Payment defaults, ignored court decisions and land mafia demands sound the alarm on the cooperative system
KARACHI:
Serious irregularities have allegedly come to light during the auction of commercial land in a cooperative housing society, raising concerns about financial corruption, administrative negligence and favoritism by a land mafia, which residents say has endangered both the society’s finances and the legal rights of thousands of members.
According to documents available with The Express PK Press Club, the State Enterprise Officers Cooperative Housing Society Limited has auctioned 18 commercial plots in 2022, with an expected proceeds of around Rs500 million. According to the auction rules, successful bidders were required to deposit the entire amount within a specified time, failing which the award was to be automatically canceled.
However, three years later, the payments have reportedly not been recovered and no plots awarded to the defaulting bidders have been cancelled. Residents say the prolonged delay has caused heavy financial losses to the company and reflects more than just an administrative error, instead pointing to a possible organized financial plan.
Residents and documents available with The Express PK Press Club claim that an organized group, allegedly led by one Ajmal Khan, attempted to exploit the auction process to gain illegal control of prime commercial plots. Khan is said to have been linked to similar controversies in other cooperative societies, with investigations and cases pending with the anti-graft establishment.
Despite this context, residents say he continued to attend company meetings, raising serious questions about administrative neutrality and possible collusion on the part of company executives.
Records further show that petitions filed by Khan and his associates before a special court were rejected twice. Additionally, an extraordinary general meeting of the company adopted a clear resolution regarding the auction process. However, residents claim that neither the court decisions nor the general assembly resolution have been implemented, which renders the auction result meaningless.
Legal experts say 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 parcels up for auction, only 10 are subject to partial payments. In one case, the price of SB-08 land was allegedly underestimated, resulting in a discrepancy of several crores of rupees. It is also claimed that around Rs 4 million belonging to the unsuccessful bidders were withheld, despite legal provisions requiring repayment of these amounts.
Residents say these discrepancies demonstrate 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 conducted, members’ rights may suffer irreparable damage and public confidence in the cooperative housing system will be further eroded.
They urged the Registrar of Cooperative Societies and the Anti-Corruption Institute 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 for the transparency, accountability and legal credibility of Pakistan’s cooperative housing system.
