FIA seeks permission to investigate corruption in CDA contract to MPCHS

[Naveed Yaseen]

AWARD OF CONTRACT BY CDA TO MPCHS

FIA files intra-court appeal for permission to hold probe

Tuesday, October 13, 2009
Our correspondent

Rawalpindi

Federal Investigation Agency (FIA) here on Monday filed an intra-court appeal (ICA) with the Lahore High Court (LHC), Rawalpindi Bench, seeking permission to investigate into an award of contract by Capital Development Authority (CDA) to a private company allegedly violating the relevant rule and regulations.

In its appeal the FIA has challenged the July 31, 2009 decision of the defunct Islamabad High Court that had stopped the FIA from probing into the award of contract by CDA to Multi Professionals Cooperative Housing Society (MPCHS) about the development of 54 acre of land on the Northern side of Sector E-11 as joint venture.

The divisional bench of Justice Nasir Saeed Sheikh and Justice Khawaja Imtiaz Ahmed was to take up the ICA by FIA but Justice Sheikh refused to hear the case as he had remained legal counsel for the respondents and said any other available bench would take up the case.

Sardar Asmatullah Advocate appeared on behalf of MPCHS as they accepted the pre-admission notices for the appeal.Making Multi Professionals, CDA, through its chairman, and registrar cooperative societies as respondents, the FIA through Standing Counsel Babar Ali maintained that the order was passed on the day the Supreme Court declared the IHC as null and void without hearing the agency’s point of view as they were intimated through post the IHC had stopped them from taking any action against the respondents.

FIA in its appeal has alleged that the contract for development of new sector in March 2009 was awarded in violation of relevant laws as two other bidders filed lower bids than the applicant that was awarded the contract.

The MPCHS in their bid had adopted the formula of 50/20 per cent share of the developed land with CDA whereas the two other bidders offered 53 per cent share to the CDA but the authority itself lowering the bid of MPCHS awarded them the contract.

When transparency international and others intimated the FIA about the alleged corruption, the agency asked the CDA and the private housing society to submit the relevant documents for investigations; the housing society went to the IHC and obtained the order stopping the agency from probing into the alleged scam.

The FIA has further alleged that the private housing society has paid Rs860 million on account of compensation to the affected people of the area to take possession of approximate 303 kanal of land. In these circumstances it was necessitated that how the society collected such as huge amount and that too was allegedly distributed among alleged illegal occupants to whom the payment was already paid by the CDA while acquiring the land.

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