Malik Riaz’s Bahria Town Karachi: A Dream Turned Nightmare

Bahria Town Karachi (BTK) was once hailed as the largest and most luxurious private housing scheme in Pakistan, promising a modern and secure lifestyle for its residents. However, the project has been plagued by a series of scandals, controversies, and legal battles that have exposed its shady dealings, poor quality, and environmental damage.

BTK has not only failed to deliver on its promises, but also caused immense losses and suffering to its investors, customers, and the local communities.

Bahria Town Karachi entrance

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The Fall of Property Values and Occupancy

One of the main indicators of BTK’s failure is the sharp decline in its property values and occupancy ratio. According to Fazal Ilahi, CEO of Cambridge Real Estate Developers and Construction Company, which is also an investor in BTK, the value of constructed property has multiplied in the entire metropolis of Karachi, but not in BTK. “This is the only project, where rents have declined,” he said.

Many people who bought or rented properties in BTK have moved back to the city, disillusioned by the project’s shortcomings and drawbacks.

Hasan Tariq, an electrical engineer, was one of them. He moved to BTK for a better environment and safe living for his family, but soon realized his mistake. “It was good, but cost of living increased exponentially,” he said.

“Besides, the construction quality is very bad. I spent a lot to renovate my villa to make it livable. That investment wasted, as I sold it cheaper than the buying price. Values do not appreciate at BTK.”

The low occupancy ratio of BTK has also deterred the entry of big FMCG brands, hospitals, educational institutes, and other amenities that are essential for a thriving community. As a result, BTK has become a ghost town, devoid of life and activity.

The Rise of Crime and Accidents

Another consequence of BTK’s failure is the increase in crime and accidents in the area. Despite the claims of high security and surveillance, BTK has witnessed several incidents of theft, robbery, and even murder.

The residents have complained of the lack of police presence and response, as well as the involvement of BTK’s own security guards in some of the crimes.

The poor design and maintenance of BTK’s roads have also contributed to the frequent road accidents, despite the very low traffic. Many of the roads have blind turns, potholes, and broken signals, posing a risk to the drivers and pedestrians. Some of the accidents have been fatal, adding to the grief and anger of the residents.

The Cancellation of NOC and Legal Troubles

The most recent blow to BTK came from the Pakistan’s Building Control Authority (BCA), which cancelled the no objection certificate (NOC) of BTK, citing various violations and irregularities. The NOC is a prerequisite for any construction or development project, and its cancellation means that BTK has no legal status or authority to operate.

This is not the first time that BTK has faced legal action. The project has been embroiled in several lawsuits and investigations, involving the Supreme Court, the National Accountability Bureau, the Pakistan Rangers, and the local authorities. The main issues include:

The encroachment and illegal acquisition of forest and private land, affecting the rights and livelihoods of the indigenous Sindhi villagers. In November 2023, the Supreme Court ordered a survey of BTK to determine the extent of the encroachment.

In April, clashes broke out between BTK and the villagers, when BTK tried to expand its development into their lands. Many parts of Sindh observed a shutter down strike in protest.

The discrepancies and fraud in the allotment and sale of property, affecting the interests and rights of the investors and customers. In May 2018, a Supreme Court bench stopped BTK from selling or allotting any property, after finding out that BTK had sold more plots than it had acquired.

In 2015, Pakistan Rangers claimed that BTK had been allotted 44,000 acres from Sindh Government, while the amount of land in records was less than 44,000 acres.

In 2016, the Supreme Court ordered BTK and Malir Development Authority (MDA) to halt the construction work at 5,786 acres of land, ruling that the land was illegally allotted to BTK by MDA.

The non-payment and bouncing of cheques issued to the government and other parties, affecting the credibility and reputation of BTK. In 2019, BTK had agreed to pay Rs 460 billion to the Supreme Court as a settlement for its illegal land acquisition, but the cheques issued by BTK bounced and cases were lodged against its founder Malik Riaz and his son.

BTK is also reportedly not paying its staffers in time, and some of the big business houses have shelved their plans in BTK.

The Role of Malik Riaz and His Influence

The Role of Malik Riaz and His Influence
Malik Riaz

The man behind BTK and its controversies is Malik Riaz, the founder and chairman of Bahria Town Group, which is the largest private real estate developer in Pakistan. Riaz is known for his lavish lifestyle, philanthropic activities, and political connections, but also for his alleged corruption, intimidation, and manipulation.

Riaz has a massive marketing and publicity team, which includes civil and military bureaucrats, journalists, news anchors, and celebrities. He has used his influence and money to create a positive image of himself and his projects, and to suppress or distort any negative news or criticism.

He has also been accused of bribing politicians and government officials, to secure favors and avoid accountability. His ties with former Prime Minister Imran Khan and his family are also under the radar.

Riaz has often portrayed himself as a victim of a conspiracy, and blamed his rivals and enemies for the problems faced by BTK. He has also tried to appease the public and the courts by offering apologies, donations, and settlements, but without admitting any wrongdoing or responsibility.

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The Future of BTK and Its Stakeholders

The future of BTK and its stakeholders looks bleak and uncertain, as the project faces multiple challenges and uncertainties. The cancellation of NOC, the ongoing legal battles, the declining property values, the low occupancy ratio, the rising crime and accidents, and the public outrage have all cast a dark shadow over BTK’s prospects and viability.

The stakeholders of BTK, including the investors, customers, residents, employees, and the local communities, have all suffered losses and damages, and have little hope of recovery or compensation.

They have been betrayed and exploited by BTK and its management, and have been denied justice and relief by the authorities and the courts.

BTK, which was once a dream project for many, has turned into a nightmare for all. It has become a symbol of greed, fraud, and injustice, and a lesson for the real estate sector and the society at large.

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