During the last five years, the agency’s finance wing has received Rs17.4 billion on account of plots it sold in open auctions, according to an official of the finance wing. PHOTO: FILE.
City managers may find it convenient to sell valuable land to meet the civic agency’s expenditures, but money has not been flowing in as expected.
Capital Development Authority’s (CDA) made Rs4.6 billion in 2012-13 from the sale of 17 plots. During the last five years, the agency’s finance wing has received Rs17.4 billion on account of plots it sold in open auctions, according to an official of the finance wing.
But owing to a lengthy payment schedule spanning nine months previously in place, CDA has yet to receive billions of rupees in instalments for auctioned plots, particularly those disposed of in 2012 and 2013.
The installments are outstanding due to several issues including non-provision of promised civic facilities by the CDA. Also, by the end of 2012, the CDA board had shortened the payment schedule for some auctioned plots from 18 months to two months.
After the payment schedule was revised, bidders of commercial plots were asked to submit 25 per cent of the total price of the plot within three days and the rest of the amount in two installments of 45 per cent and 30 per cent each within two months.
Investors had complained against the stricter payment schedule and a number of successful bidders failed to submit their installments in the shortened time period of two months.
Previously, successful bidders of commercial plots were supposed to submit 25 per cent of the total cost of the plot within three days once their bid was accepted by the CDA board. They were liable to pay the remaining 75 per cent in three equal installments of 25 per cent every three months.
During the financial year 2011-12, CDA received Rs7.6 billion by disposing of 14 plots, while during 2008-09, it got Rs298 million from the sale of two plots. The agency received Rs3.4 billion in 2009-10 from the sale of 11 plots and Rs1.5 billion in 2010-11 for eight plots.
Published in The Express Tribune, September 4th, 2013.
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