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The federal government on Tuesday proposed the setting up of a committee to spend of money received from Bahria Town (Pvt) Limited, Karachi (BTLK) in view of the Supreme Court's proceedings, on development projects in Sindh.

The Supreme Court on March 21, 2019 had accepted BTLK's offer of Rs 460 billion for its Karachi Super Highway Project land. The apex court had granted BTLK seven years commencing from September 1, 2019 to August 31, 2026 for the payment of the entire amount.

A three-member special bench, headed by Justice Faisal Arab and comprising Justice Ijazul Ahsan and Justice Muneeb Akhtar, on Tuesday heard the case regarding reinvestment of amount received from the real state conglomerate.

In August last year, the then AGP Anwar Mansoor Khan had urged the Supreme Court that the entire money deposited by the real-estate development company be deposited in the "Public Account of the Federal Government".

For that he had cited Article 78(2)(b) of the Constitution that any money received by or deposited in the Supreme Court is liable to be credited to the public account of the federation.

However, during the course of proceedings, the incumbent Attorney General Khalid Jawed Khan submitted that the amount deposited by the BTLK actually belonged to the people of Sindh.

It would be most appropriate that the entire amount being deposited and will be deposited by the BTLK may be spent exclusively on the benefit and welfare of the people of Sindh in the most transparent and equitable manner, he said.

He proposed that a committee be constituted comprising, a former judge of Supreme Court, hailing from and residing in Sindh; secretary Planning, Development and Special Initiatives; chief secretary of Sindh; two prominent citizens hailing from and residing in Sindh, one each to be nominated by the federal government and the provincial government; one prominent Town Planner to be nominated by chairman of the committee and any expert co-opted by the committee from time to time.

The amount deposited by the BTLK, periodically may be allowed to be spent on the project on 50-50 ratio basis in urban and rural areas of Sindh.

In Karachi on infrastructure projects, while in rural areas on hospital, housing schemes for the poor, schools, and sewerage system.

The project to be approved by the committee "shall" be other than the project for which the provincial government is otherwise liable or bound to provide funds independently.

It shall not include ongoing works/projects undertaken by the provincial government.

The federal government as well as the provincial government would identify specific projects in Karachi as well as rural areas in Sindh for the consideration of the committee.

Before undertaking or initiation of work, the committee "shall" submit details of the projects for the approval of the apex court.

The committee "shall" execute and undertake projects through concerned departments or through public-private partnership or in any other manner or through bodies, so as to ensure maximum transparency as well as best possible use of funds for the project.

The amount spent on the project "shall" be subject to audit by the Auditor General for Pakistan as well as be reputable independent auditors as may be appointed by the committee.

The committee "shall" submit periodic progress reports in respect of the project undertaken for consideration of the apex court.

Sindh Advocate General Salman Talibuddin expressed reservations over the proposal saying that they do not like the federal government's intervention as it would mean usurping the provincial autonomy.

He said the Sindh's projects were suffering because of the inability of the federal government to provide funds.

The AG Sindh said the money received from Bahria Town would be utilised on the development projects, adding; "We will identify and earmark the projects and will ensure transparency."

"Why the federal government needs to tell the Sindh government about the projects for the province?"

He said the money would be used on people's projects.

Those could be supervised by the Supreme Court and no interference by the federal government is required.

"We want to interact with the Supreme Court and not the federal government," he said.

AGP Khalid submitted that the proposal was made in the interest of justice and for the welfare of the people of Sindh, who were the real owners of the land.

People of Sindh were wrongfully deprived of its actual value and proceeds that was only recovered due to the proceedings initiated by the apex court, he added.

The bench directed the Sindh government and the Malir Development Authority to file replies to the AGP's proposal.

The case was adjourned until April 2.

Copyright Business Recorder, 2020

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