5 days ago
- Business
- Business Recorder
IHC allows NAB to auction Bahria Town properties
ISLAMABAD: The Islamabad High Court (IHC), Tuesday, allowed the National Accountability Bureau (NAB) to proceed with the auction of Bahria Town properties.
A division bench comprising Chief Justice Sardar Mohammad Sarfraz Dogar and Justice Muhammad Asif turned down the petitions filed against the auction of Bahria Town properties.
The IHC short order stated; 'Writ Petitions are hereby dismissed. The injunctive orders issued by this Court vide order dated 15.04.2025 passed in W.P No.1368 of 2025 and order dated 04.06.2025 passed in W.P No.2248 of 2025 are hereby recalled.'
During the hearing, Farooq H Naik appeared on behalf of Bahria Town, while prosecutor Rafay Maqsood represented the NAB.
Naik argued that NAB's auction notice was illegal, deceptive, and issued with malafide intent. He said that Bahria Town was not a party to the plea bargain case and had been wrongfully targeted. He added that Malik Zain, who had pledged Bahria Town properties as collateral, had applied for cancellation of his plea bargain, and that application was still pending. 'If the plea bargain is under judicial scrutiny, NAB cannot lawfully proceed with the auction,' Naik submitted.
He contended that NAB's move to attach and auction Bahria Town's properties lacked legal basis, as the company itself had not been declared an accused in any reference related to the £190 million case.
The NAB prosecutor rejected Bahria Town's position, stating that Malik Riaz and his son had entered into a plea bargain with NAB but failed to pay the agreed-upon amount. The NAB decided to auction the properties to recover the outstanding amount under Section 33E of the NAB Ordinance, 1999.
Maqsood stated that a similar plea had earlier been dismissed by a trial court, after which the petitioners approached the IHC, which issued the stay order on June 12, on the day of the auction. The NAB, subsequently, filed an application to vacate the stay order.
The NAB prosecutor pointed out the Lahore High Court's Rawalpindi Bench had directed the petitioners to approach the auction committee, and that attempts to invoke the IHC's stay order before that bench had been rejected.
Bahria Town's counsel described the move as a violation of due process, warning it would damage investor confidence and the business environment.
The NAB prosecutor said that Bahria Town granted bail and when the accused is an absconder, action would be taken against the guarantor. This application of Bahria Town is not even admissible.
After the arguments of the parties were completed, the court had reserved the decision.
Copyright Business Recorder, 2025
