Over 1,100 housing schemes in Punjab set up without approval, SC told

ISLAMABAD: Over 1,100 housing schemes in residential areas of Punjab’s 11 districts don’t have requisite approvals from the authorities, according to a report submitted to the Supreme Court on Thursday.

The study, conducted by the Project Management Unit of Punjab’s Planning and Development (P&D) Department, also stated that 839 housing schemes had been built on agricultural land, of which 173 have somehow managed to get official approvals, while 666 were entirely unapproved or illegal.

In total, there were 2,031 schemes in residential areas of Punjab’s 11 district, of which only 900 were duly approved.

The report was furnished by Punjab Advocate General (AG) Khalid Ishaq before a three-judge Supreme Court bench headed by Chief Justice Qazi Faez Isa.

Report by P&D department says 839 societies built on agricultural land

The bench was hearing a set of complaints filed by customers who paid money to buy plots in the Revenue Employees Cooperative Housing Ltd (RECHS) in Rawalpindi but were deprived of their land following the scheme’s merger with Bahria Town in 2004.

In an earlier hearing, the court was told that RECHS had acquired a huge chunk of agricultural lands and later merged them with Bahria Town (Pvt) Ltd.

The latter then traded off the land to Defence Housing Authority (DHA) for the development of Askari 14 Rawalpindi.

At the last hearing on March 20, the Punjab AG was told to submit a statement regarding the conversion of agricultural lands into housing schemes.

During the hearing on Thursday, the three-member SC bench ordered the petitioners to approach the corporate office of Bahria Town Rawalpindi next after senior counsel Hassan Raza Pasha, representing the developer, gave assurance that the grievances will be redressed.

If not satisfied, the complaints can seek appropriate remedy from other forums, the bench remarked.

Lax regulations

The Punjab government’s report conceded that there was a lack of regulation and enforcement regarding private housing schemes in the province, despite sufficient legal provisions.

The report added that political uncertainty and economic instability profoundly impact investment in the housing sector.

Developers and financiers “often hesitate to commit resources in an unstable economic environment due to the risks associated with such investments”.

However, the court was told the Punjab chief minister has constituted a special cabinet committee on the use of agricultural land for residential/commercial purposes.

The committee was holding regular meetings to devise a policy, the report said.

It added that as of 2023, an estimated 36.4 per cent of the total population lived in urban centres across the country. Of these, about half resided in ten major cities, most of them in Punjab.

The rapid urbanisation has led to significant urban sprawl, which has resulted in more than 40pc of the urban residents living in informal settlements or katchi abadis, as per the report.

The issue was attributed to rural-urban migration, which results in changes in land use both within city centres and on the outskirts.

Major city centres were not only struggling to meet the increasing demand for essential infrastructure and employment, but also facing a housing crisis.

The reports said out of the 229 million people, one-third lived in 13m houses in urban centres, and the rest in 20m rural homes. There was a deficit of nine million housing units, expected to grow to 17.2m by 2025.

It lamented that Punjab was predominantly facing the effects of this urbanisation, which has also resulted in inadequate housing.

As a result of this rapid urbanisation, the rate of urban area growth in Punjab was greater than the population growth in 50pc of cities in the province.

While identifying reasons for the lack of oversight, the report pointed out incapacity of local governments, such as the absence of realistic data-driven policies, weak enforcement mechanisms, and capacity and financial constraints.

The report regretted that land accumulation “in the hands of a few” has been aided by stakeholders. Individuals and entities have been purchasing land under the garb of private housing schemes and holding onto it for extended periods without developing it.

This is done in anticipation of selling the land at a higher price due to the increased market value.

The undeveloped or illegal or irregular housing schemes do not facilitate economic activity, property development or land use optimisation that would otherwise generate substantial taxes and fees for the provincial and local governments, said the report.

Published in Dawn, May 3rd, 2024