SC accepts Bahria Town Karachi's offer for Rs460bn

[AZADPAKISTAN2009]

Let me summarize the problem


a) Bahria Town , a company bought Land ownership from another company MDA who were authorized for usage of land and construction work on it. This authorization was approved for by Sindh Government . MDA were in their rights to sell it in a company to company transaction based on the then acceptable prices. Which were low because no builder or public person was interested in owning a plot, villa or land in middle of no where away from Karachi city


b) Bahria Town legally aquired the land and then did marketing and construction and People were impressed by the work done and they deposited money to own land in Bahria Town Karachi. Bahria Town thus did the proper work to buy land.


c) Supreme Court / NAB realized late that the land may have greater value and this demanded taxation based on the value or property Bahria Town is selling

d) Supreme court calculated the value of Property to be sold (30 Billion Dollars) and then they charged 15% tax for state of Pakistan which comes to about 5 Billion Dollar. Bahria Town made no objection to this amount. They asked a payment structure to pay this fund in installments as money comes from plots/condo and property sold to customers

Professional Builder

Land Mafia :

• Illegal construction , and not owning land
• Illegally surrounding a legitimate city building with illegal unauthorized construction

Here you see illegal slum constructions beside railway tracks

All these buildings around Empress Market for example 100% illegal

Cleanup of Empress building after 50 years

 

[Meengla]

All the people who doesn’t agree with the decision please tell us what are the alternatives ???

PPP gov sold this land for only 4,5 billion PKR. They even said in court that this is the real price of the land and we don’t want anymore money.

There is 3rd party interest as well. People have bought the plots, moslty overseas.

There is not a single institute/organisation in Pakistan which can handle such a project. Sindh gov is corrupt to core. Who should take over the project if SC take the proj away from Bahria town.

So please tell the alternative.


Everyone was silent when the same land was sold for 4,5 billion pkrs.

Good post and good decision by the Supreme Court.

 

[Complex Variable]

Let me summarize the problem


a) Bahria Town , a company bought Land ownership from another company MDA who were authorized for usage of land and construction work on it. This authorization was approved for by Sindh Government . MDA were in their rights to sell it in a company to company transaction based on the then acceptable prices. Which were low because no builder or public person was interested in owning a plot, villa or land in middle of no where away from Karachi city


b) Bahria Town legally aquired the land and then did marketing and construction and People were impressed by the work done and they deposited money to own land in Bahria Town Karachi. Bahria Town thus did the proper work to buy land.


c) Supreme Court / NAB realized late that the land may have greater value and this demanded taxation based on the value or property Bahria Town is selling

d) Supreme court calculated the value of Property to be sold (30 Billion Dollars) and then they charged 15% tax for state of Pakistan which comes to about 5 Billion Dollar. Bahria Town made no objection to this amount. They asked a payment structure to pay this fund in installments as money comes from plots/condo and property sold to customers

Professional Builder

Land Mafia :

• Illegal construction , and not owning land
• Illegally surrounding a legitimate city building with illegal unauthorized construction

Here you see illegal slum constructions beside railway tracks

All these buildings around Empress Market for example 100% illegal

Cleanup of Empress building after 50 years

Deal was not legal at first place, they exchanged the high price land with low price.

See onwards 2:20

 

[Baghial]

Let me summarize the problem


a) Bahria Town , a company bought Land ownership from another company MDA who were authorized for usage of land and construction work on it. This authorization was approved for by Sindh Government . MDA were in their rights to sell it in a company to company transaction based on the then acceptable prices. Which were low because no builder or public person was interested in owning a plot, villa or land in middle of no where away from Karachi city


b) Bahria Town legally aquired the land and then did marketing and construction and People were impressed by the work done and they deposited money to own land in Bahria Town Karachi. Bahria Town thus did the proper work to buy land.


c) Supreme Court / NAB realized late that the land may have greater value and this demanded taxation based on the value or property Bahria Town is selling

d) Supreme court calculated the value of Property to be sold (30 Billion Dollars) and then they charged 15% tax for state of Pakistan which comes to about 5 Billion Dollar. Bahria Town made no objection to this amount. They asked a payment structure to pay this fund in installments as money comes from plots/condo and property sold to customers

Professional Builder

Land Mafia :

• Illegal construction , and not owning land
• Illegally surrounding a legitimate city building with illegal unauthorized construction

Here you see illegal slum constructions beside railway tracks

All these buildings around Empress Market for example 100% illegal

Cleanup of Empress building after 50 years

Do u know papra rules??

Start the illegality from A....
Till Z..

 

[Kakaspai]

3 billion is peanuts and that too over 7 years.Such a Shame.

 

[AZADPAKISTAN2009]

Fundamental Problem in Story:
It is not good business , if one party sells to second party and then first party demands more money after sale has concluded and it's been 7-8 years

• Value of Property depends on How Developed the Neighborhood is , if it is middle of no where then land is cheap as no one want to go live there

Misconception among People:

• The Land Bahria Town aquired was some high priced land (No)
• Buying Land from Malir Development Authority was illegal (No)
• It had government built infrastructure (No)
• It had plain surface (No)
• The Travelling transit system existed (No)
• It was near main city or financial Hub (No)
• There is a sea side view for their family (No)
• Biggest misconception people were willing to move so far away from city center (No)

Since Land was not developed the price of Land was not high as even no water source existed to do farming


Malir Development Authority was established to oversee the development of Malir in Karachi, Sindh, Pakistan.
Jurisdiction = Karachi

Reference: http://mda.gos.pk/


Facts:

• Sindh has given authorization for MDA for developing housing community in this area
• MDA in their part sold the rights of the land at than estimated value of land to "Bahria Town Karachi"
• So Land ownership exchanged from MDA to Bahria Town Karachi
• Bahria Town Karachi , spent 7-8 years to spend their own money to do marketing , and do prep work , and built some demo projects . They constructed all the infrastructure before getting to stage to sell houses, plots and homes

Infrastructure constructed by Bahria Town on their own

• Roads
• Plaining of surface so professional construction can happen on rugged land
• Proper zoning and spacing between Buildings and Villas
• Ample space for parks
• Seperate space for Markets , Commercial areas
• Mosques
• Amusement parks

Now , people were interested because the location had promise of Hospitals, Schools, Community , Sports complex , and Supermarkets


At this stage NAB/Government officials calculated if Bahria Town will sell homes on the amount of Land they own they will get up to 30 Billion Dollars (Note this is future Corporate Profit /Income) and they jumped ahead and wanted to demand 15% their share from it i.e Taxes

So Supreme court stepped in and demanded 15% Taxation on these Sales of Condo , Villas and Plots and thus the two parties agreed on a figure 5 Billion Dollars


Original Estimates in Dollar (if Bahria Town operated in Dollar Account)

Sale of all Condo, Villas , Plots Income generated = 30 Billion Dollars
15% Tax due to Pakistan = 5 Billion Dollars

However since 2018-2019 rupee value has diminished

Bahria Town will make only 25 Billion Dollars
15% Tax due 3.75 Billions Dollars -> Converted to Rupee is 480 Billion Rupee

Note : The rupee figures have remained same in paperwork

Which is the figure Supreme court accepted





Benefits to Provincial Government:

• People who will own land now their property will be registered with Government and they will pay Property Tax
• Construction industry Jobs be reopened and people will be employed

Lessons Learned:

1- Before Large Land is transferred determine if it is developed , or undeveloped apply rate

2- If Big builder buys land , don't drag them into court , but discuss 15% Tax on Properties
sold. And develop a method to collect the 15% Tax on Properties being sold thru FBR.
Before any home is transferred to owner collect the 15% Tax

3- Supreme court stepped in to establish the 15% Tax is being collected , however this should have been an automatic duty of FBR to demand 15% Tax from Bahria town without the court being involved

 

[razgriz19]

Good job 3bn$ is good palwnty

Dam fund!

 

[AHMED85]

Good job 3bn$ is good palwnty

جج نے بہت کم قیمت لگائی ھے ⁦[emoji1013]️⁩

پہلے مارکیٹ چیک کر لینی چاہیے تھی [emoji409]

 

[Imran Khan]

جج نے بہت کم قیمت لگائی ھے ⁦[emoji1013]️⁩

پہلے مارکیٹ چیک کر لینی چاہیے تھی [emoji409]

thori si kam lagai hai koi issue nhi

Dam fund!

great if its go to dam fund

 

[Ultimate Weapon]

great if its go to dam fund[/QUOTE]

I second this thought.