IT, CVT of Rs 260.78 million not collected: CDA asked to probe into sale of six commercial plots

The Public Accounts Committee of the National Assembly on Wednesday directed the Capital Development Authority (CDA) to hold an inquiry as to why the authority sold six commercial plots without collecting income tax and capital value tax (CVT) amounting to Rs 260.78 million.
The committee met with Syed Khurshid Shah in the chair and examined the pending audit report for the year 2012-13, referring cases to the National Accountability Bureau (NAB) for further investigation. The PAC was informed that the CDA allotted commercial plots through auction held on January 10, 2012 and June 7-8, 2012. The acceptance letters were issued to allottees, but income tax at 5 percent and CVT at 2 percent worth Rs 260.78 million were not deposited by the allottees with tax authorities, which were due in advance after accepting the bids.
CDA Chairman Maroof Afzal assured the committee that they would hold a proper inquiry in this regard. The PAC directed the CDA to hold inquiry in a week's time and informed the committee over the progress. The committee referred two inquiries to NAB for further probing restoration of a commercial plots. The audit officials informed the committee that a commercial plot was allotted in 1994 at G-9/2 Islamabad, but later was cancelled. After eight years, the plot was restored to the allottee. The audit official said it was against the rules and the plot should have re-auctioned.
In another case, a commercial plot was allotted in G-9/Markaz, but the allottee surrendered it due to non-payment in 1988. The same plot was restored in 2010 without any re-auction. The PAC sent another case to the Federal Investigation Agency (FIA) for investigation in which eight commercial plots were allotted at a rate below the previous auctioned plot. The audit officials claimed that the CDA has to bear a loss of Rs 260.78 million. The committee was of the view that prices never came down and in case if such situation arises, people prefer not to sell any plot.
The committee was further informed that the CDA board approved the layout plan in 2004 for the National Police Foundation (NPF) for 1,325 canals of land without acquiring the land. The CDA Chairman told the committee that the CDA granted no-objection certificate (NOC), which was later withdrawn when the NPF failed in acquiring more land from the private sector. But the NPF moved the court over withdrawal of the NOC by the CDA.
The PAC was informed that the CDA totally failed to collect its fine imposed on different houses for their failure to utilise the land properly. The residential houses were used for commercial activities for which they were fined by the CDA. The Chairman of CDA said yes the issue exists, however most of them moved the court and got stay orders.