Bahria Town Properties at Auction: What Investors Need to Know
Bahria Town properties are being auctioned off by the government, which is worrying for residents and investors. This blog post by Property Pole aims to provide clear, actionable insights into the situation, and a clear advice especially for our clients in DHA City Karachi who also invested in Bahria Town Karachi.
Why are Bahria Town Properties Being Auctioned?
Bahria Town properties are facing auction primarily due to a substantial, outstanding tax liability of approximately 26 billion Pakistani Rupees to the Federal Board of Revenue (FBR) for the years 2021 and 2022. This comes amidst other legal challenges, including a National Accountability Bureau (NAB) reference filed in February 2025 against Bahria Town’s Chairman Malik Riaz Hussain and CEO Ali Riaz Malik, alleging issues such as incorrect land allotments and illegal occupations in areas like Bahria Town Phase 8 (Takht Pari, Rawalpindi).
What is the Current Legal Status of Bahria Town?
Bahria Town is currently navigating a complex legal landscape involving multiple government bodies, leading to property seizures and freezing of assets.
Bahria Town’s Legal Challenges
The legal challenges include a significant tax dispute with the FBR and ongoing investigations by NAB.
FBR’s Involvement and Property Auctions
The Federal Board of Revenue (FBR) issued a notification regarding Bahria Town’s unpaid tax dues, leading to the sealing of Bahria Town’s Head Office in Rawalpindi by FBR teams. While the office was later de-sealed and transfer processes normalized, the FBR subsequently announced the auction of two major Bahria Town properties on June 19, 2025:
- Bahria Icon Tower: Located in Clifton, Karachi, next to Abdullah Shah Ghazi’s shrine.
- Mall of Islamabad: Located in Blue Area, Islamabad.
The proceeds from these auctions will be used to adjust the outstanding tax amount of over 26 billion rupees.
NAB’s Actions and Allegations
The National Accountability Bureau (NAB) filed a reference in February 2025 against Bahria Town’s Chairman, Malik Riaz , and CEO, Ali Riaz Malik, along with other political figures. In March 2025, NAB teams visited Bahria Town Rawalpindi, affixed multiple notices, seized several properties, and froze Bahria Town’s bank accounts and vehicles. Additionally, NAB is set to auction six more Bahria Town properties on June 12, 2025. A separate reference by NAB also addresses alleged illegal land allotments and occupations in the Takht Pari area of Bahria Town Phase 8, with the court declaring Malik Riaz Hussain and Ali Riaz Malik as absconders in this matter.
The 190 Million Pound Case (Al-Qadir Trust Case)
There is also an ongoing case involving 190 million pounds, in which the former Prime Minister Imran Khan, Malik Riaz Hussain, Ali Riaz Malik, and their partners are implicated. Court decisions have been made in this case, and the higher management of Bahria Town remains in an absconding state.
What Does This Mean for Bahria Town Residents and Investors?
The residents and investors of Bahria Town face uncertainties due to the ongoing legal issues and property auctions.
Impact on Existing Bahria Town Investors
Investors, especially those with non-possession plots or pending refunds, are experiencing significant distress and uncertainty.
- Non-Possession Plots: Many allottees who invested in Bahria Town as early as 2001-2002 still haven’t received possession of their plots. Some plots are categorized as “non-steric,” meaning they are neither on the map nor on the ground, despite full payments being made. When approached, Bahria Town offices have reportedly given vague assurances of future plot allocation, but years have passed without resolution.
- Canceled Plots and Pending Refunds: Investors whose plots were canceled due to incomplete payments often haven’t received refunds. While some managed adjustments, many individuals with single plots or files have had their investments canceled without any refund to date. This issue affects Bahria Town Rawalpindi, Karachi, and likely other projects. Some refunds from as far back as 2016-2017 remain outstanding.
Advice for Future Investors in Bahria Town
Prospective investors should exercise extreme caution and prioritize due diligence before committing to any Bahria Town property.
- Prioritize Possessional Properties: If you are determined to invest in Bahria Town, focus exclusively on properties that offer immediate possession and clear registration. Avoid investing in non-possession files, especially in underdeveloped areas like Phase 8 Extension, as these have faced significant delays and uncertainties.
- Conduct Thorough Research: Before any investment, conduct independent research into the property’s legal status, development charges, and any hidden costs. Do not rely solely on developer claims. Ensure all documentation is complete and verifiable.
- Beware of Unrealistic Promises: Be wary of investment opportunities promising unusually high returns or extremely low prices, as these often come with significant risks.
- Government Warnings: The Government of Pakistan has issued warnings regarding investments in Bahria Town Dubai, stating they may be considered money laundering. Safeguard your hard-earned money by investing only in secure and legally sound projects.
What Steps Should Affected Allottees Take?
Affected allottees with non-possession plots or pending refunds should actively pursue their claims and seek appropriate recourse.
Options for Affected Allottees
- Contact Bahria Town Management: Continue to formally pursue your claims with Bahria Town’s management, documenting all communications.
- Seek Legal Counsel: If direct approaches are unsuccessful, consult with a legal professional specializing in real estate disputes to explore legal options for recovering your investment or securing your plot.
- Engage Regulatory Authorities: Reach out to relevant governmental and regulatory bodies, such as the FBR and NAB, to report unresolved issues and seek their intervention.
Call for Government Intervention
It is crucial for government institutions to focus on resolving the issues faced by Bahria Town allottees. This includes ensuring that:
- Non-steric plots are allocated to their rightful owners.
- All pending refunds are processed and disbursed promptly.
The lack of a strong regulatory authority in Pakistan that thoroughly vets new real estate projects before public sale has contributed to these issues. Such an authority should ensure that developers have complete documentation, land ownership, and necessary NOCs before beginning sales or development. This step would help prevent future instances of fraud and protect investors’ interests at the root level.
Why DHA Offers a Safer Investment Alternative
DHA, or Defence Housing Authority, projects all over Pakistan generally represents a more secure investment option compared to Bahria Town due to its established regulatory framework, transparent land acquisition processes, and overall governance, that is often absent in privately managed developments like Bahria Town.
Here’s a comparison highlighting key differences that make DHA a potentially safer choice for investors.
Bahria Town vs DHA
Investment Comparison
Feature |
Bahria Town |
DHA |
|---|---|---|
| Regulatory Body | Private developer, subject to government oversight and legal action when issues arise. | Government-backed authority, typically with a robust regulatory framework and clear bylaws. |
| Legal Issues | Facing significant FBR tax liabilities (PKR 26 Billion), NAB references for land irregularities, freezing of accounts and properties, and management declared absconders in some cases. | Generally known for having clearer legal standing and fewer publicly reported large-scale legal disputes concerning land acquisition or outstanding dues. |
| Possession & Refunds | Many allottees have experienced severe delays in possession (dating back to 2001-2002) and pending refunds for canceled plots. | Known for more organized and timely possession handovers, with established procedures for transfers and fewer widespread complaints about non-delivery or unresolved refunds. |
| Land Acquisition | Allegations of “wrong allotment” and “illegal occupations” in certain phases (e.g., Takht Pari). | Typically follows more transparent and systematic processes for land acquisition, reducing the risk of disputes over ownership or title. |
| Investment Security | Higher perceived risk due to ongoing legal battles, government actions, and management issues. Warnings issued against certain overseas investments. | Generally considered a long-term, stable investment due to its established reputation, transparent processes, and backing by a statutory body. |
| Market Perception | While offering attractive amenities, current legal troubles have eroded investor confidence, making new investors more cautious. | Holds a strong reputation for prestige, security, and planned development, attracting a stable base of investors and residents. |
The Broader Implications for the Real Estate Market in Pakistan
The current situation with Bahria Town highlights critical lessons for the broader real estate market, particularly in rapidly developing areas.
Key Takeaways for Real Estate Investment
- Due Diligence is Paramount: Always verify the legal standing, documentation, and development status of any property before investing.
- Understand All Costs: Be aware of all potential costs, including development charges, which might not be included in the initial quoted price.
- Beware of Dishonest or Unfair Developers: The market has seen many smaller, unknown developers take advantage of investors with promises of high rental returns or cheap plots, only to disappear or burden investors with hidden costs.
- Informed Decisions: Buyers often get attracted by low prices without fully understanding the underlying facts and figures. It is vital for investors to conduct their own research and make informed decisions, protecting their lifelong savings.
Conclusion: Securing Your Investment with Property Pole
At Property Pole in DHA City Karachi, we understand the anxieties that current market conditions can create. Our commitment is to guide you towards secure and profitable real estate opportunities. We advise against speculative investments in projects with ongoing legal complexities.
If you are looking to buy or sell property in DHA City Karachi or DHA Rawalpindi/Islamabad, we offer transparent and reliable services. Check our latest prices index page to track property values in all the Sectors of DHA City Karachi. You can contact us on WhatsApp by clicking on the button below. Your peace of mind and the security of your investment are our top priorities.
