FAISALABAD: The Anti-Corruption Establishment (ACE) has initiated a probe into an alleged fraud of billions of rupees by the owner of Citi Housing Scheme in connivance with officials of the Faisalabad Development Authority (FDA).

On Dec 19, 2013, the FDA had got a case registered under sections 420, 468 and 471 of PPC with the Civil Lines police against the owner/developer Aamir Malik, the son-in-law of property tycoon Malik Riaz. A couple of years ago, the scheme had been inaugurated by Malik Riaz on Sargodha Road.

The ACE probe has been initiated following reports of selling of plots illegally and other irregularities.

When the case was registered the plot files were being sold like hot cakes and neither police nor the FDA took action against the developer. Under the Punjab Development of Cities Act, no institution or developer could establish a housing scheme without the approval of the FDA; the scheme could neither be advertised before its formal approval nor authorised for sale.

A report of the ACE stated that the Citi Housing Scheme on Sargodha Road was selling plots for three years without getting their sale and purchase registered with the revenue department, causing a loss of billions of rupees to the national kitty.

Initially, the FDA had approved 3,300 kanals and accorded only provisional planning permission under which plots could not be sold at this point, but developer Malik ended up selling around 50,000 files of plots that were not even available for sale yet. Later, he restricted the size of the scheme to 475 kanals only to hide the fraud committed.

Following protests by the buyers of plots, the report said, the developer submitted a plan for the approval of another colony on 2,396 kanals at a cheaper site away from the location where the supposed plots were sold. The FDA did not take any action against Malik over such fraud, the report reads.

FDA sources said that the developer had been asked through written letters a number of times to refrain from committing the frauds. Documents could be provided to any investigation agency to prove the same, they added.

On Oct 19, the FDA issued a notice to the developer regarding violation of rules and regulations, which clearly shows that the developer was selling public land earmarked for a graveyard, grid station and other public points. This action will also inflict losses to the national kitty, the report read.

It was mandatory to surrender public land to the government, but Malik did not do so and the land was still under his name. The ACE report stated that FDA officials also remained silent on the issue of land transfer.

Published in Dawn, November 21st, 2018