Bahria Town has been making regular payments in an account set up by the Supreme Court for illegally acquiring 16,896 acres off Karachi’s Super Highway.
The top court was hearing on Friday a case on the implementation of the verdict. On May 21, the court had accepted the Bahria Town’s offer to pay Rs460 billion for acquiring the land illegally.
On May 4, 2018, the court had ruled that the Malir Development Authority illegally granted land to Bahria Town. The Sindh government had allotted the land to MDA for building a housing scheme. The MDA, however, exchanged the land with Bahria Town, the court said. Bahria Town was even barred from selling any plot or apartment in the housing scheme
Justice Faisal Arab asked how much money has been deposited so far.
Barrister Ali Zafar, who is the lawyer for Bahria Town, said that the company has paid all its dues so far. The November amount will be deposited next month, he said.
The federal government has once again petitioned the court asking for access to the funds. The first petition was submitted on August 23.
Justice Muneeb Akhtar remarked that they will review the federal government’s petition later on.
“We will take up Bahria Town Rawalpindi and Murree cases next month,” he added.
The case has been adjourned for a month.
Mode of payment
In the verdict, the court had even given the modality for the payment. Bahria Town is required to complete the payment in seven years.
The court had given till August 27 to meet the deadline for submitting funds worth Rs25 billion.
From September 1, it was told to complete another installment of Rs25 billion in 48 months (four years).
After that, Bahria Town will be required to make 36 equal monthly installments along with 4% markup.
They have been told to make the payment before the seventh of each month.
The land will be transferred to Bahria Town’s name after they pay the full amount.
What happens if Bahria Town defaults?
In case Bahria Town fails to submit two continuous installments or a total of three installments, it will be considered a default.
Bahria Town has given the guarantee of Danzoo (day and night zoo), its parks and the Cine Gold cinema for the payment, the court noted.
They will be investigated according to the law if they default on the payment, according to the court. If they violate the contract, then NAB will have the right to file a reference against them, it added.