IHC refers Bahria Town auction case to chief justice after bench dissolves

ISLAMABAD: The bench hearing a petition against the planned auction of several Bahria Town properties by the National Accountability Bureau (NAB) dissolved itself at the Islamabad High Court (IHC) on Monday, with the case referred to Chief Justice Sarfraz Dogar for further proceedings.

Justice Arbab Muhammad Tahir said he had previously heard the matter in an intra-court appeal and, therefore, considered it appropriate to send the case file to the chief justice.

NAB had issued notices for the auction of five Bahria Town properties, scheduled to take place on July 7.

During the hearing, Justice Tahir asked Bahria Town’s counsel, Farooq H. Naek, whether a writ petition had previously been filed in the matter. Naek replied that the earlier writ petition had been decided by Chief Justice Sarfraz Dogar.

Addressing NAB prosecutor Rafi Maqsood, who was present at the rostrum, the judge remarked that no notice had yet been issued to NAB and questioned why he was standing before the court. The prosecutor responded that he would assist the court if directed to do so.

Justice Tahir also inquired whether an intra-court appeal had previously been filed. The NAB prosecutor informed the court that the matter was pending before the Supreme Court and that the same relief had been sought there. He added that an Islamabad High Court division bench had earlier dismissed the petition.

Justice Tahir said that as Chief Justice Dogar was available, the matter should be fixed before him, noting that the chief justice had previously heard related proceedings. He directed that the case file be sent to the chief justice so the petition could be taken up later the same day.

Auction of Bahria Town properties

The dispute stems from August 2025, when NAB began auctioning assets linked to Bahria Town founder Malik Riaz, triggering widespread uncertainty among residents, investors and property dealers across the housing society’s projects in Karachi, Rawalpindi, Islamabad, Lahore and Nawabshah.

Residents reported a decline in municipal services, including security patrols, garbage collection and maintenance, amid concerns that the housing society’s operations could be disrupted. Property transactions also slowed significantly as investors grew wary of the legal uncertainty.

At the time, Information Minister Attaullah Tarar assured residents that their rights would be protected, saying the investigation targeted alleged money laundering and illegal financial activities rather than homeowners. Malik Riaz, who denied the allegations, blamed government actions, including arrests of employees, freezing of bank accounts and seizure of vehicles, for disrupting Bahria Town’s operations.

The legal action is linked to the Al-Qadir Trust case, in which Malik Riaz was declared a proclaimed offender. Earlier accountability court orders had frozen properties belonging to him and his son, Ahmed Ali Riaz. Separately, properties pledged as collateral under a 2020 plea bargain involving his son-in-law, Zain Malik, became subject to auction after he allegedly defaulted on the settlement.

The ongoing court proceedings are part of this broader legal dispute over Bahria Town’s assets and management.