KARACHI, Aug 17: A group of investors is hoodwinking simple people by resorting to a racket of sub-leasing properties in the old city area. The racketeers lure the tenants residing in flats of old buildings on goodwill , popularly known as pagri, basis to an 'attractive offer' through which they could own their rented property.

The modus operandi of the racketeers is that they first purchase some old building in the area at nominal prices and then approach occupants of each of its flats to offer 'sub-lease'. They mint a sum of Rs200,000 for the purpose. A similar offer is attached to the prospective ownership of a shop in such a building.

There is an aspect of blackmailing, too, in the racket. In case a tenant refuses to fall in their trap or expresses his inability to pay such a huge amount, the new owner of the building stops delivering receipts of the monthly rent.

The intention appears to be creating grounds for litigation and implicating the defiant tenant in a default case, eventually leading to eviction. Since the 'goodwill' system has no legal cover, the occupants of the properties acquired under the system continue to belong to the legal owner and the occupants have to pay a nominal amount as rent, thus being regarded as tenants.

For such tenants, the amount of Rs200,000 for sub-lease is still too high. They argue that as per the racketeers' self-made rules, a tenant has to pay in lump sum an amount equivalent to the total of 240 months rent of the flat/shop he resides in.

Even if the rule was accepted, the amount does not exceed Rs50,000 in most cases. For instance, if the rent of a flat is Rs180 per month, it comes to around Rs43,200 and not Rs200,000 as being demanded by the racketeers.

One of the aggrieved tenants cited the example of Farooq Mansion, situated at Nawabad locality of Khadda area, told Dawn that a group of people who purchased the building for Rs1.5 million was now demanding Rs200,000 from each of its tenants for sub-lease.

"In fact, this has become a thriving business in the old city areas because it appears to be the easiest way of minting money." he remarked, and observed that for investors, a fully occupied old building was available for around Rs1.5 million and through the sub-lease offer they could definitely generate at least Rs5 million.

Many of those unable to come to the terms of the racketeers have appealed to the relevant authorities to check the menace before it could strengthen its roots and take the shape of a big scam. They have also called for immediate measures against the forced sub-lease.