IHC stays auction of three hotel plots by CDA

Islamabad
Justice Shaukat Aziz Siddiqui of the Islamabad High Court (IHC) stayed the auction of three plots at Blue Area, Murree Road and Sector E-11 that the CDA had scheduled for November 16 & 17 for the construction of two five-star and one three-star hotels.
A petitioner, Hafiz Arfat Ahmad Chaudhry, has assailed the auction of these plots before the court. He claimed that the whole activity is illegal and unlawful, as the CDA for these plots has prescribed a floor area ratio (FAR) of 1:12, whereas for other buildings in Blue Area the ratio was either 1:4 or 1:5. Moreover, the CDA in its advertisement published in the national press did not mention it. The CDA had mentioned in the brochures that the plot owner could use 20% area of the land for commercial purposes, he said.
The petitioner has cited the Capital Development Authority (CDA) through its chairman and estate management director as respondents.
Justice Siddiqui, while issuing stay orders over the auction, has sought replies from the CDA officials.
The petitioner alleged that the CDA illegally and unlawfully initiated the auction process in collusion with some blue-eyed parties or groups. The entire activity is in sheer breach of the law laid down by the Supreme Court in Siza Food commonly known as MacDonald’s case and Islamabad Land Disposal Regulations (LDR) 2005.
The petitioner claimed that the process initiated by the CDA will incur huge loss to the public exchequer besides severely damaging public interest.
The petitioner contended that the CDA, in its advertisement, never disclosed that the 20% of plot area could be used for commercial purposes but in the brochures it was. As per LDR 2005, commercial plots are auctioned for commercial purposes and hotel plots are auctioned exclusively for hotel use. As it is also an open secret that the auction of a commercial plot of a particular size fetches far more revenue for the CDA than the revenue obtained by it through the auction of a plot for a hotel. He alleged that the CDA officials, in connivance with the blue-eyed groups, is apparently auctioning most precious plots in the hotel category, but in reality, they are allowing the blue-eyed to start commercial activities on the said plots. This way, the bidders will pay for hotel category but they would be able to pursue commercial activities on the plots.
Another illegality that is being committed in this matter is in prescribing the FAR. The FAR is the ratio of a building's total floor area (gross floor area) to the size of the piece of land upon which it is built, the petitioner claimed.
The advertisement conveys that 1:12 shall be the FAR for the plots located at the prime locations of Islamabad. It is a matter of record that earlier, the maximum FAR fixed by the CDA for similar auctions was not more than 1:4 and 1:5. Previously, FAR for the under-construction Grand Hyatt Hotel was 1:4 and similarly for the skyscraper located in Blue Area the said ratio was 1:5. The respondent CDA officials have now generously increased FAR to a shocking figure of 1:12. The adverse effects of it would be that the Blue Area of Islamabad, would turn into a concrete jungle and it would be impossible for the CDA to provide facilities/utilities to the skyscraper they are planning to build, the petitioner alleged.
The petitioner further contended that it is also a matter of record that previously whenever the CDA auctioned a plot for hotel, the successful bidder did not construct the hotel thereon and instead thereof either flats/apartments were constructed on a portion of the plot or even in some cases, the owners did not start construction of the hotel and CDA kept mum over it.
The petitioner has prayed to the court to declare the proposed auction of three plots as designed by CDA officials a violation of the Constitution and Islamabad Land Disposal Regulations 2005.