CDA Fines Housing Scheme Rs. 19.6 Million for 17-Year Development Delay

The Capital Development Authority has imposed a heavy financial penalty on Al Hamra Avenue Housing Scheme for failing to complete development work within the stipulated timeframe, despite the passage of more than 17 years since its approval.

The action was taken while reviewing the request for approval of a revised and extended layout plan of the housing project located at Mouza Chira, Ara and Darwala in Zone 5, Islamabad.

According to official correspondence issued on January 26, 2025, the original layout plan of Al Hamra Avenue, spread over 1,074 kanals and comprising 626 residential plots along with allied land uses, was approved on July 25, 2006.

The CDA Board later approved the issuance of a No Objection Certificate for advertisement of the scheme on March 15, 2008. Under the applicable regulations, the sponsor company, M/s Al Hamra Avenue Private Limited, was required to complete development within four years, ending on March 15, 2012.

The CDA granted a further extension of three years, up to March 15, 2015, after the submission of prescribed extension charges. However, the authority noted with grave concern that the scheme remains incomplete to date. The sponsor has now sought approval of a revised layout plan expanding the scheme to an area of 1,976 kanals.

In response, the CDA has directed the company to submit a scrutiny fee for the revised plan at the rate of Rs. 4,000 per kanal, amounting to Rs. 7.904 million. In addition, the authority has demanded payment of pending fees, fines and penalties totaling Rs. 19.641 million.

The combined financial liability imposed on the housing scheme amounts to Rs. 27.545 million. The CDA has given the sponsor seven days to deposit the required amounts, warning that failure to comply will result in the case being treated as disposed of and the revised layout plan being considered unapproved.

The 17 year delay in completing the housing project raises serious questions about oversight mechanisms and enforcement of development timelines by the CDA. Investors and plot holders in Al Hamra Avenue have been waiting for basic infrastructure and amenities since 2008, causing significant financial and emotional distress.

The expansion of the project from 1,074 kanals to 1,976 kanals represents an 84% increase in the scheme’s footprint, suggesting significant changes to the original approved plan.

Similar delays have been reported in numerous other private housing schemes across the federal capital, with many projects remaining incomplete for over a decade.