IHC Dismisses Bahria Town Pleas, Clears Way for Property Auction

News Desk

Islamabad: The Islamabad High Court (IHC) on Tuesday dismissed petitions filed by Bahria Town challenging the proposed auction of its properties by the National Accountability Bureau (NAB), paving the way for asset liquidation in connection with an unpaid plea bargain.

A division bench comprising IHC Chief Justice Justice Sarfraz Dogar and Justice Muhammad Asif issued a short order allowing NAB to proceed with the auction of Bahria Town’s assets under Section 33E of the NAB Ordinance, 1999.

“For detailed reasons to be recorded later the captioned Writ Petitions are hereby dismissed,” the court ruled, adding that injunctive orders previously granted on April 15 and June 4 had been recalled.

The decision is a blow to Pakistan’s largest private real estate developer, which has been battling mounting legal and financial troubles.

Malik Riaz Appeals for Dialogue

Following the IHC verdict, Bahria Town’s founder Malik Riaz warned of a near-total shutdown of the organization’s nationwide operations due to “unprecedented pressure” from state institutions.

In a series of public statements on social media platform X (formerly Twitter), Riaz claimed that the company’s bank accounts had been frozen, vehicles seized, and staff members arrested. The firm’s ability to deliver services and pay salaries had collapsed as a result.

“Our cash flow has been completely destroyed,” Riaz said. “We are unable to pay salaries to our tens of thousands of staff.”

According to Bahria Town, the crisis has affected:

Over 50,000 employees across Pakistan

Trillions of rupees worth of investments from citizens in Karachi, Lahore, and Islamabad

Commercial projects worth hundreds of billions

Thousands of families left in financial and psychological distress

Despite the grim picture, Riaz insisted on a peaceful resolution.

“We assure you that we will participate in any arbitration and implement its decision 100 percent,” he said, urging the authorities to “return to serious dialogue and a dignified solution.”

Legal Background

The IHC’s decision comes amid long-standing legal proceedings tied to a £190 million settlement case involving Malik Riaz and his son Ali Riaz. NAB claims that the duo entered a plea bargain to pay the recovered amount but failed to deliver on the commitment.

NAB has justified the auction of Bahria Town’s properties as a measure to recover the defaulted sum, citing Section 33E of the NAB Ordinance.

Bahria Town’s counsel, senior advocate Farooq H. Naik, argued in court that the auction notice was “illegal, deceptive, and issued with mala fide intent.” He contended that Bahria Town was not party to the original plea bargain and that the pledged assets were unfairly targeted.

Naik also highlighted that an individual named Zain, who had pledged Bahria Town assets as collateral, had applied for cancellation of the plea bargain, which is still under judicial review.

The NAB prosecutor, however, rejected these claims and asserted that the auction was lawful due to Bahria Town’s failure to fulfill the plea bargain conditions.

£190 Million UK Settlement and SC Observations

The case is rooted in a 2019 settlement between the UK’s National Crime Agency (NCA) and Riaz’s family, resulting in the repatriation of £190 million. The same year, Pakistan’s Supreme Court accepted Bahria Town’s offer to pay Rs460 billion to settle land encroachment charges in Karachi’s Malir district.

Although Bahria Town claimed the NCA amount would be adjusted against the Supreme Court fine, the top court noted last year that only Rs60.72 billion had been paid — and of that, Bahria Town had directly contributed only Rs24.26 billion.

Shutdown Threat Looms as Dialogue Sought

As the legal noose tightens, Bahria Town’s founder continues to push for arbitration and dialogue, appealing to state institutions to act with “justice, wisdom, and prudence.”

“We are certainly one step behind this last step,” Riaz warned, “but the situation on the ground is getting worse by the minute.”

Unless an alternative resolution emerges, Pakistan’s largest private housing developer could be heading toward a complete operational halt — a development with major repercussions for the real estate sector, investors, and thousands of residents relying on Bahria Town’s services.