Defaults, ignored court orders and claims by the land mafia raise alarm over the cooperative system
KARACHI:
Serious irregularities have allegedly come to light at the auction of commercial land in a cooperative housing society, raising concerns about financial corruption, administrative negligence and patronage of a land mafia that residents say has jeopardized both the community’s finances and the legal rights of thousands of members.
According to records available with The Express Pakinomist, the State Enterprise Officers Cooperative Housing Society Limited auctioned 18 commercial plots in 2022 with an expected revenue of around Rs 500 million. According to the auction rules, the selected bidders were required to pay the full amount within a specified period, failing which the award was to be automatically cancelled.
But three years on, the payments have reportedly not been recovered, while no plot allotted to defaulting bidders has been cancelled. Residents argue that the prolonged delay has caused heavy economic losses to the community and reflects more than just administrative lapses, pointing instead to a possible organized economic arrangement.
Residents and documents available with The Express Pakinomist allege that an organized group, allegedly led by one Ajmal Khan, has been trying 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 inquiries and cases pending at the Anti-Corruption Establishment.
Despite this background, residents claim he continued to attend community meetings, raising serious questions about administrative neutrality and possible collusion by those who manage the community.
Records further show that petitions filed by Khan and his associates in a special court were rejected twice. In addition, an extraordinary general meeting of the association adopted a clear decision regarding the auction process. However, the residents say that neither the court rulings nor the general meeting decision were implemented, making the auction result meaningless.
Legal experts say ignoring court orders and decisions of the general body undermines not only the rule of law but also the democratic and administrative framework of cooperative institutions.
Documents show that out of the 18 plots auctioned, only 10 show partial payments. In one case, the price of plot SB-08 was allegedly undervalued, resulting in a discrepancy running into millions of rupees. It is also alleged that around Rs 4 million belonging to unsuccessful bidders was shown as withheld, despite legal provisions requiring such amounts to be refunded.
Residents claim that these discrepancies point towards 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 may suffer irreparable damage and public confidence in the co-operative housing system will be further eroded.
They have called on the Registrar of Cooperative Societies and the Anti-Corruption Establishment 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 problem goes beyond a single housing society and has become a test case for transparency, accountability and the legal credibility of the co-operative housing system in Pakistan.
