CDA yet to recover Rs 3.6m from Saidpur defaulters

ISLAMABAD – The revenue directorate of the Capital Development Authority (CDA) has still to recover over Rs 3.6 million from three major defaulters, despite its worsening financial crisis and a reminder from federal audit authorities. This huge amount is owed by some restaurateurs and an art gallery’s administration that have failed to pay their two years’ rent to the authority. “The three license-holders for Taneez, Polo Lounge and Snake Shake, which are located in Saidpur Model Village have not been paying their rent to the CDA for the last two years.

The CDA’s concerned directorate has issued them several notices but to no avail”, said a senior CDA official.

Seeking anonymity, the official told this scribe that as per the conditions laid down in the licenses issued to them by the CDA, the managements of the restaurants were required to pay their rents after a six-month grace period, a time given to them to make their businesses functional.

“At the end of the grace period, the CDA issued them rent notices and the relevant directorate of CDA also informed the high-ups about the delaying tactics being used by those license-holders. But no action has been taken so far”, the official added.

He said the CDA had not only failed to recover that huge amount from the defaulting restaurateurs but it also accepted another defaulter’s demand to divide their rent into certain “easy” instalments.

“Nomad Centre and Art Gallery owes Rs 1,650,240 to the CDA as rent which is due since 2008. But the cash-strapped CDA approved the recovery of money in easy instalments despite a strong objection from the federal audit authorities,” he explained.

He said that two shops (A and B) in the Market No. 1 of the Saidpur Model village were leased out to M/s Nomad to set up an art gallery in 2008.
As per the clause number II, XVII, XIX and XX of the terms and conditions of the license, the licensee was liable to pay his rent Rs 68,760 per month after 6 months the grace period that expired on 2 February 2009, he explained.

He said that since March 2009 the administration had failed to pay its monthly rent to the Directorate of Municipal Administration (DMA) of the CDA.
The official said that the directorate concerned issued several notices to the licensee but they at first requested a waiver, then a reduction in the rent and finally sought easy instalments of the rent money.

Their third request, he said, was faintly approved by CDA Chairman Imtiaz Inyat Elahi despite a strong objection from the federal audit authorities.


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