ISLAMABAD: Yet another high profile housing scheme launched by the Capital Development Authority (CDA) hit a snag when a private land developer served legal notice on the civic agency.
The Multi-Professional Cooperative Housing Society (MPCHS) served legal notice on CDA for advertising a housing scheme ‘Margalla Retreat’ in Sector E-11 without resolving the issue of financial liabilities.
The development of Sector E-11 was given to the MPCHS in 2008, but CDA took over the project after the Supreme Court barred the civic agency from conducting public-private partnership in the scheme. The authority then decided to sale out the commercial and residential plots stretching over an area of 54 acres in northern strip of Sector E-11.
Meanwhile, MPCHS was allowed to claim its lawful remedy against the investment that had been made on the project and a “neutral” commission was formed by the civic agency to look into the matter.
The private housing society demanded Rs2.25 billion from the CDA for the investment it made in the project. However, the commission formed by CDA to resolve the controversy suggested an audit of the MPCH claim from an internationally-recognised audit firm on CDA’s expense, an official in the civic agency said. The commission comprises CDA officials, representatives from Islamabad Chamber of Commerce and Islamabad (ICCI) and Islamabad District Bar Association.
As the commission is currently investigating the case, CDA has no right to advertise housing scheme on the same land without addressing the grievances of the investor, the MPCHS notice read.
CDA Chairman Imtiaz Inayat Elahi confirmed the notice served by the private housing society. “However, the claim of Rs2.25 billion which they are making is a little too high and we are waiting for the commission’s findings in this regard,” Elahi said.
The Supreme Court which had earlier declared the public-private deal between the CDA and MPCH as illegal was also not approving of the amount claimed by the private body.
“It is unbelievable that such large amount were paid in cash. There was, so to say, no valid proof of payment furnished to our satisfaction. Thus, looked at from any angle, the transaction appears to be a sham deal. The whole exercise appears to be eyewash.”
Documents of the claim show, the housing society spent Rs920 million on getting 518.9 kanals vacated from adverse possession. Another Rs19 million were paid as commission to Rashid Mahmood Khan for vacation of the aforementioned land. Similarly, Rs240 million were spent on development works including roads, water supply, sanitary sewer system, drainage etc. The claim also included a huge amount of Rs410 million as financial charges.
The apex court in its detailed judgment had observed, “According to the agreements, huge sums of money running into millions of rupees were allegedly paid to encroachers. But, surprisingly, no details of payment, such as bank drafts, pay orders; cheques, etc. were given in the said agreements.”
Published in The Express Tribune, September 20th, 2011.
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