KARACHI: The Sindh High Court on Wednesday directed the city administrator to identify 25 properties of the Karachi Metropolitan Corporation (KMC) to sell since a proposed special grant of the provincial government would not be sufficient to settle the dues of its pensioners.

A two-judge bench headed by Justice Nadeem Akhtar also directed a committee headed by the Sindh chief secretary to file its report on Dec 22 about a one-time grant to KMC for settlement of the dues of KMC pensioners.

It observed that the post-retirement benefits of KMC’s retired employees was Rs4.246 billion and could not be settled by the proposed monthly grant-in-aid or the provincial government may give a one-time special grant.

Therefore, the bench while observing that the only option left was to sell the assets of the KMC directed the administrator to identify at least 25 properties from the list placed before the bench.

The bench was informed that the committee, constituted on its order to explore the possibilities of resolving the issue, met twice and proposed that the special monthly grant-in-aid of Rs430 million being given to KMC should be enhanced to Rs600m.

The KMC also submitted the list of its immoveable properties including bungalows and apartment in posh areas of the city, which were in the possession of its officers.

Sindh govt has approved Rs500m bailout package for KDA

The bench directed the local government secretary to verify the ownership of such bungalows and apartments and submit a report on the next hearing.

It was further pointed out that the KMC also owned 250 beach huts in Hawkesbay. However, the lawyer for the KMC submitted that all leases of huts had recently been cancelled.

Several retired employees of the KMC moved the SHC against non-payment of their post-retirement benefits.

Rs500m grant for retired KDA employees

The provincial authorities also informed the same bench that the Sindh government had approved an amount of Rs500m as a one-time grant/bailout package to settle the dues of retired employees of the Karachi Development Authority.

The finance and local government secretaries asked the bench to direct the KDA to follow seven recommendations that had been made after receiving the bailout package.

The officials of the provincial government as well as the KDA sought reasonable time to finalise the strategy for utilisation of the package as well as the amount to be realised by liquidating the investments of KDA by selling its properties.

The bench directed both the secretaries and KDA officials to file their reports by Dec 17.

The bench passed these directives on a set of petitions moved by retried employees of KDA seeking their post-retirement dues.

Published in Dawn, December 17th, 2020