A tainted restoration of a commercial plot in Sector D-12 straight contrary to the rules and regulations has caused a loss of millions of rupees to the Capital Development Authority (CDA).
“CDA Estate Member Khushal Khan to favour a blue-eyed builder successfully managed to restore said plot even without taking delayed payment charges, which are approximately over 20 million”, an officer of the CDA Finance Wing briefed while requesting not to be named.
The plot number 31 measuring 1600 square yards was first allotted to successful bidder named Arshad Mehmood against a total amount of Rs 238400000 in March 2013 however after paying the first instalment, the bidder had declined to pay the remaining outstanding dues.
Subsequently, CDA had cancelled his bid in July 2013 on the account of default in payment after completing the due process of law. After the cancellation of the plot, the bidder approached the civic body and requested to restore his bid. The CDA board in its sitting held in June 2015 considered his request and granted restoration of plot but subject to the submission of delayed payment charges in addition to his original remaining payment against the price of the plot.
He was given 30 days to submit a total amount of Rs 226095600 which was included Rs 208800000 as remaining amount and Rs 17295600 as delayed payment charges but Raja Arshad once again defaulted.
Instead of paying the dues within a given time, he approached the civil court and got a stay order of maintaining status quo against the CDA. Meanwhile, he paid the amount in multiple instalments but these were not accepted by the Estate Management Directorate by sighting that the payments were against the policy in this regards.
“As per the restoration policy, any party has a right once to request the civic body for restoration of allotment and if he/she again defaults whatsoever the reasons, no further request can be entertained by the authority”, a source inside the civic body commented by adding, “The calculation of delayed payment charges by finance wing is necessary to restore any plot, which stands cancelled due to the default in payment.”
However, in a surprising move, CDA Estate Member Khushal Khan forwarded a summary again for the consideration of CDA board in June 2017 and pleaded that the partial payments made by Arshad Mehmood should be accepted and allotment letter should also be issued to him.
The summary was opposed by Finance Member Dr Fahad Aziz, who was of the view that how a plot can be allotted against a payment, which was due in 2015. He argued that the decision will cost a loss of millions to the public exchequer.
He was backed by Administration Member Muhammad Yasir Pirzada, who stressed to first vacate the stay order granted to the bidder by the court and then the plot should be presented for open auction again as per the rules and regulations of the authority.
However, the board approved to accept the partial payments and issue allotment letter with majority vote decision of 3-2 in which Planning Member Asad Mehboob Kiani used double vote because he is also holding the charge of Member Engineering.
Circle concerned alleged that Estate Khushal Khan managed the whole scam in return for bribe received but the decision lost revenue of more than Rs 20 million of CDA.
The CDA Estate member was contacted several times but he was unavailable to respond whereas the Public Relations Director Malik Mazhar Hussain said, “The decision has been taken by CDA board, which is an apex forum of the civic body.”