Non-renewal of 524 leases: NAB urged to probe Rs 40 billion losses incurred by exchequer

A parliamentary panel Wednesday directed National Accountability Bureau (NAB) to probe into the matter of Rs 40 billion financial loss to the national kitty as a result of non-renewal of leases for commercial and industrial plots by Capital Development Authority (CDA) since 2010.
A subcommittee of the Public Accounts Committee (PAC) met here with MNA Noor Alam Khan in the chair and directed the NAB to probe into the matter of fraud with the masses by the operators of River Garden, Paradise Housing Scheme and Roshan Pakistan Housing scheme in compliance with the CDA.
The audit officials informed the subcommittee that both, Paradise and Roshan Pakistan Housing Societies collected Rs 8 billion from the masses without having a layout plan from the CDA. The panel discussed and reviewed the audit objections related to the CDA for the year 2017-18.
The audit officials revealed before the panel that as a result of the CDA officials' negligence in non-renewal of leases for 524 commercial and industrial plots, an estimated financial loss of Rs 40 billion incurred to the national kitty.
The audit officials said the CDA has failed to carry out any sort of developmental works in sectors D-12 and E-12 even after the passage of 35 years. The convener committee said leading real state owners are operating like a mafia, adding that they collect money from the masses but do not handover the ownership rights to the people.
The CDA chairman informed the panel that the civic body is carrying out developmental works in four sectors. The committee decided to postpone further discussion on the matter till its next meeting.
The audit officials said the CDA leased out 524 plots for 35 years but after the expiry of the lease in 2010, the civic body didn't renew the lease as a result Rs 40 billion financial loss incurred to the national kitty.
Responding to the queries of committee members, CDA Estate Member Kushal Khan said majority of lease receivers have died and as a result CDA failed to renew the lease. The convener committee lashed out at the CDA officials and directed the NAB to investigate the matter and submit findings of inquiry with the PAC within two months.
The audit officials said after leasing out land to Metro Cash & Carry without competition, the CDA officials also transferred land to Makro Habib Pakistan Limited against the set rules and regulations which caused Rs 10 billion financial loss to the national kitty.
Responding to the audit objections, the CDA chairman said after the land transfer, Makro Habbib Pakistan had gone to Sindh High Court and the court decided in the favour of the company; therefore, the body couldn't take any further action.
The audit officials said in 2007, the CDA issued layout plan to the Paradise and Roshan Pakistan Housing Societies in sectors F-15 and F-16 without getting approval from the competent authority. Both the housing societies collected Rs 8 billion from the masses. The layout plan later was quashed and the societies have not been established so far.
The panel while snubbing the CDA officials directed for registering first information reports (FIRs) against the people involved in the fraud and copies of the FIRs should also be provided to the PAC Secretariat. The CDA chairman assured the panel that the civic body will register FIRs against the people involved in the fraud within two days and copies of the FIRs will be shared with the PAC.