which it was sold off in 2013.

Sources said a few years ago the CDA auctioned the plot but the successful bidder did not deposit the amount within the stipulated time.

In 2015, he applied for the restoration of the plot and the CDA asked him to clear all the dues within 30 days. But he made a partial payment and as a result his bid remained cancelled.

In June this year, the bidder again applied for the acceptance of the amount he had paid after the due date and restoration of the plot. The CDA board in a split decision of 3-2 restored the plot and directed the bidder to deposit the dues.

CDA’s documents available with Dawn showed that the board was given two proposals: “Accept the part payments subject to immediate payment of delayed charges on belated installments of the restoration charges and subject to vacation of the court case/stay order by the ex-bidder.”

The second proposal was: “Cancel the effect of the offer of restoration on the pretext that the charges/dues were not paid within 30 days of the issuance of the offer as required under clause 4 of the restoration policy of 2014.”

However, two members of the board and the chairman did not opt for the cancellation of the offer letter and decided otherwise.

When contacted, Member Estate Khushal Khan confirmed that two members had not supported the restoration of the plot. But he said being the competent decision-making body the board decided in favour of the authority.

“Actually, last time when the bidder requested the CDA for restoration of the plot he was asked to submit the dues within 30 days, and there was some confusion and complications as the bidder was not informed in categorical terms whether he should submit all dues or delayed charges,” the member said.

He added that after 32 days of the offer letter, the bidder submitted a significant amount in the account of the CDA and remained in contact with the authority to get clarification whether he was supposed to submit all the dues or delayed charges.

“But the CDA did not clarify to him,” the member said. In the meanwhile, he added, the bidder went into litigation with the CDA.

He said CDA’s legal wing in its opinion had also supported the restoration of the plot.

The CDA documents also showed that the board had pointed out ambiguity in the restoration policy.

Published in Dawn, September 25th, 2017