ISLAMABAD: A federal audit has pointed out serious violations of regulations by housing societies, noting that they are not sharing allotment letters with the Capital Development Authority (CDA) through the required digital platform.

At the same time, the civic agency itself has failed to implement a vetting mechanism for transfer letters of plots in housing schemes, raising questions about the protection of citizens’ rights and the prevention of over-invoicing, the report said.

The CDA, as the regulatory authority for housing schemes, is responsible for ensuring compliance with zoning laws and development regulations.

According to the audit report, the issue of housing societies not sharing allotment letters was highlighted through a digital monitoring platform.

Report highlights absence of digital monitoring; discrepancies include lack of plot transfer vetting and recurring irregularities

However, information collected by Dawn revealed that the civic agency had also failed to put in place a system to vet transfer letters of allotments issued by housing societies. This lack of oversight has left buyers vulnerable to fraud and over-invoicing, contrary to CDA’s own regulations.

“Audit observed that the allotment letters of the plots, flats and apartments issued by sponsors of housing schemes are not being shared with CDA through a digital platform such as the Management Information System (MIS)/ERP.

This was required for regulating the saleable area within approved layout plans and building plans of the projects,” the audit report noted.

The report stated that the absence of a digital platform and the failure of the Housing Societies Directorate, Planning Wing, CDA, to devise a monitoring mechanism had resulted in irregularities.

“Audit maintains that this irregularity occurred due to violation of zoning regulations and lack of oversight mechanism,” the report said.

The irregularity was pointed out in February 2024. According to the report, CDA’s management did not respond.

The matter was later discussed in a Departmental Accounts Committee (DAC) meeting held on December 11, 2024.

CDA management informed the meeting that the digitisation process had begun in 2019 and that letters had been issued to all sponsors of housing societies and schemes for the development of MIS/ERP.

The DAC directed CDA to share the progress of MIS/ERP implementation with the audit office within 90 days.

“Compliance of DAC directives was not made. Audit recommends compliance of DAC directive,” the report said, adding that the same irregularity had been highlighted in the 2022-23 audit report as well. “The recurrence of similar irregularity is a matter of serious concern,” it added.

In 2023, CDA introduced new regulations requiring all housing societies to have their transfer letters vetted by the authority.

CDA was to verify only those plots that were part of the approved layout plan. Despite this, the authority has failed to implement its own rules, raising serious questions about the efficiency of its management.

“If plots are vetted by CDA, people could be saved from fraud. In the past, many housing societies sold plots carved out on land reserved for amenities such as graveyards, playgrounds and parks,” a source told Dawn.

The source added that several cases of over-invoicing had also been reported, where societies sold more plots than the land actually available. “When CDA’s vetting becomes part of the transfer process, such fraud can be prevented,” the source explained.

Despite these regulations, CDA has consistently ignored implementation, even though the rules were approved by its board in 2023 and published in the official Gazette.

These rules were designed to protect citizens from fraud, over-invoicing, and the allotment of plots on non-existent land.

Like other parts of the country, many residents of Islamabad have also fallen victim to fraudulent housing schemes, paying for plots that were never handed over.

When contacted, CDA spokesperson Shahid Kiani said, “CDA has already taken up the matter with the sponsors and owners of private housing societies through multiple communications, categorically asking for provision of data through MIS/ERP under clause 40(7) and (8) of regulations for planning and development of private housing societies.”

He further emphasised, “It is again highlighted for public awareness that no allotment letter—whether original, provisional or through transfer—in case of housing societies should bear any credence unless vetted, signed and stamped by the concerned Director (Planning).”

The spokesperson also said that CDA had launched a campaign against housing societies violating regulations. “We are circulating their names, sealing their offices, and imposing penalties in light of the regulations,” he said.

Published in Dawn, September 1st, 2025