LAHORE: The Lahore Development Authority (LDA) has waived off the building period surcharge of Rs50.74 million ($321,000) for Fatima Memorial Hospital, going against its earlier decision.
A piece of land was leased out to Feroz Sons Trust in 1971 for a maternity and children hospital, and another piece of land was leased out in line with the previous one.
The building plan for approval was submitted in 2012 and was not approved because the building period had expired.
As per the lease agreements, the trust was responsible for paying the land revenue rates, cesses, faxes, fees, and other charges as leviable or payable in respect of the land or the building and other structure to be constructed thereon.
LDA initially allowed a two-year period free of cost for building period extension, after which the surcharge was levied.
The rate of building period extension surcharge was fixed at Rs. 10,000 per Kanal per annum, and later revised to Rs. 75,000 per Kanal for the first year, Rs 112,500 per Kanal for the second year, and Rs. 150,000 per Kanal for the third, fourth, and fifth, and it would remain constant after the fifth year.
In September 2022, the building period extension surcharge was fixed as 0.50% of the DC value of the property per annum, applicable from 18-10-2022.
Furthermore, the trust subsequently requested a waiver of penalty on account of the building period extension, and LDA finally approved the request and waived off the building period extension surcharge.
