Cabinet orders feasibility study: CDA staff to get apartments instead of plots

ISLAMABAD: The caretaker federal cabinet has directed the Capital Development Authority (CDA) to conduct feasibility study for the provision of apartments in high-rises to its employees rather than allotment of plots.

These directions were issued at a recent meeting during discussion on a summary of Ministry of Interior titled “compliance of Islamabad High Court (IHC) orders in Writ Petition of December 6, 2022 and February 14, 2023 clubbed with Writ Petition number 316/2016 to consider the adverse effect of Regulation 5 of the Islamabad Land Disposal Regulations 2005 and Policy for allotment of plots to the CDA employees”.

The Cabinet was informed that Islamabad High Court (IHC), in its order of December 6, 2022 in Writ Petition number 3426/2019, had directed the Federal Government to examine the adverse effects of Regulation 5 of Islamabad Land Disposal Regulations (ILDR) 2005 on revenue generation of CDA (to the extent of allotment of land to employees of the CDA etc., at a rate other than rates that could be realised through auction or tender bidding process).

It was stated that the CDA Board in compliance with the orders of the IHC of December 6, 2022 and February 14, 2023, examined the matter raised by IHC, in its meeting held on February 20, 2023. The meeting was also attended by the CDA counsel. The Board observed that CDA had been making allotments of small plots to its Low Paid Employees since 1971.

It was explained that the objective was to encourage them to construct their own houses and add to the housing stock in the capital. Under the Memorandum of Settlement, signed on May 6, 1987, between the CDA Management and the Collective Bargaining Agent (CBA), representing almost 11,000 CDA employees, the CDA Management committed itself to providing plots in various low-cost housing schemes to CDA employees, including officers.

The previous record of allotments made by the Authority revealed that the last allotments to the CDA employees were effectuated through the CDA Board on July 17, 2006, July 28, 2006, and October 18, 2006. All allottees/CDA employees paid the price of plots, as approved by the CDA Board, under the mandate given in CDA Ordinance, 1960, and Land Disposal Regulations. The Board also noted that allotments to CDA employees after 1990 were finalised/made upon the direction of the highest court.

The Cabinet was apprised that the CDA Board had approved draft Allotment Policy after due deliberations which was forwarded to the Cabinet for its consideration/approval on June 1, 2023. However, the summary was returned for resubmission, for obtaining approval of new Minister-in-Charge, as was required in terms of rule 18(1) of the Rules of Business, 1973.

Subsequently the matter was re-examined by the CDA Board and it was observed that the Board in its meeting held on February 20, 2023 had already deliberated on various aspects of the draft Policy for Allotment of Plots including pricing mechanism, revenue generation potential for the Authority and the employment of the statistical framework for present and future calculations.

The Board had decided that the sale price for allotment of plots to CDA employees would continue to be based on components viz initial land acquisition cost, infrastructure development cost with an indication of a surplus cushion/profit. The price, once fixed by the CDA Board, would be enhanced on a Price Index basis from time to time resulting in automatic enhancement of all the components of the sale price, whenever required.

The CDA Board while reiterating and endorsing its earlier decision made in the meeting held on February 20, 2023, observed that the draft Policy Framework and statistical work was comprehensive in nature and had addressed the issues raised in various legal proceedings. After having discussed the policy framework, clause by clause, and making few amendments, the CDA Board approved the revised Draft Allotment Policy.

The Cabinet observed that the recent trend of horizontal expansion for residential purposes was consuming vast tracts of land, and now also agricultural land. It was stated that need of the hour was proper planning for urban accommodation and to replace horizontal expansion with vertical structures, as was being followed across the world.

There was a view that instead of allocating plots to the employees of the CDA, apartments should be provided. The Ministry noted that in compliance of the court order, the matter was to be placed before the Federal Government and the progress needs to be reported to the court in next hearing, which was fixed for February 21, 2024 (tomorrow).

In pursuance of orders of the Islamabad High Court, Ministry of Interior solicited approval of the Cabinet for the revised Allotment Policy applicable to CDA Employees covered under Regulation 2(f) of the Islamabad Land Regulations-2005.

After discussion, the cabinet directed that the CDA shall review the draft policy from the vantage point of equity and losses to CDA vis-i-vis proceeds from auctions or tender bids, as directed by the court and place it before the next elected government.

The Cabinet also directed that CDA has a feasibility study conducted by a consultant of international standing for the provision of apartments in high rises to its employees rather than the allotment of plots.

Copyright Business Recorder, 2024