FIA unearths alleged fraud in Central Board of Revenue Employees Cooperative Housing Society

The Federal Investigation Agency (FIA) has unearthed alleged fraud in the Central Board of Revenue Employees Cooperative Housing Society (CBR ECHS).

In addition a First Information Report (FIR) has been registered against the President and office bearers of the housing society.

According to sources, FIA Corporate Crime Circle Islamabad has registered an FIR against 16 culprits including the office bearers of CBR ECHS and the land providers. 

They have allegedly executed agreements on exorbitant rates without considering the actual rate of the land, converting a residential plot into commercial plot without paying any conversion fee and release of payment to the land providers without taking over of the land. 

So far, the FIA has arrested Executive Member Ch Nazir Ahmed and Rana Liaqat Ali the land provider, while FIA has been conducting raids to arrest the other accused.

Sources say that the role of other accused will be thoroughly thrashed out during the course of investigation into the matter.

According to sources of FIA, the office bearers of CBR ECHS signed different land agreements with land providers from 2013 to 2019 and released the payments to the land providers without taking control of the total agreed land.

The management committee of CBR Employees Cooperative Housing Society through fraud, cheating, criminal breach of trust have failed to safeguard the interest of the society members while the total loss incurred to society funds so far in land matters is amounting to Rs854.52 million, said FIA sources.

They added that a total amount of Rs339,350,923 is still outstanding against a property dealer while an additional amount of Rs368,483,162 is also outstanding against this property dealer as land advances. Similarly an amount of Rs183,439,388 is outstanding against another property dealer as land advances.

As per details, the management committee of CBR Employees Cooperative Housing Society signed a land agreement with a property dealer on April 16, 2013 for transfer of 1000 kanal land at Rs450,000 per kanal within one year. However, the land provider provided only 685 kanal land from 1000 Kanal land. Later, the management committee of CBR Employees Cooperative Housing Society signed another agreement with the same property dealer on August 25, 2014 for transfer of 2500 kanal land (including 685 kanal of land already transferred vide previous agreement) in different Mouzas at different rates.

Though the land provider did not transfer the said land within a time period of 2 years, the CBR Employees Cooperative Housing Society transferred a huge amount of Rs911,807,986 to the property dealer against the transfer of 849 kanal 07 Marla. 

Later, the CBR Employees Cooperative Housing Society signed a settlement agreement with the said property dealer against the payments made to this property dealer for previous two agreements for transfer of 580 kanal of land at different rates as per mouzas. However, the land provider only provided 215 kanal land and 07 Marla land against the settlement agreement. 

The CBR Employees Cooperative Housing Society later signed different land agreements with the same property dealer despite non fulfilment of the land provider in previous agreements. 

Moreover, an affiliation agreement was also signed between the property dealer and CBR for CBR Residencia on August 25, 2017 and the two year time was granted for procurement of land to possession of plots. So far, no land has been transferred in the name of the society, said FIA.

It added that as per society record an amount of Rs368,483,162 is outstanding against the said property dealer as land advances.

It is also learnt from the FIA sources that the management committee of CBR Employees Cooperative Housing Society also signed an agreement with another property dealer on March 14, 2019 for provision of 500 kanal land at Rs675,000 per kanal. A payment of Rs198,750,000 has been received by land providers and only 23 kanal and 13 Marla land was transferred in the name of the Society.

The society also signed an agreement for provision of 2000 kanal land at Rs350,000 while the land provider transferred 266 kanal and 15 Marla land, said FIA sources.    

Despite repeated efforts to secure the stance of CBR ECHS President Altaf Ahmad Bhatt, who did not respond till the filing of this story.