The Capital Development Authority plans to change the bylaws of housing societies. Under the new law, action will be taken only against the specific portion of a society where violations have been made and not to cancel the whole layout plan. This law aims to protect the rights of citizens and keep a complete check on unauthorized housing schemes.
Unauthorized housing societies are a pervasive issue in different cities across Pakistan. According to government documents, 69% of all housing societies are unregistered. A total of 8,767 housing societies are present in the country, while 6000 remain un-registered with the concerned regulatory authority. In addition, over 4,000 cases have been filed against 500 of these societies at the cost of Rs 500 billion.
Recently, CDA declared 140 private and cooperative housing schemes in Islamabad as illegal and unauthorised as they lack Layout Plans and No-objection Certificates. The marketing or advertisement of these housing schemes was also declared illegal and residents were warned to not invest in these projects. Despite being declared illegal by the government, people continued to invest.
The incumbent government promised the creation of 5 million houses in 5 years and aims to carry out this ambitious goal through the Naya Pakistan Housing Scheme (NAPHDA). Currently, only a tiny portion of that promise has been completed. The process of acquiring a NOC from municipal development authorities is a drag and the government should actively try to reduce unnecessary steps that discourage sponsors from seeking legal permissions from the concerned authorities. This will ultimately help the government in dealing with the menace of illegal housing societies and help create an authentic residential real estate sector.
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