Misleading figures: Probe against CDA officials ordered

CDA informs parliamentary panel that Rs9.5b in receivables stuck due to litigation

ISLAMABAD:

A parliamentary panel on Thursday ordered an inquiry into contradictory figures provided by city managers about auction of residential and commercial lands in the federal capital.

Members of the National Assembly Standing Committee on Cabinet Division were annoyed at what they said the “misleading figures” provided by the Capital Development Authority (CDA) and payment of a heavy amount to a single land owner as compensation.



“There are great difference and contradiction in existing and previous figures placed by the CDA before the committee over the issue [of auction of residential and commercial plots in the capital],”

Rana Hayat Khan chaired the committee meeting held to discuss issues related to the civic agency.

The CDA officials informed the panel that Rs9.5 billion receivables on account of sales of residential and commercial plots were stuck due to litigation and other reasons.

The amount in question is pending against almost 38 plots — three residential and 35 commercial — auctioned during 2013-14. But later the successful bidders moved courts for various reasons, the committee was informed.

In previous meeting of the committee held in the third week of December 2014, the authority had placed different figures regarding revenue generated by CDA since July 2008 through sale of commercial and residential plots and outstanding receivables.

“There is great disparity in numbers. Either previously report was false or the one placed before the panel today,” Khan said, while cautioning CDA Chairman Maroof Afzal to not take that prestigious forum [committee] lightly.

“I [will] kick off an inquiry into the issue. Who[ever] tried to mislead [the] committee through statistics will be fixed,” Afzal said before tendering an apology to the chairman of the committee.

CDA report on sale of land

According to CDA report, during July 2008 to June 2014 the authority auctioned 2,315 plots — 2,171 residential and 144 commercial — for Rs52.23 billion. Of Rs52.23 billion, the authority had so far received Rs38.5 billion, while instalments amounting to Rs4.23 billion were in process.

Regarding pending Rs9.5b, the committee was informed, “in most cases investors moved courts on [the] grounds that promised facilities were not provided on auctioned plots”.

Afzal informed the panel that the CDA mainly relied on sale of land to meet its expenditures.

Affected locals of sectors H-16, I-17

Payment of compensation to affected owners of sectors H-16 and I-17 was also discussed at the meeting.

The CDA informed the committee that award of various villages in these sectors was announced in 2009 and provision of cash compensation to some 5,719 affected locals was promised.

So far, Rs2.1 billion compensation had been distributed among 1,284 affected locals, while 4,435 were yet to be compensated.



Afzal said that the process of payment was delayed due to tense situation created by big land owners of the two sectors, as they considered Rs830,000 per kanal compensation insufficient.

It rose eyebrows at the meeting, when the CDA chairman said that in 2009 soon after the announcement of award, cash compensation of over Rs1 billion was given to a single individual, who was a famous property tycoon, within a matter of just one day.

Khan directed secretary Cabinet Division to constitute a committee consisting of high-ups of the division, the CDA and National Assembly Secretariat to probe that how payment of Rs1 billion was made to a single person, while small land owners were running pillar to post to get their promised amount.

“A committee has been formed having representation from locals to weigh the option of replacement of cash compensation with land sharing formula,” MNA Malik Abrar said.

Land sharing formula provides allotment of plots at the same sector instead of cash compensation in lieu of acquired land.

Published in The Express Tribune, January 9^th, 2015.