CDA wins legal battle to retrieve Rs 3.2bn plot

Author: Muhammad Asad Chaudhry

ISLAMABAD: The Islamabad High Court (IHC) has dismissed a writ petition filed by Maqbool Associates levelling allegation of post bid change in the category of a plot number 6 in F-10 Markaz.

The Maqbool Associates was in High Court since March 2014 against the alleged change in category of its plot by Capital Development Authority (CDA). The petitioner by dragging city managers in litigation had bound the said plot, which resultantly stuck revenue of billions.

According to details, civic body had auctioned a plot measuring 11750 square yards at the rate of Rs 237,000 per sq. yard in March 2014. The said plot was purchased by M/S Maqbool Associates Private limited, against a sum of Rs 3.2 billion.

After the successful bidding, CDA issued a provisional acceptance letter to the buyer and asked him to submit the first instalment of Rs 506.95 million after adjustment of its advance amount of Rs 50 million.

The twist came in the case when the buyer, instead of paying his dues, approached IHC by filing a writ petition. The petitioner was of the view that he purchased the said plot in the category of mixed used commercial as per the civic authority’s broacher, but the CDA issued him a letter to construct luxury apartments only.

The buyer argued that the CDA committed fraud and changed the category of the plot from mixed use commercial to residential luxury apartments. He also prayed to the High Court to restrict the CDA to change the category of said plot and also direct the Authority to allot the plot to the petitioner according to terms and conditions available in the broacher.

Earlier, it was highlighted by the Daily Times in July 2016 that the Law Directorate of CDA is in a silent deal with plot owner as it is not seriously pursuing the case in court of law.

After appearance of this matter in lime light, the Law Directorate had changed the legal counsel of CDA Raja Adnan in this case and appointed Kashif Malik Advocate, who has a good reputation and he is considered as a professional and upright lawyer in the civic body.

Now, the Islamabad High Court has dismissed the aforementioned petition of Maqbool Associates after reviewing a CD presented before the court by CDA, in which it was provided that the participants of auction were duly informed about change in status of above referred plot at the time of auction.

The court in its decision declared that the contention of Maqbool Associates that status of said plot was changed after bidding process is not correct.

Sources inside the Estate Management Directorate has informed that after the court decision, the authority has cancelled the allotment of said plot from the name of Maqbool Associates. “The plot would be presented for re-auction after the approval of competent forum,” they added.

President Islamabad Builder Association, Chaudhry Naseer while talking to the Daily Times has said; “It is CDA, which itself leaves legal lacunas to benefit some blue eye persons. It is the duty of authority to first fix the responsibility on those who committed mistake of misprinting in Boucher.” He further said; “In my view and as per the market situation, the CDA would not receive a very high price of said plot in future.”

Although, the Maqbool Associates has not filed an appeal against the decision of Islamabad High Court so far, but it is matter of concern for the authority that how the things are being tackled.

The concerned circles are waiting to know that how CDA would conclude this matter and what would be the benefits or losses after re-auctioning of said plot for civic body.

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