Capital Development Authority cancels 2,999-kanal Bahria Town layout plan

The Capital Development Authority has withdrawn the layout plan covering Bahria Town's Phase III-E and IV, a scheme spread over roughly 2,999 kanals on the outskirts of Islamabad, after alleging the developer breached the terms under which the plan was originally approved. Alongside the cancellation, CDA has also suspended processing and approval of all other pending Bahria Town cases, citing the company's status as a defaulter of the authority.

What the Cancellation Actually Covers

The layout plan in question was first approved by CDA back in 2010, conditional on Bahria Town meeting a defined set of terms and requirements. According to a letter sent by CDA's Housing Directorate to the Bahria Town management, the developer never obtained the No Objection Certificate (NOC) required for the two phases, despite roughly a decade and a half having passed since the original approval. CDA's letter formally declares the 2010 layout plan cancelled and withdrawn with immediate effect.

The Public Amenity Land Dispute Behind the Move

A central part of CDA's complaint concerns land set aside for public use. The authority says it had directed Bahria Town in 2025 to vacate all plots earmarked for public amenities, parks, playgrounds, open spaces, and public buildings, and to restore them in line with the layout plan that was originally approved. When Bahria Town's management responded to CDA's notice, the authority reportedly found the reply unsupported by facts and rejected it, subsequently issuing a final show-cause notice last September.

An Audit Finding Added Weight to the Case

CDA's letter also references a federal audit finding from 2023-24 concerning unauthorised commercial construction along Corniche Road within the same Bahria Town phases, in an area falling under Zone 5. The matter had gone before the Departmental Accounts Committee headed by the Ministry of Interior's secretary, which ordered the removal of such unauthorised commercial structures built on a riverbed, in a graveyard, and on park or open space. This audit objection appears to have reinforced CDA's decision to withdraw the layout plan altogether rather than pursue a narrower remedy.

What Happens to the Physical Structures Now

Cancelling the layout plan is not just a paperwork move. CDA's Housing Directorate has also instructed the authority's enforcement wing to proceed with action against structures built under the now-voided scheme, which could mean demolition or removal of buildings and other works erected in the affected phases.

Bahria Town's Response

A Bahria Town official pushed back sharply when contacted, calling the cancellation unlawful. The official said the company had submitted a revised layout plan for approval, and that instead of granting it, CDA went ahead and unilaterally cancelled the earlier layout plan. The company has indicated it intends to contest the decision through the courts and other available forums.

Part of a Longer Pattern of Scrutiny

This is not the first time Bahria Town's dealings with state authorities have drawn scrutiny. The company has previously faced action from Pakistan's National Accountability Bureau (NAB), including the recovery of government land it was accused of illegally holding, and separate NAB action involving a Bahria Town tower in Karachi tied to a broader investigation into the group's founder. Seen against that backdrop, the layout plan cancellation adds to a recurring pattern of regulatory and anti-corruption bodies challenging how Bahria Town's developments were approved, built, or expanded.

What Remains Unresolved

CDA's letter settles the status of the layout plan itself, but several practical questions remain open. It's not yet clear how quickly enforcement action against existing structures will proceed, how Bahria Town's promised legal challenge will play out, or what happens to residents and buyers who already hold property in the affected phases. The suspension of "other cases" tied to Bahria Town's dealings with CDA also raises the question of how many additional approvals or transactions across the company's Islamabad footprint could now be paused as a result.

What This Means for Buyers in the Affected Phases

Anyone who owns, or is considering buying, property within Bahria Town's Phase III-E and IV should treat the layout plan's cancellation as a live legal and regulatory risk rather than a settled matter, given that enforcement action has already been ordered and Bahria Town has signalled it will contest the decision in court. Until the dispute is resolved, the status of individual plots and structures within these phases remains uncertain.

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Source

• Capital Development Authority cancels 2,999-kanal Bahria Town layout plan — Dawn, September 17, 2026