BEFORE DEVELOPMENT AUTHORITY COMMISSION , LAHORE

PRESENT:

Mr. Javaid Akhtar, Chairman Mr. Muhammad Yousaf, Member

Reference No. 63/2017

Mr. Muhammad Imran Khan Sio Mushtaq Ahmed Khan Rio House No. 166 Block-A, Scheme, Lahore Applicant

Vs.

1. Lahore Development Authority through Director General, 467/0-11, Main Boulevard, M.A. , Lahore. 2. Director, Land Development IV, 467/0-11, Main Boulevard, M.A. Johar Town, Lahore. Respondents

Order

Mr. Muhammad Imran Khan Sio Mushtaq Ahmed Khan Rio House No. 166 Block-A, Sabza zar Scheme, Lahore submitted an application at One Window on 12.01.2016 vide receipt No. 2248211 for filing reference to the LOA Commission. The Authorized Officer under sub-Section (4) of Section 32 of LOA (Amendment) Act, 2013 read with Sub-Rule (1) of the Rule 7 of the Lahore Development Authority Commission Rules, 2014, referred the case to the Commission which was received on 28.09.2017. It was entered in the Institution Register at Serial NO.63 of 2017. Notices were issued to the Applicant, the Director General LOA, Director, Estate Management-II, Land Acquisition Collector, LOA and other witnesses. The statements of the Applicant, his brother Hafiz Muhammad Ishtiaq, Noor Muhammad Sio Muhammad Hayat, Muhammad Akhtar slo Muhammad Younas and Muhammad Razzaq slo Sarkat Ali were recorded as witnesses on oath. Whereabouts of Mr. Shahid Raza Sio Haider Ali could not be traced out at his both given addresses. Efforts were made to locate him through DC Gujranwala but his addresses proved to be fake. Mr. Muammad Yaqoob has reportedly passed away as reported by his wife .The record of Patwari and LAC branch of LOA was consulted. The documents produced by the Applicant and other witnesses were examined and photo copies thereof were

Page 1 of 9 placed on the reference file. File of the plot No. 166 Block-A, Sabzazar Scheme, attached with the reference by the Directorate Land Development• IV (hereinafter referred to as plot file) was examined.

2. LOA in its reference has narrated following facts:

"As per available record, Plot No. 166, Block-A, Sabzazar Scheme is an Auction Quota plot and was auctioned on 29.03.1989 to Mr. Shahid Raza Slo Haider Ali (Para 25/N) Mr. Shahid Raza Slo Haider Ali sold this plot to Mr. Ghulam Fareed Slo Muhammad Muhammad Yaqoob through natural guardian Mr. Muhammad Yaqoob Slo Shahab Din. Parties were identified on 09.10.1989 by the then identification officer and transfer fees i.e. Rs.5,0001- was deposited (Para No. 57/N).

The plot was transferred to Mr. Mushtaq Ahmed Slo Sarwar Khan vide transfer letter No. LDAlDir-SHS/7757 dated 05.10.2004. Transfer fees of Rs.37,7001- was deposited dated 04.10.2004, paid challan is available at Page-143/C. The legal heirs of Mr. Mushtaq Ahmad submitted an application for incorporation of their names in LOA's record on 24.09.2010. The file was forwarded to Finance Directorate, LOA for verification of deposited amounts against the subject plot vide para No. 117/N. In response, thereof, Deputy Director (Accounts), LOA reported vide Para No. 126/N that amounts deposited against Plot No. 166 Block-A, Sabzazar could not be verified from cash book. He further recommended for taking necessary action against culprits as the report of Finance Directorate, LOA at Para Nos. 32 to 33/N was also bogus. The transfer fees of Rs.5,0001- dated 26.12.1989 and Rs.37,7001- dated 04.10.2004 have been verified by Deputy Director Revenue vide Paras-299 to 301/N. As per report of Estate Branch, physical possession has been handed over to Mr. Shahid Raza Slo Haider Ali and double storey house is constructed at site (Para No. 289/N). The Town Planning Branch, LOA reported that plan was sanctioned on 04.11.1990 in favour of Mr. Ghualam Fareed and completion certificate has also been issued in favour of Mr. Ghulam Fareed on 11.12.2003 (Para No. 297/N). The subject plot is mentioned in the Inventory List 2008 at Sr. No. 39. Mr. Muhammad Imran Khan Sio Mushtaq Ahmad Khan (one of the legal heirs of deceased Mushtaq Ahmad Khan) claims that their predecessor-in-interest was a Bonafide Purchaser of Plot No. 166,

Page 2 of 9 Block-A, Sabzazar and has submitted an application in this regard vide OWO No. 2248211 dated 12.01.2016."

3. Mr. Muhammad Imran Khan Slo Mushtaq Ahmed Khan RIo House No. Sewing-3, Dung 38-4, Family Villas 101, Seoul, South Korea, permanent address House No. 166-A, Sabzazar Scheme, Multan Road, Lahore stated that he had filed an application for transfer of plot No. 166, Block-A, Sabzazar; in the names of legal heirs but LOA had not taken any decision on that. He had not much information about the salelpurchase of the plot because his brother Hafiz Ishtiaq Ahmed was dealing with the case.

4. Hafiz Ishtiaq Ahmed Slo Mushtaq Ahmed khan stated on oath that plot No.166-A was purchased by his father in 2004 from Mr. Noor Muhammad, at a price of Rs.52,00,0001- He claimed that he had met Noor Muhammad, who had property business in Sabzazar area and was known to his father. The deal was finalized with Noor Muhammad, however, the house was transferred directly by Muhammad Yaqoob in the name of his father. He recognized and confirmed signatures of his father on transfer application at Page-94/C as well as on Affidavit at Page-97/C. Price of the House was paid by his father in cash on different occasions, and the receipt of the amount was recorded in the Agreement to Sell. However, he did not have any separate receipt for the same. He claimed that before transfer of plot, his father along with his relative Mr. Rehan, had gone to LOA office and checked all the related papers. At that time LOA staff informed that the plot was free from any controversy and it could be transferred. On the demise of his father, the family obtained a decree from Civil Court regarding legal heirs and approached LOA for the transfer of the house in their names. But on 15.09.2010, they were told through a letter that price paid for the plot at the time of auction could not be verified for which a proper inquiry had been ordered. After that his brother Mohammad Imran Khan submitted application for referring their case to LOA Bonafide Commission. He requested that House No. 166-A, Sabzazar, Lahore may be transferred in their names.

5. Mr. Noor Muhammad Slo Muhammad Hayyat RIo Main Bazar Jhugian Naagra, , Lahore stated on oath that he purchased plot No. 166, Block-A, Sabzazar Scheme from Muhammad Yaqoob at a price of Rs.42,00,0001-. He admitted that he did not meet Mr. Shahid Raza, the original Allottee of the plot. He also admitted that he was doing the property business but without any office. At the time of purchase, Plot No. 166 Block• A, had grey structure built on it which he got completed in 5-6 months period and sold it to Mushtaq Ahmed at a price of Rs.52,00,0001-. He admitted the receipt of total sale amount including remaining Rs.300,0001- mentioned in

Page 3 of 9 the Agreement to sell which were paid at the time of transfer of the plot. At the time of purchase of plot he did obtain necessary information from LOA office. It was an auction quota plot and the concerned dealing official had told him that all auction amounts had been deposited. He had applied for transfer of the plot in his own name and even signed Transfer Application (Page-59). However in the meanwhile his deal was finalized with Mushtaq Ahmed, therefore he got it transferred directly in the name of the latter. Agreement to sell dated 30.06.2004 had his signature (Pages 51-53/C) which he confirmed as well as the contents of the Agreement to sell.

6. Mr. Muhammad Akhtar S/o Muhammad Younas stated on oath that he along with Murtaza Langha and Noor Muhammad had a joint property business. They, all three of them, had made a deal with Muhammad Yaqoob through property dealer Ali and Company regarding plot No. 166, Block -A Sabzazar . He did not remember that against how much amount they had made the deal with Muhammad Yaqoob. Later, after consulting the file he added that as per agreement between Noor Muhammad and Muhammad Yaqoob, the deal was done for Rs. 19,50,000/- They sold Plot No. 166-A to Mushtaq Ahmed for Rs.52,00,000/- and agreement was signed between Noor Muhammad and Mushtaq Ahmed which bears his signature as witness duly confirmed by him.

7. Mr. Muhammad Razzaq S/o Barkat Ali stated on oath that he is a close relative of Mushtaq Ahmed who passed away in 2010. Deal of plot No. 166 Block-A between Mushtaq Ahmed and Noor Muhammad was done in his presence and Rs. 52,00,000/- were paid by Mushtaq Ahmed to Noor Muhammad in cash. Agreement to sell dated 30.06.2004 (Page-51-53/C) had his signatures as a witness which he confirmed.

8. Whereabouts of Mr. Shahid Raza S/o Haider Ali, having temporary address House No. 371, Jahanzeb Block, , Lahore and permanent address House No.7, Street No. 18, Baghban Pura, Gujranwala could not be traced out though summons were sent through D.C Gujranwala at his permanent address in Gujranwala as well. Similarly Muhammad Yaqoob is neither available at his permanent address Laliani, Kasur nor at Sabza Zar, Lahore, his new address. His wife reported that he had since passed away

9. As per available record, plot No. 166, Block-A, Sabzazar Scheme (measuring 260.00 Sqm.) was auctioned on 29.03.1989. Mr. Shahid Raza S/o Haider Ali won the bid offering the highest price @ Rs.27,500/ per Marla, at a total cost of total Rs.3,42,100/-. He deposited Rs.1, 00,000/- vide HBL, CDR No. 608525 dated 29.03.1989. LOA issued acceptance/offer/allotment

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01- e l-: -vol~ letter to Mr. Shahid Raza S/o Haider Ali vide No. DEM/LDAIADR/540 on 02.05.1989 asking him to deposit the balance amount of Rs.2, 43,7101- within a period of 6-weeks. He deposited Rs.2, 42,1 OOI-balance price of the plot vide Challan No. 86 dated 17.05 .1989 and Rs.1,61 01- vide challan No. 85 dated 17.05.1989 on account of Suigas Charges. These payments were verified vide Para 32 to 34/N by A. D. (Books) LOA. There after a possession letter vide No. 1164 dated 19.06.1989 was issued by Directorate of Estate Management -II, LOA.

10. Mr. Shahid Raza Slo Haider Ali sold this plot to Mr. Ghulam Fareed S/o Muhammad Yaqoob through natural guardian Mr. Muhammad Yaqoob S/o Shahab. The plot was futher sold and transferred to Mr. Mushtaq Ahmed slo Sarwar Khan vide transfer letter No. LDAlDir-SHS/7757 dated 05.10.2004. On demise of Mushtaq Ahmed his legal heirs submitted an application for incorporation of their names in LOA's record on 24.09.2010, after obtaining succession certificate from the Civil Court. The file was sent to Finance Directorate, LOA for verification of the deposited amounts against the subject plot. In response, thereof, the Deputy Director (Accounts), LOA reported vide Para No. 126/N that amounts purportedly deposited against Plot No. 166 Block-A, Sabzazar could not be verified from the cash book. He opined that noting at Para Nos. 32 to 33/N was also bogus. LOA had also got conducted an inquiry by Mr. Jamshed Siddiqui, Director, (I&E), LOA on receipt of a complaint from the Chief Minister's Camp Office in respect of plot No. 166-A, Sabzazar Housing Scheme, Lahore (Inquiry report is at pages 463 to 479/C).

11. From the inquiry report it has been transpired that CMIT had also held an inquiry regarding 120 plots of Auction Quota including plot No. 166, Block-A Sabzazar Scheme. The findings of the inquiry were reportedly available in the LOA office file No. O&M-2656 (Part). The Commission had sought a copy of CMIT inquiry report but in response Deputy Director-II (EM• Il), LOA had replied vide his letter No. LDAlDEM-II-3474 dated 18.12.2017 that file No. O&M-2656 containing the CMIT inquiry report regarding auction quota plots was burnt during the fire incident in LOA Plaza (Page-90/C of reference file). A high level inquiry was also ordered through a Committee constituted under the chairmanship of Additional Chief Secretary, Punjab. However, outcome of this inquiry was not available in the LOA record.

12. In the Inquiry conducted by Mr. Jamshad Siddique (pages 463-479 plot file), he recommended that Mushtaq Ahmed Khan father of the Applicant, Mohammad Imran Khan was a bonafide purchaser of plot No. 166 Sabzazar Scheme, Lahore, therefore, his contention for transfer of : Page 5 of 9 '",

, 0(.--z_.ol ~ we f)(- Df- ~, g 0\' plot in the name of legal heirs is justified subject to fulfilment of all codal formalities under the rules. The deposit of plot price amounting to Rs.3, 42,100/- has neither been owned by LOA Finance Directorate nor confirmed by the National Bank of . The whereabouts of Mr. Shahid Raza S/o Haider Ali, the Original Purchaser of the plot are not known as he is not available at his both; temporary and permanent addresses. Though three Inquiries as mentioned above have been conducted but no disciplinary/legal action against the delinquents appears to have been taken.

13. LOA has neither denied the auction in favour of Mr. Shahid Raza nor transfer of the plot to the Applicant. The only contention of LOA is that the plot price has not been deposited in LOA Account as reported by Deputy Director (Accounts) LOA. This Commission vide letter dated 11.10.2017 sent copies of challan No. 85 dated 17.05.1989, challan No. 86 dated 17.05.1989 and CDR No. 608527 dated 29.03.1989 issued by HBL to the Manager National Bank of Pakistan, LOA office branch for verification of the deposited amounts (Page 41 of reference file). The Manager National Bank vide his reply dated 03.11.2017 (Page 42/C) has informed that the said challans do not pertain to their branch and do not exist in the branch record. On a request by LOA, the Manager HBL LOA Plaza Branch had also expressed their inability to verify as to whom the CDR was released as record of the same was not available (Para-222/N). The amount of Rs.3,43, 710/- (including suigas charges) has been embezzled with the connivance of LOA staff posted at that time in the Auction/Recovery Branch.

Though Inquiries were held as mentioned above but no action to recover the amount has been taken. The LOA Inquiry Officer has not given any conclusive findings pointing out the persons responsible for embezzlement of amount rather has recommended further Inquiry/interrogation against officials posted in auction/recovery cell during the period from 1989-1992. Findings of CMIT Inquiry repot and Committee under ACS Punjab are not known. A large amount involving 120 plots has been trashed away during the period from 1989-1992 it must be recovered to save LOA from huge financial loss. However from the record it is evident that Mr. Mushtaq Ahmed Khan the father of the Applicant/ Transferee of the plot paid fair market price of the plot as supported and verified by witnesses and he was not involved in any fraud /embezzlement of plot price. He purchased the plot with house constructed on it in 2004 for Rs.52,00,000/- from Noor Muhammad, who had purchased the same from Muhammad Yaqoob. The plot sale is supported by a proper Agreement between Noor Muhammad and Muhammad Yaqoob and has been verified by the Seller as well as witnesses to the Sale their statements before the Commission. The plot was

Page 6 of 9 transferred from Muhammad Yaqoob to Mushtaq Ahmed by LOA following due process and no objection was raised at that time regarding nonpayment of plot price. LOA in its reference has not raised any objection on this transfer. LOA Inquiry report (Page-477/C) as well as LOA Counsel Mian Tahir Mehmood has supported the claim of the Applicant and held him Bonafide purchaser under Section-41 of Transfer of Property Act 1882 (Para-202- 203/N) recommending transfer of plot in the names of legal heirs of Mushtaq Ahmed Khan.

14. Although LOA has alleged that cost of the plot has not been deposited in to LOA Accounts but it has neither challenged the allotment order dated 02-05-1989 to Shhid Raza (Original Allottee) nor the claim of the Applicant as bonafide purchaser. Mushtaq Ahmed purchased the plot after about 15 years of its auction with a house constructed on it for which completion certificate was issued by the LOA in the name of Ghulam Fareed on 09.10.1989. Therefore, the Commission despite the alleged fraud/collusion in the process of auction/deposit of auction amount, in view of Sub Section (4) of Section 32 of the LOA (Amendments) Act, 2013 read with Sub-Section (5) of Section 32 of the Act (ibid) has to consider the present reference to resolve the dispute. The above mentioned provisions of the Act are reproduced below:-

"(4) The Authority or any officer so authorized by the Authority, on its own motion or on the application of any person, may refer any matter to the Commission for consideration, resolution and decision if a prima facie case is made out."

"(5) The Commission shall consider and make appropriate recommendations on matters pertaining to;

(a) bona fide purchase for value owing to irregular or fraudulent transaction in respect of property, the extent of legality or illegality of the transaction, apportionment of responsibility in irregular or fraudulent transaction and translation of this responsibility into monetary terms and recommendation of such conditions, fines, rate or fix price, retrieval of property and demolition as deemed appropriate according to the nature of each case."

15. From the perusal of plot file and auction file it is evident that the Plot No. 166 Block-A Sabzarzar scheme was initially auctioned on 11.04.1988 and a Committee recommended the approval vide para 14/N of Plot file. But the plot was again auctioned on 29.03.1989 and the committee again recommended for approval. Assistant Director Book confirmed the

Page 7 of 9 , deposit of the amount of Rs.1 ,00,000, Rs.242, 100/- and Rs.1 ,610/- vide para 33/N and thereafter the possession letter was issued. Later on the plot was transferred to Mr. Ghulam Farid and subsequently to Mushtaq Ahmad and during this process none questioned the genuineness of signatures available at paras 33 and 34/N although the file routed through different branches including law and Revenue etc. If the report and signatures in these paras were fake, it would definitely have been pointed out by the Directorate which granted possession of the plot. Khawaja Javaid Aslam then Assistant Director Allotment has stated during the inquiry that "subsequent upon approval of Auction Bid Recovery Branch, Directorate of Estate Management, LOA and Book Section, Directorate of Finance LOA, clearly verified and confirmed the receipt of payments towards cost of the plot." That means at the time of issuance of Possession order there was no dispute about the deposit of cost. Anyhow if the embezzlement was occurred and not only in this case but in 120 cases then it is the responsibility of LOA to recover the amount from LOA staff and private individuals. Since as discussed above there is nothing on record to show the involvement of the Applicant or his father, therefore he cannot be penalized for any embezzlement. The loss if any caused to LOA fund should be borne by LOA itself or recovered from LOA Officials and private persons involved.

16. From the record and the evidence produced by the Applicant and witnesses it appears that:

I. Auction of plot No. 166 Block-A was held on 29.03.1989 and Shahid Raza was declared as the Highest Bidder, he was given possession of the plot on confirmation of receipt of entire price by auction/recovery branch vide para 32-34/N. II. LOA raised objections regarding amount deposited vide Para No. 126/N only when case of transfer of plot to legal heirs of Mushtaq Ahmed came up. III. The Applicant's father is not a party in the embezzlement if any committed by Shahid Raza or LOA staff. IV. The Applicant's father purchased the plot in good faith after 15 years of allotment after getting reasonable inquiry conducted from LOA. V. At the time of his purchase there was nothing on the record of the LOA to indicate any suspicious circumstance calling for inquiry regarding outstanding payments. VI. The Applicant had paid full and fair price of the plot to the vendor for transfer of Allotment rights and possession of the plot. ..

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------17. In view of the above discussed facts, the record perused and the evidence examined, recommendations of the Commission are as under:-

I. Mr. Mushtaq Ahmad was a bona fide purchaser of the rights of allotment granted by LOA to the Original Allottee.

II. The title of the plot will be transferred in favour of the legal heirs of Mr. Mushtaq Ahmed as requested by them.

iii. The cases for sanction of the building plan, commercialization, issuance of NOC, further transfer etc. in respect of the above plot shall be processed by the LOA as per relevant rules/policy in vogue.

iv. Director General, LOA shall get copies of report of inquiries conducted by CMIT and the Committee under ACS Punjab regarding embezzlement of amount of 120 Auction Quota plots including this plot and recover the amount from the delinquents. In no case legal heirs of Mr. Mushtaq Ahmad will be asked to pay the [[mbeZZled amount.

,.-.' ~~lq (Muham~ous~f) _.

Member, LDAC Chairman, LDAC Announced

01.01.2018

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