Rawalpindi, Pakistan – Property giant Bahria Town Private Limited, led by its enigmatic founder Malik Riaz Hussain and his son Ali Riaz Malik, has long been at the epicenter of Pakistan’s real estate boom. However, this meteoric rise has been overshadowed by persistent allegations of widespread land fraud, corruption, money laundering, and human rights violations, electricity distribution without formal approval or license by NEPRA, at exorbitant rates leaving a trail of legal battles and a multitude of aggrieved residents across the country.
For decades, Bahria Town has faced intense scrutiny from various accountability bodies, including the National Accountability Bureau (NAB) and the Supreme Court of Pakistan, over its land acquisition practices, project approvals, and financial dealings. Recent actions by NAB, including property seizures and ongoing extradition efforts, underscore the severity and breadth of the charges.
A Litany of Legal Battles and Allegations:
The controversies surrounding Malik Riaz and Bahria Town are extensive and deeply rooted in accusations of illegal land acquisition and fraudulent practices:
- Illegal Land Grabbing and Encroachments: This is perhaps the most frequent and severe allegation. Investigations and Supreme Court judgments have repeatedly found Bahria Town to have illegally occupied vast tracts of land, including government-owned, private, and even reserved forest lands.
- Bahria Town Karachi (BTK) Case: In a landmark judgment on May 4, 2018, the Supreme Court declared Bahria Town’s acquisition of thousands of acres in Karachi’s Malir district as “void ab initio” (void from the outset). Subsequent rulings, including one on November 23, 2023, highlighted Bahria’s default on payments for the land it was allowed to retain (Rs. 460 billion over seven years for 16,896 acres), revealing the company was in possession of over 3,000 acres in excess of the agreed-upon land. The Court later declared the firm insolvent due to its failure to adhere to the installment agreement.
- Takht Pari Forest Land (Rawalpindi): Bahria Town was found to have encroached upon over 1,170 kanals of reserved forest land in Takht Pari and Lohi Bheer, illegally swapping land and preventing forest officials from demarcation. The Supreme Court ordered the restoration of this land to the Forest Department.
- New Murree/Golf City: Similar allegations of illegal land occupation and environmental violations, including bulldozing millions of trees on communal village land, have been made against Bahria Town’s projects in the scenic New Murree area.
- Bahria Enclave (Islamabad): The Capital Development Authority (CDA) documented the encroachment of 510 kanals of state land by Bahria Enclave, leading to the sealing of illegal structures in 2024.
- Fraudulent Practices and Financial Irregularities:
- Overbooking and Non-Delivery: Bahria Town has faced numerous complaints of defrauding plot allottees through overbooking, delayed projects, and even issuing cheques that later bounced, leading to accusations of a Ponzi-scheme-like fraud.
- £190 Million Scandal (Al-Qadir Trust Case): Malik Riaz is a proclaimed offender in this high-profile case. In 2019, the UK’s National Crime Agency (NCA) froze £190 million of Malik Riaz’s assets under the Proceeds of Crime Act. This amount, including cash and a London property, was later repatriated to Pakistan and deposited with the Supreme Court, purportedly to settle Bahria Town’s outstanding dues. The case also involves allegations of land received as a bribe by former Prime Minister Imran Khan and his wife through the Al-Qadir charitable trust.
- Money Laundering: Investigations by NAB and the Federal Board of Revenue (FBR) have pointed to massive money laundering operations, including allegations of billions of rupees being funneled to obscure companies like Vicky Trading, acting as shell entities for illicit funds. NAB has warned the public against investing in Bahria Town’s Dubai project, citing evidence of funds being transferred through illegal means.
- Unlicensed Electricity Distribution and Exorbitant Rates: Beyond land acquisition and project delivery issues, Bahria Town has also faced significant criticism and legal challenges regarding its management of essential utilities, particularly electricity distribution. Residents, under the banner of the community-driven non-profit organization Bahria Residents Action Committee (BRACE), have been engaged in a continuous legal battle and series of protests against the Bahria Town administration over what they allege is the unlicensed distribution of electricity at exorbitant rates, operating with impunity. BRACE contends that Bahria Town is acting as an unauthorized electricity distribution company, levying charges significantly higher than those regulated by national power authorities like NEPRA (National Electric Power Regulatory Authority). Residents claim they are being subjected to inflated bills without proper regulatory oversight, lacking the consumer protections afforded to those served by licensed power distributors. “We are being held hostage by Bahria Town’s arbitrary pricing and lack of accountability in electricity provision,” stated a spokesperson for BRACE during a recent protest in Rawalpindi. “They operate as a law unto themselves, charging us rates far exceeding what is just and regulated, and there is no recourse for us.” Legal challenges filed by BRACE on behalf of the residents are reportedly ongoing in various courts, highlighting the long-standing grievance and the alleged exploitation of residents by Bahria Town through its control over essential services. This situation adds another layer to the financial burdens and frustrations faced by those who invested in Bahria Town’s promises of a high-quality lifestyle.
- Corruption and Abuse of Influence: Malik Riaz’s rise has often been attributed to alleged corruption and an “unholy alliance” with powerful elements within the military and bureaucracy. He himself admitted in court in 2012 to paying large sums to influence cases, though he claimed it was extortion. Defence Minister Khawaja Asif recently likened Bahria Town’s unchecked enterprise to a “parallel state” operating outside the law.
The Plight of Residents and Investors:
The wrongdoings of Bahria Town have severely impacted thousands of residents and investors:
- Delayed Possessions and Non-Delivery: A common grievance is the significant delay in property possession and, in many cases, the outright failure to deliver promised plots or housing units. This leaves buyers in limbo, often after investing their life savings.
- Disputed Ownership and Evictions: Residents find themselves entangled in legal disputes over land ownership, with some indigenous communities reportedly evicted by Bahria Town personnel using force to clear land for development.
- Lack of Promised Amenities: Despite promises of state-of-the-art facilities, residents often report the absence or significant delay in the provision of promised amenities like parks, schools, hospitals, and proper infrastructure.
- Financial Loss: Investors have faced substantial financial losses due to fraud, overbooking, and the devaluation of properties amidst legal uncertainties.
- Uncertainty and Fear: Recent government actions, such as the sealing of numerous Bahria Town properties across Karachi, Lahore, Rawalpindi, and Islamabad, and the freezing of bank accounts, have instilled a deep sense of fear and uncertainty among residents who fear losing their homes and investments despite having paid taxes and acquired properties with valid NOCs from authorities.
Recent Developments and Future Outlook:
The National Accountability Bureau (NAB) has intensified its actions. In March 2025, NAB announced the sealing of “numerous” commercial and residential properties of Bahria Town across the country and froze hundreds of bank accounts and vehicles. Non-bailable arrest warrants have been issued for Malik Riaz and Ali Riaz Malik in connection with the Takht Pari reference, and NAB is actively seeking their extradition from Dubai.
Most recently, on May 27, 2025, NAB announced the public auction of six Bahria Town properties in Rawalpindi and Islamabad on June 12, to recover defaulted amounts under plea bargain agreements related to corruption charges. The saga of Malik Riaz and Bahria Town remains a critical case study in the complexities of real estate development, accountability, and the impact on the populace in Pakistan.
