Tag Archives: Audit

CDA unable to recover Rs4.51b lease extension fee, other taxes

Islamabad

The Capital Development Authority (CDA) has not been able to recover Rs4.51 billion on account of lease extension fee, annual ground rent and other taxes of commercial plots whose lease period had expired.

The auditor general’s report released recently has pointed out that the CDA Estate Management Directorate leased out commercial plots in various sectors for a period of 33 years. The audit found that the lease period of commercial plots allotted before 1979 had already expired. Upon expiry, these lease agreements have not been extended after recovering due lease extension charges from allottees and beneficiaries. “This resulted in non-recovery of Rs4.51 billion on account of lease extension fee, annual ground rent and other taxes,” the report said.

The audit maintains that non-recovery on account of lease extension fee was due to different revenue-recognition policies, disregard to the rules and regulations and internal controls.
Continue reading