ISLAMABAD: The Islamabad High Court (IHC) on Tuesday dismissed petitions challenging the auction of Bahria Town properties, clearing the way for the National Accountability Bureau (NAB) to move ahead with the sale.
A division bench comprising IHC Chief Justice Justice Sarfraz Dogar and Justice Muhammad Asif issued a short order dismissing the writ petitions. The court also recalled its earlier injunctive orders that had temporarily halted the auction process.
“For detailed reasons to be recorded later, subject to amplification or elucidation as may be deemed appropriate, the captioned Writ Petitions are hereby dismissed,” the bench noted in its short order.
“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,” it added.
Bahria Town Challenges NAB’s Move
During the proceedings, senior lawyer Farooq H. Naik represented Bahria Town and strongly opposed NAB’s auction notice. He argued that the notice was “illegal, deceptive, and issued with mala fide intent.”
Naik further contended that Bahria Town was not a party to the original plea bargain agreement that led to the auction. He maintained that the properties being auctioned had been pledged as collateral by Mr. Zain, who later filed a request to cancel his plea bargain agreement — a request that is still pending in court.
“If the plea bargain is under judicial scrutiny, NAB cannot lawfully proceed with the auction,” Naik told the court.
He argued that until the court rules on the validity of the plea bargain, any steps taken by NAB to auction Bahria Town’s properties would be premature and potentially unlawful.
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NAB Defends Legality of Auction
On behalf of NAB, prosecutor Rafay Maqsood defended the auction process and dismissed Bahria Town’s objections. He told the court that prominent property developer Riaz Malik and his son had voluntarily entered into a plea bargain agreement with NAB but failed to pay the agreed-upon amount.
Given their failure to fulfill the financial terms, NAB decided to invoke its authority under Section 33E of the NAB Ordinance, 1999, which allows the bureau to recover outstanding amounts through the auction of pledged or seized properties.
“This is a lawful exercise of NAB’s authority under the law,” said Maqsood, while emphasizing that due process had been followed.
Background of the Case
The dispute stems from a plea bargain arrangement reached between NAB and key individuals associated with Bahria Town. The agreement, however, was not fulfilled by the signatories, prompting NAB to initiate the auction process as a means to recover public funds.
The properties in question were pledged by Mr. Zain as part of the recovery mechanism. However, his application to cancel the plea bargain added a legal twist to the situation, leading Bahria Town to approach the IHC to block the auction.
Despite the legal complexities, the IHC bench found no merit in Bahria Town’s arguments and has now allowed NAB to proceed.
Implications of the Verdict
With the dismissal of the petitions, NAB is now legally authorized to continue with the auction process. The decision is likely to set a precedent for similar cases where properties pledged in plea bargains are contested by third parties or related stakeholders.
Legal analysts note that this verdict reinforces NAB’s authority to enforce plea bargain recoveries, even in cases where the pledged properties belong to or are associated with parties not directly involved in the original agreements.
The detailed judgment explaining the court’s rationale is expected to be released in the coming days.
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