Gulistan-e-Sarmast project stalled for 16 years despite huge collections from beneficiaries
MQM-P in a bid to change the opposition leader in the Sindh Assembly. PHOTO: ARCHIVE
KARACHI:
The Public Accounts Committee (PAC) of the Sindh Assembly has ordered a probe into alleged financial irregularities worth billions of rupees in the Gulistan-e-Sarmast Housing Scheme, a 2,000-acre project launched by the Hyderabad Development Authority (HDA) in 2009.
Despite the collection of Rs 8,500 crore from over 32,000 allottees in the form of plot prices and development charges, not a single allottee has received physical possession for the last 16 years. Basic services, including electricity, gas, water supply and road infrastructure, have also not been provided.
Local Government Department Additional Secretary Afshan has been appointed as the inquiry officer and will submit a report within two weeks.
The decision was made during a PAC meeting held on Wednesday under the chairmanship of Nisar Khuhro, where audit paragraphs related to the HDA were examined. Committee member Qasim Siraj Soomro, Additional Secretary Local Government Afshan, Additional Secretary HDA Nadeem Khan and other officials also attended.
HDA officials claimed that development works in five sectors of the scheme had been completed and Rs 4 billion of the total Rs 8.5 billion collected had been spent on development works. However, the PAC sought full details of expenditure, including bank statements and details of development works carried out under the scheme.
Expressing great dissatisfaction, Khuhro questioned HDA officials over the suspension of work on the project since 2021 and non-handover of possession to the allottees for 16 years. He sought details regarding the launch of the scheme, the reasons for work stoppage, the total amount collected from the allottees and the continued delay in grant of possession.
HDA officials informed the committee that the Gulistan-e-Sarmast Housing Scheme was launched in 2009 with a completion deadline of 2013. They claimed that plots had been allotted to more than 32,000 applicants, of which Rs 8.5 billion had been collected since the launch of the project.
According to the HDA, development works in five sectors have been completed and these sectors are ready for handover. In this regard, an advertisement was published following which around 200 allottees have so far submitted applications for possession. Officials added that each sector covers 80 acres and about 80 per cent of the development work has been completed in sectors 1 to 5.
Responding to questions on the utilization of funds, HDA officials said Rs 4 billion had been spent on development works, while Rs 140 million had been deposited for the establishment of a network station. However, they added that Wapda later revised its demand and increased the amount required.
The PAC chairman asked where the remaining Rs 4.5 billion had gone, but HDA officials did not give a satisfactory explanation.
The commission was also informed that the scheme’s consultant retired in 2014, following which development work was carried out through tenders. HDA officials further revealed that the authority currently does not have a director general.
It was also revealed that in 2019 the awards of 50 per cent of the successful bidders of Phases I, II and III were cancelled, while Phase IV comprising 2,000 plots was announced. However, the Phase IV draw has not been held for eight years.
Committee member Soomro suggested that if the HDA cannot complete the project on its own, it should consider executing the plan through a public-private partnership.
