A major land allotment scandal in the Capital Development Authority has caused a loss of more than Rs1 billion to the national exchequer, the Public Accounts Committee was informed during a meeting on Wednesday.
The committee meeting, chaired by MNA Shahida Akhtar Ali, received a detailed briefing from the director general of the Federal Investigation Agency regarding alleged irregularities in the allotment of plots in the federal capital.
Officials informed the committee that serious irregularities were found in the allotment of 43 plots in various sectors of Islamabad, resulting in financial losses exceeding Rs1 billion. The matter is currently under investigation by the FIA.
According to the audit report, the CDA’s Land and Rehabilitation Directorate also came under scrutiny for its role in the controversial allotments.
During the briefing, the FIA chief informed the committee that more than 20 individuals, including four additional secretaries and seven deputy directors, had been arrested in connection with the case.
He added that legal proceedings were underway against a total of 57 suspects, of whom 46 had been taken into custody, while around 37 accused persons were currently out on bail.
Authorities have also seized several valuable plots in different sectors allegedly linked to the suspects, while money laundering cases have been initiated against those involved.
The audit report revealed that rules and regulations were violated in the allotment of the 43 plots. Audit officials were unable to obtain files for 41 plots from the record room, while only two files were made available for examination.
The disappearance of the files has raised suspicions over land allotments worth billions of rupees. The audit authorities had first raised objections to the alleged irregularities in June 2023.
During the meeting, PAC chairperson Shahida Akhtar Ali questioned what action the CDA had taken in the matter, noting that in a previous case more than 50 individuals had also been implicated.
MNA Tariq Fazal Chaudhry pointed out that landowners were being paid compensation of only Rs800,000 per kanal even after 18 years, stressing the need to determine whether the compensation was fair.
The FIA chief told the committee that the issue was also under review, adding that fake cheques worth millions of rupees had been issued and land belonging to orphans had allegedly been illegally occupied.
He further revealed that cheques worth Rs60 million had been issued in the names of deceased persons, while around Rs300 million had been paid to fake claimants, depriving rightful owners of their compensation.
Another lawmaker, Bilal Mandokhail, questioned how such large-scale irregularities could occur within the CDA without oversight.
Responding to the concerns, the CDA chairman told the committee that criminal cases had been registered against the individuals involved and several arrests had already been made.