Islamabad, September 24, 2026: The Capital Development Authority (CDA) has barred the initial allotment of plots, agro-farms and other rehabilitation benefits to General Power of Attorney (GPA) holders or alleged purchasers instead of the original affectees.
According to a letter issued by CDA Member (State) Muhammad Zaman Wattoo on September 24, 2026, initial allotments in some rehabilitation cases were being processed in the names of attorneys or alleged purchasers rather than the original beneficiaries, which the authority said was contrary to court judgments and established legal principles.
The letter stated that a power of attorney merely creates an agency relationship and, by itself, does not transfer any right or ownership interest in a property to the attorney. Similarly, a mere agreement to sell does not, in itself, create a right or interest in immovable property.
The CDA referred to the Supreme Court judgment in Mst. Rasheeda Begum v. Muhammad Yousaf (2002 SCMR 1089) and the Islamabad High Court judgment in Capital Development Authority through Chairman v. Shaikh Muhammad Ejaz & others (2021 IHC 66).
According to the CDA, these judgments establish that until a rehabilitation entitlement is formally determined and a specific, identifiable plot is allotted, a power of attorney or agreement to sell cannot make another person entitled to receive the allotment in place of the original affectee.
The letter further stated that a power of attorney must clearly identify the relevant property. A power of attorney executed before the identification or allotment of a rehabilitation plot cannot subsequently authorise its automatic transfer or allotment in the attorney’s name.
The CDA said investigations had also brought to light cases of alleged fraudulent allotments in which GPA holders allegedly attempted to obtain rehabilitation benefits by concealing facts or making misrepresentations.
Citing one such case, the letter stated that 22 plots had been processed in favour of a GPA holder, despite the original affectees having previously received rehabilitation benefits against more than 150 kanals of land in Vehari district.
Member (State) Muhammad Zaman Wattoo directed that in all pending cases where allotment orders have not yet been issued, as well as in all future cases, the initial allotment of any plot, agro-farm or other rehabilitation benefit must be made only in the name of the original affectee or the affectee’s legal heirs.
However, the CDA clarified that the restriction would not apply to cases referred by the courts.
