ISLAMABAD, Aug 20 Supreme Court on Thursday adjourned the hearing of a case of alleged irregularities in establishing new Blue Area called Northern Strip in Sector E-11 till October 8 and did not raise any objection to the ongoing construction work on the project.

Three-member bench of the apex court headed by Chief Justice Iftikhar Mohammad Chaudhry adjourned the case when lawyer Khalid Anwar representing Capital Development Authority (CDA) sought some time due to some personal engagements, a senior official in the CDA told Dawn.

“When our lawyer asked the court that it had not directed, in its initial order issued on Aug 16, the CDA to stop the project therefore there is no bar on continuing the work on it, the court did not raise any objection,” the official said.

The CDA in partnership with a cooperative housing society, Multi-Professional Cooperative Housing Society (MPCHS) is developing the stretch of 54 acres in northern side of E-11 to turn it into a new commercial area on the pattern of Blue Area.

The project was initiated in March last year. Supreme Court took suo moto notice against the CDA after a news report on alleged irregularities in the project.

Under the agreement, the housing society has to get CDA's 54 acres land, located in northern side of Islamabad between Sector E-11 and Margalla Hills, vacated from encroachers, develop it with a cost of Rs190 million. Under the agreement, plots, to be carved out, would be shared by the two organisations at 43-57 per cent formula. The CDA is not spending even a single penny on the project but providing its land for it.

Northern strip commercial area is the first public-private venture in Islamabad being developed by Capital Development Authority and MPCHS. The project has been approved by the present and former chairman of the authority.

During the hearing six people sought the court's help saying their land had been acquired by the housing society without paying a single penny as compensation of their land. On this the court formed a commission to ascertain the ground realities and to know that how many people had been compensated.

The Capital Development Authority pleaded that no irregularity had been committed in the project as the contract was awarded after fulfilling all formalities. Three parties had participated in the bidding process. They were Golra Associates (GA), owned by MNA Anjum Khan, Multi-Professional Cooperatives Hosing Society (MFCHS) and Services Cooperative Housing Society (SCHS).

There is a fear that any action against the project, at this stage, could put over Rs1 billion belongs to the members of the cooperative society on stake.

The project which has been completed by 90 per cent of the project has been approved by three successive chairmen of the CDA and the boards headed by them. They were Kamran Lashari, Tariq Mehmood Chaurdhry and the present Capital Development Authority chief Imtiaz Inayat Elahi.