CDA to earn Rs48 bn from new sectors C-15, C-16

ISLAMABAD: The Capital Development Authority (CDA) is geared up to mobilize more than Rs48 billion by selling residential, apartment and commercial plots in new sectors of C-15 and C-16 where the operation to take possession of the Built Up Properties (BUP) coupled with the launch of the development work kicks off from Monday.

The development work will be carried out at a fast track so that the cash-starved civic body generates whopping funds and the growing housing gap in the federal capital is plugged to some extent, an official told The News.

The move will have a likely positive effect on reducing prices of plots in Islamabad. The offered price of plots in the new sectors will be almost one-third of cost of such real estate in F-11, E-11 or D-12 sectors. The allottees will have the facility of paying in installments. The CDA is set to launch the two sectors after many years.

According to revenue estimates, C-15 will bring to the CDA Rs17b while C-16 Rs31 billion. In C-15, a total of 500 residential plots of one kanal each (500 square yards) will mobilize Rs7.5b @ Rs1.5 million per kanal; 150 kanals meant for multi-storeyed apartments will contribute Rs4.5b @ Rs30 million per kanal; and the commercial area measuring 100 kanals will add Rs5b @ Rs50 million per kanal.

Likewise, in C-16, as many as 1,000 plots of one kanal each will generate Rs15 billion; 200 kanals meant for apartments will contribute Rs6 billion and commercial area will add Rs10 billion at the same rates applied in C-15.

The CDA plans to allot 1,500 residential plots through balloting to interested citizens on reserve price of Rs15 million. Interestingly, after compensating the landowners by adopting the innovative and progression land sharing policy of the Defence Housing Authority, the CDA is getting this windfall bonanza of Rs48 billion without spending a single penny. The policy was introduced by former CDA Chairman Kamran Lashari, a man of ideas, in 2007, which has been continued by the incumbent chief, Maroof Afzal. It is reaching fruition after 9 years.

While the CDA will pocket hefty funds, it will have to spend paltry money of Rs7 billion on provision of services like roads, drainage, sanitation etc.

The CDA acquired the land falling in scenic C-15 and C-16, overshadowing the Margalla Hills, located along the under-construction Margalla Avenue, from its owners by giving one 500 square yards plot in lieu of 2,000 square yards land back in 2008 and took its possession. However, it handed over the plots to the landlords six years later in 2014.

The official said that a meeting was held on Thursday with the CDA chairman in the chair that decided to start the operation to get hold of the BUP from its occupants by paying them compensation. It is planned to be completed in C-15 during the current month where at the same time a full-fledged development work would be started. In C-16, the operation will conclude by end-April. Simultaneously, the fencing of the vacant land in C-16 will be done.

The meeting was attended by the senior officials of the Islamabad district administration and capital police to provide the CDA staff full protection and to deal with any unforeseen situation during the operation. They will be present throughout the start of the development work. Pickets and camp office of police and enforcement staff of the CDA will be set up.

The official said Section 144 has been imposed to ban the movement of building material, construction activities and removal of earth-filled trucks. The landowners, who have given their land to the CDA as per the land sharing formula, are unlikely to put up any resistance to the CDA. It is a win-win for the landowners and CDA.

As per the CDA policy, all construction done after December, 2008 particularly by non-residents, when the land was acquired by the CDA, will be demolished during the operation. The policy commits to allot a residential plot of 6.5 Marlas to a person who loses his dwelling (BUP) to land acquisition, and has not been compensated in lieu of land acquired or is a non-proprietor of land, but has a dwelling built on land belonging to local landowners.

However, he has to fulfill certain conditions in order to stop any malfeasance by unscrupulous elements. The claimant of plot in exchange for dwelling must have a national identity card; his name must be registered with the National Database & Registration Authority (Nadra) and in the voters’ list; he must have a two-year old legal electricity connection; must be recorded in land record as owner or tenant of land; the dwelling unit must be identifiable in Google/satellite map and the minimum size of house has to be 300 square feet.

Certain safeguards have been provided in the policy against the land mafia to protect genuine residents and house owners by creating a bulwark against wrongdoing. The claimant has to be resident of Sang Jani or Sarai Madu prior to notification of the award by the CDA if he is non-proprietor and the CDA never allotted plots in lieu of land acquired.

Investors who have illegally built properties to benefit from the CDA policy will not be able to fulfill these mandatory conditions. They also include outsiders mostly businessmen who have set up business establishments in C-16 like roadside hotels, dairy farms, automobile workshops on roadside.

Historically, compensation of houses to landowners and non-proprietor dwellers has been a perpetual problem for the CDA. Compensation to landowners is seldom an issue because their rights and entitlements are documented in the land record. The issue of arbitrariness and abuse of authority has always cropped up while compensating the non-proprietor dwellers living on land which does not belong to them.

As the landowners have been compensated with residential plots in lieu of their land, they are not entitled to a 6.5 Marla plot for their dwelling units even if they have such properties. They will only get cost of construction material on per square feet basis.