Park View Villas and River Edge Housing Scheme is in trouble once again

Park View Villas and River Edge Housing Scheme is in trouble once again

SC hears case tomorrow

ISLAMABAD: The Supreme Court (SC) has been told by the Employees Old-age Benefits Institution (EOBI) that former chairman of the EOBI had bought land from Pakistan Tehrik-e-Insaf (PTI)’s Aleem Khan for Rs2.6 billion in Lahore while the current market value of the said land is not more than Rs1.041 billion; thus, the EOBI has suffered a loss of Rs1.559 billion in one deal alone.

The apex court takes up the mega corruption scandal case on Tuesday. The PTI’s leader has submitted in the court that he is ready to return the amount provided that he is retuned the land back and made an offer of submitting Rs600 million upfront and the rest on the reversion of the properties.

Documents available with The News reveal that properties located at Multan Road, Lahore containing 742 residential plots of different dimension, and 226 commercial plots of four Malra each were purchased by EOBI for Rs2600 million vide agreements dated 16.7.2012 and 9.2.2013 respectively from M/S Vision Developer (Pvt) Ltd. The said company has two directors named Abdul Aleem Khan S/O Abdul Rahim Khan and Mst. Nasim Khan Widow of Abdul Raheem Khan whereas the contract was made through the Chief Financial Officer, Company Secretary Imran Anwar.

The scheme was not approved by the LDA whereas the LDA vide different advertisements in daily newspapers has warned the general public not to invest in the alleged housing scheme phase-II/extension as it has no approval of the LDA. The LDA had already rejected the revised plan of the said housing scheme in phase II/Extension on 10.7.2012 which has also been reported by the FIA in their report filed in the Supreme Court.

The accused management of EOBI in connivance with the owners has purchased these properties on exorbitant rates and in violation of all the applicable rules/regulations and laws. The FIA after directions of the Supreme Court vide orders dated 1.7.2013 registered two FIR bearing no.53 & 54/2013.

The SC appointed evaluators vide order dated 28.1.2015 from the list of the State Bank of Pakistan for making evaluation to assess the actual price of the properties on the date of purchase and the existing value of these properties.

In the matter of River Edge, M/S Iqbal A Nanjee was appointed to evaluate 226 Commercial plots located in River Edge Housing Scheme (Park View Villas) and 742 Residential Plots in River Edge Housing Scheme and has evaluated that the market value of these properties is Rs 1041. 16 million and that EOBI has suffered a loss of Rs 1559 million. 

After the Evaluator’s report, the EOBI also filed its objection in the apex court on 30.5.2015 based on the decision of the Board of Trustees stating therein that the property is defective and the appropriate authority has not accorded its approval for the development of housing society. Further the property was purchased on exorbitant rate and still the price of land is below the purchased price therefore the sellers may be ordered to pay back the amount with interest.

The EOBI objections filed in the Supreme Court says, “It reflects from the report that the valuator M/s. Iqbal A. Nanjeehas has not stated the value at the time of purchase. However, the current value of the property has been valued at RS 1041.16 million. Thus, even after three years of purchase and massive appreciation in the property market over the last three years, the current value of instant property is Rs1559 million less than the price at which the properties were purchased by the EOBI.”

The SC has been further told by EOBI that, as reported by the valuator, the sellers M/s Vision Developers (Pvt.) Limited planned 03 blocks i.e. Rose, tulip & Gold under the umbrella of purposed Park View Villa which are presently in the shape of green fields. The request of M/s Vision Developers for approval of site plan of these 152 Acre additional land for the above 03 blocks was rejected by the competent authorities of LDA. 

As per the valuation report, the senior management of Vision Developer also went to the supervisory authority of LDA against the negation of their approval but the rejection decision still stands and there is no chance in near future that the same will be approved by LDA. LDA had also written letters to the concerned departments Wasa, Lesco & SNGPL not to supply services/connection to the purposed site of 03 blocks in proposed Park View Villa.

The total land area of Phase-II is also devoid of any utilities, such as water, electricity, gas, etc. and their load approvals have also been cancelled by LDA. Today, the three blocks exist as green fields. That in view of the above, it is clear that the sellers fraudulently sold worthless and unapproved property to EOBI and concealed material facts at the time of transaction. Even at the current valuation as valued by the evaluator appointed by the Honorable Court, the Institution has suffered a huge loss of Rs 1559 million. 

At the time of purchase, the loss caused to EOBI would be even much higher. Thus, due to the fraudulent acts as stated above, the EOBI which manages the funds of poor pensioners & their widows has suffered a massive loss. Under the above submission it is respectfully prayed that the sellers & their accomplices including the then accused management of EOBI deserve exemplary punishment & imposition of penalties so as to deter recurrence of such fraudulent acts.

The sellers are also liable to make good the loss suffered by EOBI. It is further humbly prayed that the court may direct the sellers to pay a sum of Rs3699.7 million plus additional interest at the rate of 13.931% payable up to the date of receipt of the amount by the EOBI.

PTI’s Aleem Khan had submitted in the Supreme Court that his company Vision Developers (Pvt) Limited entered into two transactions with EOBI amounting Rs2.6 billion; one in June 2012 and the second in Feburary 2013. “In case now EOBI is not interested in retaining these two properties, M/s Vision Developers is ready to make immediate payment of Rs600 million to them while remaining balance will be paid to them upon release of the properties so that thereafter they may sell these properties to some other prospective buyer to liquidate their assets for further payments.” 

The court was also told by Aleem Khan’s lawyer that FIA had lodged two FIRs against him and that he and his company were being harassed by FIA. The apex court has barred FIA from taking any action on the FIRs.

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