The Rawalpindi Development Authority has launched legal action against the Faisal Town Housing Scheme over serious violations of approved regulations.
RAWALPINDI: The Rawalpindi Development Authority (RDA) has launched strict legal action against the Faisal Town Housing Scheme for serious violations of approved development regulations. The move has grabbed attention in the real estate market, particularly among investors in the Twin Cities.
An RDA spokesperson confirmed that the authorities registered a First Information Report (FIR) at the Airport Police Station. The case names the owner of Faisal Town and several members of its management. With police assistance, authorities also arrested the brother of the scheme’s owner during the operation. This step highlights the seriousness of the violations identified by RDA.
The RDA said the management breached the approved layout plan. Officials highlighted three major violations:
- Failure to start work on the sewerage treatment plant.
- Non-allotment of 53 plots to buyers.
- Neglect of the designated nullah essential for drainage and environmental compliance.
These actions were described as clear violations of applicable laws. The authority took action under the Punjab Development of Cities Act, 1976. The RDA sent multiple notices to the scheme’s administration, but the management ignored them and failed to address the violations on time. Faisal Town Phase-II was accused of operating without valid NOC approval from the RDA. Specific violations included advertising and selling plots without authorization (violating Rule 46(1) of the 2021 Rules), failing to start required development, and illegal land usage.
According to documents reviewed by market analysts, the crackdown is part of a broader policy shift. Authorities are now targeting developers who sell plots and files before obtaining full regulatory approvals. NESPAK reports show that developers have already met the future residential requirements of Fateh Jang, making it legally problematic to build new unauthorized housing on agricultural land.
Faisal Town Phase 1 vs Phase 2
- Phase 1- Fateh Jang Road: Developed, delivered, and low-risk for investors. Issues relate mostly to minor NOC violations.
- Phase 2- Chakri Road: Under development and high-risk. Legal complications include “Green Area” zoning issues and possible financial irregularities linked to MPCHS funds. Investors are advised to be cautious until courts clarify land status.
Market Reaction and Investor Guidance
The news has triggered mixed reactions on social media. Some investors feel the crackdown is selective, while others criticize the regulators for delayed oversight. Market sentiment is split between those seeking refunds and loyal investors trusting the developer’s track record.
Advice for investors:
- Phase 1 holders: No need to panic. Developers have completed and delivered properties in Phase 1, and most comply with regulations. The RDA action is unlikely to affect your homes or plots. Keep documentation of your ownership handy and monitor official RDA updates, but there is generally low risk for existing residents.
- Phase 2 holders: Investors in Phase 2 should exercise caution. Development is ongoing, and legal inquiries over land use, “Green Area” zoning, and possible financial irregularities make this phase high-risk. Pause any new payments or installment plans until the developer releases official updates or secures a legal stay order. Regularly check notifications from the RDA, NAB, and local authorities to stay informed.
- Keep track of Chaudhry Abdul Majeed’s response, as he is a seasoned developer with a history of navigating legal hurdles.
RDA Director General Kinza Murtaza emphasized that strict action will continue against all illegal or non-compliant housing schemes. She said no developer will receive preferential treatment. The DG directed officers to intensify enforcement across Rawalpindi. The RDA’s actions signal that regulatory compliance is mandatory, and investors should rely on official documents rather than rumors. The RDA has warned of further action, including the demolition of illegal structures, and has urged the public to verify the status of housing schemes directly through their website.
