ISLAMABAD, Aug 31: The Capital Development Authority (CDA) is in trouble in completing its housing project - Park Enclave - within the stipulated time due to poor planning and financial management. As a result, the plot owners have stopped paying their installments.
The civic agency launched the project in Zone IV in July 2011 and was to complete it in about two years - before December 2013.
However, at the moment the completion of the project is not in sight. Park Enclave was the first housing scheme initiated by the CDA after D-12 sector which also remains incomplete even 24 years after it was launched.
According to a senior finance wing official, the CDA has rescheduled the payment of installments for the Park Enclave plots. “We are still waiting for the fourth installment which was due in July 2012 as the buyers have started refusing to pay.”
It may be noted that Park Enclave was launched by the cash-strapped civic agency eyeing the elite of society to generate revenue. The CDA had offered around 700 plots of 500 square yards each and 600 plots of different sizes. The project was declared as “Jewel of the city.”
A single plot was offered for Rs12 million and buyers were told to pay the amount in six installments.
An official of the estate wing added that out of the 700 plots, around 600 were sold out. “We have lost the trust of the people as well as our own money invested in the project since the development work at the site is going on at a snail’s pace. About 65 per cent work on the project is still pending. There are no roads, sewerage system and other basic amenities,” said an official of the engineering wing.
Masood Ahmed, a local businessman, added: “I had bought a plot for my sister in Park Enclave and had been regularly paying the installments. However, in a recent visit to the site I observed that the development work was very slow. As a result, I did not pay the fourth installment.” And if the progress on the project continues at the same pace, I may withdraw my whole investment, he added.
It may be noted that the buyers have the right to get back their money after deduction of a small percentage. However, no official could confirm how much would be deducted from the amount if a plot owner wanted a refund.
A treasury wing official explained: “We are forced to reschedule the installment timeline because the buyers have stopped paying.”
He informed Dawn that as per the schedule the deadline to clear the installments was July 2012.
“We have extended the deadline for the submission of the fifth installment from October 2013 to February 2014 and the sixth installment from January 2013 to August 2014,” said the treasury wing official.
The finance wing official admitted that every department of the authority, including the engineering, planning and even his own (finance) department, had failed to complete the project on time.
He said a number of buyers had already got a refund after the civic agency failed to complete the project in its two years timeline.
“I am not sure how many plot buyers have got their money back but I can confirm that people did ask for a refund and they were given their money,” he maintained. When contacted, CDA spokesman Dr Naeem Rauf said: “I will get back to you once I take a comprehensive briefing from the member estate on the matter.”
However, till the filing of this story on Saturday evening the spokesman did not provide any comment on the matter.