Rafique brothers indicted in housing case

PML-N leaders reject charges levelled by NAB

LAHORE: An accountability court on Wednesday indicted former federal minister Khawaja Saad Rafique and his brother, former Punjab minister Khawaja Salman Rafique, in Paragon Housing Society scandal.

The Accountability Court of Lahore provided the siblings – both leaders of Pakistan Muslim League-Nawaz (PML-N) –   with copies of the National Accountability Bureau (NAB) reference and read out the allegations against them. However, Rafique brothers denied the allegations.

NAB arrested the PML-N leaders outside the Lahore High Court (LHC) in December last year after the court rejected their pre-arrest bail pleas.

In May 2019, the reference filed by NAB alleged that the accused – also including Umar Zia, Nadeem Zia and Farhan Ali – committed a fraud, causing Rs590 million loss to the general public.

It said the Paragon City (Pvt) Limited had been declared illegal by the Lahore Development Authority (LDA). In a letter to the collector Revenue Department, the LDA had also asked authorities concerned to disconnect the housing scheme’s utility services.

Initially the society was as a company, Debonair (Pvt) Ltd, which was registered with the Securities and Exchange Commission of Pakistan (SECP) in 1997.  Later on, the accused got no-objection certificate (NOC) for a housing scheme –Air Avenue Housing Scheme – in favour of Debonair (Pvt) Ltd.

However, the scheme was not launched and the land pertaining to said housing scheme was sold to M/s Urban Developers and Eden Developers in the year 2000. Afterwards, Saad Rafique through his wife got another firm – Debonair (AOP) – registered with the Registrars of Firms, Lahore Division.

The sale/consideration of land of Air Avenue was received in three bank accounts of Debonair (Pvt) Ltd which were being operated by Qaiser Amin Butt, Salman Rafique, Shamma Nadeem and Nadeem Zia.

The reference said the accused Zia and Butt were associates of Saad and Salman. Rafique brothers abetted by other accused established another company – Air Avenue (Pvt) Ltd – through Butt and Zia while excluding their names from documents and the company was registered with the SECP in 2003.

Two months later, name of the said company was changed to M/s Paragon City. The accused got approval of M/s Paragon City on the basis of forged documents from Tehsil Municipal Administration (TMA) Aziz Bhatti Town in 2005.

The accused did not own the requisite land at the relevant time and had ownership of land measuring 1,085 kanals only in Mauza Phularwan. Paragon City did not obtain approval from the LDA.

The reference also disclosed that Qaiser Amin Butt voluntarily disclosed the facts and circumstances relating to the commission of offences and requested for grant of pardon that was tendered by NAB.

According to NAB, Rafique brothers wrongfully gained an amount of Rs6.2 million and Rs12 million from Paragon City in their respective bank accounts. They failed to account for the illegal gains received by them during the investigations.

Saad Rafique established a proprietorship concern namely M/s Saadain Associates to disguise the origin of his illegitimate pecuniary benefits. He wrongfully gained an amount of Rs58 million from Executive Builders in last few years under the garb of services of consultancy rendered by Saadain Associates.

Salman established KSR Associates to disguise his origin of pecuniary benefits. He received an amount of Rs39 million from Executive Builders under the garb of services of consultancy rendered by KSR Associates, it claimed.

Executive Builders in a proxy concern of Paragon City and is purportedly owned by accused Umar Zia (brother of accused Nadeem Zia) and Farhan Ali (brother in law of accused Salman), the reference added. An accused in the case, Qaiser Amin Butt, has become approver and testified the allegations.