Over 180 Buyers Default Due To No Development At Park EnclaveWednesday, September 05, 2012
According to news, the aim of CDA was to offer a better residential scheme with the name ‘Park Enclave’ for elite but unfortunately over 180 buyers of the scheme have defaulted. This is because CDA has failed to develop the project.
Park Enclave, known as the Jewel of the City, was launched in July 2011 and CDA could sell only 600 residential plots though balloting out of around 700 plots. From the buyers of these 600 plots, over 180 have defaulted after paying the second installment.
The cost of a 500 square yards plot was Rs 12 million and buyers had to pay this amount in 7 installments. The first installment was Rs 1.2 million and second and third installments were around Rs 1.8 million each.
From the sale of 600 plots, CDA collected around Rs 720 million. After approval of the board, CDA decided to use 40% of the amount collected as first installment to meet its financial needs. CDA management intended to use this money on huge bills of contractors working on several development projects in the city.
According to news, CDA bypassed the amount (40% of first installment) decided by the board. The remaining 60% of the first installment was decided to be spent on development of Park Enclave. This amount is with the CDA finance department and is yet to be spent on the scheme. The inability of CDA to develop Park Enclave has resulted in trust deficit between buyers and the authority and this is why they are considering CDA schemes as risky business. These concerns are stopping buyer to pay their third installment.
‘CDA’s management is concerned about delay in installments, since the third installment response is quite poor’, says an official associated with the accounts wing of authority. Mr Raja Murtaza Satii, a real estate agent, highlighted that Park Enclave was to be completed in 18 months but there is no major development work on the project even after the lapse of 14 months.
Masood-ur-Rehman, Spokesman of CDA, says he has no idea about the payment schedule but the construction is in progress. He also highlighted that work on the establishment of boundary wall of the project is currently in progress. He also added that he does not know how many buyers have defaulted on the third installment.