DHA scam accused earlier signed Rs1.89 bn Voluntary Return with NAB

Hammad Arshad sold Shaheen Foundation plots to DHA Islamabad; bureau receives three of eight installments from the accused

ISLAMABAD: The person arrested by the National Accountability Bureau in Defense Housing Authority, Lahore case had recently signed Rs1.89 billion Voluntary Return with the bureau for selling plots reserved for Shaheen Foundation — a subsidiary of Pakistan Air Force — to the DHA Islamabad, documents available with The News reveal. 

Hammad Arshad, arrested by the NAB last week in Lahore for allegedly not providing the remaining 12,000 kanal land (out of a total of 25,000 kanals) to DHA Lahore had singed a VR with the NAB for returning Rs1.2 billion principal amount of Shaheen Foundation plus Rs640 million interest making the total to Rs1.89 billion. 

Hammad had bought two companies Al-Hamra Avenue (Pvt) Ltd and Al-Hamra Hills (Pvt) Ltd in 2013 and these two companies were supposed to provide 700 plots of 1 kanal each and 7 farm houses of 20 kanal each to Shaheen Foundation but the said land reserved for Shaheen Foundation was sold out to DHA-Islamabad.

Upon complaint of Shaheen Foundation, whose 700 members were being deprived of their hard-earned money, the NAB initiated the probe and Hammad Arshad voluntarily agreed to return the money of Shaheen Foundation along with the interest.

The VR was approved in July last year and out of the eight installments the bureau has so far received three installments. According to documents, the accused subjects (Management of Al-Hamra (Pvt) Ltd and Management of Eden Builders and others) deceived the Shaheen Foundation and its more than 700 members by including them to book the plots in their projects and received Rs1,258 million. 

Furthermore, reportedly, the general public has also been looted by selling plots. The subject accused has not handed over the plots rather sold the reserved land for the subject plots to DHA. 

“Shaheen Foundation Trust of Pakistan Air Force (PAF) entered into an agreement with Al-Hamra Avenue (Pvt) Ltd and Al- Hamra Hills (Pvt) Ltd on  06-02-2006 for purchasing of 1564 residential plots (each one Kanal) and 10 farm houses (each 20 Kanal) for its members who are retired personnel of the PAF.

Subsequently, on mutual agreement the farm houses got reduced to seven and plots to 700. Consequently, Shaheen Foundation paid Rs1.26 billion (approx) to the management of Al-Hamra Avenue (PVT) Ltd and Al- Hamra Hills (Pvt) Ltd.

The subject companies had neither NOC for the above-mentioned project nor any layout plan approved by the concerned regulator. On 20-04-2013 Hammad Arshad entered into an agreement with Mr. Habib Ahmed, the then CEO of Al-Hamra, and purchased shares with all assets and liabilities.

Later on, during June 2013 all of a sudden the land reserved for the members of Shaheen Foundation was mala fidely and dishonestly transferred to the DHA, Islamabad.

Moreover, since the acquisition of Al-Hamra by the new management not a single step has been taken so far for the development and kept ignoring its obligations towards members of Shaheen Foundation who had paid huge amount. 

The accused has shown willingness in writing to return Rs573 million as profit in addition to the principal amount”, the documents say.

The total liability was calculated by the accused, NAB and Shaheen Foundation and NAB’s letter states, “In pursuance of the accused application, the interest in addition to principal amount has been calculated as Al-Hamra Hills Rs139.625 million and Al-Hamra Avenue 1119.13 million. The profit offered by the accused as Voluntary Return (on basis of profit on deposits in banks) is Rs300 million, secondly interest calculated by the NAB-R (on basis of average KIBOR rate) Rs643.41 million and thirdly, interest calculated by Shaheen Foundation (on basis of compound interest and KIBOR plus 3 percent) Rs1897 million.” 

The NAB spokesman confirmed the VR and said the bureau had received three installments from the accused.