ISLAMABAD: On the timely intervention of the National Accountability Bureau (NAB), the ARY Group and the ARY Dubai flat affectees reached an agreement Tuesday that bounds the former to restore the cancelled allotments while the latter would deposit the outstanding amount by November 30 this year.
According to a NAB source, NAB Deputy Chairman Major-General Muhammad Siddiq led the negotiations between the two sides for two days — Monday and Tuesday — and finally got the ARY Group and the affectees’ action committee to reach an agreement.
Under the agreement, the ARY would restore the allotments of those affectees who would agree to deposit the outstanding amount as per agreed schedule, whereas those seeking repayment would be refunded 100% of their deposits.
The remaining amount — 70% — which was initially to be financed through bank loan, would be paid by the affectees in instalments by November 30, 2006, whereas the ARY would hand over the possession of these flats to the owners by December 31, 2006.
The ARY management had recently cancelled the allotments (of Dubai apartments) of innumerable people, said to be in hundreds, with the Group claiming to have done so in view of default.
A recently constituted action committee of the affectees approached the NAB last week and sought its immediate intervention to resolve the matter.
The following is the operative part of the agreement:
“i) Allotments may be restored to those allottees who are willing to pay the amounts mentioned in schedule of payment at S.No. (viii) below along with the cost of funds incurred by the ARY Group w.e.f 1-7-2005 till the completion of 70% payment (the cost of funds will be calculated at the rate of 10% per annum on the defaulted/delayed payment of 40% or as the case may be for each individual allottee).
ii) Refund will be made to those allottees who are not interested in retaining these allotments. No deduction will be made by the ARY Group on account of this refund and if some allottees have received refund less than 100% (during this cancellation process) they may claim difference of amount from ARY Group. Registration charges either received by ARY Group or by developer will also be refunded (since the flats being surrendered due to refund process will be resold by ARY Group/developer).
iii) Those allottees who are willing to arrange loans at their own from Pakistani/UAE banks, may do so at their own and pay the due amount along with delayed charges to ARY Group and thus they will fall in the category of No (i) mentioned above. All the stakeholders agreed that no transfer of allotment rights will be entertained w.e.f 25-7-2006 until physical possession is handed over to the allottees.
iv) No adverse media campaign would be run by either party. However, a positive media release may be issued by the affectees or by ARY Group, where role of NAB to provide relief to the general public and an amicable settlement is highlighted giving brief outlines of the settlement criteria. However, it is emphasized that ARY and the affectees will consult NAB before releasing any such material to the media.
v) All those allottees who would in this manner make 100% payments to ARY Group will be given a formal tri-party agreement between ARY Group, developer (M/s Nakheel), and the allottee. However, this may invite some re-location of flats to different buildings which has to be accepted by the allottees.
vi) The ARY Group assures to handover the flats tentatively by 31.12.2006 after completion of the project by the developer.
vii) All litigation initiated by the affectees group will be withdrawn immediately on signing of this agreement. viii) Time period mutually agreed for item No (i), (iii) & (v) is 30 days, whereas time allowed for item no (ii) is up to 30th September 2006. The post dated cheques for following dates will be provided by the affectees to ARY’s Islamabad office latest by 10.8.2006:
Dr Salma Kafeel, Zafarullah Koreshi, Ikramullah Khan and Fateh Khan Malik signed the agreement on behalf of the affectees, whereas Muhammad Iqbal and Lieutenant Colonel (r) Gulfraz Malik signed the document prepared by the NAB on behalf of the other party.
