Investment unfriendly: What the CDA giveth, it can taketh away

Aqs Gallery owners claim civic agency illegally forcing them out of business.

ISLAMABAD:

On October 21, addressing a gathering of business leaders at the US-Pakistan Business Council, Prime Minister Nawaz Sharif had invited Pakistani Americans to invest in the country.

A few days after the statement, a US couple of Pakistani origin who had invested Rs18.2 million in a project intended to promote cultural activities in the city in collaboration with the Capital Development Authority (CDA), made up their mind to leave Pakistan forever. The reason was the unfriendly and insecure investment environment and “harassment” by the CDA management.

It all started in October 2009, when in response to a CDA advertisement, The Gymkhana Private Limited participated in a competitive bidding process and won a contract to run facilities meant for the promotion of cultural activities at the Arts and Craft Village near Shakarparian.

In October 2010, the CDA executed the rental lease agreement and 10-year licenses were consequently issued to the firm. As part of the agreement, the firm was supposed to develop the patio, exhibition hall, art gallery and a design centre in the village.

However, possession of the site was only given to the firm in February 2013 due to ongoing CDA litigation with another private firm operating in the Arts and Craft Village. The firm started paying the agreed rent of Rs200,000 per month to the CDA besides depositing Rs1.4 million as a security deposit in two equal installments.

The art gallery — Aqs Gallery — was inaugurated by then-CDA chairman Tahir Shahbaz in March 2013. The firm spent Rs18.2 million renovating and developing the rented premises.

Between March and October this year, several exhibitions were held at Aqs Gallery. However, there were also reports that the firm had not been abiding by the terms of the agreement regarding commercial activities. Using the alleged agreement violations as justification, CDA officials, already unhappy with the gallery’s management, took action on October 25.

At around 9pm, a team headed by the CDA security director reached the site and demolished a kitchen, despite the fact that they were showed a court stay order granted to the management. The court orders were obtained by the management against any impending CDA action.

On November 1, the whole facility was sealed by the CDA.

Unmoved by the civic agency’s tactics, Mian Amir Masud, the father of Mohsin Masud of The Gymkhana, decided to fight a legal battle against CDA. Masud went to the concerned police station for registration of a First Information Report (FIR) against CDA officials. After the police refused to register a case, he moved a local court.

On December 2, after receiving the report of a commission constituted by the sessions court, the court ordered the Islamabad Police to register an FIR against five CDA officials including the director security. But the police, once again, refused to comply with court orders.

Meanwhile, CDA officials moved the Islamabad High Court (IHC), which on Wednesday granted interim relief to CDA officials by suspending the sessions court order.

The commission, appointed by the sessions court to dig out the facts in the matter, in its report observed that the CDA refused to acknowledge any agreement with the firm, however, “In the presence of a written and signed agreement, this version of CDA officials is totally false, wrong and ill-founded.”

The commission also said in its report that the firm was utilising the premises in accordance with the written terms and conditions.

CDA Spokesperson Asim Khichi said the IHC had suspended the sessions court order, but refused to comment any further, saying that the matter is sub judice. He added that the issue will be resolved in accordance with the law and provisions of the agreement.

Published in The Express Tribune, December 5^th, 2013.