Bahria Town Karachi - A Booming Time after Supreme Court Verdict Short Judgment.
The Supreme Court last week had reserved its ruling on whether or not to accept a fresh offer by the Bahria Town Private Limited to settle a case pertaining to its Malir or Karachi Super Highway project in lieu of payment of Rs 450 billion. Announcing its verdict on 21st of March 2019, the Supreme Court accepted the offer, which was raised to Rs 460 billion. Detail judgment yet to come.
Bahria Town Karachi will have to pay the entire amount over seven years. In the verdict, the top court ordered Bahria Town Karachi to pay Rs25 billion by August this year. From September onward, it will have to pay monthly installments of Rs2.25bn for the next three years. If the company fails to deposit two installments, Bahria Town Karachi will be considered a defaulter.
After three years, it will have to pay a 4% markup in case of late installments. The Bahria Town will also be required to give a 99-year lease to everyone who purchased a plot in Bahria Town Karachi housing project and will mortgage parks, cinemas and other assets owned by it.
Bahria Town's Defense counsel sought a period of seven and a half years to make the full payment, and also asked the Supreme court to allow the payments to be made to the Sindh government.
"If you want to make payments in seven and a half years then talk to National Accountability Bureau (NAB)," replied Honorable Justice Sheikh Azmat Saeed.
Sindh government, which had insisted during the entire course of the case that it did not incur any losses, told the court today that it should be the recipient of the funds that are to be obtained from the builder.
"The money haven't come yet but squabbles have started already," Justice Saeed remarked. "We know where the money has to go."
The court further said that National Accountability Bureau (NAB) would not file references against Bahria Town Karachi as long as the latter complies with the order.
Malir Development Authority (MDA) defense counsel also requested the court to discard cases against Sindh government officials.
"Do you want that references should not be filed against those who misused their authority?" Justice Faisal Arab asked.
"The matter has [only] been settled with Bahria Town," clarified Justice Saeed, adding that if NAB wants to file references against other officials, it can petition the court. "We will decide after hearing both the parties."
Once the amount is paid in full, the court will pass a decision regarding the ownership of the land in accordance with the law.
The money will be deposited in the Supreme Court which will then be distributed as per the law, the order said. Bahria Town Karachi director has also been ordered to record a statement under oath regarding the payment.
Impact on Bahria Town Business:
On the 21st of March 2019, the day of verdict, A wave of happiness among all the plot owners, Investors, Real Estate agents observed. All of them are happy and celebrating the Supreme Court decision.
Bahria Town Karachi’s management turned all the street and parks lights on. Now a colorful life can be seen in Bahria Town Karachi. Around half of million people are linked to Bahria Town Karachi directly with their investments. Real Estate experts are praising this verdict but in the same time many of them are not taking it as a good decision because according to the NAB massive irregularities found in Bahria Town Karachi planning.
3rd Party Interest:
According to Law experts, Judgment is protecting 3rd party interests nothing else. Bunch of overseas Pakistanis invested their hard earned money in Bahria Town Karachi and were worried due to the case running in Supreme Court of Pakistan. Now they are all happy of this happy ending favorably.
Price Trends in Bahria Town Karachi:
After immediate the Supreme Court verdict announcement, prices jumped from 10% to 15% in few hours. Plot owners are now not interested to sell their plots and want to enjoy maximum financial benefits.