‘Illegal measures’: IHC stays auction of three hotel plots

High court has asked CDA chairman to submit reply

ISLAMABAD: The Islamabad High Court on Friday stayed auction of plots for three upcoming hotels with directions to the Capital Development Authority (CDA) chairman to file comments in the case.

Justice Shaukat Aziz Siddiqui granted stay and directed CDA Chairman Maroof Afzal to submit a reply to the court before the next hearing.

Hafiz Arfat Ahmad has approached the court challenging the auction of three plots, scheduled to take place on November 16 and 17 at Jinnah Convention Centre. He has made CDA chairman and director estate management-II as respondents.

The petitioner has called into question the ‘illegal process’ initiated by the respondents whereby they, in collusion with some group, advertised in various newspapers three luxury hotel sites located at prime locations of Islamabad for sale while changing the Floor Area Ratio (FAR) in a very generous manner.

While requesting the court to strike down the order, he said, the process initiated by the respondents was bound to cause colossal loss to the public exchequer. He apprehended that plots auctioned in hotel category would be used for commercial activities and severely damage public interest.

The advertisement unambiguously mentions that CDA presents three sites for luxury hotels. The brochure published by the respondents, however, mentions therein that 20 per cent of the covered area can be used for commercial purpose, he maintained.

“Such an addition is nothing but to extend undue advantage to the blue-eyed persons who are behind this move,” he said. Had it been mentioned in the advertisement, he said, it would have attracted many investors and resultantly the CDA could have earned more revenue.

The advertisement conveys that 1:12 shall be the FAR for the plot located at the prime location of Islamabad. The maximum FAR fixed by CDA for similar auctions was not more than 1:4 and 1:5, he said.

Ahmed said that FAR for the [under-construction] Grand Hyatt Hotel at the southern end of Constitution Avenue was 1:4 and similarly for a skyscraper located in Blue Area, the said ratio was 1:5.

“It would be impossible for CDA to provide amenities/utilities to the skyscraper they are planning to build on the site located in Blue Area,” he said.

Previously, CDA auctioned a plot for a hotel but the successful bidder instead of constructing a hotel built apartments on a portion of the plot. The owners, in some cases, have not even started the construction of the hotel.

In a report submitted before the Supreme Court, CDA has disclosed that there are at least 1,695 examples of non-conforming uses in the capital. Instead of making immediate arrangements to extend the commercial activities at the main business centre, the officials sitting at the helm of affairs in the civic agency thought it more appropriate to present three big sites for luxury hotels and that too at the prime locations of the capital, he stated.

Requesting the court to set aside the advertisement, he prayed the court to declare the proposed auction of three plots a violation of articles 18 and 25 of the Constitution besides being in breach of Islamabad Land Disposal Regulations 2005 and the guidelines issued by the Supreme Court.

It is further prayed that strict legal (both departmental and criminal) may kindly be ordered against the responsible CDA officials, he stated.

Published in The Express Tribune, November 14^th, 2015.