MPCHS serves notice on CDA

ISLAMABAD – The Multi Professional Cooperative Housing Society (MPCHS) has served legal notice on the Capital Development Authority (CDA), asking it to immediately halt progress on its recently launched small housing colony, Margalla Retreat, in Sector E-11.

MPCHS administration is of the view that without settling the Rs 2.036 billion claim, it had submitted with the CDA for developing 54-acre of land in the northern strip of Sector E-11 following the directions of the Supreme Court, the civic body is not legally authorised to do business venture on said land.

The Supreme Court on April 15, 2011 after declaring a joint venture between CDA and MPCHS for developing 54-acre of land in Sector E-11 illegal had directed the administration of the housing society to pursue the remedy for recovery of any amount it had spent on the project in accordance with law.

Following the apex court direction, MPCHS on May 8, 2011 has submitted the claim of Rs 2.036 billion with CDA. Consequently, the city managers have formed a commission comprising representatives from CDA, ICT administration, ministry of housing and works, Islamabad chamber of commerce and industries and bar association to verify the huge amount claimed by the private developer.

The commission has almost finalised its report after having several hectic rounds of discussion and now CDA board is the final authority either to accept or reject the suggestions flouted by the commission, said a member of the commission while talking to TheNation.
He said commission has suggested audit of some parts of the claim from a recognised international audit firm, besides endorsing claim amount under heads like road networking, payments made to IESCO etc.

The commission has also not approved an aspect regarding cash compensation paid by MPCHS approximately on vacation of 518 kanal and 9 marlas of land from adverse possession and against built-up property.

“The commission is principally agreed that payments were made under this head but it can not approve it for lack of authentic record necessary to substantiate the claim,” he added. While issues are there on amounts paid like Rs 410 million as payable by CDA under financial charges (interest) to the society and another Rs 200 million as claims payable to contractor and MPCHS due to stoppage of work for a period of 83 days. However, MPCHS has done efforts to get land vacated at first and then to complete development, he concluded.

Documents of the claim show a huge sum of Rs 920 million approximately were spent by MPCHS on vacation of 518 kanal and 9 marlas of land from adverse possessions and against built-up property. Another Rs 19 million were paid as commission to Rashid Mahmood Khan for vacation of the aforementioned land. Similarly, Rs 240 million were spent on development works including roads, water supply, sanitary sewer system, drainage etc.

The claim also includes Rs 410 million as financial charges. The financial charges cover interest payable on the total amount spent by MPCHS during the period of approximately two years for the purpose.

Other expenditures include CDA processing fee, site office of MPCHS in Northern Strip, survey, planning, designing, supervision and consultancy charges, electrification, street lights, gas, advertisement charges for selection of consultants, contractors and sign boards, charges paid to advocates for court cases, payments made to IESCO, payable liabilities and MPCHS overheads, service charges, admin charges, security charges, audit and other charges. However, without compensating the developer of the land, CDA in recent past has widely advertised it’s newly launched housing colony Margalla Retreat located over the same land.