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Pakistan Property News: Residents slam DHA for imposing ‘hefty charges’

December 30th, 2010 Comments off

Pakistan Property News: Residents slam DHA for imposing ‘hefty charges’

Residents of the Defence Housing Authority have prepared a report against the DHA administration for demanding hefty “refurbishment charges” from property owners.

A joint report compiled by the Association of Defence Residents (ADR) and the Defence Society Residents’ Association (DSRA) said the DHA had supposedly imposed the “refurbishment charges” to recover Rs2.25 billion it spent on storm drains.

The DSRA estimates that the DHA administration may collect Rs10-12 billions under the head of refurbishment charges. It is far greater an amount than what the DHA claims it spent on storm water drains, the report says.

According to the residents, they cannot transfer their property or get a completion certificate unless they pay the refurbishment charges.

The report says that the DHA residents had termed the refurbishment charges illegal and unethical when it was imposed. “Former DHA administrator Brig Kamran Kazi, who had started work on the storm water drainage system, used to say that he was doing it as he felt it was the duty of the DHA as a developer of the area to have built this a long time ago. He never even mentioned that the residents will be sent a bill for the DHA’s negligence,” the report adds.

The residents say although all development work in developed phases of the DHA has been completed, the Authority continues to expand its presence and commercial activities.

The DHA had vowed in a court of law that it will not receive any financial support from any governmental or non-governmental organisation, except for what it has collected or collects from the DHA residents, the report says. “As per the DHA’s 2009 financial statement, the DHA spent more than one billion rupees under the head of salaries, wages and benefits.”

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Pakistan Property News: CDA auctions 13 commercial plots for Rs 1.281 billion

December 30th, 2010 Comments off

Pakistan Property News: CDA auctions 13 commercial plots for Rs 1.281 billion

ISLAMABAD: The Capital Development Authority (CDA) auctioned 13 commercial plots worth of Rs 1281.1 million at Aabpara Community Centre on Wednesday.

CDA auctioned 16 residential plots on Tuesday for Rs 246.1 million and the two-day auction enabled the civic body to get Rs 1.52 billion. The amount has met the target of the finance department. CDA successfully conducted auction of 13 commercial plots out of which six plots of different sizes located in the Marakiz Sector F-10, F-11 and D-12 were offered for auction. Whereas, five Class-III Shopping Centre plots in Sector G-11/1 and two commercial plots in Grain, Cloth and F&V Market, Sector I-11, were also offered for auction. Plot No 27 measuring 844.44 square yards (sq yd) in F-11 Markaz fetched the highest bid of Rs 4,20,000 per sq yd. A Class-III Shopping Centre Plot measuring 177.78 sq yd in Sector G-11/1 was auctioned at the highest rate of Rs 1,90,000 per sq yd. Plot No 9/B measuring 44.44 sq yd located at Fruit & Vegetable Market in Sector I-11 was offered for bidding at Rs 1,77,000 per sq yd.

According to sources, plot No 5-A/4 of F-10 Markaz was sold for Rs 75.6 million, plot No 10 of F-11 Markaz for Rs 168.7 million, plot No 26 for Rs 294.3 million, plot No 27 for Rs 354.4 million, plot No 5 of D-12 Markaz for Rs 109.3 million, plot No 6 for Rs 119.9 million, plot No 1-D of G-11/1 Class-III Shopping Centre for Rs 19.1 million, plot No 1-E at Rs 22.3 million, plot No 1-F for Rs 32.2 million, 1-G at Rs 33.6 million, plot No 1-H for Rs 25.1 million, plot No 29 of cloth market I-11/3 for Rs 19.5 and plot No 9/B of fruit and vegetable market I-11/4 was auctioned for Rs 7.7 million.

As per rules, the bidders have to pay 40 percent of total land cost within a week and the remaining 60 percent will be paid in two equal installments of three months. Four percent CVT will be imposed on all the commercial plots. Moreover, if a successful bidder fails to pay the above-mentioned amount, his deposited money will be confiscated.

This auction was supervised by Saeedur Rehman, Member Finance, while the auction committee comprised SM Farooqi, Member Estate, Abdul Jabbar Melano, Member Planning and Design, Deputy Director General (One Window Operation) Director Estate Management-I, Director Estate Management-II, Director Public Relations and Director Accounts. The committee’s recommendations would be submitted to CDA Board, which is the final authority to approve or disapprove any of the bids against these plots.

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Pakistan Property News: LDA grants building period waiver to Nazria-e-Pakistan Trust

December 8th, 2010 Comments off

Pakistan Property News: LDA grants building period waiver to Nazria-e-Pakistan Trust

LAHORE: The Lahore Development Authority (LDA) has given a 100 percent building period waiver for the second time to the Nazria-e-Pakistan Trust flouting its own decision taken in 2001 and making a mockery of all slogans of merit and rule of law of the Punjab government, Pakistan Today has learn.
The LDA extended the building period free of surcharge twice for a 40 kanal, 22 square feet plot number 20 at Block J/I and 3 kanal, 18 marla and 205 square feet plot number 27 to 31 at Block J/I in Johar Town to the Nazria-e-Pakistan Trust conditionally until 2011 for construction of the Aiwan-e-Quaid-e-Azam.
The extension was given in the LDA General Body meeting chaired by Lahore DCO Ahad Cheema at the LDA Office, Egerton Road on Tuesday. The Nazria-e-Pakistan Trust got the first 100 percent building period waiver for the plots starting in 2001 and expiring in 2005. Since the allotment of plots by LDA in 1992 and 1993 and expiration of the initial building period in 1995, the Nazria-e-Pakistan Trust was due to pay the surcharge but had not paid a single penny in this regard.
According to data obtained by Pakistan Today, the LDA had announced a 100 percent rebate in building period to government, semi-government offices, autonomous bodies, NGOs and non-profit organisations including the Nazria-e-Pakistan Trust in case they started construction within a year and completed it within three years until October 16, 2001. According to the data, the waiver was supposed to be granted for once only. The LDA held a meeting with the Nazria-e-Pakistan Trust secretary on June 25, who was seeking a further extension in the building period.
The LDA also raised the issue in its governing body meeting held on October 5. The meeting said that originally the public utility plot number 152 Block J/I, MA Johar Town measuring approximately 40 kanals was allotted to the Nazria-e-Pakistan Trust on August 6, 1992. Plot number 152 Block J/I was later on exchanged with plot number 20 Block J/I Johar Town, measuring 40 kanal and 22 square feet vide letter number DEM LDA/550 dated September 22, 1992.
The trust also made a request for allotment of additional land bearing plot number 27 to 31 Block J/I Johar Town, measuring 3 kanal, 18 marla and 205 square feet, which was also accepted by the competent authority and conveyed to the trust vide letter dated March 18, 1993. The three year building period of the above mentioned plots had expired on August 16, 1995. According to the data, the building period surcharge up to October 20, 2004 was calculated to be around Rs 11.9 million and conveyed to the trust vide letter dated August 7, 2001.
The LDA in its meeting held on October 16, 2001 gave a 100 percent rebate in the building period to government and semi-government offices. The decision of the authority said, “Government and semi-government offices, autonomous bodies, NGOs and non-profit organisations will be allowed 100 percent rebate in building period in case they start construction within one year and complete it within three years.
This will be one time waiver only. The decision was particularly mentioned in the possession order issued in favour of the Nazria-e-Pakistan Trust on January 23, 2001 regarding the said plots. The rebate given by the authority was conditional and stands automatically withdrawn as the allotee/trust has not availed the opportunity up to November 16, 2005,” the data said.
A senior LDA official told Pakistan Today that all plots, which availed the 100 percent rebate were commercial plots and the extension had deprived the LDA of million of rupees in revenue. “This is a real setback for the LDA that has been facing around Rs 2 billion budgetary deficit already,” he added.
The official said that the waiver plan was on top of the agenda of the LDA General Body meeting, which was scheduled to be held on December 6 but was deferred to December 7, as LDA big wigs were in a fix over the issue. “The state of bewilderment continued until the last LDA Governing Body meeting held in October when the matter was taken on top priority and it was decided that it would be better to send a summary to the Punjab government to seek its directions in this regard,” the official said.
He said that two town administrators who attended the meeting had opposed the waiver, saying it would be against the rules if a second time extension was allowed but their views were not entertained. Another official in the LDA Town Planning Branch said that a tense situation was continuing since the last two months, as it would have been an open violation of rules if the extension was awarded for the second time. Eventually, the LDA backed down due to political pressure, he added.
The official said that CM’s Secretariat officials were also involved in the issue and had compelled the LDA to violate the rules. LDA spokesman Sohail Janjawa said that the last extension was given to various organisations including the Nazria-e- Pakistan Trust and this time the trust was the sole organisation who had sought the extension and the LDA awarded it keeping in mind the Aiwan-e-Quaid-e-Azam project.
He said that the extension would pay a tribute to the Quaid-e-Azam. He said that the governing body had supreme powers to allow the extension and claimed that there was no violation of rules in providing the waiver to the Nazria-e-Pakistan Trust. He said that the extension was conditional and would expire in December 2011.

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