Guide
Katchi Abadis in Karachi: Regularisation and Lease Rules
By Maham Imtiaz
Real Estate AnalystVerified author
10 min read
Karachi has about 580 katchi abadis, informal settlements built on public land that house a large share of the city's working population. Some have been formally declared, surveyed and leased by the Sindh Katchi Abadis Authority, giving residents a registered 99-year lease. Others have been declared but never leased. More than a quarter have never been notified at all. The difference between these three groups decides whether a house in a katchi abadi can be legally owned, sold or mortgaged.
That makes katchi abadis a land-layer question first. Our guide on how to verify property in Karachi explains that title must trace back to a lawful grant, and in a katchi abadi the only lawful grant is a lease issued after the settlement has been declared and regularised.
This guide explains the law behind katchi abadi regularisation, the cut-off dates, how a lease is issued and transferred, what it costs, what the courts say about buying in an undeclared settlement, and what buyers should check.
Karachi's katchi abadis in numbers
| Category | Karachi division | All Sindh |
|---|---|---|
| Notified before the 1987 Act | 194 | 289 |
| Notified under the 1987 Act | 225 | 694 |
| Un-notified | 161 | 465 |
| Total | 580 | 1,448 |
The Sindh Katchi Abadis Authority (SKAA) lists these figures on its katchi abadis status page. In November 2024, the Sindh Assembly's Public Accounts Committee was told Karachi had 582 katchi abadis out of about 1,400 in the province.
The law
| Instrument | What it does |
|---|---|
| Sindh Katchi Abadis Act 1987 | Creates SKAA; lets it declare katchi abadis (section 19) and develop and regularise them through schemes (sections 20 and 21) |
| SKAA (Regularisation, Improvement and Development) Regulations 1993 | Sets eligibility, survey, lease, payment and transfer rules; published in the Sindh Gazette in January 1994 |
| Regulation 21 | Gives proprietary rights to people in possession of land in a declared katchi abadi |
| Regulation 23 | Those rights take the form of a 99-year lease |
| SKAA Low-Cost Housing Scheme Regulations 2009 | Separate rules for SKAA's own low-cost plots of 80 to 120 square yards |
Cut-off dates
| Rule | Date |
|---|---|
| Priority for regularisation under the 1993 regulations | Occupants in place before 23 March 1985 |
| Original regularisation cut-off | 30 June 1997 |
| Sindh cabinet decision, April 2022 | Cut-off extended to 31 December 2011, by amending the 1987 Act |
| Current position | Only settlements established before 31 December 2011 can be regularised; a Board of Revenue NOC is now required |
Our report on how Sindh limits katchi abadi regularisation to settlements established before 2011 covers the latest change. A settlement formed after 2011 has no route to regularisation under the current rules.
How regularisation and leasing work
| Step | What happens |
|---|---|
| Master list | Settlements of 40 or more dwelling units can be listed for declaration |
| Declaration | SKAA declares the area a katchi abadi |
| Survey and mapping | Plots, occupants and existing uses are recorded |
| Objections | Public objections are heard; committee review |
| Approval | Government approval; deemed granted if the government does not respond within one month |
| Application | Occupant submits proof of residence, such as an identity card, voter list entry, utility bills or school certificate |
| Challan | SKAA issues a challan for lease money and development charges |
| Payment | Up to four instalments, with the full amount due within one year |
| Lease | A 99-year lease is executed and registered |
Each occupant can regularise only one unit. Orphans, widows, disabled persons and the infirm with no income can be exempted from lease money and development charges on a committee's recommendation.
What a lease costs
| Charge | Rule |
|---|---|
| Lease money and development charges | Per square yard, by city tier, land use and plot size band under Schedule B of the 1993 regulations |
| Typical Karachi rate reported | About Rs250 per square yard for 120-yard plots, varying by district, as told to the PAC in 2024 |
| Late occupants or fresh encroachers | Can be charged at least double the category rate, as the minimum market rate |
| Late payment | Penalty of at least 1% |
| Annual land rent | 30 paisa per square yard, due each July; 15% surcharge if late |
Lease rates are higher on private land than on government land. Confirm the current rate for your settlement with SKAA's field office before paying.
Transfers, mortgages and use
| Rule | Detail |
|---|---|
| Transfer | By sale, inheritance or mortgage, after a NOC and clearance of all dues |
| Transfer fee | At least Rs1 per square yard; Schedule C listed Rs10 per square yard for Karachi sale transfers on plots up to 120 square yards |
| Mortgage | Allowed to the House Building Finance Corporation or a scheduled bank |
| Subdivision or merger | Needs prior approval and fees |
| Change of use | Needs permission and conversion charges |
| Building | Lessees must follow building by-laws, so SBCA approval applies |
A registered lease is what lets a katchi abadi house be sold or mortgaged like other property.
What the courts say about buying without a lease
In May 2023, the Sindh High Court dismissed an appeal by a buyer who had paid for 40 square yards of an 80-yard plot in Ismail Goth, Landhi, holding only an agreement of sale. The Sindh High Court order in IInd Appeal 119 of 2023 found that the plot lay in an "un-declared" katchi abadi that had not been regularised, so no rights under the 1993 regulations could be declared, and that a buyer from an encroacher gets no better title than the seller had.
| Situation | Legal position |
|---|---|
| Declared and leased | Registered 99-year lease; can be sold and mortgaged |
| Declared, not yet leased | Occupant can apply for a lease; buyer depends on the seller's eligibility |
| Undeclared or un-notified | Occupants treated as trespassers; no title to pass |
| Formed after 31 December 2011 | No route to regularisation under current rules |
| Agreement of sale only | Not proof of title |
Why leasing has slowed
SKAA told the Public Accounts Committee in 2024 that lease awards had slowed after 2021 because residents were not paying the registration fee for ownership rights. The committee also asked SKAA to account for Rs131.901 million released under grants for 2018 to 2021. For buyers, the result is that many occupied plots in declared katchi abadis still have no lease.
A lease only protects the holder once it is registered. Our guide to property registration at the Karachi sub-registrar explains how a lease or sale deed is registered.
How to check a katchi abadi property
- Ask which katchi abadi the property is in and confirm with SKAA whether it is notified, declared or un-notified.
- Ask whether a lease has been executed for this plot, and see the registered lease.
- Check the leaseholder's name against the seller's identity card.
- Ask SKAA for a dues statement, including lease instalments and annual land rent.
- Get SKAA's NOC for the transfer.
- Check the land owner behind the settlement; a Board of Revenue NOC now applies to regularisation.
- Check any building above ground floor for SBCA approval.
- Do not rely on an agreement of sale or a stamp-paper "ownership" document.
What the numbers show: Milkiyat.com findings
Karachi holds about 40% of Sindh's katchi abadis. 580 ÷ 1,448 = about 40%.
More than a quarter of Karachi's katchi abadis are un-notified. 161 ÷ 580 = about 27.8%.
A 120-yard lease at the reported rate costs about Rs30,000. 120 × Rs250 = Rs30,000, before any development charges or market-rate loading.
Annual land rent on a 120-yard plot is Rs36. 120 × Rs0.30 = Rs36 a year, or Rs41.40 with the 15% late surcharge.
The 2022 decision moved the cut-off by 14.5 years. From 30 June 1997 to 31 December 2011: about 14 years and 6 months.
A 120-yard sale transfer cost Rs1,200 under the 1993 schedule. 120 × Rs10 = Rs1,200. Confirm the current fee with SKAA.
Checklist before you pay
| Check | Where |
|---|---|
| Settlement notified and declared | SKAA |
| Settlement formed before 31 December 2011 | SKAA and the Board of Revenue |
| Registered 99-year lease for the plot | SKAA and sub-registrar |
| Leaseholder matches the seller | Lease and identity card |
| Dues and land rent clear | SKAA field office |
| Transfer NOC | SKAA |
| Building approval for upper floors | SBCA |
Frequently asked questions
Q1. How many katchi abadis are there in Karachi?
A. SKAA lists 580 in Karachi division: 194 notified before the 1987 Act, 225 notified under it and 161 un-notified.
Q2. Can a katchi abadi house be legally owned?
A. Yes, once the settlement is declared and regularised and a 99-year lease is executed and registered in the occupant's name.
Q3. What is the cut-off date for regularisation?
A. 31 December 2011, after the Sindh cabinet extended it from 30 June 1997 in April 2022. A Board of Revenue NOC is now also required.
Q4. How much does a katchi abadi lease cost?
A. It depends on city tier, land use and plot size. The PAC was told in 2024 that 120-yard plots in Karachi were generally leased at about Rs250 per square yard.
Q5. Can I buy a house in an undeclared katchi abadi?
A. You can pay for it, but you will not get title. The Sindh High Court held in 2023 that occupants of undeclared katchi abadis are treated as trespassers and cannot pass ownership.
Q6. Can a katchi abadi lease be mortgaged?
A. Yes. The 1993 regulations allow mortgages to the House Building Finance Corporation or a scheduled bank.
Q7. Who approves buildings in a katchi abadi?
A. SBCA. Lessees must follow building by-laws, and upper floors need approval like anywhere else outside cantonments.
This guide is for general information. Katchi abadi rules, cut-off dates, rates and settlement status change, and buyers should confirm every lease, NOC and status with SKAA, the Board of Revenue and a qualified lawyer before paying.