LAHORE - Owners of over one hundred commercial properties located in Model Town Extension Scheme, Faisal Town and New Garden Town have been issued red warrants and their buildings are likely to be sealed due to non-payment of prescribed commercialisation fee to Lahore Development Authority (LDA). The Commercialisation Directorate of Lahore Development Authority (LDA) has launched full-fledged anti-default drive against the commercialised buildings on Monday and sealed a total of five properties at various places during first day of operation in the city. These properties were being utilized by two private schools and an estate office, without paying commercialisation fee charged at the rate of 20 per cent of the total value of the urban land based on valuation tables prepared under the Stamp Act 1899. Sources revealed that defaulters of the commercialisation fee were directed to deposit the amount due to them, failing which their properties could be sealed. They said that red warrants have also been issued to them. Sources said LDA had also started conducting a complete survey to identify those residential buildings converted into commercial properties without paying the commercialisation fee in the City.   Sources said that LDA was facing great decline in revenue generation due to growing default in the head of commercialisation fee. Authority concerned showed great concern over the downward trend. On the direction of City Nazim Mian Amer Mehmood, who is chairman of LDA, some moves were initiated to ensure the collection of commercialisation fee but they could not be materialised due to reason best known to high-ups. With a view to increase the revenue, LDA former Director General Muhammad Arif had also planned to carve out new LDA commercialisation policy. But after some development, new commercialisation policy hit the snags. Sources said that LDA failed to collect Rs 600 million revenue regarding commercialisation fee during one year due to inordinate delay in commercialisation policy. They said that LDA had 25 per cent controlled area against 75 per cent by the City District Government Lahore. But it collected Rs 600 million vis-a-vis CDGL which gathered Rs 100 million under the head of commercialisation last year. Sources said that LDA evolved the new commercialisation policy for its housing schemes and controlled areas and got it approved by its governing body before the establishment of new govt in Punjab. However, new Punjab govt after assuming the charge, stopped LDA to implement the policy. Meanwhile, LDA's new commercialisation policy considered to be lenient to defaulters, has hit the snags. According to new policy being formulated by the LDA, three star hotels, residential apartments, flats, shopping malls, plazas, markets, departmental stores, financial institutes, showrooms, restaurants, parking plazas, business institutions would be constructed in those places declared as commercial areas. The district government and town administrations would be empowered to allow the construction of buildings of research institutes, marriage halls, cinemas, theatres, auditoriums, concert halls, big halls for exhibition, petrol pumps, Bus and truck terminals and private hospitals on at least four kanals land. The same authority would be empowered to allow the construction of cottage and light industry, warehouses and storages in industrial areas. While in industrial areas, no one will be permitted to start the business of storing and manufacturing of explosive material like ammunition, fireworks, gunpowder, phosphorous, dynamite and other inflammatory substances. According to outline of the policy, commercialisation fee would be reduced to help boost business activities. As much as twenty percent was charged over the market rate to convert any land into commercial land in past. Now it will be reduced to 10 percent. Besides Rs 2000 were charged as processing fee. It would be waived off completely. In case of map fee, a flat rate of Rs 5 would apply to all sizes of plots.  According to rules, commercial activities will be banned in approved residential schemes. Schools, colleges, universities, homeopathic and allopathic clinics, health care, dispensaries, poly clinics, dental clinics which will be working in residential areas would be exempted from paying commercialisation fee. Same policy would apply to natural parks, wild life forests and historical places.