Housing scams

Published May 4, 2024

THE story of illegal housing schemes in Punjab is the story of greed, corruption and plunder. Major players in these frequent scams are well-connected real estate investors backed allegedly by unscrupulous politicians and facilitated by a corrupt bureaucracy. The victims are middle-class individuals, aspiring for a permanent roof over their heads. However, instead of being able to fulfil their dream and buy a house, tens of thousands have collectively lost billions in hard-earned rupees. A report submitted by the Punjab Planning & Development Department to the Supreme Court reveals that over 1,100 private housing schemes in 11 districts across the province are illegal because they do not have the requisite approval from the authorities concerned. In other words, the sponsors of these schemes cannot advertise their ‘projects’ that offer plots for sale to an unsuspecting public. Most such schemes exist only on paper; in fact, land for the housing society is obtained only when plots that don’t actually exist are sold. To hoodwink potential buyers, it is falsely claimed that the required regulatory approval has been obtained. There is neither a mechanism nor the will to stop them.

Interestingly, the sponsors of most schemes even secure power connections from distribution companies with the help of dishonest officials. Besides robbing ordinary people of their savings, the greed of real estate developers is annihilating large swathes of fertile agricultural land and fruit orchards around the cities, resulting in unplanned urban growth at the expense of food security and the environment. The Planning & Development Department’s report is not the first of its kind. The question is: does the government have any intention of taking measures to halt the architects of such fraudulent projects? For obvious reasons, we have seen promised action against these schemes fall apart even before it gets underway. The preparation of such reports are a waste of time, effort and money if no action is taken.

Published in Dawn, May 4th, 2024

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