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Home / Local News / Bahria Town Karachi Land Declared Illegal, Banks Stop Accepting Installments

Bahria Town Karachi Land Declared Illegal, Banks Stop Accepting Installments

Significant part of Bahria Town Karachi Declared Illegal, Banks Stop Accepting Installments

The Supreme Court of Pakistan has recently proclaimed that a huge part of Bahria Town Karachi scheme is illegal. As a result, banks are unwilling to receive payments of plot installments, utility bills, bungalows and housing sectors constructed in the illegal part of the project from the assignees.


These events seem to a big reversal of fortune for the property developer since its formation. Sources were told by the allottees that banks are refusing payments to accounts of Bahria Town. One of the assignees told that Bahria Town has two authorized banks to receive bills, one is ordinary while the other one is Islamic. Both of them have ceased the payment accepting procedures for installments and utility bills. He explained how he went to the bank to settle his utility bills for electricity and maintenance. However, the bank did not accept it and said that it had orders from the senior management to refuse payments.


According to a spokesperson from an Islamic bank, the bank was not accepting payments due to the Supreme Court orders. But since the court orders are impertinent regarding utility bills, so it will keep accepting those.
On the other hand, the Board of Revenue has annulled the distribution of land Malir Development Authority(MDA) which exchanged the same afterward with Bahria Town. The Board of Revenue came to this decision after a meeting. Sindh Government presented the Supreme court with all the details to make up the final decision. The meeting was carried out on October 29, 2018, to talk over the high court’s order concerning Bahria Town.

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Board of Revenue’s senior member was the head of the meeting. It was attended by Secretary Land Utilization, Secretary Local Government, Director General MDA, and Deputy Commissioner Malir. The purpose of the meeting was to present the Supreme Court with the names of state officials who were part of the illegal allotment of land. Supreme Court’s order of April 5 and November 10 were discussed to execute similar measures. It was decided to cancel the distribution of land to MDA and give it back to the Board of Revenue, Sindh.


The allotment of more than 25,685 acres of land was annulled by the Sindh Government. The Revenue department canceled the allotment of 11,068 acres to Bahria Town.

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