ISLAMABAD, Feb 26: The National Accountability Bureau (NAB) on Monday arrested the chief executive of a private housing scheme on the charge of deceiving 21,000 plot seekers and collecting Rs3 billion.

According to NAB, Syed Rahat Mahmood of Bankers City had failed to either provide plots to the people or develop the housing project.

In a press release, NAB said the accused had obtained a no objection certificate (NOC) for only 152 kanals but purchased land in 43 villages, mostly located outside the permissible area of the proposed scheme. It said the management of the scheme had neither conducted any balloting nor refunded the deposited amount to the plot seekers.

The NAB authorities said they would continue efforts in proceeding against such elements to ensure speedy refund to the affected people.

On the other hand, a source close to the management of the housing scheme claimed that the NAB action was ‘unjustified’.

The source said the management of the housing scheme had not committed any irregularity and its affairs were being run smoothly.

He refuted the claim of NAB that the scheme had purchased land in 43 villages and said it was only in Mozas. “Although the purchased land was scattered one, the pockets between the land could be purchased if the firm was given due time,” the source said.

Talking about the NOC, the source said according to the rules of Rawalpindi Development Authority, the minimum requirement of land for a private housing scheme was 152 kanals and there was no maximum limit. He said the management of the scheme had purchased over 152 kanals at the time of NOC and, like other housing schemes, had to purchase more land to accommodate 21,000 members in six years.

So far, he said, members of the schemes had paid only the first instalment of Rs92,000 and they had to pay the remaining instalments in scheduled time spread over six months.

The source said almost all the private housing schemes initially purchased the land required for obtaining an NOC, and got more land with the passage of time.

He said the action had been taken to facilitate the Defence Housing Authority (DHA), which was eying the land of the Bankers City for the expansion of its scheme.

When contacted, a spokesman for DHA said the authority had no intention to acquire the land of Bankers City. He said he was totally unaware of the matter.