Daily Times

ISLAMABAD: After almost a decade of closure, an important asset of non-gazetted employees of the CDA is once again ready to generate revenue.

Today, the Capital Development Authority (CDA) is going to hand over the possession of a petrol pump site located at Embassy Road, G-6/4 to the highest bidder at the rent of Rs 2,178,000 per month.

During the early 70s, the Staff Welfare Committee (SWC) purchased two sites for petrol pumps, one at Embassy Road, G-6/4 and the other at F-6/1, Islamabad.

In 1973, the site of a petrol pump at Embassy Road G-6/4, was rented out to S.M. Ismail for a period of 30 years at the rate of Rs. 1000/- per month for the first 15 years and an increase of 20% rent for the second term of 15 years.

The tenant before the expiry of its rent agreement applied for extension of the lease period in 1999, but it was rejected by the CDA and it issued a notice to vacate the site in 2002.

But, instead of vacating the site, he decided to drag the authority in courts and filed a civil suit with the rent controller in the lower judiciary and then approached the High Court, which decided the case in favour of the tenant and asked him to submit a rent Rs 100,000/- per month. The court also extended the lease for a further period of 30 years with an increase of 20 % rent after fifteen years.

However, the civic body challenged the said orders in the Supreme Court of Pakistan. The apex court finalised the matter in favour of the CDA and set aside the proceedings of the High Court in 2006.

The possession of the said site was taken over by the SWC in the presence of the Senior Special Magistrate and since then the petrol pump is closed.

In 2015, fresh bids were invited to rent out the said plot by the CDA. A total of nineteen bids were received amongst which the highest one was Rs. 2,178,000/- per month from M/S Muhammad Waris.

After the completion of the bidding process, the matter was once again stalled and resurfaced in the CDA Board in April 2016. The Board directed the SWC to dispose of the said plot on merit basis.

Now at the end, completing the cordial formalities, the management is going to hand over the possession of the said petrol pump to the successful bidder for the next ten years, which will be further extendable for another term of ten years. The successful bidder will submit one year’s rent in advance while the amount equal to three months’ rent will be a security deposit to the civic body.

The SWC is headed by Director General Administration while the representatives of the Finance, Audit and Workers Union are its members.

The major source of income for this committee is only the rent of the aforementioned two sites of petrol pumps and rents from few shops while nominal charges have also been deducted from all the employees of CDA under the head of Staff Welfare Fund. Only two compensations are being offered to the CDA employees from grade 1 to grade 15 from this fund, which includes Rs.30,000 compensation in case of death during service while Rs.25,000 are for purchasing artificial limb or arms.

Although, it is a positive development that one of the major source of income for the assistance of poor employees is going to be revived, but at the same time the other site of the petrol pump located at F-6/1, Islamabad needs the attention of higher ups, which is also rented out on less charges amounting to around Rs.200,000 per month. The Chairman CDA and Mayor of Islamabad Shaikh Ansar Aziz while talking to Daily Times said: “We know that the second site is also rented at a very low rate as compared to the market, but its lease period has not ended yet.” “The authority will definitely take measures to enhance the rent of that site .”