SHC seeks NESPAK report on AKD venture

[Salman]

KARACHI: The Sindh High Court on Thursday appointed NESPAK to determine the structure and stability of Creek Terraces and Creek View projects in the Creek City, DHA Phase VIII, on the lawsuit of technical consultant that challenged the construction of the project by the AKD Capital. The court directed the NESPAK to submit the terms of reference for determining the structure and stability of the project.

The technical consultant, Kashif Alam Associates, sought an injunction against the transfer of construction contract to the AKD Capital by the DHA contending that the AKD Capital was not a participant of the bidding process.

The plaintiff contended that the contract was first awarded to the BF Property by the DHA on August 24, 2005 on the basis of its technical consultancy of the project but the project was unlawfully given to the AKD Capital though it had not participated in the bidding project and, therefore, a fresh bid of the project be conducted in accordance with the law.

The counsel of the plaintiff, AKD Capital and Creek Developers, filed a statement before the court for determining the structure and stability of the project, including execution of piles foundation work through technical expert NESPAK.

The SHC’s single bench, headed by Justice Zafar Ahmed Rajput, appointed NESPAK to determine the structure and stability of the project and directed NESPAK to submit term of reference for conducting the exercise within two weeks.

It is pertinent to mention that another lawsuit against the construction of Creek Terraces and Creek View projects at Creek City in DHA Phase VIII was filed by Zahidullah Khan, a resident of DHA, on the ground that project in question was on amenity plots allocated for park, graveyard, school and sewerage treatment plant on Khayaban-e-Shaheen, Phase VIII.

The plaintiff submitted in the case that the land of the said project consists of 25 acres for Creek Terraces and 18 acres of Creek View, totaling 43 acres in Phase VIII, Creek City, whereas the original master plan issued by DHA of Phase VIII of the same land consists on amenity plots specifically allocated for a park, schools, sewerage treatment plant and graveyard. He said that the said amenity plots were designed for the benefit and usage of general public as a necessity and under the main lease issued to the DHA cannot be used for any other purpose nor can be sold, allotted or transferred to any private person including defendants Creek Developers, BF Property and Construction Pakistan and AKD Capital Limited.

It was submitted that DHA had launched projects in names of Creek Terraces and Creek View, Creek City in DHA, Phase-VIII, whose land in the master layout plan was shown an amenity area but without the permission of the federal government the DHA illegally and unauthorisedly granted permission to the defendants Creek Developers, BF Property and Construction Pakistan and AKD Capital Limited to launch the aforesaid projects. He submitted that project in question was being built on the land earmarked originally as amenity plots alleging that there had been blatant violations of the PPRA Rules 2004 in this project. He submitted that the property in question at the time of grant of Expression of Interest was valued at only Rs.6 billion whereas the actual value of the said project was Rs.40 billion adding that it was apparent that by using the amenity plots the DHA and AKD Capital Limited were extorting monies from the general public unlawfully for their own self enrichments. He submitted that a huge loss to public exchequer will be made in as much as that in the master plan there will be no land left for amenities designated initially by the DHA.

He submitted that the DHA malafidely allowed the AKD Capital to independently run the implementation of the project without the technical consultant. If the quality control of the project was not checked, it could cause a disaster and loss of lives to public at large. It was submitted that in case the said project was allowed to be completed, the public at large will not only lose their savings and investments resulting in multiple litigation as in the case of other DHA projects but will also be at risk of losing their lives due to the defective construction of the buildings.

The court was prayed to declare that initiation of project on amenity plots allocated for park, graveyard, schools and sewerage treatment plant situated on Khayaban-e-Shaheen, Phase VIII, DHA, Karachi, to a flat site and commercial usage was unlawful and the same cannot be used for any other purpose.

The counsel of the DHA, however, submitted that projects were not being constructed on amenity plots adding that the authority was adhering to the master plan in all respects. He also placed documents relating to indenture of lease between President of Pakistan through military estate officer and DHA on November 11, 1975 and February 21, 2002 and lease between Port Qasim Authority and DHA on August 21, 2003. He also placed copies of proposed master plans of DHA phase VIII in 1989, 1992 and approved the master plan in 2007. The counsel of the AKD Capital had adopted the arguments of the DHA.