Karachi Metropolitan Corporation (KMC) appear bent upon denuding the citizens who are already groaning under the burden of heavy direct and indirect taxation and unbearable increase inn prices of daily commodities Director (Recoveries) KDA wing, KMC has issued demand notice for payment/clearance of outstanding dues of ground rent; surcharge of late payment etc, on residential plots in KDA Scheme-24, Gulshan-e-Iqbal.
Much to the surprise of allottees/owners that are living since decades, demand notices have been served for the first time requiring them to make ground rent payments. Mohammad Muzammil owner of D-21, Block-7, Gulshan-e-Iqbal, who is living there since last 12 years, said he was not only surprised but shocked that KMC's Recoveries Department (KDA Wing) has woken up after decades only to "rub salt on the festering wounds of beleaguered people". "As if owning a house is an inexcusable crime," a jittery Muzammil said.
The allottees/owners have been advised to ensure clearance of the outstanding dues by providing pay order in favour of KDA Wing (KMC). The details of outstanding dues mentioned in the demand notice make an interesting reading. Ground rent has been assessed at Rs 17,500 from 7/06 (year has not been mentioned) to June 30, 2013. May 29, 2012 has been mentioned as last date for payment and Rs 1,950 has been calculated as surcharge on late payment of ground rent on a 500 square yards plot.
On this amount, the department has very generously allowed 40 percent rebate on surcharge amounting to Rs 780. Balance/net surcharge has been shown as Rs 1,170 and total dues as Rs 18,670. The department's slogan as mentioned in the demand notice is: Details of dues are a phone call/SMS away. It goes on to say "call on phone number 99239438-99239440 or SMS (no call on mobile) on Mobile Phone No 0333-233-1640 with details including name of allottee/ owner, CNIC number, plot number (with ST number if any, block/sector/scheme/township, details of last paid challan including its number and date and the mobile phone number". It further said: for payment of dues contact along with pay order, photocopies of relevant documents, last paid challan and CNIC, on any working day during office hours. There was no response either from the land line numbers of mobile number as mentioned in the demand notice. When the Director Recoveries (KDA) Wing) was contacted on his numbers 99231149-99230660 and asked that how would allottees/owners know about this recovery unless proper challans are sent, his reply was there is no system of sending challans. Similarly, he said that the amount has to be paid through pay order in favour of KDA Wing (KMC) and no cheques are acceptable.
The allottees/owners are flabbergasted over this unique system devised by the KMC for receiving payments, through pay order and not cheques, without issuing proper challans. In normal circumstances bills or challans are sent by the service providing agencies but in this case people are unnecessarily being harassed. It is unheard of that documents are required to be carried to make payments; instead of the KMC staff preparing challans, as is the practice in case of water and sewerage charges, KESC, and Sui gas bills, which are sent for payment through the banks on monthly basis. The demand notice served on allottees/owner/transferee/mutate reads as under:
"Karachi Development Authority (now defunct), allotted/transferred different category/size plots in its schemes/townships. Ground rent, in advance, is to be paid for 99 years by the allottees. Attention is drawn to specific mention in the indenture of lease of "payment of one year's rent in advance, allowing entitlement to lease of the plot of land for 99 years", besides specific mention in the possession order of "payment of ground rent in advance, failing which charging of interest."
The rate of ground rent was revised by the City Council vide Council Resolution No 458, dated April 3, 2004, bringing at par the rates in respect of KDA allotted plots with the ground rent rates of KMC plots. Effective July 1, 2004, rate of ground rent, is revised/ fixed at Rs 6 per square yard per annum for plots above 500 square yards, in KDA Scheme-24, Gulshan-e-Iqbal.
Despite the fact that ground rent is to be paid for entire 99-year lease period (for one year in advance), there is no compulsion to pay the accumulated/outstanding ground rent in one-go. The allottees/owner 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/recovered. Payment/clearance of all dues of ground rent, will definitely be to the extent of 40 percent rebate on accumulated surcharge for late payment of ground rent, if paid by May 29, 2012.
In development authorities, no fixed or tenure billing system (except municipal charges) existed/practised. It is evident from indenture of lease that at the time of its registration, one year rent in advance paid/recovered from the allottees/lease. Similarly, advise for payment of ground rent (per annum), is specifically made/available in the possession order issued to allottees/owner of plot of all category/size (whether leased or not)".