Illegal Housing Societies Continue to Exploit Investors in Rawalpindi

Azhar Siddique

Rawalpindi: Despite numerous complaints, the registration of FIRs, and ongoing operations, illegal housing societies continue to operate unchecked across Pakistan, including Rawalpindi, exploiting innocent investors.

These unauthorized projects, often promoted through deceptive tactics, lure investors with promises of lucrative returns but eventually end up draining their hard-earned money through various fees and charges, such as price revisions, development charges, and possession fees.

In Rawalpindi, over 149 illegal housing societies are actively selling plots and residences without obtaining the necessary approvals.

Many of these schemes emerged following a boom in the real estate sector over the past decade, attracting billions of rupees from investors eager to capitalize on the expanding market.

These societies use social media and property websites to advertise, with property dealers frequently sharing fake information to lure in new clients. Many of these operations have expanded internationally, opening offices in cities across the country and abroad.

Despite repeated complaints, local authorities seem ineffective in curbing the illegal activities of these housing developers.

According to Ashfaq Ahmed, a concerned complainant, authorities rarely take concrete action, with most responses limited to issuing notices. “Even when a complaint is lodged, the response is always the same: a notice, but no real action,” he said.

Tariq, a resident of Waris Khan, also criticized the lack of accountability, alleging that officials are complicit in the operation of these illegal schemes, with some even allowing property dealers to advertise “RDA approved” schemes before securing the necessary No Objection Certificate (NOC).

In response to these concerns, the Director General (DG) of the Rawalpindi Development Authority (RDA), Kinza Murtaza, claimed that the RDA has taken strict action against violators. She confirmed that the RDA had issued 149 notices to unapproved housing schemes as part of its efforts to protect the public from exploitation.

“We are committed to taking strict action against these illegal schemes and ensuring that citizens are not misled,” she stated, advising people to always verify the legality of any housing scheme before making an investment.

The RDA has also stopped the approval of new housing schemes and conducted a comprehensive survey to categorize the existing projects based on their legal status. However, despite these efforts, illegal schemes continue to thrive, causing significant financial losses for many investors.

The authorities have identified several illegal projects, including Bin Alam City, CBR Residency, Media Enclosure, and many others that operate without necessary approvals, as well as completely fake schemes like Khyber Model Town and Pak PWD Chakri Road.

There are also projects that exist only on paper, such as Regent Farm House and City Homes, which have no physical land or offices.

While the RDA can only take limited action within its jurisdiction, the situation remains dire as many developers flee abroad after defrauding investors.

Their local operators often adjust prices, further exacerbating the financial losses. Given the scale of the problem, experts argue that agencies like the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) must step in to address the situation, rescue investors, and bring those responsible for these fraudulent schemes to justice.

In the absence of comprehensive action, the real estate sector continues to be a hotbed of exploitation, leaving countless investors facing devastating financial losses and a sense of betrayal.

As the situation stands, the involvement of higher authorities is crucial to restoring trust in Pakistan’s real estate market and safeguarding the interests of the public.

The feature story was released by APP on December 22, 2024.

All the information provided in this report is the sole responsibility of the reporter as well as APP.