Daily Times

ISLAMABAD: The restoration of a commercial plot in Sector D-12 has caused losses worth millions to the Capital Development Authority (CDA).

“CDA Estate Member Khushal Khan has successfully managed to restore the plot even without taking delayed payment charges that are approximately over Rs 20 million. This has been done to help a blue-eyed builder,” an officer of the Finance Wing told Daily Times.

Plot 31, measuring 1,600 square yards, was first allotted to successful bidder Arshad Mehmood against a total amount of Rs 230 million in March 2013. However, after paying the first installment, the bidder declined to pay the remaining outstanding dues.

Subsequently, CDA cancelled the bid in July 2013 on the account of default of payment. The bidder then approached the civic body and requested to restore his bid.

The CDA Board, in its sitting held in June 2015, considered his request and granted restoration of the plot subject to the submission of delayed payment charges in addition to his original remaining payment.

He was given 30 days to submit a total of Rs 226 million. It included Rs 208 million as remaining amount and Rs 17 million as delayed payment charges. However, Raja Arshad once again defaulted.

Instead of paying the dues within a given time, he approached the civil court and got a stay order of maintaining status quo against the CDA.

Meanwhile, he paid the amount in multiple installments. However, the Estate Management Directorate stated that such payments were against the CDA policy. “As per the restoration policy, any party has a right once to request the civic body for restoration of allotment and if he/she again defaults whatsoever the reasons, no further request can be entertained by the authority,” a source inside the civic body said.

“The calculation of delayed payment charges by Finance Wing is necessary to restore any plot, which stands cancelled due to the default in payment.”

However, in a surprised move, Estate Member Khushal Khan forwarded a summary again for consideration of CDA Board in June 2017 and pleaded that the partial payments made by Arshad Mehmood be accepted and an allotment letter be issued to him.

The summary was opposed by CDA Finance Member Dr Fahad Aziz. He questioned how a plot could be allotted against a payment, which was due in 2015. He argued that the decision would cost a loss of millions to the public exchequer.

He was backed by Administration Member Muhammad Yasir Pirzada, who stressed the need to first get the stay order vacated and then to re-auction the plot. However, the board accepted the partial payments and issued an allotment letter with majority vote decision of 3-2. Planning Member Asad Mehboob Kiani voted twice as he also holds the charge of the CDA Engineering member.

Officials alleged that Estate Member Khushal Khan had received a heavy bribe for his role in the decision. The CDA Estate member was contacted several times, but he remained unavailable for comments. Public Relations Director Malik Mazhar Hussain said: “The decision has been taken by CDA Board, which is an apex forum of the civic body.”

Published in Daily Times,September 25^th 2017.