In pursuance of orders dated 18.12.2012 passed by Mr. Justice Mamoon Rashid Sheikh in Writ Petition No.

18639/12 titled Khalid Mehmood Watto VS National University etc, the

petitioner alongwith all concerned were afforded personal hearings on 29.12.2012 and _______ by Mr. Ahad Khan Cheema, the predecessor Director General, LDA when the view point of the petitioner regarding the alleged illegalities committed by Respondent No.1 to 4 & 6 and the counter arguments of these respondents, were heard at length. The following participated in these hearings:i. ii. Mr. Khalid Mehmood Wattoo, Advocate(petitioner) Director, Lahore Campus, National University of Computer & Emerging Sciences (Respondent No.1) iii. iv. v. vi. vii. viii. ix. ______ Advocate on behalf of House Buillding Finance Corporation Chief Engineer, TEPA LDA (Respondent No.4) Chief Town Planner, LDA Director Operations, Nishtar Town WASA, LDA (on behalf of Respondent No.3) Director Estate Management-I, LDA Mr. Waqar A. Sheikh, Legal Advisor, LDA Director Law, LDA. VIEW POINT OF THE PETITIO The petitioner was of the view as under:a. That the Lahore Campus of the Respondent No.1 was established in the residential area of Faisal Town Scheme under political pressure against the policy and rules of LDA.

b. That in the absence of independent supply of water and sewerage system for the large number of students and staff of Respondent No.1, the shifting of such load on reservoir and sewerage lines of Faisal Town Scheme planned for usage by the residents has adversely affected the flow of sewerage lines resulting in scarcity of water supply to the residents as their main holes in front of the residence of petitioner either remain chocked or dirty water over flows.

c. That there were sever traffic jams particularly during the morning and evening at Milad Street facing entry gates of the National University due to additional parking by the large number of vehicles by the students and staff approximately more than 500 in number. Consequently free access and movement of the residents on the road was infringed.

d. That the construction of a new multi storey block by the University would not only escalate the existing worst traffic situation but the students and the staff accessing the upper floors would also disturb the privacy of the nearby residents. e. That the Management of the University in connivance with the representatives of Housing Building Finance Corporation parked the vehicles of students in the open ground controlled by HBFC facing the residence of the petitioner and other inhabitants resulting in serious life and security threat to the residents. The failure of HBFC to develop a park as per the original lay out scheme plan on its allotted land has resulted in its misuse by the miscreants. f. That huge basement been dug by the university at the piece of ground near Milad Street is likely to adversely affect the stability of adjacent buildings and roads resulting in the safety hazards for the inhabitants. g. That the encroachment in the form of commercial shops on the 5-kanal & 1-marla LDAs land in front of the University, be removed.

VIEW POINT OF THE DEPARTMENT. The view point of the department and steps taken as per law for redressal of the grievances of the petitioner with regards each issue, were explained to the petitioner which are as under:a. The Director Estate Management-I, LDA reported that as per available record the conversion of 100 kanals land in Faisal Town Scheme for the establishment of BCCI Foundation for advancement of Science and Technology, was allowed as per law/rules by the Governor Punjab on 2.12.1981 under the directions of the President of Pakistan. The reserve price of the land in question i.e. Plot No.852-A, Block-B, Faisal Town Scheme amounting to Rs.40,46,471/- was deposited in LDA after which even the Agreement for Sale was executed with the BCCI through its Secretary Mr. Justice (Retd) Syed Ikhlaq Hussain which stood registered on 29.5.1983 with the Sub Registrar Lahore Cantt: b. The Director (O&M), Nishtar Town, WASA, LDA has reported that in pursuance of the directions of the Director General, LDA during the hearing afforded on 29.12.2012, the sewer line passing in front of National University of Computer Sciences has been desilted and functioned properly at present. The officer concerned further reported that this 18 dia sewer line has the capacity to accommodate the sewerage of University and presently there is no complaint regarding blockage of sewerage system.

c. The Additional Chief Engineer/Director (P&D), TEPA, LDA has reported that in pursuance of directions of the Director General, LDA during the hearing afforded on 29.12.2012, TEPA had proposed development of a pick and drop lane in front of the University campus to avoid congestion in its vicinity. The requirement for installation of No Parking boards at appropriate locations in front of the Campus for guidance of the public, was considered mandatory besides regular monitoring to ensure that vehicles are not parked on the road side in this area. The boundary wall of the Campus from the front side was also proposed to be shifted 20 feet inside the Campus to provide a strip of land for additional parking facilities to cater the parking demand as and when required with a view to avoid traffic congestion in this area. d. The Additional Chief Engineer/Director (P&D),TEPA, LDA has reported about having carefully analysed the traffic impact analysis report submitted by the National University for Campus building extension and observed that the traffic generated by this block does not have any negative impact on the existing traffic circulation in the vicinity of adjoining road network. TEPA has therefore issued NOC on 30.1.2012 for construction of Civil Engineering Block on Plot No.852-A, Block-B, Faisal Town in response to the request submitted by the National University. e. The Director Estate Management-I, LDA reported that public utility plots measuring _____ kanals earmarked for ______________ were allotted to HBFC against which building period extension surcharge amounting to Rs.________ was outstanding and the HBFC has so far failed to raise construction on these plots resulting in misuse for parking by the National University. The Advocate on behalf of HBFC was confronted about the demand raised by LDA in respect of outstanding surcharge against these public utility plots vide letter dated _______ with the advice to ensure its deposit within ______ and raise construction thereon. f. DTP g. The Director Estate Management-I, LDA reported that in response to the notices issued U/s 40 (1) & 40 (2) of the LDA Act to the encroachers on land measuring 5-kanal & 1marla comprising of commercial area and parking space, they provided documents in respect of payment of liability by one of the accused Nawazish Ali to the tune of Rs.1,22,47,500/- through plea bargain U/S 25 (b) of the National Accountability Ordinance 1999. Though the relevant property file is not available in the record of Directorate of Land Development-III, LDA yet letter dated 18.3.2009 issued by the Director IW(I) NAB Punjab made available had revealed that one Nawazish Ali in connivance with Babar Ali Kharal and Amjad Abdullah etc forged a registered modified exchange deed to include 5kanal 1-marla land of LDA in already executed exchange deed of land measuring

19-kanal 2-marla falling in Khasra No.2776, 2777 . As the commercial area could only be

auctioned in light of Clause-4(a) of the Disposal of Land by Development Authorities (Regulations) Act, 1998 whereas the adjoining parking area was to remain intact, the matter has been taken up with the NAB Authorities vide letters dated 19.1.2013, 28.2.2013 and 16.3.2013 for cancellation of plea bargain so that the possession of LDAs land could be resumed after removal of encroachments.

SUMMARY FOR THE CHIEF MINISTER

2Subject: ONE-TIME DISPENSATION FOR DISPOSAL OF LAND HELD WITH DEFECTIVE TITLE OR UNDER ILLEGAL POSSESSION, THROUGH AMENDMENT IN LDA ACT 1975 AND U/S 4(g) OF THE DISPOSAL OF LAND BY DEVELOPMENT AUTHORITIES (REGULATIONS), ACT, 1998. The Chief Minister was pleased, vide No.DS(Infra)/CMS/(D-12)/AB-149(G)/171614 dated 27.11.2012 (Annex-A), to constitute a committee of the following on the issues relating to transfer of plots/properties in housing schemes developed by LDA:i. ii. iii. iv. v. vi. 2. Rana Mashood Ahmad, Deputy Speaker, Punjab Assembly (Chairman) Mian Marghoob Ahmad, MNA Mehr Ishtiaq Ahmad, MPA Secretary Law Secretary HUD&PHE Director General, LDA

The mandate of the Committee was to address the problems being faced by the bonafide purchasers of

plots/properties in housing schemes of LDA. The Committee held a series of meetings to work out the modalities to legalize the possession of the plots/properties held with defective titles, involving bonafide purchasers or those under illegal possession. The Committee deliberated upon the powers of the Authority for preparation, sanctioning and execution of schemes with the approval of the Government in light of Section-13 of the LDA Act, 1975 and impediments faced by the Authority in summary ejectment of unauthorized occupants for which the Authority is otherwise competent under section 39 of the Act ibid. The Committee, however, could not conclude its findings/recommendations. The matter has been examined in-house in LDA and the result thereof is delineated in the following paragraphs. 3. In some of the schemes developed by LDA, the land for which was acquired under the Land Acquisition Act,

1894, compensation to the land owners was paid in cash only. The land for many other housing schemes was, however, acquired under the Punjab Acquisition of Land (Housing) Act, 1973, till its repeal in 1985, by paying compensation of land partly in shape of developed plots. The acquisition proceedings under the 1973 Act were undertaken and concluded by Land Acquisition Collectors, exercising the powers delegated upon them by the Government. LDA only participated as a party acquiring the land. LDA is frequently facing awkward situations and extra liabilities due to litigation on the basis of following major issues:i) Unlawful amendments in original awards by Land Acquisition Collectors, after one month or in special cases 6 weeks as stipulated in Section 14(2) of Punjab Acquisition of Land (Housing) Act, 1973. Bogus amendments have also been made with forged signatures of LACs which are not backed by any court proceedings. Sometimes there are collusive decrees, even after many years of grant of exemption of plot to the original land owners (as per revenue record) as well as after executing many transfers or construction of structures by the subsequent transferees. Consequently claims for exemptions on the basis of amended awards/decrees result in cancellation of plots/withdrawal of exemptions earlier granted to original owners, which are under possession of transferees. Double exemptions were also granted based on the amended awards/decrees (excess exemption against single property) causing loss to LDA. ii) Grant of excess exemption over and above the entitlement. Sale and transfer of such plots, construction of houses thereupon and subsequent cancellation of these plots complicates the matters.

iii)

Exemption on the basis of fake files by fabricating fictitious documents/bogus noting making bogus entries, fictitious allocation proceedings, with usually forged 1st transfer and then sale/transfer of property, construction of houses on such plots and subsequent cancellation of such plots on the identification of the fabricated files

iv)

Encroachments by illegal occupants through unlawful invasion on a property of LDA without any lawful character or title, and construction of structures thereupon.

v)

In many instances transfer of plots/properties has been maneuvered through misrepresentation and forged attorneys of the deceased awardees or persons living abroad.________???????

4.

A number of LDA's properties fall in these categories but administratively and socially it is not possible for

LDA to retrieve them by ejection of the possessors whether defective or illegal. Therefore, some intermediate flexible solution is required in the form of a one- time dispensation to legalize the status of such illegal possessors. 5. HUD&PHE and Law Departments are of the view that disposal of such plots/properties, held under

defective titles or under illegal possession, through legalization is difficult to implement as one such case of Board of Revenue, Government of Punjab___________ regarding disposal of land through "Sale through Private Treaty" and "Encroachment Regulation Policy, 2003" is already subjudice in the Supreme Court of Pakistan. Board of Revenue in the said case is so far unable to convince the Honourable Supreme Court of Pakistan that under which provision of law "Sale through Private Treaty" and "Encroachment Regulations Policy, 2003" were introduced and implemented. The parameters for disposal of land challenged in the said case will as such have no effect on LDA proceedings for disposal of land, due to the following reasons:i) The said case is still subjudice in the Honourable Supreme Court of Pakistan, without any restraining order. ii) Disposal of land has to be covered by specific legislation and in case of Development Authorities the proviso for disposal of land in special circumstances, at such rate and on such terms and conditions as may be determined by the Government, is available under Section 4(g) of "The Disposal of Land by Development Authorities (Regulations) Act, 1998" and Rules made thereunder. iii) Policy of Sale through Private Treaty deals with the encroached state land whereas through these regulations LDA will regularize properties attained through fraud. 6. In view of the aforementioned circumstances and legal cover under available law/rules, the following is

proposed for one-time dispensation for disposal of land held with defective title or under illegal possession, through sale on special rates:i) Necessary amendment in the LDA Act, 1975, may be made by incorporating a Section regarding "Limitations of Original And Subsequent Claims", detailed as under:-_____????????? a) Any claim or compensation, whatsoever that may be, shall not be entertained after the expiry of the period stipulated by the Authority at the time of establishment of scheme. b) Claim or Compensation against the land so acquired at any point of time for any scheme either by the Authority or its predecessor shall not be entertained in any other scheme. However the claim shall be entertained in the form of cash at the rate announced in the award by the Land Acquisition Collector. c) The Authority, if once satisfies any claim based upon the award of Land Acquisition Collector against land so acquired or adjusted, shall not be liable to entertain at any stage any subsequent claim pertaining to the same land under any circumstances whatsoever that may be. The Authority shall not

be responsible to satisfy the claim of subsequent awardee announced by Land Acquisition Collector and the subsequent claimant shall meet his claim from the original beneficiary through process of law. ii) One time approval for disposal of LDA properties falling in all the four (five______?????) categories referred at para-3, to the existing possessors on special rates (Annex-B) as determined under the provision contained in Section 4(g) of " The Disposal of Land by Development Authorities (Regulations), Act, 1998" with the flexible mode of payment against upto minimum 50% advance payment and remaining 50% in maximum six equal quarterly installments. iii) These regulations will come into force immediately from the date of Notification and will remain in vogue for six months henceforth. Wide publicity will be given to these Regulations through print and electronic media and applications will be invited within 30 days from their promulgation. 7. As LDA will have to recover huge amount of dues/penalties/fines (details at Annex-B) as a result of implementation

of this policy, it is therefore, proposed that powers of Assistant Collector Grade-I (Under Land Revenue Act 1967) shall be invested upon LAC, working in LDA. 8. LDA will initiate criminal proceedings against all those exemptees who got exemption fraudulently through forged

entries in award or by providing fake title documents etc. Departmental and criminal proceedings will also be initiated against all the employees of LDA found involved in conducting fake proceedings on file or accomplice the awardees/exemptees in any way.

SUMMARY FOR THE CHIEF MINISTER

Subject: ONE-TIME DISPENSATION FOR DISPOSAL OF LAND THROUGH LEGALIZATION OF PROPERTY WITH DEFECTIVE TITLE OR UNDER ILLEGAL POSSESSION, THROUGH SALE ON SPECIAL RATES Lahore Development Authority is playing pivotal role in establishing a comprehensive system of metropolitan planning and development to improve the quality of life in the metropolitan area of Lahore. In order to cater to the needs of housing facility with the increasing population growth rate, many housing schemes are developed by LDA, for which the land was acquired under the provisions contained in the Punjab Acquisition of Land (Housing) Act,1973, by paying compensation of land in shape of developed plots, till the date the Act was repeated, i.e. 1985, thereafter a few schemes were launched by LDA, for which land was acquired under the provision contained in the Land Acquisition Act, 1894, by paying cash compensation to the land owners. 2. During the process of land acquisition under the Punjab Acquisition of Land (Housing) Act,1973,, LDA only

participated as a party acquiring the land for development of various Housing Schemes whereas the cases for acquisition of land from the public/owners were processed and concluded by Land Acquisition Collectors, exercising the powers delegated upon, by the Government LDA is frequently facing untoward situations due to extra liabilities and litigation on the basis of following major issues:vi) Unlawful amendments in original awards announced for acquisition of land by Land Acquisition Collector, after the stipulated time of one month or in special cases 6 weeks in Section 14(2) of Punjab Acquisition of Land (Housing) Act,1973. Bogus amendments have also been made in the award which are not backed by any, court proceedings and made with the false signatures of LAC. Sometime there are collusive decrees, even after many years of grant of exemption of plot to the original land owners (as per revenue record) as well as after executing many transfers or construction of structures by the subsequent transferees. Consequently, the newly emerged owner claim exemptions on the basis of amended award/decree, which either result uin cancellation of plots/withdrawal of exemption granted to original owners, which is under possession of transferees or double exemption is granted based on the amended award/decree (excess exemption against single property) causing loss to LDA.

vii)

Grant of excess exemption over and above the entitlement, sale and transfer of such plots, construction of houses and subsequent cancellation of these plots on account of excess exemption by LDA

viii)

Exemption on the basis of fake files by fabricating fictitious documents/bogus noting making bogus entries, fictitious allocation proceedings, with usually forged 1st transfer and then sale/transfer of property, construction of houses on such plots and subsequent cancellation of such plots on the identification of the fabricated files

ix)

Encroachment by illegal occupant through unlawful invasion on a property without any lawful character or title, and construction of structures on plots of LDA by way of encroachment.

3.

A number of LDA's properties fall in either of the above mentioned categories and administratively and

socially it is not possible for LDA to retrieve the properties through evacuation of properties by ejection of the possessors whether defective or illegal. Therefore, some intermediate flexible solution is required in the form of a one time dispensation to legalize the status of the illegal possessors.

4. HUD&PHE and Law Departments are of the view that dispensation of illegal properties through legalization is difficult to implement as one such case or Board of Revenue, Government of Punjab___________ regarding disposal of land through "Sale through Private Treaty" and "Encroachment Regulation Policy, 2003" is already subjudice in the Supreme Court of Pakistan. 5. in the above referred case, Board of Revenue so far been unable to convince the Honourable Supreme

Court of Pakistan that under which provision of law "Sale through Private Treaty" and "Encroachment Regulations Policy, 2003" were introduced and implemented. Therefore, the parameters for disposal of land challenged in the above referred case in Supreme Court of Pakistan, will have no effect on LDA proceedings for disposal of land, due to the following reasons:i. the above referred case is still subjudice in the Honourable Supreme Court of Pakistan, without any

restraining order. ii. Disposal of land ha to be covered buy specific legislation and ion case of Development Authorities the

proviso of sale and disposal of land in special circumstances at such rate and on such terms and conditions as may be determined is available under Section 4(g) of "The Disposal of Land by Development Authorities (Regulations) At, 1998" iii. Policy of Sale through Private Treaty deals with the encroached state land whereas through these

regulations LDA will regularize properties attained through fraud. 6. In view of the aforementioned circumstances and legal cover under available law/rules, the following

solutions are proposed for dispensation of land through legalization of property with defective title or under illegal possession, through sale on special rates:i. Necessary amendment in the LDA Act, 1975, may be made by incorporating the Clause regarding

"Limitations of Original And Subsequent Claims", detailed as under:a) Any claim or compensation whatsoever that may be, shall not be entertained after the expiry of the period stipulated by the Authority at the time of establishment of scheme. b) Claim or Compensation against the land so acquired at any point of time for any scheme either by the Authority or its predecessor shall not be entertained in any other scheme. However the claim shall be entertained in the form of cash at the rate announced in the award by the Land Acquisition Collector. c) The Authority, if once satisfies any claim based upon the award of Land Acquisition Collector against land so acquired or adjusted, shall not be liable to entertain any subsequent claim at any state pertaining to the same land under any circumstances whatsoever that may be. The Authority shall not be responsible to satisfy the claim of subsequent awardee announced by Land Acquisition Collector and the subsequent claimant shall meet his claim from the original beneficiary through process of law. ii. One time approval for disposal of LDA properties falling in all the four categories referred at para-2, to the existing

possessors on special rates (copy enclosed) as determined under the provision contained in Section 4(g) of " The Disposal of Land by Development Authorities (Regulations), Act, 1998" with the flexible mode of payment against upto minimum 50% advance payment and reaming 50% in maximum 6 equal quarterly installments. iii. These regulations will come into force immediately from the date of Notification and will remain in vogue for six

months henceforth. Vide publicity will be given to these regulations through print and electronic media and applications will be invited within 30 days from their promulgation.

7.

As LDA will have to recover huge amount of dues/penalties/fines as a result of implementation of this policy, it is

therefore, proposed that powers of Assistant Collector Grade-I (Under Land Revenue Act 1967) shall be invested upon LAC, working in LDA. 8. LDA will initiate criminal proceedings against all those exemptees who got exemption fraudulently through forged

entries in award or by providing fake title documents etc. Departmental and criminal proceedings will also be initiated against all the employees of LDA found involved in conducting fake proceedings on file or accomplishing the awardee/exemptee in any way. 9. cash penalties will be recovered from awardee/exemptees committing different type of irregularities as elaborated

at Annex-A.

SUMMARY FOR THE CHIEF MINISTER, PUNJAB

The series of meetings of the Committee constituted by the Chief Minister, Punjab, under the Convenorship of Rana Mashood Ahmad, Deputy Speaker Punjab Assembly to work out modalities for legalization of the property with defective title involving bonafide purchasers or under illegal possession through sale on special rates, are referred. The powers of the Authority regarding preparation, sanctioning and execution of schemes with the approval of the Government in light of Clause-13 of the Lahore Development Authority Act, 1975 and the impediments faced in the summarily ejectment of the unauthorized occupants for which the Authority is otherwise authorized in light of Clause-39 of the Act ibid, were deliberated threadbare in the meetings. The. The cases either with defective ownership/title later involving bonafide purchasers due to transfer by LDA in connivance with its staff or the ones with valid ownership later involving cancellation of plots and subsequent proceedings from the names of the transferee/transferees, have been identified as under in view of their diversified nature with proposals for legalization of such property:A(i) Invalid allotment with subsequent proceedings including transfers carried out validly in connivance with LDA's staff (ii) Invalid allotment with subsequent bogus proceedings including transfers B Original allotment valid though subsequently cancelled but cancellation not notified due to which subsequent proceedings initiated validly C Invalid ownership of land in exemption cases and invalid transfers outside LDA with houses constructed on the plots (i) More than 10 years ago Market price + 10% penalty merits to be recovered from the present transferee by invoking Clause-4(g) of the Disposal of Land by Development Authorities (Regulations) Act 1998 read with Claluse-7 of the Disposal of Land by Development Authorities (Regulations) Rules, 2002. (ii) More than 3 and less than years Market price + 50% penalty merits to be recovered from the present transferee by invoking the aforementioned clauses of the Act and Rules referred ibid (iii) Less than 3 years ago The possession of the plot merits to be resumed after demolition of illegal structure NOTE The period of construction of houses in cases of (i) & (ii) above would be ascertained in light Transferor at the time of cancellation merits to be penalized. Present transferee merits to be penalized Original transferor merits to be penalized

of the electricity connection date borne on their electricity bills. However in both cases, the proposed dispensation would be one time dispensation with the maximum permissible period of 6 months from its approval, to exercise the same failing which the right would stand closed. D Valid ownership at the time of grant of exemption but lateron surfaced invalid due to cancellation of plots with houses constructed (i) More than 10 years ago (ii) more than 3 and less than 10 years ago (iii) less than 3 years ago The market price alongwith the requisite penalties proposed for each category at C Sub Clause (i), (ii) & (iii) above, would apply.

Invalid ownership of land yet exemption granted and plots stand transferred validly without construction of houses thereon

The present transferees may be provided an opportunity across the board for payment of market price in all such cases after ascertaining their extent of involvement in the malafide and the criminal and noncriminal acts of the invalid owner and the processing functionaries

Invalid ownership of land yet exemption granted and plots stand transferred with houses constructed on the plots; (i) More than 10 years ago (ii) more than 3 and less than 10 years ago (iii) less than 3 years ago

Excess/double exemption with plots subsequently transferred by LDA validly without construction of houses thereon

The invalid owners be issued 15 days notice for payment in respect of excess exemption failing which threats be extended prior to registration of FIR and recovery of the amount as arrears of land Revenue. However in case of transactions between the blood relatives and business partners, the claim in case of death of one blood relative or business partnor would not cease since his property would remain attached.

Excess/Double exemption with plots subsequently transferred by LDA validly with construction of houses thereon; (i) More than 10 years ago (ii) more than 3 and less than 10 years ago (iii) less than 3 years ago

Valid ownership with invalid grant of exemption due to bogus signatures and the plots stand validly transferred by LDA.

Valid ownership with invalid grant of exemption due to bogus signatures and the plots stand validly transferred by LDA with houses constructed thereon; (i) More than 10 years ago (ii) more than 3 and less than 10 years ago (iii) less than 3 years ago

Exemption granted against valid ownership but the award amended subsequently

(i)

In case LDA is bound to compensate the amended award in cases where the houses on plots stand constructed atleast 3 years before the approval this dispensation and the plots stand transferred for value in favour of the bonafide purchasers.

Original awardee would be issued notice stating that the amount at current rate be deposited from which the amended awardee would be accommodated. LAC, LDA be given the powers of Assistant Collector 1st Class in this regard. LDA should take the stance that amended awardee should proceed against the original awardee at his own and avail necessary legal remedy.

(ii)

In case LDA is not forced to grant compensation to the amended awardee