KARACHI: A cash-strapped Karachi Development Authority has identified more than Rs8 billion worth of its land allegedly under illegal occupation in North Karachi, as over 350 shops, houses and other structures, many of which have been operating for more than two decades, face the risk of demolition.

The development has brought into focus a long-standing occupation of public land, as the authority has now moved to verify ownership documents and warned occupants of action if their claims cannot be legally established.

At the same time, the discovery raises an equally unsettling question that if the land was illegally occupied, what was the authority doing while these markets and structures were being built, expanded and allowed to operate for more than 20 years.

According to the KDA, the latest action was carried out on the special directives of its Director General Asif Jan Siddiqui as part of a drive to reclaim the authority’s valuable land from illegal occupants and encroachments.

Three-day notices served to occupants to prove ownership or face demolition

Under the supervision of KDA Director Estate and Enforcement Syed Zain Shah, it said, an enforcement team conducted surveys against allegedly illegal constructions in different areas of North Karachi.

“The team identified more than 350 shops, residential houses and other structures built on KDA land in and around Sectors 5/A-1, 5/A-2, 5/A-3 and 5/A-4, including the area around Madeehah Stop,” said the KDA spokesman. Notices were subsequently issued to the people occupying or using the properties.

The occupants had been given three days to appear before the KDA office with their original ownership and other legal documents to establish the legal status of their land and constructions and submit the required records for verification.

According to the KDA officials, during the initial phase of the operation, most of the occupants failed to produce acceptable original documents to substantiate their claims of ownership or lawful occupation of the shops and other structures standing on the authority’s land.

The notices, the officials said, represented a final opportunity for the occupants to fulfil the legal requirements and establish their claims before further action was taken.

The authority warned that those who failed to submit the required documents or approach the KDA for verification within the stipulated three-day period would face action in accordance with the law.

The allegedly illegal structures could subsequently be demolished and the KDA land reclaimed.

The KDA said the operation was aimed at protecting its public land, eliminating encroachments and improving the authority’s financial position.

“The recovery of the land, described as being worth billions of rupees, was expected not only to help protect KDA property but also generate significant financial benefits and recoveries for the authority,” said the KDA spokesman.

The fresh move has emerged when the financial strain facing the KDA has deepened in recent years, with the institution struggling to meet its obligations towards both its retired employees and serving workforce.

KDA pensioners’ unpaid dues

More than 200 pensioners are still awaiting payment of their outstanding dues for a considerable period, while many of them depend on these payments to meet their needs.

The problem is not limited to pensioners. Around 1,600 serving KDA workers are also waiting for their dues to be cleared.

The mounting backlog has added to concerns about the authority’s financial health and its ability to fulfil its responsibilities towards its employees, who rely on their salaries, pensions and other legitimate entitlements to meet their household expenses.

When contacted, Director Estate and Enforcement KDA Zain Shah told Dawn that he had assumed charge only a few days ago and came to know about the situation after surveys of different KDA-owned lands were conducted.

“I am not sure how they have been operating for more than two decades,” he said. “But each shop and structure is worth around Rs20 million to Rs30 million. When they were approached to prove their proprietorship, none of them was able to do so. We are still giving them time and pursuing the matter very humbly but ultimately the law will take its course and they will have to vacate the land occupied illegally.”

Mr Shah also acknowledged the potential consequences he could face for initiating the action.

“I wonder how much pressure I have been facing since we started this process,” he said. “I do not know whether I will even be able to keep this position or whether I will be transferred. But I am doing my job honestly. On one hand, the KDA is facing a serious financial crunch and does not even have enough money to pay salaries. On the other, billions of rupees’ worth of its properties have been illegally occupied.”

Published in Dawn, September 4th, 2026