LHC seeks changes to private housing societies rules

LAHORE: The Lahore High Court has directed the Punjab chief secretary and the director general Lahore Development Authority to propose amendments to private housing society rules to determine the eligibility of housing society sponsors.

The order was passed by LHC Justice Shahid Jamil Khan on a petition by Punjab University Assistant Professor Dr Khuram Shahzad, alleging corruption of billions of rupees in the PU Employees Housing Scheme, commonly known as PU Town 3. The LHC asked the additional advocate general Punjab and LDA’s counsel whether there were any eligibility criteria for the applicant to move an application to establish a housing society. 

Both referred to LDA Private Housing Scheme Rules 2014 but could not show any rule prescribing eligibility criteria which should ensure that the applicant had all the resources and expertise to be eligible for establishing the proposed housing society. The LHC observed that absence of such criteria, as was reflecting in a number of cases, was being misused. The court, in written orders, stated that a person or a group of persons moved an application before the LDA and then misused its name for advertising and selling the plots which had no legal backing or existence on the ground.

The LHC said that in this case, even the name of the Punjab University was allegedly misused. The LHC questioned that the university’s name was being used; therefore, the society should have permission from the university under the law for forming such a non-profit organization of professors. PU’s legal adviser Malik Awais Khalid was also confronted to show how the non-profit organization of professors could be allowed to establish under the charter and regulation of the university and whether there was any approval from the syndicate or any managing committee of the university to allow the use of the university’s name for a housing scheme?

The LHC directed the AAG Punjab and the LDA to come up with a clear stance before the court on the next date of hearing, whether the absence of criteria for a person to apply for a private housing society was not offending the LDA Act itself, which of course was causing damage to the fundamental rights of citizens who invested in such schemes. The LHC said that the absence of a proper regulation to allow an incapable person to indulge in the business of private housing societies had to be cured through administrative or legislative action. The judge directed that if there was no support of law to this inaction, both the chief secretary Punjab and the DG LDA would come up through the AAG and LDA counsel for proposed amendments to the rules with a retrospective effect, asking existing and fresh applicants to fulfill the criteria.