Delayed action in E-11: Two years on, CDA yet to resolve issues with former partner

The delay has halted development work and deprived agency of revenue.

ISLAMABAD:

Inaction in Sector E-11 is costing the cash-strapped civic agency billions in revenue. It is also delaying  the process of handing over possession of residential plots to their owners.

Even though the Capital Development Authority (CDA) has managed to vacate a cooperative housing society’s court order that had stayed development in Sector E-11, it has done little to resolve outstanding issues with the former partner which had a stake in the land.

CDA had offered 500 square yard residential plots in Sector E-11 in 2011. The price of each plot was estimated at Rs18 million and those who were allotted plots were asked to submit a down payment of Rs4 million. Since then, litigation initiated by Multi Professionals Cooperative Housing Society (MPCHS) and the original landowners has led to a halt on development in the northern strip of the sector.

According to CDA’s layout plan for 54 acres in Sector E-11, 47.6 kanals are reserved for residential plots, 112 kanals for high-rise and medium-rise apartment buildings, 29.8 kanals for commercial area as well as for education and healthcare facilities and parks. An estimated Rs8 billion can be generated from the sale of this land, according to CDA’s Estate Wing. The authority has so far disposed of 58 residential plots.

The only obstacle to development is prolonged litigation owing to non-payment of outstanding dues to MPCHS that had developed the land under a joint venture with CDA. The joint venture was annulled by the Supreme Court in April 2011 which had directed CDA to take over the project and pay back the amount the cooperative housing society had spent on development.

Documents available with The Express Tribune show that the CDA board in June 2011 constituted an eight-member commission headed by former president Islamabad Bar Association Haroonur Rasheed to ensure transparency and impartiality in adjudication of MPCHS’s claim in light of the apex court’s judgment. The commission recommended Rs1.3 billion as compensation which the CDA board approved last February, subject to availability of funds. As CDA is in a financial crunch, it was decided that the cooperative society would be given a plot equal to the amount of debt.

CDA held an auction of commercial plots in May 2012 in which MPCHS submitted the highest bid amounting to Rs1.335 billion for plot No.56-D, Blue Area and was declared successful. MPCHS approached CDA to adjust the payment for the plot against their pending claim and asked for an allotment letter. The CDA board in August 2012 decided to seek its legal adviser’s opinion in response to the claim. Since CDA accepts its liability there appears to be no issue in setting MPCHS’s claim against the plot, stated the legal adviser.

Board members were apprehensive, however, that CDA would continue to face hurdles from litigants after settling MPCHS’s claim and wanted an assurance that cases against the agency filed by the original landowners would be withdrawn. A five-member committee headed by then member finance, comprising of members estate, environment, planning and chief legal adviser was constituted last August to discuss the issue and submit a report within 15 days.

After six months the issue is yet to be settled. But when contacted, CDA Chairman Tahir Shahbaz said, “The issue is almost resolved and payment will be cleared within a month.”

Published in The Express Tribune, March 20^th, 2013.