'Irregularities' uncovered in auction of commercial plots

Serious irregularities have allegedly come to light in the auction of commercial plots in a cooperative housing society, raising concerns over financial corruption, administrative negligence and the patronage of a land mafia, which residents say has put both the society's finances and the legal rights of thousands of members at risk.

According to records available with The Express Tribune, the State Enterprise Officers Cooperative Housing Society Limited auctioned 18 commercial plots in 2022, with expected proceeds of around Rs500 million. Under the auction rules, successful bidders were required to deposit the full amount within a specified period, failing which the allotment was to be cancelled automatically.

However, three years on, payments have reportedly not been recovered, while no plot allotted to defaulting bidders has been cancelled. Residents allege that the prolonged delay has caused heavy financial losses to the society and reflects more than mere administrative lapse, pointing instead towards a possible organised financial scheme.

Residents and documents available with The Express Tribune claim that an organised group, allegedly led by one Ajmal Khan, has attempted to exploit the auction process to gain illegal control over prime commercial plots. Khan is said to have been linked to similar controversies in other cooperative societies, with inquiries and cases pending at the Anti-Corruption Establishment.

Despite this background, residents allege that he continued to attend society meetings, raising serious questions about administrative neutrality and possible collusion by those managing the society.

Records further show that petitions filed by Khan and his associates in a special court were dismissed twice. Moreover, a special general meeting of the society passed a clear resolution regarding the auction process. However, residents say neither the court decisions nor the general meeting resolution were implemented, rendering the auction outcome meaningless.

Legal experts say that ignoring court orders and resolutions of the general body undermines not only the rule of law but also the democratic and administrative framework of cooperative institutions.

Documents indicate that out of the 18 plots auctioned, only 10 show partial payments. In one case, the price of plot SB-08 was allegedly understated, resulting in a discrepancy running into millions of rupees. It is also claimed that around Rs4 million belonging to unsuccessful bidders was shown as retained, despite legal provisions requiring such amounts to be refunded.

Residents argue that these discrepancies point towards systematic financial manipulation and misuse of the auction mechanism for personal benefit.

Society members have warned that unless an immediate, impartial and transparent inquiry is conducted, the rights of members could suffer irreparable damage and public trust in the cooperative housing system would erode further.

They have urged the Registrar of Cooperative Societies and the Anti-Corruption Establishment to order a forensic audit of the entire auction process, take action against those responsible for delays and irregularities, cancel plots allotted to defaulters and ensure protection of members' interests.

Residents say the issue goes beyond a single housing society and has become a test case for transparency, accountability and the legal credibility of the cooperative housing system in Pakistan.