- CDA continues to auction plots to generate revenue after every few months
ISLAMABAD: Capital Development Authority’s (CDA) Estate Management-II is yet to receive a payment of Rs5 billion against the auction of 35 commercial properties in Blue Area including plots, agro farms in Sectors G-Il, G-9, G-5, F-7, F-ll, F-10, E-12, 1-8, 1-12,1-16, D-12, a fruit and vegetable market in 1-11/4, orchard schemes and park enclave of different sizes given on lease during the period starting from 2007 to 2016.
The plots were sold subject to terms and conditions contained in the respective allotment letters and brochures of different auctions, Pakistan Today has learnt.
Audit observed during scrutiny of allotment files, auction ledger accounts and the decision of the CDA Board in meetings regarding acceptance or rejection of auction results that an amount of 5.8 billion was outstanding on account of premium against the lessee who failed to deposit the instalment of plots as per payment schedule.
It is pertinent to mention that according to condition No.2 (mode of payment), in case the bid is finally accepted by the CDA Board, the successful bidder will be informed accordingly requiring him to pay the remaining 60% of the premium in two equal quarterly instalments, first of which would be payable within three months from the date of issuance of acceptance of bid letter.
The bidder will be required to submit undertaking regarding payment of capital value tax (CVT) to the government in case imposition of the said tax by the government at any later stage, other duties i.e. advance tax and or charges, if any levied and payable on such transactions, will be deposited in the treasury or authorised branches of banks and submit receipts to CDA within 45 days.
In case of non-payment of the premium and taxes, after acceptance of the bid, the acceptance of the bid will stand withdrawn and 10% of the total price of the plot shall be forfeited.
According to the documents, fruitful efforts for early recovery by the CDA were not on record. A sufficient period elapsed after the auction held but CDA did not cancel the lease agreement due to non-payment of the premium of plots by the lessee.
Furthermore, the matter was discussed in the DAC meeting held in March 2017. CDA explained that out of 34 auctioned plots with remaining premium, only 4 plots are pending due to stay orders.
Two plots were cancelled due to non-payment of premium. Payments of 4 plots had been completely recovered, whereas the payment of six plots was not due yet. Rest of the cases were being processed for acceptance of part payment and sectoral development issues.
The cash-starved CDA has concluded its landmark three-day auction of commercial plots held at Jinnah Convention Centre earlier this month where it auctioned 22 plots worth over Rs7.48 billion. Barely five months back, the CDA had three days auction at Jinnah Convention Centre. CDA officials said that they have achieved their target and auctioned 29 plots worth over Rs7.10 billion rupees as the final outcome of the grand auction.
