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A federal audit has exposed major CDA housing societies violations, highlighting that many schemes are not sharing allotment letters through the required digital system.
The report also blamed the Capital Development Authority (CDA) for failing to vet transfer letters of plots despite its regulatory role. This failure raised concerns about citizens’ protection from fraud and over-invoicing.
The audit noted that sponsors of housing societies had not provided allotment letters for plots, flats, and apartments through CDA’s digital system. This mechanism, such as a Management Information System (MIS) or ERP, is vital to track the saleable area within approved layout and building plans.
The absence of this digital platform and CDA’s weak monitoring allowed irregularities to grow. “This irregularity occurred due to violation of zoning rules and lack of oversight,” the report stated.
Auditors first highlighted the issue in February 2024. However, CDA did not respond. During a Departmental Accounts Committee (DAC) meeting in December 2024, CDA claimed it had initiated digitisation in 2019 and directed sponsors to develop MIS/ERP systems. DAC then ordered CDA to share progress within 90 days. The order was ignored, and the same violations resurfaced in the 2022-23 report.
CDA Fails to Enforce Transfer Letter Vetting Rules
In 2023, CDA introduced new rules requiring vetting of all transfer letters to protect citizens. Yet, the authority has failed to enforce its own regulations. CDA’s vetting could have prevented fraud, including sales of plots carved out on graveyards, playgrounds, and parks. Several cases of over-invoicing were also reported, where societies sold more plots than available land.
Despite approval by CDA’s board and publication in the Gazette, the rules remain unenforced. Many residents of Islamabad continue to suffer from fraudulent schemes and undelivered plots.
CDA spokesperson Shahid Kiani said the authority had directed sponsors to provide data through MIS/ERP as required under regulations. He also stressed that no allotment letter should be valid unless vetted, signed, and stamped by CDA’s Planning Directorate.
Kiani added that CDA had launched a campaign against violating housing societies, sealing offices, circulating names, and imposing penalties.
