PAC orders inquiry into Rs8.5b HDA housing scheme scandal

Gulistan-e-Sarmast project stalled for 16 years despite massive collections from allottees

KARACHI:

The Public Accounts Committee (PAC) of the Sindh Assembly has ordered an inquiry into alleged financial irregularities amounting to billions of rupees in the Gulistan-e-Sarmast Housing Scheme, a 2,000-acre project launched by the Hyderabad Development Authority (HDA) in 2009.

Despite the collection of Rs8.5 billion from over 32,000 allottees in the form of plot prices and development charges, not a single allottee has been handed physical possession during the past 16 years. Basic facilities, including electricity, gas, water supply and road infrastructure, have also not been provided.

Additional Secretary of the Local Government Department Afshan has been appointed as the inquiry officer who will submit a report within two weeks.

The decision was taken during a PAC meeting held on Wednesday under the chairmanship of Nisar Khuhro, where audit paras relating to the HDA were examined. Committee member Qasim Siraj Soomro, Additional Secretary Local Government Afshan, Additional Secretary HDA Nadeem Khan and other officials were also in attendance.

HDA officials claimed that development work in five sectors of the scheme had been completed and that Rs4 billion out of the total Rs8.5 billion collected had been spent on development works. However, the PAC sought complete details of expenditures, including bank statements and particulars of the development works carried out under the scheme.

Expressing strong displeasure, Khuhro questioned HDA officials over the suspension of work on the project since 2021 and the failure to hand over possession to allottees for 16 years. He sought details regarding the launch of the scheme, the reasons for the stoppage of work, the total amount collected from allottees, and the continued delay in granting possession.

HDA officials informed the committee that the Gulistan-e-Sarmast Housing Scheme was launched in 2009 with a completion deadline of 2013. They stated that plots had been allotted to more than 32,000 applicants, from whom Rs8.5 billion had been collected since the launch of the project.

According to the HDA, development work in five sectors has been completed and these sectors are ready for handing over possession. An advertisement was issued in this regard, following which around 200 allottees have so far submitted applications for possession. Officials added that each sector spans 80 acres and that approximately 80 per cent development work has been completed in Sectors 1 to 5.

Responding to queries regarding the utilisation of funds, HDA officials said that Rs4 billion had been spent on development works, while Rs140 million had been deposited for the establishment of a grid station. However, they added that Wapda later revised its demand and increased the required amount.

The PAC chairman questioned where the remaining Rs4.5 billion had gone, but HDA officials failed to provide a satisfactory explanation.

The committee was also informed that the scheme's consultant retired in 2014, after which development work was carried out through tenders. HDA officials further disclosed that the authority currently does not have a director general.

It was also revealed that in 2019, allotments of 50 per cent of allottees in Phases I, II and III were cancelled, while Phase IV comprising 2,000 plots was announced. However, the draw for Phase IV has not been held for the past eight years.

Committee member Soomro suggested that if the HDA is unable to complete the project on its own, it should consider executing the scheme under a public-private partnership.