Illegal Housing Societies in Islamabad: Updated List 2024

Islamabad, Pakistan’s capital, is admired for its picturesque landscapes, advanced infrastructure, and meticulous urban planning. Yet, it is pivotal to recognize that not every housing society within this city operates legally or under the Capital Development Authority’s (CDA) endorsement. This body ensures the city’s development adheres to set standards. 

Societies operating outside these legal frameworks, lacking the required approvals and NOCs from CDA, not only defy the urban master plan but also threaten investor safety, residential well-being, and environmental integrity due to insufficient amenities and lack of adherence to safety protocols.

This article aims to guide you through identifying unauthorized housing societies in Islamabad as of 2024, drawing from the CDA’s most recent notices. We’ll delve into what distinguishes a lawful society, interpret the CDA’s criteria, and discuss the potential ramifications of investing in these risky ventures. 

Furthermore, strategies for vigilant investment, emphasizing due diligence and precautionary steps, will be illustrated. Our goal is to equip you with the necessary knowledge to navigate Islamabad’s real estate market confidently and safely.

Criteria for Legality: Deciphering CDA’s Stance

The Capital Development Authority (CDA) is responsible for the urban planning and development in Islamabad, holding the power to either approve or reject housing societies or schemes based on well-defined criteria and standards. This section aims to clarify the legal recognition and approval process undertaken by the CDA, alongside the anticipated adjustments slated for 2024.

Legal Recognition and Approval Process

For a housing society or scheme in Islamabad to be deemed legal, it must secure two key documents from the CDA: the Layout Plan (LOP) and a No Objection Certificate (NOC). The LOP outlines the intended layout for the society, detailing land usage, plot dimensions, roads, parks, and other facilities. 

The NOC, on the other hand, verifies that the society complies with all of CDA’s prerequisites, including land acquisition, environmental standards, infrastructure development, and fee payments. Possession of both a LOP and a NOC allows a society to lawfully advertise and sell its plots.

The CDA’s approval process is thorough, involving multiple steps that could span years. Societies must submit various documents, including feasibility reports, ownership papers, site plans, soil investigation and environmental impact assessments, engineering designs, and financial plans. 

The CDA conducts technical analyses, site inspections, and public hearings to assess the society’s suitability and viability. It also collaborates with other relevant entities like the Islamabad Electric Supply Company, Sui Northern Gas Pipelines Limited, Pakistan Telecommunication Company Limited, and the Islamabad Capital Territory Administration, ensuring adherence to their regulations. Once a society meets all conditions and requirements, the CDA grants the LOP and NOC, which are subject to periodic review and renewal.

Changes in 2024: What’s New

In an effort to streamline operations and ensure the provision of essential facilities and amenities, the CDA plans to implement several changes and updates to its criteria and by-laws for housing societies by 2024. The expected modifications include:

➡️ An increase in fees charged to private land developers by up to 150%, aimed at covering service costs and discouraging illegal schemes.

➡️ A promise to approve the layout plan of any proposed society within a month after submission, providing all codal formalities are met, thus speeding up the process and supporting investors.

➡️ A requirement for private developers to allocate 10 to 20% of the total residential area for smaller plots, not exceeding 130 square yards, catering to the needs of lower-income groups often overlooked by private housing projects.

➡️ The engagement of firms for third-party vetting of civil works in new schemes, ensuring the quality and standards of construction and development.

➡️ An update to its list of illegal and unauthorized housing societies, basing it on the latest warnings issued by the authority, and informing the public about the risks and consequences of investing in such schemes.

These initiatives are designed to enhance the regulation and oversight of housing societies in Islamabad, safeguarding the interests and rights of investors, residents, and the environment.

Detailed Analysis of Illegal Housing Societies in 2024

This analysis dives deep into the illegal housing societies in Islamabad for the year 2024, drawing upon the most current information from the Capital Development Authority (CDA) and various other sources. Our focus will be on unveiling the most notorious and fraudulent societies that have been embroiled in scams and controversies. We’ll provide a zone-by-zone breakdown and explore some of the most prominent illegal societies in detail.

Zone-wise Breakdown

Islamabad is segmented into five distinct zones as per the master plan and zoning regulations of the city. Each zone has unique characteristics, types of housing societies, and schemes. The CDA has flagged a number of these societies as illegal, based on their legal standing and approval status. Here’s a 2024 snapshot of the illegal housing societies across each zone:

➡️ Zone I: Encompassing the oldest and most developed sectors of Islamabad, including F, G, H, I, and D sectors, this 54,958-acre zone is delineated by the GT Road, Kashmir Highway, and Margalla Hills. It houses 20 illegal societies, notably in sectors H-15, H-17, D-14, and E-15, such as Abdullah Town, Ammar Town, Chinnar Town, Shifa International Housing Society, Green Valley, and Margalla View Valley.

➡️ Zone II: Spanning the northern and northeastern regions, this zone integrates sectors C, D, E, and F over 9,804 acres, bordered by the GT Road, Kashmir Highway, and the Islamabad-Rawalpindi boundary. It contains seven illegal societies, predominantly in sectors D-17, E-17, and F-16, including Green City, Gulshan-Rehman, Islamabad Co-operative Farming Scheme, Pakistan Overseas Housing Scheme, and Pakistan Town Phase-II.

➡️ Zone III: Covering the scenic areas with sectors A, B, and C across 27,397 acres, it’s edged by Margalla Hills, Murree Road, and the boundary with Rawalpindi, housing seven illegal societies such as Al Rayan Society, Ali Town, Arcadia City, Aryan Enclave, Green Hills, Green Meadows, and Major Makhdom Society, primarily in sectors A-17, B-17, and C-15.

➡️ Zone IV: This is the largest and most varied zone, including sectors G, H, K, L, M, N, O, P, and Q, spanning 70,000 acres. It’s enclosed by the GT Road, Murree Road, Simly Dam Road, and the boundary with Rawalpindi. With 85 illegal societies, crucial ones are located in sectors ranging from G-14 to Q-17, like Bahria Enclave, Bahria Town, Cabinet Division Employees Cooperative Housing Society, Capital Enclave, Doctors Enclave, Ghauri Town, Gulberg, Jammu, and Kashmir Cooperative Housing Society, Margalla Retreat, Multi Gardens, Park View City, and Top City.

➡️ Zone V: This zone takes in the southern and southwestern ends, incorporating sectors R, S, T, and U over 51,641 acres, marked by the GT Road and the Islamabad Highway boundaries. It’s home to 30 illegal societies, particularly in sectors R-17, S-17, T-17, and U-17, like Airport Employees Cooperative Housing Society, Airport Green Garden, Al-Haram City, Blue World City, Capital Smart City, Faisal Town, Fatima Town, Gulshan-e-Sehat, Mumtaz City, and University Town.

Notorious Societies: A Closer Look

Some illegal housing societies stand out due to their involvement in various scandals and controversies, impacting investors, residents, and even the environment. Here are the most infamous ones in Islamabad:

➡️ Bahria Town: This expansive and luxurious project, with phases in Islamabad, Rawalpindi, Lahore, Karachi, and Nawabshah, is also highly controversial. Accusations include improper land acquisition, environmental harm, tax evasion, and corruption. The CDA, alongside the Supreme Court of Pakistan, has targeted Bahria Town Phase VIII, Bahria Enclave, and Bahria Garden City as illegal for lacking necessary NOCs and approvals, imposing a significant fine for state land infringement.

➡️ Ghauri Town: A popular development across zones IV and V, Ghauri Town faces legality issues for not securing any NOC or approval from the CDA. Despite multiple warnings and public notices from the CDA about its illegal status, and consequent sealing of its offices, Ghauri Town remains a contentious project, with investors and builders cautioned against any involvement.

➡️ Park View City: Situated in zone IV near Bahria Enclave, Park View City aims to offer a modern, luxury living but lacks legal sanctions from the CDA. The authority has flagged the development as illegal, warning the public against investments and initiating legal actions for breaching city planning rules.

➡️ Capital Smart City: Promoted as Pakistan’s first smart city with advanced infrastructure near the Islamabad International Airport in zone V, it too is unauthorized. The CDA has issued notices for its illegal status and proceeded with legal steps for non-compliance with city regulations.

Impacts and Risks of Investing in Illegal Societies

Investing in illegal societies carries significant risks, exposing investors to substantial financial and legal consequences, alongside contributing to societal and environmental harm. This section explores the dangers associated with such investments, highlighted through authentic case studies from Islamabad.

Financial and Legal Repercussions

Investment in illegal societies can have dire outcomes for investors, including:

Financial loss, legal complications, and safety concerns if the illegal society faces closure, demolition, or confiscation by government entities like the Capital Development Authority (CDA), rendering any investment unprotected legally.

Legal ramifications or penalties issued by the CDA or other regulatory bodies for infringements such as non-compliance with urban planning, zoning laws, tax evasion, and money laundering.

Risk of fraud, deceit, or even extortion from developers or land mafias that might engage in selling a single plot to several buyers, imposing unreasonable charges, or using threats for money or property.

• Challenges in acquiring essential utilities—electricity, gas, water, and sewerage—since illegal societies are ineligible for these services from public suppliers.
• Inferior infrastructure, facilities, and amenities due to the lack of adherence to established standards by regulatory authorities like the CDA.

Case Studies: Real Life Consequences

Below are real-life examples from Islamabad that underscore the impacts and risks tied to investing in illegal societies:

In 2021, the CDA sealed Ghauri Town, an unauthorized housing society in zones IV and V, ceasing its plot development and sales. Consequently, the developers and associated land mafia faced legal action for unlawfully occupying state land and flouting urban planning laws. Investors in Ghauri Town suffered financially and legally, without any claim or security over their investments.

The Supreme Court of Pakistan, in 2020, halted any further development and sales in Bahria Town’s phases VIII, Enclave, and Garden City in zone IV, declaring them unauthorized by the CDA. Additionally, Bahria Town was fined Rs. 460 billion for illegal land occupancy and environmental harm. This left investors facing financial losses and security concerns, devoid of legal protection for their properties.

In 2019, the CDA took action against Park View City, a modern housing venture in zone IV, for illegally occupying state land and breaching city planning regulations. The closure of the society’s development operations and legal proceedings against its developers resulted in similar financial and legal misfortunes for the investors.

Preventive Measures and Due Diligence

Investing in illegal entities poses a significant risk, leading to grave financial and legal consequences, alongside adverse societal and environmental outcomes. It’s crucial to engage in preventive measures and thorough due diligence before committing to any housing society or project in Islamabad. We’ll explore the verification of a housing society’s legality and the resources available for investors and homebuyers.

How to Verify the Legality of a Housing Society

Prior to investment, confirming the legal standing and approval of a housing society in Islamabad through the Capital Development Authority (CDA) and other pertinent bodies is essential. Here are key steps for legal verification:

Examine the society’s registration certificate and byelaws, accessible at its office or online. These should detail the society’s name, address, registration number, the registration date, and the authority involved. Byelaws outline the society’s regulations, including member rights and responsibilities.

Look into the Layout Plan (LOP) and No Objection Certificate (NOC) issued by the CDA and related authorities such as the Islamabad Electric Supply Company, the Sui Northern Gas Pipelines Limited, the Pakistan Telecommunication Company Limited, and the Islamabad Capital Territory Administration. These documents should specify the society’s credentials and the validity of the issuance.

Review the CDA’s listing of illegal and unauthorized housing societies in Islamabad, available on its website and in newspapers. This includes names, addresses, zones, reasons for illegality, and CDA actions.

Visit online forums and government websites, like the Department of Co-Operation and Amanah.pk, offering verification for cooperative housing societies in Pakistan. Searching by name, registration number, or location provides insights into legal status and approvals.

Assess reviews and feedback from current or past members, investors, or residents on social media, blogs, or platforms like MyGate or HouseDigest. This feedback reveals the society’s strengths and weaknesses, benefits and risks, and potential issues and resolutions.

Resources for Investors and Homebuyers

Alongside verifying a housing society’s legality, consulting with reputable resources aids in the informed decision-making process within Islamabad’s real estate sector. Available resources for investors and homebuyers include:

Real estate portals and companies, such as Graana.com and Zameen.com, leading the online real estate marketplace in Pakistan. They offer assistance in finding and evaluating properties, pricing, and deals in Islamabad, including professional guidance throughout transactions.

Legal experts like Lawyer and Legal Aid, renowned for their reliable legal services in Pakistan, can assist in reviewing and preparing legal documents (e.g., sale deed, power of attorney) and representing clients in legal matters or disputes related to investments.

Real estate associations and organizations, including the Islamabad Estate Agents Association and the Islamabad Chamber of Commerce and Industry, serve as recognized entities within the local real estate industry. They facilitate networking with key players and provide updates on market trends and developments.

Conclusion

In this piece, we’ve tackled the prevalent issue of unauthorized housing societies in Islamabad, providing guidance on evasion through preventive measures and meticulous due diligence. An up-to-date roster of these illicit societies in 2024 has been shared, reflecting the latest advisories and alerts from the CDA. We delved into the criteria that define a legal housing society, offering insights on interpreting the CDA’s position on various housing projects. 

Furthermore, the potential consequences and hazards of putting your money into these unauthorized ventures have been laid out, along with advice on confirming a society’s legal standing. Additional resources, aimed at supporting you through the investment journey within Islamabad’s real estate sector, were also highlighted.

We trust that you’ve found this article enlightening and beneficial, equipping you with valuable knowledge. We encourage you to proceed with caution and exercise responsibility when considering investment opportunities in any housing society or scheme in Islamabad. It’s crucial to verify the legal status and approval of the society through the CDA and other pertinent bodies. Keep in mind, opting for an illegal society is fraught with peril, posing significant financial, legal, and societal determinants, in addition to adverse environmental effects. It’s wiser to opt for security, quality, and value by choosing legal and sanctioned societies.