CDA does not know who it leased prime land a decade ago: report

ISLAMABAD: The Capital Development Authority (CDA) had leased approximately 40 kanals of land worth billions of rupees to a fraudulent company 10 years ago, a local media outlet reported on Monday.

The company, FALCON ENTERTAINMENT INC went into litigation shortly after the deal was signed in 2010 via an amended agreement. Only the name of the witness is available in records, the name of the company’s representative is curiously missing.  The transfer of the land, in Rawal Lake Amusement Park, did not follow any public procurement rules. This revelation was made as the Supreme Court demanded a report detailing lease agreements the CDA had made for the park. CDA officers are aware of who owned the company but are hesitant to unveil the name as that person belongs to a major political party and controlled CDA affairs in the previous government.

“This is a mysterious case. In 2015 we cancelled the lease agreement with the company but there was no trace of the lease owner. No one contacted the CDA to submit the outstanding dues or complete other formalities. But some people from the company obtained a stay order from the local court, which is still intact” said CDA spokesperson Malik Saleem. The company has been declared as benami (Unnamed).
“Once the stay order is vacated, we can take back possession of the land,” said Director Environment Irfan Niazi.
The original file seems to have vanished and there is no noting of the case, he added.

The 2007 lease agreement with the company was not the only one as over 35 acres was also leased by the CDA but those followed due process. Those companies were required to pay Rs 10,000 per month per acre and share 5 per cent of their profits with the CDA, though that has not happened as most companies show fiscal losses.

CDA Chairman Usman Akhtar Bajwa and Member Planning Asad Mehboob Kayani, on the direction of the Supreme Court, will visit the site to obtain on-ground information on Friday.