NAB recovers 80 acres of Govt Land Illegally Allotted to Bahria Town

In a major anti-corruption development, the National Accountability Bureau (NAB) Karachi has successfully recovered 80 acres of government land illegally allotted to Bahria Town in Hyderabad. The land, valued at approximately Rs6 billion, was situated in the Gulshan-i-Sarmast housing scheme within Deh Ganjo Takkar, a prime area of Hyderabad district. Key highlights:

• Land valued at Rs. 6 billion, located in Deh Ganjo Takkar, Hyderabad

• Repossessed by HDA under NAB directives

• Major step toward reclaiming public assets and restoring accountability in Pakistan's real estate sector

Details of the Illegal Allotment

According to NAB officials, Bahria Town Pvt. Ltd. obtained possession of the land through highly irregular means. The parcel was allotted at a grossly undervalued price of Rs383 million, which was never fully paid. The investigation revealed that Bahria Town defaulted on its payment obligations while also failing to meet the development conditions specified in the allotment agreement. Key violations:

• Land originally designated for a university and educational infrastructure, never fulfilled

• Bahria Town defaulted on payments and breached allotment terms

• Commercial interests were allegedly prioritized over public commitments

NAB and HDA's Joint Action

The Hyderabad Development Authority, acting under NAB's directives, cancelled Bahria Town's provisional allotment and repossessed the land. HDA confirmed that all partially paid amounts were forfeited under Section-V of the allotment order. Despite multiple notices issued to clear dues and comply with contractual obligations, Bahria Town failed to respond effectively. NAB Karachi ultimately presented conclusive evidence of illegal financial and administrative manipulation in the original allotment process.

The Financial Discrepancies

Records revealed that the initial land valuation of Rs383 million in 2015 was unapproved by HDA's governing body. Financial irregularities uncovered by NAB and HDA audits:

• Bahria Town paid only Rs221 million out of Rs383 million

• Total dues, including utility, external development, and surcharge penalties, rose to Rs2.44 billion

• NAB called it a "highly undervalued and irregular allocation of state land"

Accountability Court Warrants and Ongoing Investigations

This recovery comes shortly after a perpetual arrest warrant was issued against Malik Riaz and his son by an accountability court in 2026. The 2025 NAB reference alleged that several public officials illicitly facilitated Bahria Town in obtaining valuable government lands through manipulated legal processes. The Karachi and Hyderabad cases are interconnected within NAB's wider investigation into illegal land conversions across Sindh, where numerous amenity plots and state-owned properties were transferred to private housing entities.

Broader Context: The Gulshan-i-Sarmast Scheme

The 80-acre plot forms part of the Gulshan-i-Sarmast housing scheme, originally conceived by HDA to serve middle- and lower-income families. However, the project has long faced serious issues:

• Described as "unplanned and financially unsustainable" in a 2024 divisional commissioner review

• Thousands of allottees still awaiting possession due to stalled development

• Bahria Town's allotment was one of several questionable transfers from this project's land bank

NAB's Broader Anti-Corruption Drive

The Hyderabad operation underscores NAB Karachi's continued efforts to curb corruption in land development and real estate sectors. Officials emphasized that this recovery sends a clear signal of accountability to major real estate entities operating without transparency. NAB's spokesperson added that illegal land conversions not only deprive the state of revenue but also obstruct public projects, including educational institutions, hospitals, and low-cost housing developments — all originally intended to occupy such land parcels.

Malik Riaz and Bahria Town's Legal Challenges

Malik Riaz and Bahria Town have faced multiple legal challenges over the past decade involving land grabbing, unauthorized development, and collusion with government officials. In a landmark Supreme Court deal in 2019 worth Rs460 billion, Bahria Town secured relief in exchange for payments covering past illegal transfers related to Karachi land. However, the latest Hyderabad case highlights continued scrutiny beyond Karachi, with additional investigations ongoing into related allotments under the HDA City and Gulistan-i-Sarmast projects.

Implications for the Real Estate Sector

The reclamation of land from Bahria Town carries broader significance for Pakistan's real estate and urban planning landscape:

• Signals renewed government resolve to uphold zoning and land-use laws

• May deter future illegal allotments by private developers

• Could encourage stronger inter-agency coordination between NAB, HDA, and municipal authorities in Sindh

Conclusion

The recovery of 80 acres of government land in Hyderabad is a significant milestone in Pakistan's ongoing struggle against corruption and land misappropriation. With arrest warrants active against Malik Riaz and his co-accused, and further inquiries underway, authorities appear determined to ensure that public land serves the people, not private profiteers. The Hyderabad case will likely serve as a test for whether Pakistan's anti-corruption mechanisms can sustain momentum against entrenched interests within powerful development conglomerates.