Massive Fraud by Islamabad and Rawalpindi Housing Societies Reportedly Exposed

A major land fraud scandal has surfaced in Islamabad and Rawalpindi, where private housing schemes and cooperative housing societies allegedly defrauded citizens of trillions of rupees through overselling plots, fake memberships, and deceptive land marketing. According to Geo News, NAB Rawalpindi has completed a detailed investigation that has exposed large-scale irregularities across multiple projects. Investigators found that housing schemes sold over 91,000 excess plots and files beyond their approved layout plans and available land. Around 20,000 memberships were issued despite zero land backing them. Even more alarming, developers marketed and sold nearly 80,000 kanals of land that did not exist in their approved records. Sources revealed that private housing schemes alone sold 26,000 more plots/files than allowed under their approved layout plans. They also advertised 80,000 kanals of nonexistent land. One major scheme, which requested LOP approval for only 4,000 kanals in 2022, marketed itself as an 80,000-kanal mega project and sold 30,000–40,000 plots, collecting Rs50–60 billion from unsuspecting buyers. To date, it has acquired only 34,000 kanals, scattered and unplanned, and it has never obtained a regulator’s approval or NOC. The problem extends beyond private developers. Cooperative housing societies — traditionally seen as safer and more regulated were also found to be involved in massive irregularities. These societies issued around 20,000 memberships without land and allegedly sold 65,000 plots in projects where no land or development existed. Records shared with the reporter show: Officials say citizens have suffered losses worth hundreds of billions of rupees, with victims including government employees, professionals, retirees, and ordinary families who invested their life savings in hopes of owning a home. NAB Rawalpindi DG Waqar Chauhan confirmed the findings and said NAB compiled the data with the cooperative department and relevant regulators to ensure authenticity. He added that NAB is preparing a reform package for the housing sector to address long-standing structural issues and protect public interests. The investigation highlights thousands of families still deprived of land, possession, or development progress, many waiting for more than a decade as developers repeatedly failed to fulfill their promises. Analysts say the crisis stems from weak regulation, administrative failures, and deliberate fraud by developers who exploited legal loopholes and misleading marketing to deceive the public.