Violation of rules: PHC cancels lease of cattle market, slaughterhouse
Additional advocate general says 33-year agreement is illegal
Peshawar High Court. PHOTO: PPI
PESHAWAR:
The Peshawar High Court has cancelled a 33-year lease of a cattle market and slaughterhouse that was awarded by the Town-I administration to an individual in 2003 in violation of rules. The court also ordered the administration to advertise the tender within a month.
The bench, comprising Justice Nisar Hussain and Justice Waqar Ahmad Seth, passed the order on a writ petition filed by Malik Muhammad Masood through his lawyer Aminur Rahman.
When the hearing commenced, petitioner’s counsel said there was no cattle market and slaughterhouse in Town-I when Peshawar was divided into four towns.
He added the town had no land of its own. An advertisement was published in a newspaper which stated only residents of the town who own land should apply for the tender.
Rahman said the closing date for the auction was October 2002. However, the contract was awarded to a person who had no land of his own.
“Waheedullah, who was awarded the contract, rented land from Abdur Rauf at Rs50,000 per month in March 2003,” he said. “He obtained the lease of the tender after several months.”
He said the administration entered into a partnership with Waheedullah and a 33-year lease was signed. Under this agreement, Waheedullah would receive 85% income while the remaining amount would be paid to the town.
“The contractor has been paying Rs2.6 million per year to the town,” he said. “[Meanwhile], the petitioner has offered to pay Rs70 million annually.” He said the lease was causing losses worth billions of rupees to the national exchequer.
Waheedullah’s counsel refuted Rahman’s claims, saying cattle markets and slaughterhouses in other towns were given on contract at Rs0.4 million to Rs0.5 million while Town-I was earning Rs2.6 million through similar contracts.
Justice Seth said the petitioner was offering Rs70 million for the lease. At this, the respondent’s lawyer replied that he should have come through proper channels if he was interested in obtaining the lease.
Justice Hussain asked the counsel if Waheedullah was eligible to obtain the contract and whether the town administration had verified ownership of the land.
He said, “It was mentioned in the advertisement that only those who own land should apply. How many people who have their own land participated in the process?”
The counsel replied Waheedullah was awarded the tender as no one had participated in the auction. Waheedullah’s second counsel said the contract was awarded in 2003 and it was challenged in 2013. He said the contract should be dismissed. The bench then asked the Additional Advocate General Rabnawaz Khan about his opinion.
The additional advocate general replied that it was not mentioned anywhere in the advertisement that the cattle market and slaughterhouse would be leased for 33 years. In addition, the executive power was given to Waheedullah.
He added such contracts could be awarded for few months or for a year, therefore leasing them for 33 years seemed to be engineered. The bench asked Rabnawaz whether the lease was illegal. He said the lease was illegal.
After hearing the arguments, the bench cancelled the lease and ordered the Town-I administration to advertise the contract within one month.
Published in The Express Tribune, May 6th, 2016.
The Peshawar High Court has cancelled a 33-year lease of a cattle market and slaughterhouse that was awarded by the Town-I administration to an individual in 2003 in violation of rules. The court also ordered the administration to advertise the tender within a month.
The bench, comprising Justice Nisar Hussain and Justice Waqar Ahmad Seth, passed the order on a writ petition filed by Malik Muhammad Masood through his lawyer Aminur Rahman.
When the hearing commenced, petitioner’s counsel said there was no cattle market and slaughterhouse in Town-I when Peshawar was divided into four towns.
He added the town had no land of its own. An advertisement was published in a newspaper which stated only residents of the town who own land should apply for the tender.
Rahman said the closing date for the auction was October 2002. However, the contract was awarded to a person who had no land of his own.
“Waheedullah, who was awarded the contract, rented land from Abdur Rauf at Rs50,000 per month in March 2003,” he said. “He obtained the lease of the tender after several months.”
He said the administration entered into a partnership with Waheedullah and a 33-year lease was signed. Under this agreement, Waheedullah would receive 85% income while the remaining amount would be paid to the town.
“The contractor has been paying Rs2.6 million per year to the town,” he said. “[Meanwhile], the petitioner has offered to pay Rs70 million annually.” He said the lease was causing losses worth billions of rupees to the national exchequer.
Waheedullah’s counsel refuted Rahman’s claims, saying cattle markets and slaughterhouses in other towns were given on contract at Rs0.4 million to Rs0.5 million while Town-I was earning Rs2.6 million through similar contracts.
Justice Seth said the petitioner was offering Rs70 million for the lease. At this, the respondent’s lawyer replied that he should have come through proper channels if he was interested in obtaining the lease.
Justice Hussain asked the counsel if Waheedullah was eligible to obtain the contract and whether the town administration had verified ownership of the land.
He said, “It was mentioned in the advertisement that only those who own land should apply. How many people who have their own land participated in the process?”
The counsel replied Waheedullah was awarded the tender as no one had participated in the auction. Waheedullah’s second counsel said the contract was awarded in 2003 and it was challenged in 2013. He said the contract should be dismissed. The bench then asked the Additional Advocate General Rabnawaz Khan about his opinion.
The additional advocate general replied that it was not mentioned anywhere in the advertisement that the cattle market and slaughterhouse would be leased for 33 years. In addition, the executive power was given to Waheedullah.
He added such contracts could be awarded for few months or for a year, therefore leasing them for 33 years seemed to be engineered. The bench asked Rabnawaz whether the lease was illegal. He said the lease was illegal.
After hearing the arguments, the bench cancelled the lease and ordered the Town-I administration to advertise the contract within one month.
Published in The Express Tribune, May 6th, 2016.