ISLAMABAD-The Capital Development Authority (CDA) has waived off a condition to submit five per cent bank guarantee of the total project cost by the builders to get their building plans approved.

According to revised building bylaws in 2020, every builder had to submit a bank guarantee equivalent to five per cent of the total project value that cost builders millions of rupees. Under this condition, the builders had to stash a huge amount in bank accounts which was supposed to be returned once their projects were completed.  

The purpose behind said condition was to restrict the builders from deviation from their original approved building plans to avoid possible fraud on part of the builders.

However, the builder community at large was against this clause as they were of the view that in case of the five per cent bank guarantee, their huge investment would be stuck in banks. They requested to exclude the said clause from the bylaws.   

The CDA board in its meeting held on Wednesday at its headquarter decided to allow the builders to mortgage their 10 per cent sellable cover area in favour of CDA or five per cent insurance guarantee of insurance companies having AA rating instead of submitting five per cent bank guarantee. 

President Federation of Realtors Pakistan Sardar Tahir Mehmood welcomed the decision while commenting upon it and informed that the decision has been taken on their request which was made in a meeting before Eid.

He said the decision would help builders to start their stalled projects as it was one of the major hurdles in the way of the approval of building plans. He thanked Prime Minister of Pakistan and the incumbent CDA management for the decision.

Meanwhile, the board has also approved to establish Directorate of Building Control-III to regulate the increasing developments in rural side of the city. At present, the authority has two building control directorates.

The Directorate of Building Control-I is mandated to regularise the residential and commercial buildings in sectoral areas while Directorate of Building Control-II is tasked to regulate the developments in approved housing societies and E-11.

However, the new directorate will enforce the building bylaws in Zone 3, Zone 4 and E-11. A grade-19 director would head the formation while four deputy directors of grade-18 would also be appointed.    

The decision has been taken due to increasing development activities across the city which need to be regularised within given bylaws to ensure the implementation of the master plan. There are over 50 high-rise unauthorised apartment buildings alone in E-11 where builders and local people have made investment billions of rupees. However, a few years ago, the CDA got all construction activities in the sector stopped. 

The board has also approved a policy to allow private individuals to operate bus stands on their private land but with prior approval having certain conditions.

According to new policy, the planning wing of the authority would give temporary permission for bus stands while the Directorate of Municipal Administration would collect the charges calculated under this policy.

The temporary approval would be given for one year extendable for another year but with prior clearance of the Regional Transport Authority. The licensee could construct removable bus stand on 20 per cent of the whole area, no parking would be allowed on main road and its right of way.   There are illegal bus stations near Faizabad Interchange on main IJP road and the said policy is a way forward to regularise these illegal bus stands.