CDA did not recover Rs640m in outstanding property taxes, audit report finds

Updated September 18, 2019

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The Capital Development Authority did not recover Rs640 million in outstanding property taxes, according to the audit report for the 2018-19 fiscal year. — Photo by Mohammad Asim/File
The Capital Development Authority did not recover Rs640 million in outstanding property taxes, according to the audit report for the 2018-19 fiscal year. — Photo by Mohammad Asim/File

ISLAMABAD: The Capital Development Authority did not recover Rs640 million in outstanding property taxes, according to the audit report for the 2018-19 fiscal year.

The report said that during the scrutiny of CDA’s revenue department’s accounts revealed that Rs380.4m in property taxes on residential buildings and RsRs260.1m on commercial buildings were outstanding up to June 2018.

“The total outstanding amount was Rs640.619 million,” the report stated, attributing the situation to weak follow-ups towards the recovery of outstanding taxes.

Inquiry into BUP award in Majuhan Village recommended

“Effective steps were required at top management level for devising a comprehensive system of follow up of defaulter cases through additional deputy commissioner revenue,” the report said.

It said that the audit pointed out the outstanding taxes in October 2018; the authority responded that a default amount of Rs166m has been recovered and that the revenue directorate had been issued property tax bills followed by notices and show-cause notices to defaulting units to recover the outstanding sum. “The reply was not acceptable, because in support of reply the management has not produced any record of recovery,” the report said.

In another para, the report highlighted the authority’s negligence towards the recovery of Rs455.7m in rental charges.

The report said that from the records of the additional collector revenue, M/s Exceed (Sardar Mahmood Khan Mandokhail) held 79 acres of CDA land without a lawful title in Saidpur Village with effect from April 24, 2008.

“The CDA authorities calculated the rent of this land for Rs 455.744 million,” the report said. It said the final appeal of the defaulter was dismissed by a double bench of the Supreme Court on May 14, 2015.

“Instead of seeking decree for attachment of his moveable/immoveable property the case was referred to additional collector revenue, who issued a notice under Land Revenue Act 1967 on 5-10-2015.

“Recovery was not affected due to non pursuance and non maintenance of record in the collector office, thus, this resulted into non recovery of Rs 455.744 million,” it said.

“The matter was discussed in DAC meeting held in January 2019 wherein the member estate CDA admitted the audit point of view regarding non recovery and lack of coordination between additional collector and concerned directorate of CDA and directed to devise SOP for better coordination,” the report added, and recommended the recovery of the outstanding sum soon.

BUP award

The audit report noted that the CDA deputy commissioner announced an award for built up properties (BUP) regarding the acquisition of remaining property in Majuhan Village for Park Enclave I on July 20, 2016.

It observed that the award of 22 BUPs was announced, along with the allotment of residential plots.

“The above mentioned BUPs were in fact the encroachment, illegal construction after the announcement of original award dated 15-05-1972,” it said, adding that not taking possession of acquired land resulted in the loss of approximately Rs118m (22 plots at Rs5m plus the award sum of Rs7.8m).

The report recommended an inquiry into this issue.

Published in Dawn, September 18th, 2019