Subsidised profiteering?: Owners of several private schools guilty of violations

CDA to revise eligibility criteria for awarding school plots.


Danish Hussain December 01, 2014

ISLAMABAD:


The ownership of several schools that were given subsidised land by the Capital Development Authority (CDA) to set up campuses on, thereby vacating residential areas, have committed gross violations including selling the land at market rates.


The misuse of some 49 large plots given to private educational institutes in different areas of Islamabad has forced the Capital Development Authority (CDA) to revise its eligibility criteria for allotment of such plots.

The policy of awarding cut-rate plots to the owners of private schools was adopted in 2005 in an effort to gradually shift schools operating in residential areas. The move was largely a failure for the CDA, but offered a windfall for many owners, who sold their plots at significantly higher market rates.

Allotment procedure

According to the Islamabad Land Disposal Regulation 2005, plots earmarked for private educational institutes will be disposed of after inviting applications under criteria laid down by the CDA Board. Allotment of such plots is made on a ‘no profit-no loss basis’ in light of the recommendations of a six-member scrutiny committee headed by the CDA planning and design member.

The committee is supposed to take into account a number of aspects before approving these allotments including track record of the applicant, the number of students at the school, availability of funds with the applicant, fee structure, status of the sponsors and education level, teaching experience, previous level of schooling, affiliation with the federal directorate of education and registration with the income tax department.

The CDA’s finance wing would then calculate the rate of the premium for each plot depending on the plot size and the location.

Number of beneficiaries

Between 2005 and 2006, the CDA allotted around 32 plots totaling 43.25 acres to various private schools. Another 14 plots were allotted in 2007, while three more plots were handed out between 2010 and 2011.

The plots are located in sectors H-11, G-11, H-8, D-12, F-11, Diplomatic Enclave, Farash Town and Park Road near Chak Shahzad.

Violations

Though the plots were given to educationists who have successfully been running various educational institutes in the city, most of them misused the favour extended to them.

Some of the beneficiaries further sold the plots, despite the fact that they were non-saleable and non-transferable.

“As the plots were non-transferable through the CDA, the owners sold them using stamp papers through the Islamabad Capital Territory Administration channel,” said a senior CDA estate management official.

“The exact number of such plots is not known, but at least three have recently been brought to the CDA notice,” said the official, adding that a survey of such plots was under way and details would be made available within a week.

Meanwhile, some of the owners have still not cleared outstanding dues against them despite the passage of payment deadlines. “The outstanding amounts against them total over Rs50 million,” the official said.

Estate Management-II Director Mohammad Ali said that a fourth show cause notice had recently been served on all defaulters, asking them to submit their outstanding dues.

“In case of non-compliance, the allotments will be cancelled,” he claimed.

All owners who are allotted plots are bound under the ILDR-2005 to construct schools within one year, but several of them have not constructed buildings at their respective plots.

Ali said 10 allotments were cancelled due to such violations, but the owners then obtained stay orders from local courts.

No respite from non-conforming use

According to a 2013 report on businesses running in residential areas of Islamabad, around 378 houses were being used as educational institutes. Of these, 89 were in the I-series sectors, 105 in the G-series, 132 in the F-series sectors, and 52 in four model villages of Islamabad.

New policy

The CDA is considering introducing a new policy to allot such plots to educational institutes in the future. “The Federal Directorate of Education will be involved and consulted prior to making future allotments to avoid misuse of plots,” the official said, adding that work on the new policy would start soon.

Published in The Express Tribune, December 2nd, 2014.

 

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