LAHORE, Jan 2: The Lahore Development Authority (LDA) has approached the police for registration of criminal cases against two approved private housing schemes in the city for illegally selling plots mortgaged with the LDA, as guarantee for completion of development works.

A press release issued here on Wednesday said the Metropolitan Planning Wing of the LDA had filed two separate applications in Sattokatla police station for registration of cases against managements of Valencia Housing Scheme Phase-I to IV as well as Wapda Employees Cooperative Housing Scheme Phase-I and II.

It said the sponsors of the two schemes had mortgaged 30 per cent saleable area of these schemes in favour of the LDA as pledge for execution of development works and construction of basic infrastructure like roads, water supply and sewerage systems and other basic amenities of life.

The management of the two schemes could not dispose of the mortgaged plots to anyone until these plots had been released by the LDA.

On receipt of a number of applications for release/redemption of mortgaged plots from subsequent purchasers of plots in these schemes, the LDA observed that managements of theses housing societies had illegally sold out a number of plots to the people.

The managements had committed a criminal breach of trust, fraud and forgery and thereby, deprived the LDA from its rights in the property. Furthermore, huge public money had also been involved and the department was facing difficulties.

The LDA submitted applications for the registration of FIRs against managements of Valencia Housing Scheme Phase-I to IV as well as Wapda Employees Cooperative Housing Scheme Phase-I & II under the relevant provisions of law for committing irregularities to dispose of mortgaged plots illegally by cheating the general public.