Islamabad: CDA financial health unlikely to improve by sale of plots in sector I-16

[Naveed Yaseen]

Citizens show little interest in I-16 plots

* Civic agency has fixed price of plots higher compared to their value in open market

By Fazal Sher

ISLAMABAD: The cash strapped Capital Development Authority (CDA) is unlikely to improve its financial position by sale of plots in sector I-16. The citizens are showing poor interest in these plots because the civic agency has fixed higher price compared to their open market value.

In addition to fixing high price CDA has made mandatory for the applicants to submit 25 percent of total cost of the plot. So far a small number of people have obtained application forms for balloting of Sector I-16 plots from different branches of banks, said officials and real estate business experts while talking to Daily Times on Tuesday.

They said the CDA has fixed 200 square yards (30x60 square feet) plot’s price at Rs 20,00,000 while in open market its price is Rs 13,00,000. They said the authority has fixed the price of 139 square yards (25x50) plot at Rs 13,90,000 while its open market value is Rs 11,00,000. In this sector there are 1,322 housing unites including 646 plots of five marlas and 676 plots of seven marlas. The officials said CDA financial problem would further aggravate, as the authority had spent a huge amount on publishing of application forms and brochures for the balloting of Sector I-16 and advertisement while people are taking little interest in purchase of plots.

They said CDA had faced the same problem in sector I-15 by fixing a high price of flats. Due to high price a large number of applicants who were allotted flats, claimed back their deposited money. The sector I-15 was launched in 2006 to meet the residential needs of the low-income group. In this sector there are 13,500 housing units including 5,500 plots of 5-7 marlas and 8,000 flats of 1,300 sq feet covered area each, they said.

They said due to poor planning the financial crisis in the civic agency was aggravating day-by-day compelling its bosses to shelve projects in pipeline and avoid maintenance work. Due to shortage of funds CDA’s Service Wing has directed the Directorate of Maintenance to entertain only unavoidable complaints regarding maintenance as the CDA’s Finance Wing has released meager funds to the Service Wing for this purpose, they said.

Sources said CDA was left with just Rs 2 billion after using up most of its reserve funds generated from the sale plots of during different auctions and launching of sectors I-14 and I-15. The officials feared that if CDA’s financial health continued to deteriorate in the next few weeks, the ongoing development schemes in the city would come to a halt.

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