ISLAMABAD, Dec 4: The housing ministry has sought over Rs200 million from the government to reimburse to the affected people of the Islamabad New City (INC), a mega-housing project launched in Zone-IV of the federal capital.

A spokesman for the ministry, Shahid Hamid, told Dawn that after a long time concrete steps were being taken to reimburse the amount paid by the applicants for plots in the first phase of the project launched by the National Housing Authority (NHA).

The official said a summary had been sent to the Prime Minister Secretariat for allocation of the amount.

The summary, he said, had been vetted by both the law and finance ministries.

He said the housing ministry had completed all necessary work required for reimbursement, but it was still waiting for the amount.

He said Prime Minister Zafarullah Khan Jamali was likely to approve the summary after Eid and the process of reimbursement would start soon.

The Islamabad New City project was launched in 1996 and over 5000 people applied in both phases of the project. But, the amount was misappropriated and the project was closed. Since then, the applicants could not get their money from the NHA.

Responding to a query, the official agreed that the money deposited by the applicants with the NHA had been misappropriated and the official concerned was taken to task.

The second phase of the project was being dealt by the Capital Development Authority (CDA) and the authority had reimbursed the amount to some 1,900 applicants. However, more than 3,000 applicants are still awaiting the return of their money.

The money deposited in the second phase was Rs162 million while a sum of Rs300 million was deposited with the NHA for the first phase.

A source told Dawn that Rs300 million collected by the NHA had been embezzled, as a result of which the NHA was unable to return it.

“Although the housing scheme had two separate segments, it was one project and the applicants of the first phase should also be reimbursed,” some of the applicants demanded.

“If any government department is corrupt and misappropriates people’s money, it is not the fault of the innocent people who were made to suffer,” they said.

They appreciated the performance of the CDA for keeping the people’s wealth intact for six years and reimbursing it through the Muslim Commercial Bank (MCB).

The applicants were of the view that it would be unwise and counter productive on the part of the government to have two different disbursement policies in relation to the same project and the same scheme.

“All affected people deserve equal and judicial treatment,” they added.

The applicants also demanded that the National Accountability Bureau (NAB) should probe into the failure of the project to restore the confidence of the people on government institutions and reimburse the rest of the amount of Rs300 million deposited by serving and retired government employees for seeking housing units.

The complainants also claimed for the mark up on the amount which was deposited some five years ago.