Allottee repeatedly failed to pay in time, authority fails to impose delay charges. PHOTO: FILE
Plot No31, measuring 1,600 square yards, had been auctioned on March 26, 2013, at a rate of Rs174,000 per square yard. The total cost of the plot stood at Rs278.4 million.
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However, the bidder Arshad Mehmood paid Rs69.6 million as the first instalment comprising 25 per cent of the payment. The second instalment comprising 50 per cent of the payment was due to be paid on April 28, 2013, and the third instalment of the remaining 25 per cent was due on May 28, 2013.
Mehmood, after paying the initial 25 per cent, submitted an application stating that amenities such as electricity, sewerage, roads, and water supply were not available at the plot. Using the lack of amenities as an excuse, the bidder refused to pay the outstanding amount as per the schedule identified by the CDA.
He was issued a notice on May 13, 2013, for clearing outstanding dues against the plot. But when he failed to pay the money, the authority cancelled his plot on July 22, 2013, for defaulting on payment.
The bidder subsequently, wrote a letter to the CDA on August 30, 2013, and requested that the authority restore his bid and withdraw notice for the cancellation of the plot.
A summary was sent to the CDA Board for reviewing the request. The CDA Board finally took up the case on June 11, 2015, and decided to restore the plot in its original form once the bidder completes the remaining payment of Rs226 million.
The Mehmood was then told to deposit the restoration charges within 30 days. He was warned that if he failed to submit the money, the restoration would be withdrawn.
While the bidder failed to deposit any money within the 30 day period, he did submit a partial payment worth Rs33.9 million to the authority on August 13, 2015. He was supposedly exercising the option of payment through instalments under clause 4 of the Restoration Policy of 2014.
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However, the money was not only less than the required 40 per cent of the payable amount as listed under the policy, but it was also deposited 10 days late.
The accounting officer at the Estate Management -II directorate of CDA remarked that under clause 4(d), under which the plot had been restored, requires that the entire payment is made within 30 days from the day the allottee received the notice.
“The allottee had failed to deposit full payment within the prescribed period in the light of above Restoration 2014, part payment is not acceptable, being not in line with rules, policy,” the officer said.
Undeterred, Mehmood secured a stay order on the plot cancellation on December 9, 2015, from a court.
Subsequently, the bidder then furnished two pay orders worth Rs12.2 million and Rs.174.95 million on June 27, 2016. Later on February 21, 2017, he submitted another pay order of Rs5.03 million.
The Member Estate then prepared a summary, proposing two lines of action for CDA’s board to deliberate on. The first, not to accept the part payments without any delayed charges and for the bidder to withdraw his case in the court.
The second option was for the authority to cancel the offer of restoring the plot because Mehmood had failed to pay the dues within 30 days after the notice was issued.
Published in The Express Tribune, September 25th, 2017.
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