In a recent move by defunct Karachi Development Authority (KDA) in connection with recovery of outstanding dues in the head of non-utilisation fee (NUF) and ground rent from plot and building owners of KDA land, no proper strategy was chalked out to recover hundreds of millions of rupees from allotted/owners of different size plots in KDA schemes and townships, Business Recorder learnt on Monday.
It shocked Karachiites when they came to know that they have to pay ground rent and non-utilisation because prior to this they were not asked to pay the same for last 40 years.
In many cases property has changed the hands, as now current owner has to pay all dues for all the years; however, authorities concerned have introduced facility of 40 percent rebate on accumulated surcharge and non-utilisation fee till 20th April 2012.
The Recoveries Department (KDA Wing) of Karachi Development Authority has started serving bills to people who built homes on KDA allotted land. An official inside KDA termed recent stunt of authority to collect owed dues to KDA from allotted/owners was aiming at to give a life injection to apparently dysfunctional KDA.
"There is no computerised record of KDA built houses to determine how much outstanding payments authority has to recover from the owners", he said. He said that hundreds of millions of rupees of KDA were stuck with people, which have not been collected for last many years.
The authority developed 372,939 residential, commercial, amenity and industrial plots spread over an area of 51,274 acres across the city. Townships such as North Nazimabad, Malir Colony and Gulshan-e-Iqbal were developed decades ago.
"We have made landmark achievement by collecting Rs 120 million in the month of March 2012, earlier authority only managed to recover Rs 40 million per month", said Director Recoveries Department (KDA Wing) of KMC.
He claimed to achieve the target of recovering Rs 240 million by the end of June 2012. About the computerised record of allotted/owners, he said that they have asked IT Department to start record of 73,000 in first phase, adding that data of commercial, industrial, amenity and 400 above square-yard plots would be made Computerised.
Besides, he refused to give a time period of maintaining record KDA allotted plots. KDA also want people to pay a non-utilisation fee (NUF) and ground rent. The NUF is the penalty on someone who bought a plot and waited for its price to rise instead of building a house. There are only a handful of such plots in the city.
For example, if a scheme was built and sold in 1964 but a house was built on it 10 years later, KDA asks the owners to pay the NUF for that time. Technically, all land belongs to the state. People can lease it for a maximum of 99 years. But under the bylaws, everyone has to pay ground rent, which was being calculated at 25 paisa per square yard. But since 2004, it was revised to be between 50 paisa and Rs 6 per square yard.
KDA (now defunct) said that despite the fact ground rent is to be paid for entire 99 years, there is no compulsion to pay the accumulated/ outstanding ground rent in one-go. "The allotted/owners can make payment for one year or any other period (years) as per his/her choice. But for every past year, late payment surcharge will be levied. Payment or clearance of all dues of ground rent by 20th April, 2012 will benefit to the extent 40 percent rebate on accumulated surcharge for late payment of ground rent" said Recoveries director Mukaram Bukhari.
More than 10,000 residential, industrial and commercial plots located in different KDA schemes/townships were allotted through open public auction organised by Karachi Development Authority from the Year 1980 to 1999 (20 Years).
Despite individual demand notices, public notices in newspapers, two /three instalments of occupancy value/cost of land, besides late payment surcharge still remained outstanding against a large number of bidders. As a result plots of majority of defaulting bidders were cancelled in the past.
A number of defaulting bidders illegally disposed off plots on power of attorney or sale agreement and raised unauthorised/illegal construction on these plots without full payment of occupancy value I cost of land, surcharge, etc and not obtaining allotment I possession order.
Director recoveries Bukhari said that before taking any punitive action, including sealing/seizure or demolition of the buildings and eviction of the unauthorised occupants, authority has decided to give final opportunity to the defaulting bidders for payment/clearance of outstanding dues in four instalments and balance occupancy value in two instalments, besides surcharge and restoration fee in two instalments, as under: He said all deposited amount would be forfeited and property/building would seized or demolished and occupants will be evicted, immediately on expiry of the date of unpaid instalment.