Guide
Bahria Town Karachi: Regulatory Status Fact-Check
By Maham Imtiaz
Real Estate AnalystVerified author
11 min read
Bahria Town Karachi is the largest private housing project in the city and the most litigated. Buyers hear confident claims from every side: that the Supreme Court settlement made everything legal, that SBCA has approved the project, that NAB's cases do not affect plot holders. Most of these claims are half true at best, and the official record has changed several times since 2018.
A project this size still has to clear the same layers as any Karachi property. Our guide on how to verify property in Karachi explains that title, land approval and building approval are separate checks, and in Bahria Town Karachi each of those layers has its own unresolved question in 2026.
This guide sets out what the Supreme Court, SBCA, the Malir Development Authority and NAB have actually decided, tests the most common claims against that record, and explains what the current status means for existing allottees and for anyone thinking of buying.
The record in brief
| Date | Body | Decision |
|---|---|---|
| August 2016 | Supreme Court | Construction halted on about 5,786 acres over the MDA land exchange |
| 4 May 2018 | Supreme Court | MDA grant and land exchange declared illegal; land to revert to the state; new sales barred; NAB to file references |
| 30 November 2018 | SBCA | Sale and advertisement NOC declared invalid |
| 21 March 2019 | Supreme Court | Rs460 billion offer accepted for 16,896 acres; NAB references halted while the company complies |
| 22 July 2020 | SBCA, before the Sindh High Court | All construction "unauthorised and illegal"; no building plan approval granted |
| 13 June 2022 | MDA | Layout plan for 16,896 acres approved |
| 19 September 2022 | SBCA | Provisional sale and advertisement NOC issued |
| 23 November 2023 | Supreme Court | Company held in default of its instalments; survey finds 3,035.63 excess acres |
| October 2024 | SBCA | Provisional NOC reinstated, with conditions |
| June 2025 | Sindh High Court | SBCA restrained from surveying constructions; status quo ordered |
| 3 September 2025 | SBCA | Provisional NOC withdrawn with immediate effect; sales, bookings and advertising to stop |
| July 2026 | NAB | Physical possession of Bahria Icon Tower taken after court confirmation of attachment |
The 2018 judgment and the 2019 settlement
On 4 May 2018, a three-member Supreme Court bench ruled 2-1 that the Sindh government's allotment to Bahria Town and the land exchange with MDA were illegal and void under the Colonization of Government Lands Act 1912. Government land was to revert to the state, the Board of Revenue could regrant it on terms set by an implementation bench, and the company was barred from selling or allotting any further plots.
On 21 March 2019, the Court accepted the company's offer to pay Rs460 billion for 16,896 acres over seven years.
| Settlement term | Detail |
|---|---|
| Down payment | Rs25 billion by August 2019 |
| Instalments | Rs2.25 billion a month from September 2019 for three years |
| Late payment | 4% markup after three years |
| Default | Two consecutive or three missed instalments make the full balance payable |
| Buyers | Every plot buyer to receive a 99-year lease |
| Security | Parks, cinemas and other assets to be mortgaged |
| Ownership | To be decided under the law once the full amount is paid |
The last row is the one most often missed. The settlement did not transfer title to the company. It set a price and said ownership would be decided after full payment.
The default and the money paid
On 23 November 2023, the Supreme Court held the company in default. By October 2023, only Rs60.72 billion of the Rs460 billion had been paid, and the company itself had paid only Rs24.26 billion of that; most of the rest came from about £190 million frozen in the UK and remitted to Pakistan. The Court also accepted a survey finding that the company held 19,931.63 acres in Malir and Jamshoro, 3,035.63 acres more than the 16,896 acres covered by the settlement.
Fact-check: the claims buyers hear
| Claim | What the record shows | Verdict |
|---|---|---|
| "The Supreme Court settlement made Bahria Town Karachi legal." | The settlement set a price; the Court said ownership would be decided after full payment, and the company was later held in default. | Misleading |
| "SBCA has approved the project." | SBCA issued a provisional sale and advertisement NOC in 2022, reinstated it in 2024, and withdrew it on 3 September 2025. | False as of 2026 |
| "MDA has approved the layout." | MDA approved a layout plan for 16,896 acres on 13 June 2022. | True, but a layout plan is not title |
| "All buildings have approved plans." | SBCA told the Sindh High Court in 2020 that no building plan approval had been granted; the company argued in 2025 that its buildings were built under approved plans. | Disputed |
| "Plot holders are not affected by NAB." | NAB has filed references, frozen properties and attached assets including Bahria Icon Tower; SBCA says existing allottees' interests will be protected in line with Supreme Court directives. | Partly true; risk remains |
| "Every buyer gets a 99-year lease." | The settlement required it, but leases depend on title, which remains undecided. | Not yet |
| "New bookings are allowed." | SBCA's September 2025 withdrawal requires the company to stop all sales, bookings and advertisement. | False |
What SBCA's NOC history means
Under the Sindh Building Control Ordinance, a builder must hold SBCA's sale and advertisement NOC before selling or advertising units in a project. The Sindh Building Control Ordinance 1979 makes selling without it an offence, and SBCA cited the Ordinance when it withdrew Bahria Town Karachi's provisional NOC in 2025.
| Period | NOC status |
|---|---|
| Until November 2018 | NOC in place, then declared invalid |
| November 2018 to September 2022 | No valid NOC |
| September 2022 to 2024 | Provisional NOC |
| October 2024 to September 2025 | Provisional NOC reinstated, conditional on a Rs14.44 million scrutiny fee and a licence |
| From 3 September 2025 | Withdrawn; no sales, bookings or advertising |
When SBCA reinstated the NOC in 2024, it stated expressly that it would not be liable for disputes over the land's legality or ownership.
NAB and the courts in 2025 and 2026
The accountability track has moved faster than the land track. In June 2025, NAB ordered more than 450 properties of people named in the Bahria Town Karachi land case frozen. NAB also asked SBCA to survey constructions in the project; the Sindh High Court restrained that survey on the company's petition and ordered the status quo. In July 2026, NAB took physical possession of the Bahria Icon Tower in Clifton, valued at about Rs100 billion, after a Rawalpindi accountability court confirmed its attachment under the Anti-Money Laundering Act.
These actions target the company and its owners, not individual allottees. But they show that the dispute is far from settled, and that the money needed to complete the Rs460 billion payment has not been found.
What it means for allottees and buyers
| You are | What to know |
|---|---|
| An existing allottee with a built house | Your title still depends on the land question; keep every payment record and allotment document |
| An existing allottee with an open plot | Possession and development may be affected by the default and the court process |
| Buying on resale | You inherit the same unresolved title question; price the risk accordingly |
| Booking a new unit from the company | SBCA has barred new sales and bookings since September 2025 |
| Seeking a bank loan | Banks generally need registered title, which is not yet available |
Files and possession in large private projects carry their own risks. Our report on files, plots and possession land after NAB's reforms explains why buyers should value what is delivered and documented, not what is promised.
What the numbers show: Milkiyat.com findings
Only about 13% of the Rs460 billion had been paid by October 2023. Rs60.72 billion ÷ Rs460 billion = about 13.2%. The company's own contribution was Rs24.26 billion ÷ Rs460 billion = about 5.3%. The balance outstanding was Rs460 − Rs60.72 = Rs399.28 billion.
The first three years alone required Rs106 billion. Rs25 billion + (Rs2.25 billion × 36 months) = Rs106 billion, against Rs60.72 billion paid by October 2023 from all sources.
The company held 18% more land than it paid for. 3,035.63 excess acres ÷ 16,896 acres = about 18%, for a total of 19,931.63 acres.
The settlement price works out to about Rs5,600 per square yard. Rs460 billion ÷ 16,896 acres = about Rs27.2 million per acre, and ÷ 4,840 = about Rs5,625 per square yard. The FBR values most Bahria Town Karachi residential plots at Rs1,100 per square foot, or Rs9,900 per square yard.
The project has lacked a valid sale NOC for most of the period since 2018. From November 2018 to October 2026 is about 95 months. Without a valid or provisional NOC: November 2018 to September 2022 (about 46 months) and September 2025 onwards (about 13 months), about 59 months, or roughly 62% of the period.
Checklist before you pay
| Check | Where |
|---|---|
| Current SBCA NOC status | SBCA directly |
| Unit within the 16,896-acre layout plan, not the excess land | MDA layout plan |
| Allotment and payment records in your name | Bahria Town and your own records |
| Building plan for any house or apartment | SBCA |
| Any freeze or attachment affecting the unit | NAB and a lawyer |
| Latest Supreme Court and Sindh High Court orders | A lawyer |
NOC status can change within weeks, as the 2024 reinstatement and 2025 withdrawal show. Our guide on how to check if a Karachi project is SBCA approved explains how to confirm a project's NOC directly with SBCA on the day you pay.
Frequently asked questions
Q1. Is Bahria Town Karachi legal?
A. The Supreme Court held the original land exchange illegal in 2018, accepted a Rs460 billion settlement in 2019, and held the company in default in November 2023. Ownership of the land is still to be decided under the settlement.
Q2. Does Bahria Town Karachi have an SBCA NOC?
A. Not as of October 2026. SBCA withdrew the provisional sale and advertisement NOC on 3 September 2025 and directed the company to stop all sales, bookings and advertising.
Q3. How much of the Rs460 billion has been paid?
A. The Supreme Court noted in October 2023 that Rs60.72 billion had been paid, of which the company itself paid Rs24.26 billion.
Q4. What is the 3,035-acre excess land?
A. A court-ordered survey found the company held 19,931.63 acres, 3,035.63 acres more than the 16,896 acres covered by the settlement.
Q5. Will existing allottees lose their plots?
A. SBCA has said existing allottees' interests will be protected in line with Supreme Court directives, but their title still depends on how the land case is resolved.
Q6. Can I get a bank loan on a Bahria Town Karachi property?
A. Generally not, because banks need registered title, which the settlement has not yet produced.
Q7. What has NAB done in 2025 and 2026?
A. NAB froze more than 450 properties of people named in the land case in June 2025 and took possession of Bahria Icon Tower in July 2026 after a court confirmed its attachment.
This guide is for general information. The Bahria Town Karachi cases are ongoing, and buyers and allottees should confirm the latest Supreme Court, Sindh High Court, SBCA, MDA and NAB positions with a qualified lawyer before paying or selling.