ISLAMABAD: A new audit report on the Capital Development Authority’s (CDA) Estate Wing, tabled in the National Assembly last month, raises questions regarding the CDA’s board’s decision for restoring a commercial plot in D-12.

In June 2017, the CDA board had in a split decision of 3-2 restored the bid of a commercial plot on D-12 in a questionable manner.

In the summary presented by the board by Member Estate Khushal Khan, the board was given two proposals.

Applicant was provided undue benefit due to non-forfeiture of 10pc of total premium, audit report states

“Accept the part payments subject to immediate payment of delayed charges on the belated installments of the restoration charges and subject to vacation of the court case/stay order by the ex-bidder. OR ii. 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 said offer as required under clause 4 of the restoration policy of 2014,” read the minutes of said board meeting.

The minutes said the CDA opted to restore the plot with a 3-2 split decision.

However, an audit report for 2016-17nwhich was apparently made before the said decision by the CDA board as it does not carry details of the June 2017 meeting, says that plot number 31, D-12 Markaz, measuring 1,600 square yards was allotted vide an acceptance letter dated March 28, 2016 to an individual for Rs174,000 per square yard as a result of an auction held on March 26, 2013.

The audit report said the bidder paid 25pc of the premium and did not pay the remaining premium. The authority cancelled the plot on July 27, 2013.

The ex-bidder requested for the restoration of the plot which was accepted by the CDA board in its meeting held on June 11, 2015 on the payment of Rs226.095 million within 30 days.

The new audit report said that the bidder deposited Rs33.914 million on Aug 13, 2015 in addition to the earlier 25pc bid amount, hence a total of 40pc of the premium.

The report said that CDA’s concerned directorate refused to accept the payment with the observation that the entire amount shall be paid within 30 days from the date of intimation of restoration of plot without delayed charges.

However, the deputy director general land & estate CDA, being higher authority, ordered to accept the payment.

Upon depositing Rs33.914 million, the bidder went to court and got a stay order, which is still in force, the report said when in fact, the plot has been restored.

The audit report observed that applicant was provided undue benefit and favour of Rs27.840 million due to non-forfeiture of 10pc of total premium as the bidder had failed to deposit the entire amount as per acceptance letter and restoration policy but the top management created the way for the bidder to hold the plot till the arrangement of remaining funds.

The CDA board in June 2017 restored the said plot. Sources said that the National Accountability Bureau is also probing this case.

A CDA officer defended the decision of the board, saying that matter was in litigation and that CDA had earlier accepted partial payment, so the board decided the matter “in greater interest of authority”.

Chairman Sheikh Anser Aziz, Member Estate Khusal Khan and Member Planning Asad Mehboob Kayani opted for restoration in the light of legal opinion described in para 9 of the summary and after examining all the pros and cons of the case, the remaining members of the board, Member Finance Dr. Fahad Aziz and Yasir Pirzada said that instead of restoring the plot, the CDA should go for a fresh auction.

The board had also directed for a well-defined restoration policy to be devised to deal with restoration cases with the inclusion of a clause that “payments in installments” will not be allowed in cases of restoration of plots, read the minutes.

When contacted CDA’s spokesperson Syed Safdar Ali said before that placing any summary before the board, the concerned wings complete all formalities. “Our board takes decisions after thorough discussions and in favour of interest of authority,” he said.

Published in Dawn, March 18th, 2019