Bahria Town Karachi Complete Court Case Verdict – 21st March 2019

IN THE SUPREME COURT OF PAKISTAN

(Appellate Jurisdiction)

PRESENT:

• Mr. Justice Sh. Azmat Saeed
• Mr. Justice Faisal Arab
• Mr. Justice Munib Akhtar

Civil Misc. Application No.8758 of 2018 in Civil Misc. Application No.376-K of 2014, Civil Misc. Application No.9963 of 2018 in Civil Misc. Application No.8758 of 2018, Civil Misc. Application No.10096 of 2018 in Civil Review Petition No.288 of 2018, Civil Misc. Application No.10604 of 2018 in Civil Misc. Application No.8758 of 2018, Civil Misc. Application No.8759 of 2018 in Civil Misc. Application No.3854 of 2014, Civil Misc. Application No.9181 of 2018 in Civil Misc. Application No.3854 of 2014 in Suo Motu Case No.3 of 2009, Criminal Misc. Application No.1655 of 2018 in Criminal Original Petition No.57 of 2015, Criminal Misc. Application No.96 of 2019 in Criminal Misc. Application No.1655 of 2018 in Criminal Original Petition No.57 of 2015 and Suo Motu Case No.34 of 2018

1. Implementation of Judgment dated 4.05.2018 in CMA No.376-K/2014 (CMA No.8758/2018)
2. Matter regarding reinvestment of amount received  from  Bahria  Town Pvt. Ltd. (CMA No.9963/2018)
3. Regarding deposit of Cheque No.16323069 dated 29.10.2018 amounting to Rs.2,51,21,15,297/- in account of this Court opened in the matter (CMA No.10096/2018)
4. Matter regarding provision of accounts detail to Bahria Town (CMA No.10604/2018)
5. Implementation of judgment dated 04.05.2018 in CMA 3854/2014 (CMA No.8759/2018)
6. Report in CMA  3854/2014 by Chief Commissioner, ICT, Islamabad (CMA No.9181/2018)
7. For implementation of the order dated 4.5.2018 passed in Crl.O.P. No.57/2015 etc. (Crl. MA No. 1655/2018)
8. Impleadment application on behalf of Federal Shariat Court Employees Cooperative Housing Society (Judicial Town Chattar) (Crl. MA No.96/2019)
9. Suo  motu  action  regarding transfer and allotment fee / expenses   charged by M/s Bahria Town (Pvt.) Ltd. (SMC No.34/2018)

In Attendance:

In CMA No.8758/2018:

Syed Asghar Haider, Prosecutor General, NAB

Mr.  Jehanzeb  Bharwana,  Additional Prosecutor General, NAB

Mr. Nayyar Rizvi, Addl. P.G. NAB

Mr.   Imran-ul   Haq,   SPl.   Prosecutor, NAB

(For NAB)

Mr. Farooq H. Naek, Sr. ASC

Mr. Zakir Hussain Khaskheli, ASC Syed Rifaqat Hussain Shah, AOR Mr. Muhammad Irfan, Law Officer (For D.G. MDA)

Mr.      Tariq      Mehmood      Jehangiri, Advocate General, Islamabad

(For ICT)

Mr. Zahid Hussain Bokhari, ASC

(For Foreign Investors)

Mr.       Tariq       Mehmood       Khokhar, Additional Attorney General

(For Federation)

Kh. Tariq A. Rahim, Sr. ASC Mr. M. Azhar Siddique ASC

(For  some  of  the  residents  of  Bahria  Town, Karachi)

Syed Ali Zafar, ASC

Mr. Zahid Nawaz Cheema, ASC Ch. Shahid Riaz, Legal Assistant Raja Abdul Ghafoor, AOR

(For Bahria Town)

Mr.   Shahzad   Fazal   Abbasi,   Deputy

Commissioner, Malir, Karachi

Mr. Suleman Talibuddin, Advocate General, Sindh

Mr. Muhammad Azam Jamali, SP

(For Province of Sindh)

Sardar Muhammad Aslam, ASC

Mr.    Muhammad    Nadir,    Proprietor, COSMOS

Mr. Atif Polani, Proprietor Tri-Star

In CMA No.8759/2018:      Barrister       Qasim       Ali       Chohan, Additional Advocate General, Punjab (For Province of Punjab)

Mr. Aitzaz Ahsan, Sr. ASC Mr. Gohar Ali Khan, ASC Raja Abdul Ghafoor, AOR (For Bahria Town)

In Crl. MA No.1655/2018:     Mr. Tariq Mahmood Khokhar, Addl. AGP

(For Federation)

Mr. Aitzaz Ahsan, Sr. ASC Mr. Gohar Ali Khan, ASC Raja Abdul Ghafoor, AOR (For Bahria Town)

Barrister       Qasim       Ali       Chohan, Additional Advocate General, Punjab (For Province of Punjab)

In SMC No.34/2018:   Mr.      Tariq      Mehmood      Jehangiri, Advocate General, Islamabad

(For ICT)

Mr. M. Azhar Siddique, ASC

(For Bahria Town)

Date of hearing:             21.03.2019

ORDER

The    lis    at    hand    pertains    to    the implementation      of      the      judgment      dated

04.05.2018    of    this    Court    passed    in    CMA No.376-K  of  2014  in  SMC  No.16  of     2011  in respect of Bahria Town Limited, Karachi (BTLK). While   deciding   the   matter   of   BTLK,   it   was noticed by this Court that the third party rights had been created, which may require protection and   in   the   above   context,   the   possibility   of transfer   of   rights   of   the   land   in   question   in favour  of  BTLK  be  considered.  Such  third  party rights  are  obviously  of  the  allottees  of  various plots and the buildup units of BTLK and, as per the  case  of  BTLK,  the  number  of  such  allottees exceeds   1,40,000   (CMAs   Nos.109   &   1638   of

2019).  There  is  no  denying  the  fact  that  some development   work   has   been   undertaken   by BTLK   upon   the   land   in   question   and   it   is claimed,    though    not    verified,    that    several

hundred billions of rupees have been expended, in this behalf.

2.              At the very outset, it was canvassed on behalf  of  BTLK  that  they  are  prepared  to  pay the  price  of  the  land  in  question  and  complete the  project  thereby  guaranteeing  the  protection and  preservation  of  third  party  rights  and  also ensuring  that  reasonable  value  of  the  land  goes into  the  public  exchequer.  The  implementation proceedings  before  this  Court  were  punctuated by  various  offers  made  by  BTLK.  In  this  behalf, there         were         successive         miscellaneous applications   and   offers   made   in   open   Court duly   recorded   in   the   various   orders   of   this Court.  The  last  offer  was  made  through  CMA No.2232 of 2019 and in broad terms, such offer is    reflected    in    our    previous    Order    dated

13.03.2019.   The    aforesaid   process    had   the blessings  and  consent  with  the  Government  of Sindh   and   Malir   Development   Authority,   as recorded in our order dated 13.03.2019.

3.              Today, in Court, BTLK has revised and enhanced  its  offer.  The  final  offer,  as  it  stands

now,    with    its    terms    and    conditions    is    as follows:-

(a)    The land in question:

(1)     BTLK has offered to acquire the rights   of   the   land   measuring   16,896 acres   (sixteen   thousand   eight   hundred and  ninety  six  acres)  in  5  Dehs  i.e.  Deh Bolhari,  Deh  Langhaji,  Deh  Konkar,  Deh Kharkharo  and  Deh  Kathore  the  details are  identified  in  the  site  plan,  which  is prepared  by  SUPARCO  and  agreed  upon by SUPARCO, Survey of Pakistan and the Representative of BTLK, which also bears the   signatures   of   the   Representative   of BTLK    pursuant    to    our    order    dated

09.01.2019.  The  said  site  plan  is  already available   and   is   placed   on   the   record marked  as  “C”.  BTLK  has  no  right,  title, interest  or  possession  of  any  other  land owned by the Government of Sindh other than 16,896 acres.

(2)     During         the         course         of proceedings,  it  came  to  light  that  BTLK has  allotted  plots  to  the  persons  in  the land  though  not  part  of  16896  acres  of land  distinctly  identified  in  site  plan  “C”. This   fact   stands   reflected   in   our   order dated  06.3.2019.  BTLK  has  undertaken to  adjust  such  allottees  in  16,896  acres as    marked    in    site    plan    “C”    or    to compensate   them   in   monetary   terms.

Such undertaking by BTLK is reflected in our aforesaid order dated 06.03.2019.

(b)    Price of Land

BTLK  has  agreed  to  pay  a  total  sum of   Rs.460,000,000,000/-   (Rupees   Four Hundred  and  Sixty  billion),  to  be  paid  in the following manner:

(1)    Period:

All payments shall be made within a period  of  seven  years.  (commencing from 01.09.2019 to 31.08.2026)

(2)    Mode of Payment:

(i)      Down Payment: Rs.25,000,000,000          (Rupees Twenty   Five   billion)   (including

the   amount   already   deposited

with the account established by this   Court   and   the   payments admittedly       made       to       the Government   of   Sindh)   will   be paid. Shortfall in such payment shall  be  made  up  on  or  before

27th  August of 2019.

(ii)    Subsequent Payments:

Payment  shall  be  made  firstly, in     forty-eight     (48)     monthly installments                                   of Rs.2,500,000,000  (Rupees  Two billion      and      Five      Hundred

million)      starting      from      1st

September, 2019.

Thereafter,    the    balance payments    shall    be    made    in thirty-six         equal         monthly installments    along    with    4% markup charged annually w.e.f.

1st  September, 2023.

In    the    event    of    default    in repayments,    BTLK     shall    be liable   to   pay   markup   on   any defaulted   sum   at   the   rate   of

10%  per  annum.  This  shall  be in    addition    to    other    penal consequences  provided  in  this order.

(iii)   Each  monthly  installment  shall be paid/settled in full by the 7th day of each month in advance.

(iv)   30%  of  outstanding  amount  of BTLK   towards   its   allottees   as well   as   future   sale   proceeds, collected  or  deposited  by  BTLK shall    be    transferred    to    the designated      account      already opened  by  this  Court  referred to above. Such an amount shall be   utilized   towards   the   Down Payment       and       installments mentioned   above,   as   the   case may be.

BTLK        undertakes        to provide  within  fifteen  days  the list  of  all  its  Bank  Accounts  in which  such  payments  are  to  be received.   The   Bank   Accounts shall  not  be  varied  without  the permission of this Court.

(v)     All payments shall be deposited in     the     designated     account already        opened        as        per directions of this Court.

(c)     Default:

Failure     to     deposit     the     Down Payment or two consecutive installments or    three    installments    in    toto,    shall constitute  a  default  resulting,  inter  alia, the  whole  balance  amount  shall  become due and payable.

(d)    Security:

(1)     The  security  for  payments  will be properties listed in para 9 of CMA   No.2232   of   2019,   which are as follows:-

(i)       Undisputed   land   owned   by BTLK     which     it     gave     in nullified exchange.

(ii)     Non-saleable   land   or   built up    property    in    BTLK    as under:

• Theme Park
• Danzoo
• Rafi Cricket Stadium
• Fatimah Jinnah University
• Schools
• Head Office
• Hospital
• Staff Colony
• Cine Gold Cinema
• Fire Station
• Quarantine Centre
• Eiffel Tower
• Grid Station
• Bahria Dancing Fountain
• Butterfly Mesh House
• Parks & Playgrounds
• Restaurants
• Petrol Pumps
• Service Stations
• Slaughter House
• SNG Plant
• STP
• Water Reservoirs
• Green Valley
• Hotel
• Substation
• Corporate Office
• Facilitation Centre
• Weighing Station.

The  detailed  description  and identification   of   the   above listed    properties    shall    be provided      to      this      Court within     two     weeks     from today.   The   said   properties cannot       be       encumbered, burdened,               mortgaged, varied,   transferred   or   sold by       BTLK       without       the permission of the Court.

(2)     The past/present directors / shareholders  /  promoters  of BTLK    i.e.    (1)    Malik    Riaz Hussain   s/o   Malik   Aashiq Hussain,  (2)  Ahmed  Ali  Riaz s/o  Malik  Riaz  Hussain,  (3) Mrs.   Bina   Riaz   w/o   Malik Riaz   Hussain   and   (4)   Zain Malik    s/o    Arshad    Malik) shall        furnish        personal guarantees            to            the satisfaction  of  the  Registrar of  this  Court  whereby  they shall be  jointly  and  severally liable  for  any  default  which may  be  committed  by  BTLK in     terms     of     this     order, thereby          keeping          the financial    interests    of    the Province      of      Sindh/Malir Development  Authority  safe, harmless    and    indemnified until     the     whole     of     the amounts   payable   by   BTLK in   terms   of   this   order   are deposited in this Court.

(e)     Other Terms and Conditions:

• BTLK   is   permitted   to   allot and     otherwise     deal     with 16896  acres  the  property  in question      as      a      builder/ developer only.
• On receipt of entire payment as          mentioned          above, leasehold      rights      in      the property     in     question     of 16896       acres       may       be transferred  on  lease  by  the Government         of         Sindh and/or             the             Malir Development    Authority    to BTLK   for   a   period    of   99 years  or  such  other  tenure in     accordance     with     the applicable   laws   and   BTLK shall  in  accordance  with  the terms         and         conditions already     agreed     with     the allottees transfer or cause to be transferred such rights in favour of the said allottees.
• BTLK    shall    complete    the project and all constructions shall  be  compliant  with  all the    applicable    laws,    rules and    regulations    including Sindh       Building       Control Authority Laws.
• As  this  order  relates  to  only 16,896 acres of land in (deh) falling  within  the  controlled area         of         MDA,         The Government  of  Sindh     and the   MDA  shall  ensure   that any  land  beyond  this  stands retrieved and no excess land shall     be     allowed     to     be occupied     by     BTLK.     Any violation    of    this    direction shall   entail   criminal   action both              against              the functionaries  of  Government of  Sindh,  Malir  Development Authority            and            the management    of    BTLK    or whosoever           is found responsible.

4.              As  stated  above,  we  are  enjoined  by the      judgment      dated      04.05.2018      under implementation  to,  as  far  as  possible,  protect the  third  party  rights  in  the  land  in  question. Such  third  parties  obviously  are  the  allottees and  as  per  the  case  of  BTLK  the   number  of such   allottees   is   over   140000.   It   is   also   an obvious  fact  that  though  development  work has been  conducted  on  the  site  at  a  cost  of  several billion    rupees    (as    per    the    case    of    BTLK), however,  the  project  is  far  from  complete.  The most efficient way of securing the rights of third parties     i.e.     the     allottees     is     through     the completion  of  the  project  and  handing  over  the developed  plots  and/or  completed  constructed units, as the case may be, to such allottees.

5.              That       in       the       judgment       under implementation  one  of  us  (Faisal  Arab,  J.)  had undertaken  an  exercise  tentatively  determined the  approximate  financial  worth  in  the  land  in question.   Reference,   in   this   behalf,   may   be made  to  paragraphs  8  and  9  of  the  concurring note. As per the aforesaid exercise, the tentative financial    advantage    that    Malir    Development Authority     would     have     acquired,     had     it undertaken         a          scheme          itself         was Rs.150,000,000,000/-  for  7068  acres.  The  land in   question   is   16896  acres  and   applying   the same     formula,     the     approximate     monetary benefit      of      the      land      would      be      about Rs.360,000,000,000/-  The  offer  made  by  BTLK is  about  Rs.100  billion  more  than  the  aforesaid amount,        which,        perhaps        more        than compensates      for      deferred      payments      in installments.

6.              We          accept          the          offer          of Rs.460,000,000,000/-   (Rupees   Four   Hundred and   Sixty   billion)   made   by   BTLK   for   16,896 acres  of  land  on  terms  as  set  out  hereinabove (this   amount   translates   into  Rs.27.22   million per acre).

7.              As       per       the       judgment       under implementation     dated     04.5.2018,     we     had directed  the  National  Accountability  Bureau  to commence  the  investigation  against  BTLK  with regard  to  the  land  in  question.  Such  direction was    reiterated    vide    our    order    dated    14th November,     2018.     We     were     subsequently informed   that   the   investigation   perhaps   has been completed and the reference has also been prepared    and    is    ready    to    be    filed    in    the Accountability Court. In this view of the matter, the said Reference shall not be filed for the time being.    However,    if   there    is   any    default   in making   payments   in   terms   of   the   aforesaid order  or  otherwise  any  other  violation  in  any  of the   terms   and   conditions   mentioned   herein above,     NAB     shall     immediately     file     said Reference,   which   shall   be   proceeded   with   in accordance with law.

8.              To   come   up   for   further   proceedings after a fortnight.