The Capital Development Authority (CDA) charged hundreds of Islamabad homeowners illegal extension and completion fees for decades, an internal review by a senior CDA official revealed.
CDA Member Estate Mohammad Zaman Wattoo discovered the irregularity while inspecting official records, finding that the authority itself had built the houses in question decades ago.
The homes were constructed by CDA in 1971 across three low-cost housing schemes in sectors G-7 and I-10 as part of a formal deposit work arrangement.
CDA arranged loans for allottees through House Building Finance Corporation, built the houses using those funds, then transferred completed properties directly to the original allottees.
When the authority later demanded extension and completion charges, it was effectively billing residents for construction delays on homes it had itself already fully completed and delivered.
The schemes
Over three hundred houses are located in sector G-7, while more than two hundred others are situated in sector I-10, according to CDA estate wing officials.
CDA originally allotted five-marla plots in these schemes in 1971, with the authority acting as both financier and builder on behalf of the allottees from the beginning.
Many original allottees later sold their homes on the open market, and new buyers subsequently approached CDA for no-objection certificates to facilitate further property transactions.
It was during these NOC requests that CDA began levying extension and completion charges, citing a rule requiring construction within three years of plot allotment.
However, since CDA had constructed those homes itself, there was no legal basis for applying construction-related penalty charges to the current owners at any stage.
Board decision pending
CDA Chairman Sohail Ashraf was briefed on the matter and directed that it be formally placed before the CDA board of directors for an official decision.
The issue was included on the agenda of a CDA board meeting scheduled for last week, but the meeting was postponed due to conflicting engagements of board members.
Officials confirmed the matter will be taken up at the next available board meeting, where a final decision on refunding or waiving the charges is expected.
A CDA estate wing official stated there is no justification for completion certificate charges either, since the authority itself had completed all construction before handing over the homes.
“There is no question of completion certificate extension charges when CDA constructed the houses itself,” the official said, adding the estate wing was previously unaware of these facts.
Officials expressed confidence that residents of the three low-cost housing schemes will receive justice and will no longer be required to pay such charges going forward.
