DHA Gujranwala imposes heavy charges on cancellation of intimation letter

Defence Housing Authority (DHA) has always been a safe, secure and profitable investment. However, when it comes to DHA Gujranwala, many might not agree with the ‘profitable’ bit anymore.

If you have been following the rates of 10-marla and 1-kanal residential plot files, you will agree that the marginal yet continuous drop in rates explicitly illustrates the market demand and popularity of this project. The delay in land acquisition process, followed by the postponed official launch and expected balloting, should have made DHA more concerned about the project’s future. However, the opposite has apparently happened – cancellation of the intimation letter for residential plots will now be charged a fee.

A letter issued by Director Land of DHA Lahore’s Gujranwala Chapter informed agents registered with DHA that the charges are being applied to save the government and the authority from the losses caused by frequent unpaid cancellations. The letter also listed the cases in which these charges are applicable:

1. No charges if the file owner applies for cancellation within 10 days of issuance.
2. Plot cancellation after 10 days but within 45 days of the issuance date will be charged with PKR 10,000 for all plot sizes.
3. Cancellation after 45 days of the issuance date will require personal appearance of file owner. The charges are as follows:

1. 2 Kanal                          PKR 400,000
2. 1 Kanal                          PKR 200,000
3. 10 Marlas                     PKR 100,000
4. 8 Marlas                       PKR 80,000
5. 5 Marlas                       PKR 50,000

A file processing fee of PKR 6,500 will be charged for all applications.

Confused? Let me explain what this to you. The files sold in the market are called land-owner files as these are sold by the farmers whose land DHA acquires. Instead of giving them money for the acquired land, DHA allots them files. When a landowner (farmer) requests intimation letter cancellation for the first transfer, there are no charges applicable on it but there is a processing fee of PKR 6,500. Intimation letter cancellation charges are applicable on the resale of these files.

By applying these charges, DHA has discouraged short-term investors, who, in a way, were retaining the small-scale activity in DHA Gujranwala. It will also have major effects on the demand for, and the rates of, these files. Perhaps only genuine buyers will not mind making a purchase.

Needless to say, the project is not in any shape to offer hope to genuine buyers and long-term investors. In this regard, I foresee very undesirable market conditions for DHA Gujranwala.