The Lahore Development Authority has decided to allow annual commercialisation of properties for 10 years as part of its business-friendly commercialisation policy initiative.
A survey of LDA-controlled areas has found that there are 22,000 properties being used for commercial purposes without paying the fees.
The authority has decided to allow the properties to pay annual commercialisation fees for 10 years.
This flexibility was also for offered for businesses along 18 roads that in 2010 were banned for commercialisation.
These included Canal Bank Road, Kybani Firdosi, Abuul Hasan Isfhani Road, Defense Road, Rawind Road and Wahdat Road.
The procedure proposed by the LDA is to obtain a no-objection certificate from neighbours consenting to commercial use of the property. Similarly a NOC would also be required if the nature of commercial use of the property had changed.
No structural changes may be brought in the buildings after grant of the temporary (annual) commercialisation permission. The LDA would not allow commercialisation for hazardous industries, chemical storages and sources of noise and pollution.
Annual Commercialisation Permission would be renewable on yearly basis.
Commercialisation fee charged annually would be 1 per cent of the commercial value of the property payable in lump sum or in equal instalments.
Application for annual commercialisation should be addressed to LDA commercialisation director along with copy of the NIC and ownership documents. The application must also contain NOCs from neighbors and a statement mentioning intended commercial use of the premises.
The application should also contain a pay order of Rs 5,000 for processing fee. In order to facilitate applicants, a special desk has been established at One-Window Cell, LDA.
Some officials of the LDA remain opposed to the policy. They said it should have been done keeping in view the by-laws of commercialisation.
Lahore Development Authority Deputy Director Ghulam Rasool said the flexibility was for Lahore Division. He said there were thousand of properties illegally commercialised which would be brought under LDA’s net.
He said it would help curb revenue leaks.
Published in The Express Tribune, April 1st, 2014.