Lahore: The Lahore Development Authority (LDA) has prepared an updated draft of the Management of Properties of Lahore Development Authority (Joint Venture) Regulations, 2021, news sources reported on April 4. The revised draft will be presented before the LDA governing body in the upcoming meeting.
Section 5 of the Management and Transfer of Properties by Development Authorities Act-2014 (the Act) provides joint ventures to manage development authorities’ property.
Section 20 of the Act authorises the government to create rules to carry out the Act’s aims, and Section 21 allows an Authority to enact regulations.
Under section 4 of the rules, a committee will be constituted to deal with joint venture problems and to carry out any joint venture activities delegated to it by the DG. the committee will include the following members:
Additional Director General (Housing)
Chief Metropolitan Planner
Chief Town Planner
Director (Housing-X)
Chief Engineer-I
Director (C&I)
Director of Finance
Officer to be nominated by the DG
Section 7 allows a joint venture agreement to include full facts about all subjects reasonably linked to a joint venture. The joint venture agreements will be reviewed by the Director of Law (High Court and Supreme Court).
Section 8 permits DG and a partner to establish a special purpose entity for a joint venture project. The DG and a partner may transfer property and other assets to an SPV on mutually agreed-upon terms and circumstances. The DG may authorise the transfer of funds to an SPV or a partner per the joint venture agreement before the completion of the work, delivery of the goods, or the rendering of the services for which the funds are intended if it is certified to be inevitable and in the public interest, and necessary steps are taken to protect LDA from any loss that may result from the advance transfer of funds.
It is important to recall that In its 12th/2019 sessions on November 26 and 27, 2019, the LDA (the Authority) submitted a draft of the Joint Venture Rules for review and approval by the government. As a result, a thorough consultation process launched by the government resulted in the entry into effect of the Management and Transfer of Properties by Development Authorities (Joint Venture) Rules 2020 via a notification published in the official gazette on October 10, 2020.
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