Business tycoon Malik Riaz has rebuffed rumours of Bahria Town default that has been quite a buzz on social media after developments related to the sale and purchase of plots.
“This is all a lie. Different people and different institutions have been chasing me since 1996 but God is great and helped us progress,” he was quoted as saying in an audio that was shared by journalist Javed Chaudhry in his vlog on Sunday.
The clarification comes against the backdrop of a Sindh Building Control Authority’s (SBCA) issued orders that stopped the sale and purchase of plots in Bahria Town Karachi. The authority also halted its advertisement campaigns.
According to the SBCA, the no-objection certificate (NOC) related to the selling of plots in Messrs Bahria Town (Pvt) Ltd and advertisement has been “cancelled on account of non-payment” of scrutiny fees.
“You have failed to clear your dues due to dishonouring your cheques,” said the letter sent to the housing company last month. It claimed that the Bahria Town failed to respond to the show cause notice.
The letter was sent to one of the biggest housing schemes in the country last month.
Earlier this month, an apex court bench comprising Chief Justice of Pakistan Justice Qazi Faez Isa, Justice Aminuddin Khan and Justice Athar Minallah ordered a survey of Bahria Town Karachi to determine the allegations of encroachment upon the forest and private land.
In 2019, an SC implementation bench accepted the developer’s offer to pay Rs460 billion for the purchase of the land measuring 16,896 acres in the Malir Development Authority but with certain terms and conditions.
On Oct 20 this year, the Supreme Court noted that “only Rs60.72bn out of Rs460bn was paid. Even out of this payment, Bahria Town paid only Rs24.26bn”.
On October 21, the SBCA registered a first information report against the business tycoon and his son Ali Riaz Malik for the alleged bounced cheques in Karachi.
The complaint was registered under sections 34 (acts done by several persons in furtherance of common intention), 109 (punishment of abetment if the Act abetted committed In consequence and where no express provision is made for its punishment), 420 (cheating and dishonestly inducing delivery of property), and 489F (dishonestly issuing a cheque) of the Pakistan Penal Code.
According to the FIR, three out of five cheques were bounced. The SBCA while sharing all required documents had urged the police to register a case.
There were rumours on social media that Riaz would declare “bankruptcy” on the housing project and the price of plots was expected to have a massive fall after the action of SBCA and the registration of the FIR.
Many journalists and vloggers started to make videos and share their analyses of the project amid rumours.
Journalist Javed Chaudhry claimed that the business tycoon, whom he has known for the past 27 years, had not good relations with some politicians and institutions. He alleged that Riaz had to pay the Supreme Court and the establishment.
Some attributed such developments to the demand of the International Monetary Fund review mission, which is Pakistan to discuss measures and release a second tranche of $710 million, for taxing retailers and the real estate sector in Pakistan.
In the 52-second audio clip, Riaz described all such things as “lies” and claimed that since 1996 different institutions and people have been following him.
“By the grace of God, Bahria Town is secure and developing,” the business tycoon said and added that God would hand defeat to those who are against the project.
“Bahria Town will be a success. It will hopefully change Pakistan.”
