‘Powerful’ property traders boycotted the auction. PHOTO: STOCK IMAGE
On the second day, the Capital Development Authority (CDA) was left red-faced after a number of lucrative commercial plots at good locations received no bids. This was due to a boycott of the auction by the city’s biggest property tycoons.
A similar situation was seen on the first day, when only one plot was sold out of two dozen up for grabs.
The CDA land auction aimed to generate revenue to cover staff salaries for roughly 18,000 employees.
“It shows how a select group of powerful real estate investors have, over time, attained absolute power due to the incompetence of the city managers. Now they can completely hijack the auction process, which is the only source of income to meet operational expenditure of the department,” said a senior CDA officer who asked not to be named.
He said one cannot place all the blame on real estate investors, as, over the years, the authority had lost its writ.
Islamabad Developers Association (IDA), which represents the real estate developers, had earlier sought the PM’s intervention through newspaper ads after the CDA published its auction advert.
IDA claims that the civic agency failed to provide electricity, water, sewage and other basic civic facilities at the auctioned plots, while accusing the CDA of dillydallying when it comes to necessary CDA planning wing approvals for commercial buildings.
On the other hand, the city managers claim the developers were lying. “They seek permissions for extra covered area in commercial buildings and other relaxations in building bylaws,” said a planning wing official.
In the past, the official said, such unlawful permissions were granted, but the incumbent management is resisting unwarranted pressure from property traders.
Published in The Express Tribune, June 17th, 2015.
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