KARACHI: An accountability court on Monday extended the physical remand of two builders in the custody of the National Accountability Bureau in connection with an inquiry into the Rs18 billion Fazaia Housing Scheme scam.
NAB detained Tanvir Ahmed and Bilal Tanvir of Maxim Properties on charges of cheating the public in the name of the Fazaia Housing Scheme illegally launched as a joint venture with the Pakistan Air Force in 2015.
On Monday, the investigating officer, Aslam Pervaiz Abro, produced the suspects before Administrative Judge Aaliya Latif Unnar to seek extension in their physical remand.
Allowing the request, the judge remanded them in the custody of NAB till Feb 27 directing the IO to produce them on the next date along with a progress report.
NAB is tracking down 170 individuals to ensure recovery of victims’ money and uncover other beneficiaries
Earlier, the IO filed a progress report submitting that both the suspects allegedly deliberately kept site/location of the project concealed to dodge the general public in the name of the PAF with intention of extracting maximum funds from hapless affectees.
The IO maintained that during the course of interrogation of the suspects it had come on record that they illegally charged people an amount of Rs39 million as surcharge, Rs77m processing fees, Rs9bn on apartments, Rs5bn on bungalows and more clues of their illegal accumulation of money were being unearthed to uncover the exact quantum of the fraud.
With regard to the land fraud, the IO mentioned that further evidence had come on record that the Sindh government had already issued a notification in 2014 regarding the land for the K-IV project by invoking Section 4 of the Land Acquisition Act 1894.
But, the IO stated, suspect Ahmed concealed this fact on purpose and deceptively managed to get the PAF to accept the land falling in the K-IV project for its housing scheme in 2015 in connivance with his accomplices.
The suspect’s mala fide intentions were apparent from the fact he collected funds from the people for the land which was already earmarked for a government project and was in process of acquisition, the IO added.
On top of it, this land was subsequently exchanged with another government land which was required to be inspected as both the builders had yet to disclose its location, the report said, adding that as the suspects altered layout plans six times and finally decided to build 8,043 units whereby the PAF owns 4,042 units and M/s Maxim had the right to 4,041 units as per their proportional quota.
The report mentioned that the PAF record suggested that out of 4,042 units of its quota, it had sold only 1,542 units to its employees.
During the scrutiny of the record it was found that contrary to the proportion agreed upon, the suspects sold more than 5,750 units — 1,700 units higher than their fixed quota of 4,041.
The IO said that the detained builders were also taken to the site of the project-II where they had planned to build 2,630 flats and 2,649 bungalows (total 5,279 housing units) in four sectors of 369 acres. However, the inspection showed that the site for 5,279 housing units encompassed 182 acres of government land which the suspects had criminally occupied by way of manipulating the land record in connivance with their partners in the scam.
“Over the period of more than four years, the builders have done just spade work on the project, i.e. boundary wall, excavation at some places, marketing office, skeleton of tower, model houses, a grounded Air Force jet at the entrance, cricket ground, road and pavements and some basement work. That is not even two per cent work in the span of four years,” it added.
It added that the builders used money of the affectees for shopping online and making credit card payments, adding they were also asked about the purpose of payment to 170 people/companies and details of the payees, but they were allegedly deliberately concealing the identity of those individuals and company owners.
The IO mentioned that 170 individuals were to be tracked down to ensure recovery of affectees’ money and uncover the other beneficiaries.
It mentioned that the PAF had already submitted an application with NAB for refund to the affectees and was further willing to settle all liabilities.
The IO requested the judge to extend the physical remand of the detained builders for 14 days to complete the inquiry/investigation and collect further evidence.
Published in Dawn, February 18th, 2020