ISLAMABAD: The Capital Development Authority (CDA) is considering cancelling all dubious lease agreements for land in Lake View Park to private firms at nominal rates.

The CDA in 2007 leased over 60 acres of land in the park area to commercial parties to run entertainment facilities. The lease agreements came up when the Supreme Court, while hearing a case regarding illegal construction in Banigala on Thursday, asked the CDA about the agreements it had made with several private firms.

The SC had asked the CDA whether it had adopted due process while leasing its land and asked the authority to submit a report in the next few of days.

Sources in the CDA said that in process of preparing the report, officials had collected old records and pointed out that due process was not adopted in several cases, and six firms were given leases without any competitions.

The CDA has leased its land to 18 firms at a flat rate of Rs120,000 per acre per year. That means the lessee pays Rs10,000 per month for each acre of prime land.

“While scrutinising the records, it transpired that 12 firms were given leases on the basis of expressions of interest in 2007 and there were some issues in these agreements. After three months, six more films were given leases of land without holding of competitions,” Environment Director Irfan Niazi said.

He added: “We are examining all the cases and the true picture will be placed before the apex court.”

CDA Member Planning Asad Mehboob Kayani, when contacted, said: “In all those cases where due process was not followed, we will cancel the lease agreements.”

Mr Kayani also holds acting charge as chief metropolitan officer of the Metropolitan Corporation, which has looked after the park directorate since the local government elections. He added that the authority would provide all the details to the SC.

Former member environment Syed Mustafain Kazmi, who served at the authority for 32 years, told Dawn: “Other than the lease rate being very nominal, the lease agreement is also not in the CDA’s favour. All lease agreements should be reviewed in the interests of the civic agency.”

He added that during his tenure as member, he had pleaded with the CDA board to review the lease rates but the process could not be carried out due to political pressure.

“Apparently, it seems these agreements were not made in a transparent manner,” he said.

According to CDA documents, the authority in 2007 leased 10 acres in Lake View Park to the company 2F2F – owned by Hassan Humayun – at Rs120,000 per acre per year for 15 years.

The CDA leased its remaining 10 sites for nearly the same rate.

The same year, the CDA leased 25 acres to ESP Initiate, owned by Mohammad Maalik, at Rs120,000 per acre per year for 15 years. Another company called Trendy was leased 1.24 acres for 15 years.

Battle Field, owned by Atif Rafi, was leased 1.83 acres for 15 years, while ABS Progressive was leased 6.53 acres. The Rock was leased 1.5 acres for 30 years and the Horse and Horseman was leased 10 acres for 15 years.

Private companies such as F-1 Track, Development Aid and Revive Entertainment were also given 15 year leases, while Fun and Joy owned by Malik Aizaz was given a lease of 30 years.

Published in Dawn, February 26th, 2018