NAB Cleared to Auction Bahria Town Properties After Court Ruling

In a significant development, the Islamabad High Court (IHC) has dismissed petitions opposing the National Accountability Bureau’s (NAB) planned auction of six Bahria Town properties, clearing the way for the sale set for August 7. The contested assets include five properties in Rawalpindi and one in Islamabad.

The decision came from a division bench led by Chief Justice Sardar Mohammad Sarfraz Dogar and Justice Muhammad Asif. Following the ruling, NAB’s Rawalpindi office announced it will move forward with the auction at its Islamabad office in Sector G-6/1.

Background: NAB’s Move Against Bahria Town

This auction follows the declaration of Bahria Town’s founder, Malik Riaz, as an absconder in the ongoing £190 million Al-Qadir Trust case. The case stems from allegations related to a plea bargain agreement connected to the settlement with the UK’s National Crime Agency.

In response to the court ruling, Malik Riaz expressed willingness to engage in arbitration and seek a “dignified solution” if given the opportunity for meaningful dialogue. However, he criticized the government agencies for what he described as a harsh crackdown on Bahria Town’s operations, including arrests of company staff, freezing of bank accounts, and seizures of vehicles. According to him, these measures have brought the company’s nationwide activities to a halt.

Bahria Town’s Legal Standpoint

During court proceedings, Bahria Town’s senior counsel, Farooq H. Naik, challenged the auction notice as unlawful and said the company was wrongly targeted since it was not a party to the plea bargain or named in the corruption references. He warned that allowing the auction would erode investor confidence and violate due process.

Conversely, NAB prosecutor Rafay Maqsood argued that Malik Riaz and his son Ali had defaulted on payments tied to the plea bargain. This justified NAB’s decision to auction pledged assets under Section 33E of the NAB Ordinance, 1999, to recover dues. Maqsood also noted that a lower court had rejected similar petitions, and the high court had initially paused the auction on June 12 but later lifted the stay following NAB’s appeal.

What’s Next? Auction Details

With the court’s clearance, the auction will proceed on August 7. NAB has set payment terms requiring successful bidders to pay 5% of the property value on the auction day, 10% within a month, and the remaining 85% within three months.

The six properties up for sale include:

• Corporate offices on Plots 7-D and 7-E in Bahria Town Phase-II, Rawalpindi (valued at Rs871 million and Rs881 million, respectively)
• Rubaish Marquee and Lawn in Islamabad (Rs488 million)
• Arena Cinema in Rawalpindi (Rs1.1 billion)
• Bahria Town International Academy in Rawalpindi (Rs1.07 billion)
• Safari Club in Rawalpindi (Rs1.2 billion)

Wider Implications

This auction marks a major move by NAB to recover funds linked to one of Pakistan’s most high-profile real estate developers. The case also involves allegations against certain Sindh politicians over land transfers to Bahria Town. The unfolding situation highlights ongoing tensions between the government’s accountability efforts and major business interests, with potential impacts on investor confidence in Pakistan’s real estate sector.