Plots auction case: SC withdraws notice against its registrar

Tahir Shahbaz had rescheduled payment of instalments for a former senator.

ISLAMABAD:

The country’s top court on Tuesday withdrew a notice against its new registrar in plots auction case.

The newly-appointed Supreme Court registrar Tahir Shahbaz during his tenure as Capital Development Authority chairman had allegedly facilitated a former senator by rescheduling payment of instalments of three plots and also allowed five per cent rebate on the auction price to him.

A three-judge bench of the Supreme Court, headed by Justice Nasirul Mulk examined the matter whether transparency and fairness had been adopted or not in the auction of the plots which were allotted to former Senator Haji Saifullah Khan Bangash.

In response to the court’s notice, CDA counsel Afnan Karim Kundi submitted a statement on the matter and contended that the auction was fair and transparent since it was advertised, well attended and recorded; there was no pre-qualification and the civic agency board accepted only those bids which were above the reserved prices.

The counsel stated that the auction of commercial plots was held on November 20, 2012 and a committee, including three members of CDA board, supervised the auction and recorded on video.

The payment schedule notified in the auction brochure stipulated that the successful bidder shall, on issuance of acceptance letter, pay 25 per cent, after adjusting token money, within 72 hours; pay 45 per cent within 30 days and 30 per cent within 60 days.

The CDA had also agreed that the bidder would be entitled to 5 per cent rebate on 75 percent of payable amount if he opts to deposit that amount in full within 30 days of issuance of bid acceptance letter.

Bangash offered highest bids for three plots in G-11/3 (Economy Flats), E-11, northern strip (Medium Rise Apartments) and Blue Area, F-8/G-8 at that time.

Auction results were presented before the civic agency board which accepted the highest bids and the bidders were issued acceptance letters. Bangash was issued acceptance letters for the three plots on November 22, 2012 and he had to deposit the instalments of 45 per cent and 30 per cent on December 21, 2012 and January 21, 2013, respectively.

“The plots were found not to be unencumbered and CDA was not in position to give clear possession of those three plots; two plots viz Plot No.5, F-8/G-8 Blue Area and plot No.20, G-11/3 were encroached and a stay order restrained CDA to sell plot No.2, E-11. The bidder, due to that reason, held back 75% of the payment and was issued notice for cancellation on December 31, 2012. He agitated the issue on non-encumbrance and made the payment contingent to handing over of clear possession,” he stated.

It was also said that CDA was not in position to hand-over the possession of the plots, encroachments were removed and stay order was got vacated on January 21, 2013. Thereafter, the matter was placed before CDA board that since “onus of delay in payment is on part of CDA” to forward the payment schedule on original terms and condition but starting from the date of intimation of revised date. The board approved the proposal.

“Board decision was communicated to Haji Saifullah Bangash on March 22, 2013 whereby he had to pay 45% and 30% within 30 days and 60 days respectively; full payment entitled him to a rebate of 5% as per original terms of payment. Despite the above, the bidder failed to deposit the remaining premium and therefore offers were withdrawn and 10 per cent of bid amount was forfeited,” the counsel submitted.

Later on, Bangash challenged the board’s decision in Islamabad High Court but his plea was rejected. He again filed an appeal against the rejection of his plea in the apex court but his petition was again dismissed.

The SC, however, surprised that the CDA rescheduled the payments of the appellant and also allowed a 5 per cent rebate on the auction price. “We would like to look into the matter as to whether or not there was transparency and fairness in the said auction”, it added.

Published in The Express Tribune, March 26^th, 2014.