Non-cancellation of excess land by SDA: AGP detects loss to the tune of Rs 23.842 million

The Accountant General of Pakistan (AGP) has noticed a loss of Rs 23.842 million due to non-cancellation of excess land by Sarhad Development Authority (SDA) in Industrial Estate, Peshawar while another loss of Rs 3.850 million was incurred due to illegal encroachments on estate's land in its audit report on account of Public Sector Enterprises (PSEs) of Khyber Pakhtunkhwa conducted in 2011-12.
According to SDA bye-laws, the covered area of an industrial unit should not be less than 55 percent and more than 66 percent of the total area of the allotted plot. Uncovered area of a plot founded in excess of the maximum 45 percent shall be liable to cancellation, forfeiture and resumption without notice.
SDA Industrial Estate, Peshawar allotted a plot measuring 16.19 acres to M/s Hayat and Brothers (Pvt) Limited, for establishment of furniture unit on January 18, 1966. After completion of building on about one acre land, the allottee started production in 1968. The covered area of the unit was only 6.18 percent of the total allotted land as against required 55 percent (8.90 acres) to 66 percent (10.69 acres). Thus land measuring 8.90 acres was lying in excess of the permissible limit.
The management remained silent on the issue as no action for cancellation of the excess land and its re-allotment to the interested entrepreneurs was initiated. On the other hand, the allottee sold 4 acres land with the connivance of project management in June, 2004, April, 2006 and February, 2008. This resulted in loss of Rs 3.952 million.
After transfer of 4 acres land, the excess uncovered land with the party now worked out to 6.15 acres. This excess land was required to the cancelled and re-allotted at prevailing price which was not done. The authority thus sustained further loss of Rs 8.536 million.
Similarly, vast open uncovered area was lying with three closed projects. The excess uncovered area was not cancelled, which resulted in loss of Rs 11.354 million (353,098 sft=8.11 acres x Rs 1.400 million per acre). Total loss sustained by the authority worked out to Rs 23.842 million (3.952+8.536+11.354).
The matter was reported to the management on December 01, 2011. In reply dated January 07, 2012, the management stated that one party has started construction and the other unit is in operation. The plot of Haider Poultry Farm was cancelled. It has been challenged by the party in the court. Reply was irrelevant as the excess land has not yet been cancelled.
The Departmental Accounts Committee (DAC) in its meeting held on January 12, 2012 directed the management that high level enquiry committee may be constituted to investigate the matter and fix responsibility on the person(s) at fault. No progress was intimated till finalisation of the audit report.
Another loss of Rs 3.850 million was noticed due to illegal encroachment of estate's land.