ISLAMABAD: The Islamabad Capital Territory (ICT) administration has decided to take action against 18 cooperative housing societies operating in the city illegally.

It has been decided that after giving them the last hearing opportunity next week, action will be taken against the societies for operating projects without getting their layout plans approved and obtaining no-objection certificates (NOCs).

Chief Commissioner Noorul Amin Mengal has directed the concerned directorate to provide hearing opportunities to the operators of the societies before appointing ACs as their administrators without infringing third parties rights (allottees of the societies).

In Islamabad, there are two type of housing schemes: those being operated by private firms and individuals which are fully handled and regulated by the CDA, and cooperative societies which are not owned by individuals but are properties of the allottees. Their affairs are supposed to be run by their elected management committees. The Registrar Cooperative ICT is their regulator, but the CDA approves their layout plans and the NOCs.

Commissioner says no society to be allowed to operate without approved layout plan and NOC

When contacted, the chief commissioner told Dawn that there were 18 cooperative housing societies which were operating without having even layout plans.

“We are going to give a hearing opportunity to the operators of these cooperative schemes after which we will move for appointing ACs as their administrators,” he said and added that not a single cooperative housing scheme will be allowed to operate without having LOPs as such societies do overselling of plots, putting the investment of citizens at risk.

“We will protect the rights of third party (allottees of plots) but will not spare those involved in overselling of plots,” he said. Not only ACs will be appointed as administrators but proper audit of these societies will also be carried out.

“Action against these schemes should have been taken at an earlier stage when they started work. Anyhow, it’s never too late; now we will take action against all illegal societies,” he said.

A few days ago while hearing a case of Commerce Cooperative Housing Society, the chief commissioner, who is also the secretary of Cooperative ICT, came to know that the society was operating without having the layout plan. He inquired about the status of other schemes and was told that there were around 16 schemes which had been operating without LOPs and NOCs.

The Commerce Society is also accused of overselling of plots and starting development work without following rules and regulations. Upon this, Mr Mengal decided to initiate action against not only Commerce Society but 15 other schemes.

A source said Account Group Cooperative Housing Society, Civilian Employees, Cabinet Division, Federation Employees, Government Officer Farming, Pakistan Medical Cooperative, Ministry of Religious Affairs, PWD Employees, Pakistan Professionals, Ministry of Commerce Cooperative and OGDCL Cooperative Housing Societies were among the societies operating without approved LOPs.

There were five other cooperative societies which have partial approval of LOPs as they have approved layout plan of only one of two or three phases.

In January last year, the ICT and CDA had given final three-week time to the societies to change their names as the titles of government ministries could not be used for cooperative housing societies.

The warning was issued following an order passed by former Chief Justice of Islamabad High Court (IHC) Justice Athar Minallah.

The CDA had last year written to the ICT circle registrar of cooperative housing societies to ensure the implementation of the directive, but to no avail.

Housing societies use the names of government departments and other entities to attract investors, especially retired government employees.

However, there have been instances in which individuals were defrauded of their savings by illegal housing societies using the names of state institutions.

It has been observed that many investors only have the files of their plots but have not been handed over possession. Besides the cooperatives, there are also a large number of housing schemes which are operating without approved LOPs.

An official said the chief commissioner, who is the CDA chairman, should also direct the CDA to take over the illegal housing schemes.

Published in Dawn, June 3rd, 2023