Gulistan-e-Sarmast project stalled for 16 years despite massive collections from allottees
MQM-P in an attempt to change the leader of the opposition in the Sindh Assembly. PHOTO: FILE
KARACHI:
The Public Accounts Committee (PAC) of the Sindh Assembly has ordered a probe into alleged financial irregularities of 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 8.5 billion from over 32,000 allottees in the form of land awards and development charges, not a single allottee has been handed over physical possession over the last 16 years. Basic facilities, including electricity, gas, water supply and road infrastructure, are also not provided.
Additional Secretary of the Afshan Local Government Department has been appointed as the Inquiry Officer who will submit a report within two weeks.
The decision was taken during a PAC meeting held on Wednesday under the chairmanship of Nisar Khuhro where revision clauses relating to HDA were examined. Committee Member Qasim Siraj Soomro, Additional Secretary Local Government Afshan, Additional Secretary HDA Nadeem Khan and other officials were also present.
HDA officials claimed that development work in five sectors of the scheme had been completed and Rs 4 billion out of the total collected Rs 8.5 billion had been spent on development works. However, the PAC sought full details of expenditure, including bank statements and details of the development work carried out under the scheme.
Expressing strong displeasure, Khuhro questioned HDA officials over the suspension of work on the project since 2021 and non-handover of possession to allottees for 16 years. He sought details about the launch of the scheme, the reasons for the work stoppage, the total amount collected from the allotments and the continued delay in possession.
HDA officials informed the committee that Gulistan-e-Sarmast Housing Scheme was launched in 2009 with a completion date of 2013. They stated that plots had been allotted to more than 32,000 applicants from whom Rs8.5 billion had been collected since the launch of the project.
According to HDA, development work in five sectors has been completed and these sectors are ready for handover. An advertisement was issued to this effect, after which around 200 allotments have so far submitted applications for possession. Officials added that each sector spans 80 acres and around 80 percent development work has been completed in sectors 1 to 5.
Responding to queries about the use of funds, HDA officials said that Rs4 billion had been spent on development works, while Rs140 million had been deposited for setting up a grid station. However, they added that Wapda later revised its demand and increased the required amount.
The PAC chairman questioned where the remaining Rs 4.5 billion had gone, but the HDA officials failed to give a satisfactory explanation.
The committee was also informed that the scheme’s adviser retired in 2014, after which development work was carried out through tendering. HDA officials further revealed that the authority currently does not have a director general.
It was also revealed that in 2019, allotments of 50 percent of Phase I, II and III allotments were cancelled, while Phase IV comprising 2,000 plots was announced. However, the draw for phase IV has not been held for the past eight years.
Committee member Soomro suggested that if the HDA is unable to complete the project on its own, it should consider executing the scheme under a public-private partnership.
