CDA Board approves auction of 10 commercial plots

Islamabad

The Capital Development Authority (CDA) Board okayed auction of 10 commercial plots, while rejecting bids of four others, which would enable the civic body to fetch nearly Rs3.2 billion from the bidding exercise held on May 21 and 22.

The bids were accepted in the CDA Board meeting which was held in the absence of CDA Chairman Syed Tahir Shahbaz, who was on an official visit to Turkey. The member finance, who is acting chairman, presided over the meeting. A CDA official said they have also received Rs802 million as 25% of the total payment of 10 auctioned plots.

The CDA board rejected bids of four commercial plots observing that they have not been able to receive benchmark price. One of the four plots rejected by the CDA board includes plot No.57-C (2844.4 square yards) of Blue Area for which Rs307,000 per square yards were offered.

The board meeting also accepted bids of three commercial plots, each of them measuring 1333.33 square yards on which 22-storey high rise plazas would be raised. These three plots, however, would fetch much lower price as compared to bids offers of the last auction held in March, this year.

“The price received by these three plots will be Rs1,430 million as compared to previous total offers of Rs1,862 million,” the CDA sources.

The insiders in CDA told this correspondent that previous highest bids were cancelled by the CDA officials with the connivance of property mafia so that same plots could be sold at lower prices at the next auction.

A CDA official, however, told ‘The News’ that the previous price was also a benchmark but the new prices have also become new benchmark prices.

The official while defended board’s decision said the highest bidders at the last auction held in March, acted as spoilers and they did not start making payment within the stipulated time. “As a result, we had to reject offers and confiscate token money of Rs5 million in each case,” the official said. He said the authority, now had received 25% of the total payment within 72 hours.Source: http://www.thenews.com.pk/Todays-News-6-180513-CDA-Board-approves-auction-of-10-commercial-plots