ISLAMABAD: The Bahria Town (Pvt) Limited on Tuesday enhanced its offer to Rs358 billion from earlier Rs250bn for the land it possessed in Karachi’s Malir district where it developed an upscale housing society, but the Supreme Court rejected it, terming the bid not reasonable.

A three-judge SC bench headed by Justice Sheikh Azmat Saeed fixed the matter for hearing on Jan 29 when it will determine the actual price of the land after hearing all the parties, including the National Accountability Bureau as well as a battery of counsel representing the Bahria Town.

“Please avoid writing ‘not appeared to be reasonable’,” requested Khawaja Tariq Raheem, one of the lawyers representing the third party interest in the entire project.

Barrister Ali Zafar, the counsel for Bahria Town, explained that out of the total Rs358bn, Rs150bn was for 7,068 acres which the Bahria Town had got from the Malir Development Authority (MDA) in exchange of its land and Rs208bn for 9,828 acres which the developer had encroached upon in the area. The amount will cover the total purchase of land as well as its regularisation.

Court terms bid not reasonable, regrets government departments not cooperating with it

“We have calculated the amount on the latest available price of Rs167 million per acre,” the counsel said, adding: “If we calculate the price available under the Colonisation of Government Land Act (COGLA) 1912 during the 2015 period, the rate will be Rs2m per acre.”

The counsel claimed that the total revenue the developer had earned from the entire deal in Malir district was Rs492bn. He said the Bahria Town proposed that the complete payment of Rs358bn would be made in instalments over the next eight years, adding that he wanted to give only such commitment which the developer could possibly fulfil.

“In case the land goes back to the MDA, it will turn out to be another Karachi,” the counsel said, adding that even the Supreme Court would not be able to run such a gigantic scheme.

At the last hearing on Jan 15, the Bahria Town had offered to deposit Rs250bn to avoid legal proceedings for acquiring land in a questionable manner for its projects in Karachi, Islamabad and Murree. But the Supreme Court had declined the offer.

On Tuesday, the court asked Ali Zafar to consult his client again for improving the offer further.

“You must understand that our hands are tied in view of the May 4 judgement in which the Supreme Court had declared the grant of land to the MDA by the Sindh government, its exchange with the land of the private land developer — Messers Bahria Town — and anything done under the provisions of COGLA by the Sindh government as illegal, void ab inito and as such of no legal existence,” observed Justice Azmat Saeed.

The land was granted for launching an incremental housing scheme. But instead of launching the scheme, the MDA exchanged it with the Bahria Town to launch a scheme of its own, the judgement had held. The MDA was created under the Malir Development Authority Act 1993 for the purpose of development of certain areas of Karachi division.

During the hearing, Ali Zafar offered Rs282bn and then raised it to Rs315bn for the entire 16,986 acres of land, saying this was quite a reasonable figure. “My neck is on the guillotine and I want to get out of it fast,” the counsel said, referring to the developer. The counsel emphasised that NAB through its entire history would be able to recover a mere Rs226bn only.

During the hearing, the court also took exception to a chunk of land identified as purple in the map presented by the Survey of Pakistan as it showed the land in the possession of the Bahria Town when the latter itself did not claim the same to be there.

The bench regretted that even the government departments were not cooperating with the apex court, warning that the Bahria Town would have to suffer heavily because of the negligence on the part of these departments. “We are convinced that our efforts are being frustrated,” Justice Saeed observed, regretting that the custodians of the land had no idea how to protect the state land.

At one stage, the court even hinted at issuing contempt of court notices to the representatives of Survey of Pakistan.

Justice Muneeb Akhtar expressed surprise over the isolated chunk of land in possession of the Bahria Town but surrounded by the state lands shown as purple. He wondered how the developer would have access to these lands — either through a tunnel or what. “Why on earth you will acquire two isolated islands?” Justice Akhtar asked and then hastened to add that it appeared that it was in the mind of the Bahria Town that it would develop these lands in future.

During the hearing, Survey of Pakistan’s Karachi director Asad Ali, who was also part of the demarcation process of the lands, presented a huge brochure of Prism Marketing, an authorised dealer of the Bahria Town, and alleged the marketing dealer was still indulging in the sale and purchase of the lands shown in purple colour in the map in violation of the earlier ban imposed by the apex court on all kinds of transactions in the area.

At this, the bench issued a notice to Prism Marketing, asking it to make a representation before the court, and warned that if it was proved that the dealer had indulged in the sale and purchase of the lands, the police would be at liberty to take action in accordance with the law.

The court ordered the Malir deputy commissioner to take control of the land shown in purple in the map and said he would be personally responsible for even one inch of the land.

Published in Dawn, January 23rd, 2019