Non-payments, ignored court orders and land mafia claims sound the alarm about the cooperative system
KARACHI:
Serious irregularities have reportedly come to light in the auction of commercial land at a cooperative housing society, raising concerns about financial corruption, administrative negligence and sponsorship by a land mafia, which residents say has put both the society’s finances and the legal rights of thousands of members at risk.
According to records available with The Express PAkGazette, the State Enterprise Officers Cooperative Housing Society Limited auctioned 18 commercial plots in 2022, with expected profits of around Rs 500 crore. As per the auction rules, the successful bidders were required to deposit the entire amount within a specified period, otherwise the award would be automatically cancelled.
However, three years later, payments have not been recovered, and no plot allocated to defaulting bidders has been cancelled. Residents allege that the prolonged delay has caused huge financial losses to the society and reflects more than a mere administrative error, rather pointing towards a possible organized financial plan.
Residents and documents available to The Express PAkGazette claim that an organized group, allegedly led by one Ajmal Khan, has attempted to exploit the auction process to gain illegal control over prime commercial plots. Khan is said to have been linked to similar controversies in other cooperative societies, with investigations and cases pending at the Anti-Corruption Establishment.
Despite this background, residents allege that he continued to attend society meetings, raising serious questions about administrative neutrality and possible collusion by those managing the society.
Records further show that petitions filed by Khan and his associates in a special court were dismissed twice. In addition, an extraordinary general meeting of the company approved a clear resolution on the auction process. However, residents say that neither the court decisions nor the general assembly resolution were implemented, making the auction result meaningless.
Legal experts say that ignoring court orders and general body resolutions undermines not only the rule of law but also the democratic and administrative framework of cooperative institutions.
Documents indicate that of the 18 lots auctioned, only 10 present partial payments. In one case, the price of SB-08 land was allegedly understated, resulting in a discrepancy of millions of rupees. It is also alleged that around Rs 4 million belonging to unselected bidders was withheld, despite legal provisions requiring repayment of such amounts.
Residents argue that these discrepancies point to systematic financial manipulation and misuse of the auction mechanism for personal gain.
Society members have warned that unless an immediate, impartial and transparent investigation is carried out, members’ rights could be irreparably harmed and public confidence in the co-operative housing system would be further eroded.
They have urged the Registrar of Cooperative Societies and the Anti-Corruption Agency to order a forensic audit of the entire auction process, take action against those responsible for delays and irregularities, cancel plots allotted to defaulters and ensure protection of members’ interests.
Residents say the issue goes beyond a single housing society and has become a test case for the transparency, accountability and legal credibility of the cooperative housing system in Pakistan.
