Lahore: The Lahore High Court (LHC) has decided that Lahore Development Authority (LDA) has no power to charge a conversion fee as per its 2014 rules from roads or parts of roads stated commercial or converted to commercial, according to media reports.
According to Justice Ayesha A Malik, the demand for a one-time conversion fee is contrary to the LDA’s mandate because it is not specified in Section 28 of the LDA Act. Moreover, the justice stated that demand notices published in newspapers cannot be used to collect conversion fees.
Several petitions were filed in 2014 by property owners or tenants against the LDA’s demand notice of a conversion fee to be paid for undertaking commercial operations on their premises. Some petitioners objected to the demand notices. However, others objected to public announcements published in newspapers, which said that commercial areas (as specified in the publications) and the general public have seven days to convert their properties to commercial after paying the conversion fee.
Furthermore, the petitioners were said to have been operating commercial activities on the land for many years and to have paid the conversion fee. They also have all of the necessary approvals in place. According to the petitioners, the LDA lacks the power to impose a one-time conversion fee.
The LDA counsel informed the court that the LDA 2014 regulations had been superseded by the LDA 2020 rules. Many petitions have been rendered obsolete as a result of the new laws, which have reintroduced the concept of temporary commercialisation.
After hearing both parties, Justice Malik prohibited the LDA from charging conversion fees on commercial roads.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
