Daily Times

ISLAMABAD: The legal wing of the Capital Development Authority (CDA) is apparently unwilling and uninterested to efficiently pursue a litigation in the court of law to settle a dispute which has stuck an amount of around Rs.3.15 billion from 2014 onwards.

According to details, the CDA 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 total amount of Rs.3.2 billion.

After the successful bidding, the 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 successful bidder was also given time to submit the remaining Rs.3.15 billion in four instalments.

The story took a sharp turn when the buyer, instead of paying his dues in the CDA, approached the Islamabad High court 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 Authority’s broacher, but the CDA issued him a letter to construct luxury apartments only.

He stated that the CDA committed fraud and changed the category of the plot from mixed use commercial to residential luxury apartments. He prayed to the honourable high court to restrict the CDA to change the category of the plot and also direct the Authority to allot the plot to the petitioner according to the conditions available in the broacher.

The court stayed the said plot and restricted the Authority to take any adverse action against the buyer whereas it also directed the CDA to submit its reply on the matter.

The CDA’s counsel, in his reply, accepted that the terms and conditions of the said plot were misprinted in the broacher, but the auction committee announced the change in the category of said plot at the venue of the auction.

The CDA further claimed that the buyer was well aware of the fact that the category of the said plot had been changed by the Authority before taking part in the auction.

The authority sought a stay vacation from the court to re-auction the same plot. The court rejected the request and adjourned the case for a date in the office, whereas the CDA failed to seek a fixation of the case for hearing since September 2015.

Sources inside the CDA briefed Daily Times that if it was a blunder to misprint the wrong category against the plot or it was a conspiracy to provide benefits to any blue eyed person, the matter should be investigated thoroughly in both cases as it was causing a loss of billions to the Authority.

A well-placed source revealed: “The whole episode was the result of an under the table deal to benefit the buyer as the CDA did not grill those who misprinted the broacher so far.” He questioned further: “Why the legal department of the CDA is not working efficiently to settle the dispute.”

A former official of the Estate Management Directorate said: “The CDA should conclude the matter as soon as possible because the Authority will earn nothing in both cases — either the buyer loses his case or wins.” He also explained: “The buyer is in a win-win situation as if he win the case then he will use the plot for mixed commercial use, whereas if the decision goes against him then he will have to pay the price of two years, which will also benefit him as the rate of property was increasing day by day.”