KARACHI, April 17 A treasury MPA alleged on Friday that land fraud worth billions of rupees had been committed in the regularisation and granting of lease to 20 villages (existing only on paper) located in Gadap Town.

He held a nexus of corrupt government officials and the builders' mafia responsible for the suspected scam.

The PPP's Nadeem Ahmed Bhutto made this claim during question hour in the Sindh Assembly, while provincial Minister for Revenue and Relief Jam Saifullah Dharejo admitted that there had been complaints in this regard, adding that certain revenue department officials and police officers were involved in what he termed “a racket”.

The debate was sparked by a question originally sent by Mr Bhutto, as the issue pumped life into what had, until then, been a largely insipid question hour.

Nadeem Bhutto had asked the revenue minister for the names of villages in all the tapas and dehs of the defunct district West of Karachi and Malir as were regularised or granted lease under the Sindh Goth Abad scheme from 1/7/2007 to 30/6/2008.

In the written reply, Saifullah Dharejo had stated that “no village in any tapa and deh of defunct district West and Malir (was) regularised or leased under the Sindh Goth Abad scheme” in the stated period. This answer infuriated Mr Bhutto, who then vociferously countered the minister's claims.

“I am not satisfied with the answer. Wrong information has been provided. Fraud worth billions of rupees has been committed. I have evidence,” he told the house, alleging that a former project director of the Goth Abad scheme and the serving director of the Malir Development Authority (who, according to him, has been granted multiple extensions) were involved in the fraud, while no-objection certificates had been granted for the lease of several villages.

This prompted the revenue minister to go on the defensive, as he promised the house the matter would be investigated. “I assure the house that we will cancel the leases. New regularisation will take place. New surveys are being conducted. Some black sheep do exist. The regularisation of these goths has been illegal”.

Mr Bhutto insisted that a committee be formed to look into the alleged fraud, while he repeatedly claimed he had proof of foul play.

Mr Dharejo assured the house that “strict action” would be taken if he was provided proof. He admitted that “the police are involved in this racket. It is happening with their connivance and that of low-ranking revenue officials”.

Haji Munawwar Ali Abbasi suggested sending the matter to the standing committee on revenue so that the committee could issue a report in this regard. Saifullah Dharejo claimed that the revenue department's powers had been curtailed due to devolution. Sharjeel Memon observed that cancellation of the lease was not the solution as action should be taken against the erring officials.

Talking to Dawn later, Nadeem Bhutto said he would raise the issue in the house again until it was solved. “No goths exist. I can take you on a visit to the area. One or two huts might exist, but there are no villages. However, the MDA has given NOCs for providing infrastructure. Roads have been built, streetlights have been provided and sewerage has already been laid”.

Stamp duty

Other routine questions were also taken up during Friday's session. Arif Jatoi had asked the revenue minister for the department's schedule of stamp fees as on July 31, 2008. In a supplementary question, Mr Jatoi had asked for the amount of revenue generated by the Sindh government through stamp duty. Saifullah Dharejo replied that in 2008, Rs4.188 billion had been generated.

Syeda Marvi Rashdi asked the minister if an e-filing system of filing taxes had been made mandatory from August 15, 2008. In his written reply, the minister said the Board of Revenue has no e-filing system for paying taxes. Ms Rashdi, in her supplementary question, said that the revenue department had announced in the press that such a system would be introduced. “Have you forgotten?” she asked pointedly.

Murad Ali Shah, who previously held the revenue portfolio, denied making any statement in this regard while Saifullah Dharejo claimed that according to the information technology minister a computerised system was ready for five departments; however, the system could not be implemented due to a lack of coordination. He added that a Rs2 billion project consisting of different components was in the works to update and safeguard the decrepit revenue record.

In a written reply to another of Ms Rashdi's questions, the revenue minister said that revenue collection through stamp duty and on registration of documents came to 44.33 per cent of the total collection.

Hari courts

Arif Jatoi had asked the minister if the Sindh Tenancy Act had been amended to include a provision for 'Hari courts'. In the written reply, Mr Dharejo said the act had not been amended, “but the power of appointing tribunal in each taluka for the settlement of disputes between tenants and landlord continues to exist in Sections 26 and 27 of the Sindh Tenancy Act 1950”.

Nusrat Seher Abbasi had asked for the number of people killed during the 2007 monsoon season. The minister replied that in 2007, 185 people had died in Sindh with the most number of fatalities in Karachi (142).

Ms Abbasi had also asked the minister for the number of houses destroyed in Khairpur district during the 2008 monsoon and if the affected people had been compensated yet. Mr Dharejo replied that 2,695 houses were fully or partially destroyed during the rains. He added that a summary was currently with the chief minister regarding the release of funds for compensation.