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CDA to auction petrol pump site to boost ‘welfare funds’ - Salman - 01-10-2013 01:28 PM
ISLAMABAD: Six years after its closure, the Capital Development Authority has finally decided to reopen a petrol pump to generate funds for the welfare of poor employees.
In a recent board meeting, the CDA decided to reopen the facility by holding an open auction.
The board has directed the administration member to prepare a summary for the disposal of the asset through an open auction after consulting the law wing to address the legal complication if any, and present the report in the upcoming meeting.
In the early 70s, the CDA Staff Welfare Committee (SWC) had purchased two sites for petrol pumps in sectors F6/1 and G6/4 respectively.
In 1973, the CDA had rented out the land in G6/4 against Rs 1,000 per month to SM Ismail for a period of 30 years and the other plot was disposed of at Rs 1,500 per month to the Pakistan State Oil in 1975.
The petrol pump on Embassy Road was closed since 2006 after the tenant moved the court against the increase in the rent. The unreasonable delay in the reopening of the station incurred a huge loss to the Staff Welfare Fund.
Due to the closure of the petrol pump, the requests for assistance from deserving employees had been piling up with the Staff Welfare Committee, headed by the administration director general.
The controversy started after the CDA Board decided in August 2000 to conduct an open auction for both the sites.
After the CDA decided to vacate the site in December 2002, SM Ismail moved the court. Finally, in 2006, on SWC’s request, the Supreme Court ruled for an open auction of the property.
Following this, the CDA received the highest bid of Rs 800,000 from Ghiasuddin Khan for the G6/4 site but it could not be handed over to the bidder.
In the advertisement, the CDA had invited parties to rent out `running petrol pump on Embassy Road’ despite the fact that the previous tenant had installed the equipment.
Meanwhile, the tenant repeatedly requested the CDA for an out-of-court settlement.
CDA Mazdoor Union Secretary General Chaudhry Yasin said, “We have asked the CDA to either run the outlet themselves or decide to dispose it of through an auction to generate revenue.” He added that the CDA was bearing a loss of Rs 250,000 per month due to this delay. app