PAC directs railways to recover 4,231 acres from land mafia

[Lahore_Real_Estate]

* Railways secy says PR needs Rs 40bn to overcome revenue shortfall
* PAC chief directs official to take measures to recover rent, land price

By Zeeshan Javaid

ISLAMABAD: Public Accounts Committee Chairman Chaudhry Nisar Ali Khan directed the Railways Ministry to submit a report on a policy to recover 4,231 acres of Pakistan Railways (PR) land from encroachers/land grabbers within seven days.

Meanwhile, Railways Secretary Sami Khiljee told the committee that the PR needed Rs 35-40 billion to overcome its revenue shortfall, however, the ministry has already submitted a comprehensive plan for the railways’ revival to the federal cabinet.

The Auditor General of Pakistan’s 2008-09 report revealed that the total railways land available was 39,132.24 acres, out of which only 15,699.60 acres had been utilised.

It stated the PR leased out its land without bidding and ignored the procedure set by the government, causing losses worth Rs 2.18 billion during 2008-09 as rental charges.

“PR has failed to recover Rs 27.577 million from land used for agriculture purposes, Rs 172.952 million from shops above 100 square feet, Rs 30.663 million from small shops, Rs 12.702 million from parking stands, Rs 21.975 million from stacking, Rs 26.004 from oil marketing companies and more than Rs 850.899 million from other leased PR land,” it stated.

According to the report, the PR had failed to recover rents worth Rs 1.046 billion from various government departments. The railways argued that oil-marketing companies had cleared all the outstanding land rent until June 30, 2009, but the PAC directed the PR management to provide details of the recovery along with documented evidence for verification.

Another loss worth Rs 164.538 million was revealed due to the non-recovery of land price and rental charges by the railways.

Chaudhry Nisar Ali Khan directed the railways secretary to review the estimates of the PR property across the country and take measures to recover rent and land price worth billions of rupees.