FAISALABAD, Oct 30: The district market committee has raised objections to establishment of a private fruit and vegetable market parallel to the one raised with millions of rupees funded by the Asian Development Bank (ADB), sources told Dawn on Thursday.

They said the government intended to institute the new market at Chak 233-RB and for this purpose comments were sought from the Market Committee Faisalabad (MCF) officials.

The MCF had established a market at Chak 245-RB, with ADB’s financial support on 208 kanal land in 1998. An agreement was also signed among the Punjab government, ADB and MCF for settlement of terms and conditions and repayment of ADB loan.

Out of 280 plots in Chak 245-RB market, 221 were allotted by the allotment/auction committee constituted by the Punjab Agriculture department on Sept 18, 1995, to the commission agents already working in the field. The Anjuman-e-Artian had provided the list of commission agents for allotment of plots.

Sources said the market committee officials were of the view that a parallel market would cause the MCF huge financial losses as it would cut down the business volume for the commission agents operating in 245-RB market.

They said ADB had released nearly Rs60 million as 85 per cent of total expenditure to be incurred on instituting the market at Chak 245-RB, and the MCF had arranged the remaining amount. The Rs60 million loan is to be repaid to the ADB along with 4 per cent markup.

The market committee had paid Rs30 million to the government to clear the debt and the remaining Rs53,649,051 were there to be paid by the MCF, the sources said.

Besides, the committee so far recovered only Rs28,416,297 from the allottees and was yet to recover the remaining Rs66,012,141 from them, they said. Similarly, they said, of the total auction amount for 41 plots, Rs153,635,000, the committee recovered Rs86,255,010 and Rs6,73,79,990 were to be recovered.

The committee has yet to put 15 plots on auction and each having Rs3 million minimum price. The auction process of six other plots was under way when the DCO was transferred.

The sources said with the establishment of a parallel market it would become difficult for MCF to recover the remaining amount from the allottees of ADB-supported market. That, they said, would render the MCF unable to repay the outstanding loan to the bank.

The sources said the market committee officials had informed the government that the new market would also hit the business of commission agents of Jhang Road, who had invested millions of rupees in the old one.