The CDA estimates revenue losses amounting to over Rs2 billion due to non-renewal of hundreds of lease agreements. PHOTO: FILE
After decades of patiently waiting for owners to approach the capital’s civic agency to renew their property leases, city managers have finally decided to take some initiative.
The Estate Wing of the Capital Development Authority (CDA) has decided to request the agency’s board to cancel the ownership of over 900 commercial properties in Islamabad.
The lease agreements of the properties expired years ago, but leaseholders, despite being served notices by the CDA, never turned up to renew them.
“A summary for cancelling the ownership of 980 commercial properties across Islamabad will be forwarded to the CDA board,” said Estate Management-II Director Mohammad Ali.
According to Ali, the decision was taken after the expiry of the time period specified in the final notices which were served on April 14. But many officials in the CDA believe the move is an eyewash.
A senior official of the estate management wing said the list contained a number of commercial properties whose lease agreements were cancelled some three decades ago, but the CDA had yet to take action.
Commercial plots are usually leased out for 33 years, extendable to two similar terms upon expiry. Lease agreements for the majority of commercial properties expired 10 years ago but leaseholders have yet to revalidate them.
Revenue loss
The CDA estimates revenue losses amounting to over Rs2 billion due to non-renewal of hundreds of lease agreements.
Ali said the amounts were piled up due to non submission of lease renewal fee, and delayed charges for non-renewal of agreements. This time CDA is serious about recovering millions in outstanding dues from leaseholders, he added.
Most of the owners did not contact the CDA for lease renewal as they had committed building violations at their premises, he stated. “To hide their wrongdoings, they prefer to not renew lease agreements.”
Agricultural farms and industrial units
According to documents with The Express Tribune, owners of 158 agro-farms situated in various schemes do not hold valid lease agreements.
Lease agreements of 37 industrial units in Sector I-9 are also expired, but businesses there are operating in full swing.
Industries and trade centres, shops
Some 67 industries and trade (I&T) centres are operating unlawfully as the owners have yet to renew lease agreements. An I&T centre is a commercial unit consisting of a number of shops.
According to Ali, owners of shops and I & T centres in various markets owe them the most, even more than farm owners and industrialists.”
Diplomatic Enclave and Industrial Triangle Kahuta
Owners of five commercial plots in the highly-fortified Diplomatic Enclave and of 12 properties in the Industrial Triangle Kahuta, have not renewed their lease agreements.
Published in The Express Tribune, June 10th, 2014.
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