ISLAMABAD: The National Accountability Bureau (NAB) Karachi has distributed Rs13.958 billion to 5,410 affected people of Fazaia Housing Scheme Karachi (FHSK) and others regarding cheating public at large.
This was revealed during a meeting, chaired by NAB Chairman Justice (R) Javed Iqbal, to review performance of NAB Karachi on Tuesday. DG NAB Karachi briefed NAB chairman and informed him that NAB Karachi has conducted an investigation against FHSK regarding cheating the public at large on the basis of complaints of the general public.
As of 24th February, 2021, a total of 5,410 affected people have submitted their claims while 4,779 affected people have been refunded for an amount of Rs13.958 billion. The complainants alleged in their complaints that they had paid millions of rupees to the management of FHSK, but still neither their booked units were handed over to them nor FHSK refunded them their invested money.
A complaint was also received from Project Director (South) AHQ Project-I Karachi of PAF against M/s Maxim Properties and its partners Fazaia Housing Scheme Karachi was launched by the Directorate of Estate Projects and Maxim Properties through joint venture vide their contract agreement dated 16.01.2015.
As per agreement, M/s Maxim Properties would transfer land measuring 402 acres in Deh Taiser and Deh Allah Phiahi to PAF as M/s Maxim’s equity and PAF would allow its brand name and logo to the scheme as PAF equity, thereby sharing the housing units on 50:50 basis. Both parties agreed that PAF would sell its quota of units to its employees, and M/s Maxim Properties would sell its 50% quota of units in the open market to the general public at premium.
It was further agreed that PAF would not sell and offer to sell its quota of units directly in the open market to the general public, except through M/s Maxim. In such a case, the difference of market price and the cost at which PAF had offered such units to its personnel shall be distributed amongst the parties equally.
As per the final lay out plan, a total of 8,083 housing units of various categories and types were planned at sites of FHSK. For collecting funds from general public and to incur expenditures on the project, the management of FHSK opened bank accounts in Habib Bank Limited and Meezan Bank Limited. These accounts are operated jointly by Maxim and PAF with authorised signatories from each party.
It was informed that investigation has revealed that out of 8083x housing units, the management of FHSK sold out 5732x housing units to the general public and collected an amount of Rs18.2 billion on account of registration, booking and installment from affected people.
Site inspection of FHSK revealed that the project was still incomplete since 2015 except some basic structure work. The management of FHSK refunded Rs2.15 billion to the general public and released an amount of Rs2.336 billion to Maxim Properties. At that moment, an amount of Rs13.5 billion approx, including bank profits, was available in FHSK accounts of HBL and Meezan Bank.
It was further informed that two accused persons, namely Tanvir Ahmed and Bilal Tanvir, both partners of M/s Maxim Properties and members of Project Management Executive Committee of FHSK, were arrested on 28.12.2019 and subsequently, sent on judicial custody by the Accountability Court on 11.03.2020. Despite the issues and disputes between Directorate of Estate Projects and M/s Maxim Properties, the land on which the project was being built involves a hefty chunk of government land measuring 193-38 acres. In order to reach out to the affected people of FHSK, NAB Karachi published a public notice in leading newspapers. In response to the notice, a large number of victims submitted their claims/applications and they demanded their money back/refund.
It was informed that the investigation was completed and sent to NAB HQ for filing of reference. Meanwhile, Directorate of Estate Projects/Management of FHSK submitted an application to this Bureau, along with land documents and estimates of current project assets available at the project, that it cannot continue the project namely Fazaia Housing Scheme Karachi and willing to settle general public liabilities.
Furthermore, both Directorate of Estate Project and Maxim properties filed petitions in the Sindh High Court Karachi to stop NAB from filing a reference, praying therein to direct NAB to disburse refund amount to the affected people of FHSK.
In connection with Directorate of Estate Project settlement agreement with M/s Maxim Properties regarding refund of amount to allottees of FHSK through NAB, Sindh High Court Karachi passed order dated 19.05.2020 in CP No. 7804 of 2019 and connected petitions whereby NAB Karachi was directed to supervise and ensure that all the allottees are repaid in full within the shortest period of time.
In compliance with the direction of Sindh High Court, NAB gave public notices in leading newspapers to reach out to the affected people for refund of their money.
As of 24th February, 2021, a total of 5,410x affected have submitted their claims, and 4779x have been refunded for an amount of Rs13.958 billion.
In order to meet the shortfall to refund the remaining affected people, the management of FHSK has made an arrangement for sale of 16 acres of project land for an amount of Rs1.08 billion. The sale proceeds will be deposited in Fazaia Housing Scheme Collection account and will be disbursed among the affected people as per directions of Sindh High Court.
The matter was fixed in Hon’ble Sindh Court Karachi on 25th February 2021. The court has allowed FHSK management to sell the land and allowed two months’ time to complete the refund process.
Chairman NAB Justice (R) Javed Iqbal appreciated the performance of NAB Karachi under the supervision of DG NAB Karachi Dr Najaf Quli Mirza for putting tremendous efforts in return of billions of rupees to affected people of Fazaia Housing Scheme Karachi.