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Land Disposal Cell (LDC)
Government of Pakistan
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TERMS AND CONDITIONS

PROCEDURE FOR DISPOSAL OF MILITARY LANDS

FOR CONSTRUCTION OF DEFENCE COMPLEX ISLAMABAD (DCI) PHASE III


GENERAL   
1.    Government of Pakistan has decided to construct GHQ/Def Complex at Islamabad for which the requisite funds will be generated through disposal of surplus military lands. The lands earmarked for disposal are located in various Cantonments having different set of local byelaws to suit the local environment. However, the general Terms & Conditions are outlined in succeeding paragraphs for information and planning purpose by the prospective buyers.


2.   In relaxation of all rules governing the sale of land under CLA Rules 1937, relevant sections of Cantonment Act 1924 and General Financial Rules, I am directed to convey sanction of the President to the adoption of the ‘Project Specific’ procedure for disposal of military lands. Disposal of land will be undertaken by GHQ Land Disposal Committee (GLDC) headed by DG Qtg and Land, QMG’s Branch GHQ Rawalpindi.

      

3.    Categorization of Land for Disposal

     a.    Residential.   Houses/apartments as under:-

          (1)    Residential A.   Ground plus upto one storey buildings.

          (2)    Residential B.   Multi storey Apartments.

     b.   Commercial.    Offices/shops/apartments etcetera as under:-

          (1)    Commercial A.   Ground plus upto one storey commercial/mixed use buildings.

          (2)    Commercial B.   Multi storey commercial/mixed use buildings.

          (3)    Commercial C.   Specific purpose buildings, eg Cinema, Factory, Petrol Pump, CNG Station or Parking                                            Plaza etcetera.

     c.    Maximum Height.   The maximum height for the buildings of all categories will be allowed according to the             dictates of security and town planning. This will be laid down/approved by the QMG’s Branch in consultation             with respective Garrison HQ and will form a project specific parameter for sale/approval of building plan.


4.   Disposal/Sale Procedure

     a.     Preparation of Parameters for Disposal / Sale.   The LDC will prepare comprehensive parameters for              disposal/sale after getting input from the concerned Cantt Board, Local City Development Authority, Civil              Aviation Authority and Consultant(s) etc.The said parameters will then form the basis for the disposal /sale.

     b.     Publicity/Publication of Ads.   The LDC GHQ will use all available means, i.e.print/electronic/IT media              (LDC’s dedicated web site www.ldc.gov.pk )to advertise for disposal/sale of lands.

     c.     Pre-Bid Conference.   A Pre-Bid Conference, if required, for larger properties will be held and all              Parameters/Terms & Conditions etcetera will be deliberated with the potential buyers and finalized.

     d.     Modes for Disposal/Sale.   The following modes for disposal of lands shall be executed in the given             sequence:-

          (1)    Open Auction.   Open Public Auction shall be conducted, after wide publicity through print and electronic                   media, by the GLDC. The highest/negotiated bid,if acceptable to GLDC/MLDC,shall be processed for                   Govt approval.

          (2)    Sealed Bids.   In case disposal by Open Auction does not fetch a price acceptable to the MLDC Sealed                    Bids shall be invited through wide publicity.Sealed Bids shall be opened by the GLDC in presence of the                    bidders or their nominees who might like to be present. The highest bid, if acceptable to the MLDC,shall                    be submitted to Government for necessary approval.

          (3)    Private Treaty.   In case the Open Auction and Sealed Bids do not obtain an acceptable price which                    will in no case be less than the Reserve Price, the MLDC, after wide publicity, shall negotiate sale by                    Private Treaty with the interested parties.

     e.    Improvement of the Bid.    In order to enhance the final price achieved, the GLDC may negotiate with the              highest bidder(s) on conclusion of the bidding process in both the cases, i.e.‘Open Auction’ or the ‘Sealed              Bids’.

     f.    Cancellation of Bid/Auction.    In case reasonable bids are not received, the GLDC shall have the right to            reject the auction/bids without assigning any reason thereof.


5.   Payment Procedure

     a.    Earnest Money.    The intending bidders shall deposit earnest money, as published in the advertisement            (Print and IT Media), through a crossed cheque in favour of MEO concerned, before the start of auction             proceedings. Earnest Money shall be returned by the MEO concerned to the unsuccessful bidders soon after            the closing of the auction process. However, the crossed cheque of the successful bidder(s) shall be             retained as security deposit till he/she/they deposit the desired demand draft of the Initial Deposit.

     b.    Initial Payment.    Ten percent of the highest bid shall be deposited by the highest bidder(s)on the fall of             hammer through a Demand Draft/Pay Order. If it is not possible, for any reason, then he shall submit a             Crossed Cheque of the same amount at the spot. Later, this Crossed Cheque shall be replaced by him with             a Demand Draft of the same value within three Business Days.

     c.    Balance Amount

          (1)    Properties of Value Upto Rs 100 Million .    The balance payment (90%) will be paid in 2 equal                    installments within a period of six months from the date of Govt approval.

          (2)    Properties of Value More Than Rs 100 Million .   The balance payment (90%) will be paid in 4                   equal installments within a maximum period of twelve months from the date of Govt approval.


     d.     Extension in Payment.   In special circumstances, an extension upto a maximum period of six months             may be granted by the MLDC. It will, however, be allowed on a request by the purchaser, submitted at-least             one month in advance of the due date and subject to payment of surcharge @ Karachi Inter Bank             Offer Rate (KIBOR) plus 500 Basis Points per annum, as applicable on the day of approval of the             extension period, to be charged on monthly basis or fraction thereof, on the payable / balance amount,             from the actual due date.

     e.   Default in Payment.    In case of failure to deposit the initial or balance amount of the bid within the            extended period, the bid would stand rejected and the entire amount (Cheque/Demand Draft/Pay            Order) already deposited forfeited. Any development/ infrastructure undertaken on the said site by the            purchaser shall also be forfeited.

     f.    Early Execution of Lease Deed.    If a purchaser wants to pay the entire amount earlier, he may do so            and execute sale/lease deed.


6.    Handing Over of Site to the Purchaser   
       Possession of land costing upto Rs 100 Million will be handed over after receipt of full payment from the        successful/highest bidder. However, without any prejudice to its ownership title which shallrest with the        Federal Government till the Lease Deed is executed,the land site whose bid value exceeds Rs 100 Million may        be handed over to the purchaser(s), to undertake construction work after receipt of at-least fifty percent of the        total sale amount, Clean Bank Guarantee of at least ‘AA’ rating as determined by the State Bank of        Pakistan, equal to the balance of the total amount and entire amount of development charges. In this        regard, the format of ‘Clean Bank Guarantee’ approved by the legal expertsand and to be provided by the        LDC shall be followed by all the purchaser(s). On receipt of the Clean Bank Guarantee, the concerned MEO        will get it verified through Land Disposal Cell, QMG’s Branch,GHQ,confirm receipt of all the above payments        and then issue a ‘Provisional NOC’ before handing over the site.


7.    Mutation / Lease   
      The lease will be executed in Schedule IX-C of CLA Rules 1937 in the name of the purchaser(s) or his        nominee(s), duly authorised by the purchaser(s) at the start of auction / bid proceedings or to a Special        Purpose Vehicle which may be created subsequently by the purchaser(s), when complete payment of land and        Development Charges etcetera have been received and after ‘No Objection Certificate’ has been granted        by the MEO.


8.   Approval of Building Plans
      Based on the ‘Provisional NOC’issued by the MEO, from land utilization point of view, and the project specific       parameters (including height) approved by the QMG’s Branch for the sale, the building plans shall be approved       in principle by the GLDC and then formally approved by the respective Cantt Board within 45 days.


9.   Development Works   

      a.   The development charges will be ascertained by the Land Disposal Cell (LDC) based on the parameters of              sale and after consulting the respective Cantt Board. The development of the sites will be undertaken by              the LDC with the help/assistance of the respective Cantt Boards.

      b.   The Development Charges received from the purchasers will be deposited into QMG’s Development Fund.


10.   Deposit of Sale Proceeds   
       On receipt from the purchaser, all sale proceeds shall be deposited by the MEO concerned with the Controller        of Military Accounts (Rawalpindi Command) Rawalpindi under the following head:-

Special Funds for Construction         RT Code Head         Ch Code Head

of Defence Complex                     0/016/89               0/016/89

                                           Islamabad (DCI) Phase-III


11.   Validity of Govt Letter   
       Keeping in view the procedural obligations and payment schedule, the validity of the Govt Letter for lease/sale        of the land shall be for 13 months. Thereafter, if any extension in payment schedule is granted as per        procedure outlined above, the validity period of the Govt Letter shall be enhanced correspondingly by the        Ministry of Defence through a corrigendum.


12.   Anomalies Committee
       Any issue/clarification to be addressed may be addressed to Director Land Disposal, QMG’s Branch, GHQ        Rawalpindi.




General Headquarters

QMG’s Branch (Qtg & Lands Dte)

Land Disposal Cell Rawalpindi

Tel: 051-561-33574, 561-31547

Fax No: 051-9272686

December 2006

                                                                                            Brig

for Quartermaster General

(Muhammad Khalid Saeed)




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