Guide
Illegal Construction in Karachi: What Happens to Buyers When SBCA Acts
By Maham Imtiaz
Real Estate AnalystVerified author
10 min read
Most people who buy into an illegal building in Karachi do not think of themselves as part of the problem. They paid a builder, signed an agreement, maybe moved in. Then an SBCA notice appears on the gate, the upper floors are sealed, or a demolition team arrives. At that point the buyer discovers how little the law offers someone who bought what was never approved.
Illegal construction is a building-layer failure that ends up as a title problem. Our guide on how to verify property in Karachi explains that SBCA's approved plan and completion plan are the core of the building layer, and this guide follows what happens when those documents are missing or the building does not match them.
It covers what counts as illegal construction, SBCA's powers and penalties, how enforcement actually unfolds, recent enforcement numbers, what buyers lose at each stage, what they can still do, and how to avoid ending up there.
What counts as illegal construction
| Type | Example |
|---|---|
| No approved plan | A building raised on a residential plot without any SBCA sanction |
| Extra floors | Ground plus four built on a plan for ground plus two |
| Excess covered area | Building over compulsory front, side or rear open spaces |
| Changed use | Shops or a marriage hall on a residential plot without a change of land use |
| Portions and flats on house plots | A house plot divided into flats or portions without approval |
| Illegal land | Construction on amenity, china-cut or encroached land |
| No completion plan | A finished building that was never certified as matching its plan |
SBCA's powers and penalties
The Sindh Building Control Ordinance 1979 gives SBCA a set of escalating powers.
| Power | Section | What it allows |
|---|---|---|
| Suspend or cancel an NOC | 6(5) | Before completion, where construction is not in the public interest |
| Demolish, seal or eject | 7-A | Where a building lacks an approved plan; demolition at the owner's cost |
| Require alteration or demolition after completion | 7-E | Where a completed building violates the Ordinance; cost treated as a tax on owner or occupier |
| Block sale and advertisement | 12 | A builder cannot sell or advertise without SBCA's written approval |
| Block utilities and registry | 18-G | No new connections or registration without the completion plan |
| Prosecute | 19(1) | Up to three years' simple imprisonment, a fine of at least Rs50,000, or both, plus up to Rs500 a day for continuing offences |
| Compound minor deviations | 19(1-C) | Footprint, open space, covered area or projection deviations up to 20% of permissible limits, at composition fees enhanced by 400% |
Prosecution needs a written complaint from SBCA, and deviations from a master plan cannot be compounded at all.
How enforcement unfolds
| Stage | What happens | Effect on buyers |
|---|---|---|
| Complaint or inspection | A neighbour, town officer or drone survey flags the building | Often invisible to buyers |
| Notice | SBCA issues a notice and hears the owner or builder | Builder may hide it from buyers |
| Stop work or sealing | Construction halted; site or floors sealed | Possession delayed; instalments may continue |
| Demolition | Unapproved floors, portions or whole structure removed | Units on those floors are lost |
| Ejection | Occupants removed, by force if necessary | Families displaced |
| Utility and registry bars | Section 18-G applies | No registry, no new legal connections |
| Prosecution | Complaint to the court under section 19 | Mainly targets the owner or builder |
Enforcement is uneven. In 2024, SBCA's own additional director general accused its demolition unit of connivance with illegal builders, and officials described partial demolitions in which walls were chiselled while columns and slabs were left for construction to resume. A building that "survived" a demolition drive is not a building that has been made legal.
Recent enforcement numbers
| Period | What SBCA reported |
|---|---|
| March to June 2024 | 357 structures demolished in three months; Central 185, East 91, South 55, Korangi 18, West 7, Keamari 1 |
| 2025, to mid-November | More than 1,858 illegal constructions demolished, including 23 buildings with unauthorised extra floors |
| January to mid-April 2026 | 396 enforcement actions; East 136, Central 133, South 52, Korangi 27, Malir 23, West 17, Keamari 5, industrial zone 3 |
The February 2026 reform framework added an anti-illegal construction task force with drone surveillance, so the pace of detection is likely to rise.
What buyers lose, and why the courts will not help
The Sindh High Court has been consistent. In C.P. No. 3725 of 2023, buyers of units in a Nazimabad building with no approved plan asked to be protected as bona fide purchasers. The court held that the building's violation of the Ordinance was fatal to any claimed right, that an agreement of sale does not itself confer title, and that agreements defeating the Ordinance are void under section 23 of the Contract Act.
In another 2023 case, buyers who had moved into unapproved floors were told they had stepped into the builder's shoes and would sink or sail with him. The court ordered them ejected and the floors demolished, with the cost on the builder.
| Buyer's position | Likely outcome |
|---|---|
| Unit on an unapproved floor | Demolition and ejection |
| Unit in a building with no plan at all | No registrable title; possible demolition |
| Unit in a building with minor deviations within 20% | Builder may be able to compound; buyer waits |
| Paid instalments for an unbuilt or sealed project | Claim against the builder, not SBCA |
What buyers can still do
- Get the facts from SBCA. Ask which parts of the building are approved, which are not, and what action is pending.
- Stop further payments to the builder until the position is clear, if your agreement allows it.
- Organise with other buyers. Joint action carries more weight with SBCA and the courts.
- Ask whether compounding is possible. Deviations within 20% of permissible limits may be regularised at enhanced fees, usually at the builder's cost.
- Pursue the builder. A civil claim for refund and damages, or a criminal complaint for fraud where the builder misrepresented approvals, is the main route to recovery.
- Use SBCA's complaint forum and keep every receipt, advertisement and brochure showing what the builder promised.
- Get a lawyer before signing any settlement or "regularisation" deal offered by the builder.
How to avoid it in the first place
The checks are simple and cheap compared with the loss. Our guide on how to check if a Karachi project is SBCA approved sets out how to confirm the approved plan, sale NOC and builder's licence before paying a token.
Ask for each document by name, with its reference number and date, and confirm it with SBCA yourself rather than relying on copies supplied by the builder or a dealer.
What the numbers show: Milkiyat.com findings
Two districts account for two-thirds of 2026 enforcement. East and Central: 136 + 133 = 269 of 396 actions, or about 68%.
Enforcement has averaged over 100 actions a month in 2026. 396 actions over about three and a half months is about 113 a month. In 2025, 1,858 demolitions over about ten and a half months is about 177 a month.
Extra-floor buildings are a small share of demolitions. 23 buildings with unauthorised floors ÷ 1,858 demolitions = about 1.2% in 2025. Most demolitions involve smaller unauthorised portions, shops and rooftops.
A year of continuing violation can cost more than Rs230,000 in fines. The minimum Rs50,000 plus Rs500 a day for 365 days: 50,000 + 182,500 = Rs232,500, on top of any imprisonment.
Compounding costs five times the normal fee. Composition fees enhanced by 400% means paying the base fee plus four times it: 5 times the ordinary composition fee, and only for deviations within 20% of permissible limits.
Checklist before you pay
| Check | Where |
|---|---|
| Approved building plan matching the building | SBCA |
| Sale and advertisement NOC for off-plan units | SBCA |
| Builder's licence | SBCA |
| Number of floors matches the plan | Site visit |
| Land use matches the plot | Land authority |
| Completion plan for finished buildings | SBCA |
| No pending notice, sealing or court case | SBCA and a lawyer |
Physical safety is the other reason to run these checks. Our review of Karachi building collapses and their approval records shows how often deadly collapses involve floors that were never approved.
Frequently asked questions
Q1. What happens if SBCA finds my building is illegal?
A. SBCA can stop work, seal the building, demolish unapproved floors or the whole structure, eject occupants and bar registry and new utilities until a completion plan exists.
Q2. Can I keep my flat if I bought it in good faith?
A. Usually not. The Sindh High Court held in 2023 that buyers in unapproved buildings cannot rely on bona fide purchaser claims, and that their agreements are void under section 23 of the Contract Act.
Q3. What is the penalty for illegal construction in Sindh?
A. Up to three years' simple imprisonment, a fine of at least Rs50,000, or both, plus up to Rs500 a day for continuing offences, under section 19 of the Sindh Building Control Ordinance.
Q4. Can illegal floors be regularised?
A. Only limited deviations, such as excess covered area or open space violations up to 20% of permissible limits, can be compounded at fees enhanced by 400%. Extra floors beyond the plan generally cannot.
Q5. Who pays for demolition?
A. The Ordinance places demolition costs on the owner or builder, and courts have ordered builders to bear them.
Q6. How can I recover my money?
A. Through a civil claim for refund and damages against the builder, or a criminal complaint where approvals were misrepresented. SBCA does not compensate buyers.
Q7. How much illegal construction has SBCA acted against recently?
A. SBCA reported 396 enforcement actions in Karachi from January to mid-April 2026, led by District East with 136 and Central with 133.
This guide is for general information. Enforcement policies and court interpretations change, and buyers should confirm the status of any building with SBCA and take advice from a qualified lawyer before paying or signing any settlement.