By Staff Reporter
ISLAMABAD: The Islamabad High Court (IHC) on Tuesday dismissed petitions seeking to block the auction of six Bahria Town properties, handing a victory to the country’s anti-corruption watchdog in its pursuit of funds tied to the £190 million Al-Qadir Trust case.
The decision allows the National Accountability Bureau (NAB) to proceed with the sale of five properties in Rawalpindi and one in Islamabad, scheduled for Wednesday at its office in the capital’s Sector G-6/1, intensifying pressure on property magnate Malik Riaz Hussain, who has been declared an absconder in the high-profile corruption scandal.
The ruling, issued by a division bench led by Chief Justice Sardar Mohammad Sarfraz Dogar and Justice Muhammad Asif, came shortly before NAB Rawalpindi announced the auction details, marking a significant escalation in the legal and financial saga engulfing Hussain’s real estate empire.
The properties, valued between Rs488 million and Rs1.2 billion, include corporate offices, a cinema, an academy, and a club, all part of Bahria Town’s sprawling developments.
Hussain, one of Pakistan’s wealthiest and most influential businessmen, warned that his company teetered “on the verge of total shutdown” due to what he called a “widening state crackdown.” In a post on social media platform X, he accused authorities of freezing Bahria Town’s bank accounts, seizing vehicles, and arresting dozens of employees, actions he linked to his perceived ties with jailed former Prime Minister Imran Khan.
“The situation has reached a point where we are being forced to completely shut down all Bahria Town activities across Pakistan,” Hussain wrote. “We apologize to the residents and stakeholders of Bahria Town.”
The Al-Qadir Trust case lies at the heart of the dispute. Authorities allege that during Khan’s premiership from 2018 to 2022, he and his wife accepted land from Hussain as a bribe in exchange for illegal favors. In January, a court sentenced Khan to 14 years in prison over the matter. Hussain, who has not appeared before anti-graft officials despite summons, has faced mounting scrutiny, with NAB seeking his extradition from the United Arab Emirates since January.
Defense Minister Khawaja Asif affirmed at the time that the government would pursue Hussain’s return, though recent local media reports suggest he may have left the UAE for an undisclosed location to evade extradition.
Hussain’s response to Tuesday’s ruling blended defiance with a plea for reconciliation. “I make a final appeal from the bottom of my heart for a chance to return to serious dialogue and a dignified resolution,” he posted on X. “For this purpose, we assure you of our full participation in any arbitration process and our commitment to implementing its decision 100 percent. I also assure you that if the arbitration decision requires payment of money from our side, we will ensure its payment.”
The statement reflected a shift from his earlier defiance in January, when he blamed “fake cases, blackmailing and greed of officers” for forcing him to relocate abroad, refusing to be a “political pawn.”
In court, Bahria Town’s legal team, led by senior lawyer Farooq H. Naik, had fought to halt the auction, calling NAB’s notice “illegal, deceptive, and issued with mala fide intent.” Naik argued that the company was neither a party to a plea bargain nor named as an accused in the £190 million case, warning that the sale would undermine due process and investor confidence.
But NAB prosecutor Rafay Maqsood countered that Hussain and his son, Ali Riaz, had defaulted on payments tied to a plea bargain from a 2019 settlement with Britain’s National Crime Agency (NCA). Under Section 33E of the NAB Ordinance, 1999, he said, the auction of pledged properties was lawful.
In 2019, Britain’s NCA settled with Hussain, who agreed to surrender £190 million, including a £50 million property at 1 Hyde Park Place and £140 million in frozen bank accounts, over suspicions the funds were ill-gotten. The NCA called it a civil matter, not a guilty verdict, and the assets were slated for Pakistan’s treasury.
But Pakistani authorities allege Khan’s government diverted the money to settle fines against Hussain for illegally acquiring government land in Karachi at below-market rates, fueling the current case against both men. Hussain, Khan, and Khan’s wife have denied wrongdoing.
NAB prosecutor Maqsood noted that the petitioners turned to the high court only after a trial court rejected a similar plea, and after an initial stay on June 12 was vacated.
NAB’s Tuesday notification detailed the assets up for grabs: corporate offices on Plots 7-D (Rs871 million) and 7-E (Rs881 million) in Bahria Town’s Phase-II, Rawalpindi; the Rubaish Marquee and Lawn in Islamabad (Rs488 million); the Arena Cinema (Rs1.1 billion), Bahria Town International Academy (Rs1.07 billion), and Safari Club (Rs1.2 billion), all in Rawalpindi.
Successful bidders must pay 5% of the value on auction day, 10% within a month, and the remaining 85% within three months, NAB said.
Bahria Town, founded in the late 1990s, has long been a powerhouse in Pakistan’s real estate sector, a major employer known for luxury housing schemes. Yet its growth has been shadowed by investigations into illegal land grabs and unauthorised projects.
Hussain, once seen as untouchable due to his ties to political parties, media, and the military, now faces an unprecedented reckoning. In January, NAB warned the public against investing in his latest venture, luxury apartments in Dubai. “If the general public at large invests in the stated project, their actions would be tantamount to money laundering, for which they may face criminal and legal proceedings.”
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