FAISALABAD, July 22: Railways authorities through a shabby deal have empowered an estate developer firm to sell and develop a commercial plaza and shops on 37 kanals of their land in the downtown. According to the information gleaned by this correspondent, the railway highups had adopted the way of ‘negotiation’ and leased out its precious piece of land at the railway station intersection without inviting open tenders and public auction.

The land was leased out to a so-called ANZ Consortium Private Limited, comprising M/S Ajmi Private Limited and Nopawong Construction Company Limited, Thailand, and allowed it to remove over a century-old railway rest house.

Railway authorities had empowered Ajmi Private Limited to develop a six-storey building with 74 shops. The land was given at a throwaway price of Rs3 million per kanal as against the market value of Rs30 million per kanal.

The firm was also allowed to plan, design, finance, construct, and market the project and further lease and sell out shops and offices without prior approval of railway authorities.

The site had been leased out to the party on 99 years for Rs111 million at the rate of Rs3 million per kanal. The contractor, according to the agreement, was required to pay the land cost.

No other payment was to be made till 50 per cent of the cost was reimbursed to the railways. After realization of that sum, the remaining amount of sale proceeds had to be shared by both the bidder and the railways on a prorate basis. This condition, however, could not be fulfilled owing to non-commencement of the project.

Likewise, it was required to raise a prototype structure on the project site for attracting prospective buyers and to start booking of shops after eight months and complete the sale of shops and space of the tower within two years. However, no headway could be made for lack of development of the tower.

Developers had undertaken to develop 72 shops on all three floors in addition to six storeys of the tower at a cost of Rs384.970 million which was to be met through the sale of shops.

Sources said the Ajmi Private Limited firm developed differences with its partners and could not succeed in even launching of the project. However, the firm did demolish the historic rest house building and sell antique articles like doors, windows, fans and other fixtures.

Owing to the tussle and inner differences of the private firm, they claimed that partners secretly entered into a deal with another firm ZARECO Real Estate Dubai, UAE, with the connivance of railway officials through negotiations and surrendered the rights in favour of the new firm.

Inquiries revealed that through an underhand deal, railway secretary and railway board chairman Malik Asif Hayat had given a general power of attorney in favour of one Ahmed Noor Muhammad Ali Al-Zarwani, the ZARECO Real Estate Dubai, UAE, managing director.

The power of attorney empowered him to prepare plans, sketches, drawings and designs of the commercial project on the railway land and make such contractual arrangements through proper sub-contacts, purchase orders, procurement of material or services, execution, work forming, part of the project in pieces or in toto.

He was also authorized to advertize the project through print and electronic media and market the shops on his own sweet will.

It may be mentioned that the land leased out to a private individual firm was owned by the Punjab government and railway authorities had no right to further lease out it to any individual or firm for any other purpose other than related to railways.