‘DHA, CBC multiple taxation, differential charges unjust’

[Lahore_Real_Estate]

Friday, April 02, 2010
By Azeem Samar

KARACHI

A sub-committee of the Standing Committee on Defence, National Assembly, has termed the policy of levying multiple taxation and differential charges by Defence Housing Authority (DHA) Karachi and Cantonment Board Clifton (CBC) as unfair. The sub-committee stated that keeping in view the grievances of DHA residents, it would take up the issues with relevant authorities in Islamabad.

The sub-committee held at its meeting at the DHA main offices here on Thursday with its convener MNA Nawab Abdul Ghani Talpur and other members to consider the problems being faced by Defence Authority residents. DHA Administrator Brig Khalid Tirmizi, representatives of Association of Defence Residents, Defence Residents’ Society, and Ministry of Defence also attended the meeting.

According to sources privy to the meeting, all members of the sub-committee unanimously termed the imposition of differential charges on property and land owners of DHA Phase-VII (extension) area as unfair and unjust.

Regarding the issue of multiple taxation by DHA Karachi and CBC, members of the sub-committee said that the matter would be taken up with the Director-General Military Lands and Cantonments based in Islamabad for its resolution in favour of the concerned DHA residents.

Administrator DHA Brig Tirmizi, speaking at the meeting, defended the various policies of DHA relating to levying of various charges on the residents.

Talking to The News, Talpur said that the administrator DHA had informed the participants that following negotiations with the Sindh government, the issue of differential charges on plot owners of DHA Phase-VII (extension) area had been resolved and now the concerned property owners are not required to pay any differential charges to DHA.

Talpur said that the sub-committee would formulate and send recommendations to the higher authorities concerned for changing the composition of the executive board and governing body of DHA so that the two bodies would comprise with majority of elected representatives of the residents and other civilians concerned.

He said that the recommendations would also be made to the authorities concerned for providing convenience and hassle-free environment for DHA residents so that they could easily renovate their homes without undue interference from DHA.

Talpur said that the sub-committee had emphasised that the issue of Refurbishment Charges levied by DHA should better be resolved out-of-court and amicably through negotiations between DHA and its residents.

He said that the sub-committee would also send recommendations to the authorities concerned in order to stop the CBC from levying multiple taxes on would-be buyers of houses in the area.

A report prepared by the Defence Society Residents’ Association and Association of Defence Residents’ was read out at the meeting. It stated, “In DHA Karachi, DHA is a real estate developer and CBC is a civic body. The existing problem is not that of individuals but of the system. The root cause of almost all problems in DHA is that the head of the real estate developer (DHA) happens to head the board of the civic authority (CBC) as well. This setup is not only unethical, illogical, and unhealthy, but is the major cause of mismanagement, confusion, and wastage. For example, it would be an unthinkable situation if the MD PIA were to head the Civil Aviation Authority as well. The results will be disastrous and not acceptable.”

“In our opinion, after the real estate developer (DHA) has developed an area and handed it over to the civic body (CBC), the developer must pack up or maintain a skeleton presence to be answerable to the civic body for any defects, incomplete work, or other minor routines. On the other hand, it is the duty of the civic body (CBC) to regulate, monitor, check, and make sure that the developer uses standardized materials, and that all the requirements of the development (sewerage system, water distribution system, storm water drainage, electricity and gas lines, roads, bridges, etc.) are completed and in satisfactory condition, meeting the standards of quality and engineering. In case of any dereliction or delays, CBC must make sure that the job is done properly and penalize the developer for any inconvenience or lack of professionalism,” said the report.

“The irony of the present setup is that as the CBC Board is headed by the head of the real estate devloper (DHA), the developer has no accountability, and the civic body is under tremendous pressure to bow to the wishes of the developer. This has resulted in most of the confusion and sufferings of the residents, where they are faced by two sets of by-laws, two sets of charges and fees, and all operations are delayed due to the dual set of bureaucracy, resulting in wastage of time, frustration, confusion, and an undue burden on the pockets of the residents,” the report further said on behalf of the DHA residents.