Daily Times

ISLAMABAD: The lack of a prudent policy and a nexus with property tycoons is causing a loss of billions of rupees to the CDA as the lease agreement of 982 plots has expired. Although, the civic authority can fetch billions by renewing the expired leases, but it has no policy in this regard.

According to details, the lease agreements of 982 plots including 407 commercial section plots, 345 industry section plots, 155 agro section plots and 75 government section plots have expired, but the lease holders did not contact the Capital Development Authority (CDA) for renewal, which struck the revenue of billions of rupees.

The expired lease includes plots of class three in Marakiz, shopping centres, petrol pumps, agro farms, I &T Centre and industrial plots. In routine, the authority allots any piece of land on the lease of 33 years extendable to two further terms. As per land disposal regulations of the CDA, the lease holder is bound to seek an extension from the Authority after the completion of each term, but the aforementioned figures show that a large number of expensive properties were being occupied by lease holders without renewal of the lease agreements.

A huge amount of revenue can be collected through the renewal of expired lease agreements as the lease holder is bound to pay extension charges at the time of the renewal of lease agreements. The city managers estimate a revenue loss of around Rs 2 billion due to the non-renewal of lease agreements for 982 commercial properties in Islamabad.

An officer inside the CDA has briefed on the reasons behind the non-renewal of lease agreements and said; “Most of the plot owners have built additional structures beyond permissible limits and in violation of the agreements they sign with the Authority.”

He said further; “After committing building bye law violations, the owners usually avoid to contact the Authority as they fear heavy fines by the CDA.”

In the past, the matter was also placed before the CDA board, when the estate management directorate had forwarded a summary with the aim of reducing the number of expired lease cases pending with the Authority aimed at retrieving billions of rupees in revenue. The summary suggested that the expired leases of commercial properties may also be extended where the owners have committed building violations. Such renewals were to be made conditional and the owners were to be asked to submit affidavits that they would voluntarily remove or address all building violations on their respective properties within 30-day of the renewal of their agreements with the CDA.

In response, the CDA board had turned down the summary proposing a one-time waiver of rules penalties regarding the extension of expired lease agreements for hundreds of commercial properties. The board members are of the view that by giving such relaxations, the civic agency just gives violators a way to sell their properties without any loss or fear of action, whereas such a practice will set a bad precedent for the future. An insider while talking to Daily Times said; “The higher ups of the CDA are reluctant to take strict action against those, who do not seek renewal of their expired leases because the properties in question are owned by big property giants.” He said further; “The Authority should adopt a clear cut policy in this regard and allow the renewal with building bye law violations or otherwise it should cancel all the expired lease properties.” Daily Times has learnt that some of the leases are lying expired for the last 20 years, but the Authority has done nothing so far against these defaulters. The city managers only published an advertisement in the newspapers in 2014 and asked the lease holders to seek their extension. The CDA can receive billions of rupees by devising a workable policy to renew the expired leases whereas it can also enforce building bye laws in letter and spirit.