Return of Rs15 bn to victims of Fazaia Housing Scheme: Justice Javed Iqbal lauds performance of NAB Karachi

ISLAMABAD: Chairman National Accountability Bureau Justice (retd) Javed Iqbal has appreciated the NAB Karachi for the return of Rs15 billion to 5,305 affected people of the Fazaia Housing Scheme Karachi (FHSK) and others regarding allegations of cheating public at large.

Chairman NAB Justice (retd) Javed Iqbal chaired a meeting to review the latest progress regarding investigation against the Fazaia Housing Scheme Karachi (FHSK) at the NAB Headquarters on Monday.

DG NAB Karachi Dr Najaf Quli Mirza said the complainants informed that they had paid millions of rupees to the management of FHSK but still neither their booked units were handed over to them nor the FHSK refunded them their invested money. He said a complaint was also received from the project director (South) AHQ Project-I Karachi of PAF against M/s Maxim Properties and its partners.

He told the meeting that the Fazaia Housing Scheme Karachi was launched by the Directorate of Estate Projects and Maxim Properties through a joint venture vide their contract agreement dated 16.01.2015. As per agreement, M/s Maxim Properties would transfer land measuring 402 acres in Deh Taiser and Deh Allah Phiahi to PAF as M/s Maxim’s equity and PAF would allow its brand name and logo to the scheme as PAF equity, thereby, sharing the housing units on 50:50 basis.

That both parties agreed that PAF would sell its quota of units to its employees, and M/s Maxim Properties would sell its 50pc quota of units in open market to general public at premium. It was further agreed that the PAF would not sell and offer to sell its quota of units directly in the open market to the general public, except through M/s Maxim. In such case, the difference of market price and the cost at which PAF had offered such units to its personnel shall be distributed amongst the parties equally.

As per the final layout plan, a total of 8,083 housing units of various categories and types were planned at sites of FHSK.

He told the meeting that for collecting funds from general public and to incur expenditures on the project, the management of FHSK opened bank accounts in Habib Bank Limited and Meezan Bank Limited. These accounts are operated jointly by Maxim and PAF with authorised signatories from each party.

The DG NAB Karachi told the meeting that investigation has revealed that out of 8,083 housing units, the management of FHSK sold out 5,732 housing units to the general public and collected an amount of Rs18.2 billion on account of registration, booking and installment from affectees.

That two accused persons -- Tanvir Ahmed and Bilal Tanvir -- the partners of M/s Maxim Properties and members of the Project Management Executive Committee of FHSK, were arrested on 28.12.2019 and subsequently sent on judicial custody by the Accountability Court on 11.03.2020.

Despite the issues and disputes between Directorate of Estate Projects and M/s Maxim Properties, the land on which the project was being built involves a hefty chunk of government land measuring 19,338 acres. In order to reach out to the affectees of FHSK, the Bureau published public notice in leading newspapers. In response to the notice, a large number of affectees submitted their claims/applications and they demanded their money back/refund. The investigation was completed and sent to the NAB HQ for filing of reference.

Meanwhile, the Directorate of Estate Projects/Management of FHSK submitted an application to the Bureau, along with land documents and estimates of current project assets available at the project, that it cannot continue the project namely Fazaia Housing Scheme Karachi and willing to settle general public liabilities.

Furthermore, both Directorate of Estate Project and Maxim properties filed petitions in the Sindh High Court to stop the NAB from filing of reference, praying therein to direct the NAB to disburse refund amount to the affectees of FHSK.

In connection with the Directorate of Estate Project settlement agreement with M/s Maxim Properties regarding refund of amount to allottees of the Fazaia Housing Scheme Karachi (FHSK) through NAB, the Sindh High Court passed an order dated 19.05.2020 in CP No. 7804 of 2019 and connected petitions whereby NAB was directed to supervise and ensure that all the allottees are repaid in full within the shortest period of time.

In compliance of direction of the Sindh High Court, NAB gave public notices in leading newspapers to reach out to the affectees for refund of their money. As of 30.05.2021, a total of 5,766 affectees have submitted their claims, and 5,303 affectees have been refunded an amount of Rs15.156 billion.

Chairman NAB Justice (retd) Javed Iqbal appreciated the performance of NAB Karachi under the supervision of Dr Najaf Quli Mirza, DG NAB Karachi.