IHC Ends BUP Compensation, Speeds Up CDA Land Acquisition

ISLAMABAD: The Islamabad High Court (IHC) has issued a decision aimed at curbing corruption within the Capital Development Authority (CDA) and expediting future land acquisitions in Islamabad. The ruling, delivered on October 30 by Justice Babar Sattar, eliminates the practice of awarding separate compensation for Built-Up Properties (BUPs) during compulsory land acquisitions for the development of sectors and other projects. Consequently, the CDA has suspended its existing compensation policy, which previously granted plots to those affected if they had BUPs on the land being acquired.

The IHC’s ruling addresses a longstanding issue where the number of BUP affectees increased over time, often due to unauthorized new constructions carried out in coordination with some CDA staff. These practices had delayed land acquisitions and complicated efforts to distinguish between genuine and fraudulent claims. Under the new decision, compensation will now be provided solely for the land itself, not for any structures on it.

The CDA is currently revising its rehabilitation policies to align with the CDA Ordinance of 1960, which requires a single, comprehensive compensation award for land acquisitions. The court specified that CDA must cease the practice of allocating plots in exchange for BUP compensation. The judgment was prompted by a petition from 20 residents of F-11, and the CDA is required to calculate and disburse compensation to them within 90 days.

The court emphasized that issuing separate awards for land and BUPs contradicts Sections 27 to 31 of the CDA Ordinance, 1960. Additionally, older policies like the Rehabilitation Policies of 1984 and 1994, as well as the Rehabilitation Regulations of 2007, which facilitated such compensations, need to be amended to comply with the ordinance. The CDA Board has been directed to review and revise these policies within 90 days.

However, the ruling does not impact prior completed transactions, meaning those who have already received and transferred plots in their name will remain unaffected. The decision has been well-received by stakeholders, who believe it will enable the CDA to acquire land more efficiently, develop sectors, and hand over plots to owners promptly. CDA spokesperson Shahid Kiani confirmed the suspension of the current compensation scheme, stating that all rehabilitation policies will be reviewed as ordered by the IHC.