ISLAMABAD: The National Accountability Bureau (NAB) has initiated investigations against the management of a Lahore-based private housing scheme after receiving over 900 complaints alleging fraud. The alleged scam is said to be of over Rs500 million.

“NAB Chairman Qamar Zaman Chaudhry has asked NAB Punjab for a comprehensive report on fraud in the Formanites Housing Society,” a NAB official told Dawn on Wednesday.

Also read: NAB investigates Rs500m contracts

The management of the society in question allegedly cheated buyers by selling ‘fake’ plots. Many of those affected had filed formal complaints with NAB Punjab.

The management of the housing society are accused of selling hundreds of plots on land that is not part of the 1,200 kanals approved by the Lahore Development Authority (LDA) for the society.

Victims allege society selling ‘fake plots’

NAB spokesperson Ramzan Sajid said the chairman had asked for an investigation report within seven days.

The chairman also asked the regional NAB director general to expedite the recovery process in the case so that affected parties could be compensated.

The Formanites Housing Society was inaugurated by former provincial minister for Housing and Physical Planning Syed Raza Ali Gillani in 2003 and LDA authorised its management to sell 1119.30 kanals. However, it illegally sold over 3900 kanals.

Strangely, the Punjab government has been silent on the alleged wrongdoing and the management has continued to sell land it does not have to hapless customers.

The management of Formanites Housing Society, however, insists that the scheme was launched to benefit low-income households by providing them housing on easy instalments.

They claim the society spans 2,277 kanals; 60 per cent of which is for residential plots, while the rest has been earmarked for roads, parks, commercial centres, educational institutions and other facilities.

Published in Dawn, July 10th, 2014