ISLAMABAD: Capital Development Authority (CDA) as per prevailing Building by-laws of four stories (Ground story plus three) were allowed at the time of original allotment of land to US Embassy, the cost of land was fixed accordingly eight hundred US dollar (equivalent to 83,864 Pakistani rupees) per square yard. It is worth mentioning here that the US Embassy build eight stories, however, according to the CDA by-laws for diplomatic enclave only four stories have been allowed so far, the civic authority at the time of allotment fixed the price to $800 US, so the cost of each story comes to $200 per square yard per floor ($800/ four floors). A high ranked official of a security agency, who requested not to be named, said, “the security agencies have serious reservations over the irregular construction of eight stories in diplomatic enclave; the very next to Red-Zone. The agencies have forwarded the report to PM House to halt this project on immediate basis; the construction of that high-rise building will harm the state’s security, monitoring and surveillance which may lead to hefty-loss,”- he added. As the CDA according to the Rule 19(iv) of general financial rules (Vol-I) provides that the terms of contract once entered into shall not be materially varied without the previous consent of the authority competent to enter into the contract so varied and as per the CDA by-laws for diplomatic enclave [not notified from any Government source] exist before 2008 include (i)90×240, (ii) Chancery embassy and other residences, (iii) 0:8:1, (iv) ground floor with additional three stories, (v) Up to 40% of the side area and (vi) front 30 feet; Rear 30 feet; Side 30 feet. According to laws, if US Embassy build four stories on the additional land measuring 41,140 square yard, rate of per square yard were stick to $800. But, without the approval of high-rise building structure from the competent authority, Prime Minister of Pakistan, the administration of US Embassy have build eight stories due to which the cost of per square yard is declined to $100 per square yard ($800 per square yard/ eight stories is equal to $100 per square yard per floor). Well placed sources in the civic authority claimed that all the process of allotment, approval of building structure, construction without the approval of PM and then by leveling against the venal officials of CDA; the authority naps sluggishly. An officer who requested not to be named revealed that the authority sustained the loss due to weak internal control. The authority failed to realize its due revenue in a climate of financial constraint and declining resource availability. It is worth mentioning that during the scrutiny of building plan of US Embassy at plot no .18, G-5 Islamabad. It has been observed by the authority that 8.50 Acre (41,140 Square Yard) of additional land was allotted to the embassy for thirty three year lease vide letter No. CDA/EM-II/26/(11)/2010/1452 dated 26th of February 2010 at the rate of US $800 per square yard for $32.919 million beside the payment of premium AGR at the rate of Rupees 2 per square yard per annum. An official of CDA said that the decision of action will be taken by the civic authority after getting the PM in confidence. When contacted, Member Planning Waseem Ahmed Khan refused to give his stance on this issue. When contacted, Director Building Control Section (BCS) Shafi Marwat told this scribe that the Member Estate had already wrote a letter to Chairman CDA in this regard and proposed the inquiry against the allegedly involved venal officials of the authority. Contact with US Embassy could not be made, when this scribe tried to take their stance on the matter again and again. It is worth mentioning here that PM House is also reluctant to take any step or action against the US Embassy due to the heavy-funding from the aforementioned embassy on the behalf of their state.