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29 May, 2018

Reviews on Bahria Town Karachi by Supreme Court of Pakistan

Property News

Let's understand the case before the Honorable Supreme Court and how the entire land deal between Bahria Town and MDA was sorted out to cause heavy losses to the Government.  Some of the issues were as follows,

  • Malir Development Authority ( MDA ) had to launch its own housing scheme on its land on Super Highway but got entangled in a suspicious deal with Bahria Town without inviting bids from other parties.
  • MDA can ony lease out its land to private developers as per the new set of rules, but this was violated and land ownership was transferred to Bahria Town.
  • Bahria Town purchased part of the land at fair market price whereas some part of the land was acquired in exchange for some barren patches of land in distant Sindh. The settlement was illegal and thus causing losses to Government.
  • The Supreme Court acknowledges the fast track development work being carried out by Bahria Town but the case revolves around land deal between Bahria Town and MDA.

 

  • Now let’s focus on the Supreme Court Verdict that was declared as,
    • The entire deal is nullified and all the subject land will go back to MDA and Bahria Town gets back the land it exchanged with MDA for the deal.
  • Bahria Town cannot launch any new block or project until the final settlement is over.
  • Plot owners with ongoing installment plan will submit their due installments in a separate account that will be created as per the directions of the Supreme Court.
  • Since Bahria Town has done extensive developments on the subject land, the Government can decide to transfer this land to Bahria Town again on revised terms at market value of the land under the supervision of the Court.
  •  Supreme Court will create an implementation bench that will make sure that all directions of the Court are followed in true spirit. The bench will also oversee the terms of revised land deal between MDA and Bahria Town.
  •  NAB will further dig deep into this land scam, and determine the culprits within 3 months.
  •  Supreme Court Bench has recommended the Chief Justice to take “Suo Motto” notice on similar type of malafide land deal between MDA and DHA Karachi.

After this decision, it is pretty apparent that things will get back to normal after this settlement as Bahia Town has invested billions on the development work and it has to manage its repute. The property value may go down a bit and those who have to pay their installments might have to wait for the account details to be advertised by NAB where u can submit your installments.  Bahria Town cannot demand installments of ongoing projects unless the development work has initiated. Bahria Town has to repossess the land and continue with its development in order to receive installments.

 


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