NAB goes after Khayaban-e-Amin – is the trouble over? 

Khayaban-e-Amin has been stuck in controversy for a while now. Despite its great location on Defence Road, not many buyers are currently looking to invest here out of fear that their investments will not be safe. The society  is definitely problematic, which is why the National Accountability Bureau (NAB) has started an investigation against its management, inviting payment proof from Khayaban-e-Amin victims.

While some believe that development work here has been delayed due to Lahore Ring Road’s new route, which affects many blocks in Khayaban-e-Amin, the fact remains that the society has plenty problems of its own.

According to sources, a couple of weeks ago, NAB requested Khayaban-e-Amin victims to submit proof of the payment against the properties they bought from the society. A number of genuine buyers and investors have paid high sums for plots, possession for which has not been given from the last several years. NAB will pursue the case once it has a clear idea of the amount that the developer has received from those affected by the delays.

Meanwhile, property rates in Khayaban-e-Amin continue to plunge. In the last couple of months, the market rate for residential plots dropped by over 20%. On the contrary, the market rate of property in other societies located on Defence Road not only continues to inch up but is currently twice the rate of property in Khayaban-e-Amin.  For instance, the average price of a 1-kanal plot in Khayaban-e-Amin (awaiting possession, of course) is PKR 5 million, while the same plot in nearby housing societies settled on Defence Road has a price tag of PKR 10 million or more.

When it was launched, the society offered houses and plots at cheap rates and attracted a lot of genuine buyers because of its high quality development work. However, soon after that, the society’s management started using different tactics to delay possession. At present, plots in 12 blocks are yet to be handed over to their owners. Even possession of many plots in developed blocks has not been offered to plot owners, which makes little sense.

A few years ago, the society also increased the transfer fee and encouraged investors and property dealers to keep the investment cycle running – while no actual development took place. In effect, while the developers continue to make money, no resolution seems to be in sight for people who have sunk hard earned cash into the society.

In the case of developed plots, the property transfer and registration fee is submitted to the concerned tax authorities. Many property owners and agents believe that Khayaban-e-Amin has postponed handing over possession to pocket the property transfer fee.

Some years ago, the developer imposed development charges on individual buyers. The amount was pretty high when compared to the status of development at the time. Plot owners were also penalised hefty sums for not paying their dues on time.

In essence, the society took money for plots, then added high development charges, and finally penalised plot owners for delaying payments of these development charges, while there was little development taking place to begin with.

End users also say that this is not the extent of the issue. Several people have also been shown different plots on the map but ended up with a plot in a less than ideal location.

The case is currently sitting with NAB, and we can only wait and see what solution the authority finds to the Khayaban-e-Amin problem.

Let me know what you people think about this project, and tell me if any of you are investors that have their money and property stuck in Khayaban-e-Amin. Sound off in the comments section below!