Cabinet proposes land auction

Housing and Works Division suggested using land to build apartments for federal employees

ISLAMABAD:

Cabinet members have opposed to rescind a presidential order and suggested that the prime land of Carlton Hotel, Karachi should be auctioned instead of building apartments for federal government employees.

The Housing and Works Division had sought approval of the cabinet to use land for constructing apartments for federal employees instead of auctioning. They argued while considering change in land use of Carlton Hotel, Karachi by Federal Government Employees Housing Authority (FGEHA).

The Housing and Works Division informed the cabinet that FGEHA had been established through an act of parliament and was working under the auspices of the Ministry of Housing & Works. The mandate of FGEHA was to provide affordable residential facilities to the federal government employees and other specified groups on no-profit no-loss basis.

In addition to the aforementioned mandate, FGEHA was also implementing the vision of the prime minister by ensuring optimal utilisation of state lands, which were currently underutilised. One such land parcel Carlton Hotel Karachi measuring 3.84 acres was situated near Cantonment Railway Station Karachi.

The land parcel was mutated in favour of the Ministry of Religious Affairs and Minorities in 1979 and was later on transferred to the Ministry of Housing and Works via a presidential order dated June 2, 1982 with directions to auction the said land.

The same was notified by the Ministry of Housing and Works dated November 22, 1995. It was submitted that a number of proposals for optimal utilisation of afore-cited land had been under consideration, one of these was Lifestyle Residencia Apartment complex, Karachi for which FGEHA solicited applications on first-come first-service basis in October 2017.

The first phase of the project consisted of 280 apartments on clear land measuring 2.07 acres for which applications were received from federal government employees along with membership fee. However, the project was yet to be initiated due to pending issue of change in purpose of land and land use.

Whereas, 1.77 acres of land was still under encroachment and a case was also pending in the Sindh High Court on that parcel of land.

Foregoing in view, FGEHA intended to initiate development of land parcel measuring 2.07 acres of land which was clear from all encumbrances in the first phase.

In the second phase, development would be carried out on the remaining land parcel measuring 1.77 acres, subject to the outcome of the court case.

In view of the above and to move further on the issue, the following proposals were submitted for consideration and approval of the federal cabinet.

The presidential order regarding auction of the said plot may be reviewed and cancelled. It further said that change in land use of the Carlton Hotel site should be mixed use of development comprising of residential and commercial land-uses.

It further proposed to change purpose of land of Carlton Hotel for lease to government employees and general public. The Housing and Works Division sought permission for execution of the project by FGEHA through its subsidiary management company.

During discussion, the adviser to the PM on parliamentary affairs pointed out that all presidential orders were protected under article 270A of the constitution and to cancel any would require legislation.

The minister for law and justice agreed and suggested that the proposal for cancelation of presidential order needed detailed legal scrutiny by the Law Division, in light of Articles 270A and 270AA of the constitution.

The Housing and Works Division secretary explained that the issue was much more complex as the previous government, without cancelling the presidential order, had invited applications on first-come first-service basis in October 2017. The shelving of project in favour of auction of land would open a floodgate of litigations.

The members were of the view that options needed to be explored which would deliver the best value for this prime land. It was suggested that a committee should deliberate and recommend the best available options, legally tenable, for consideration of the cabinet in the next meeting.

Published in The Express Tribune, June 30^th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.