Drenched deals and dirty money: The housing hustle that sank itself

Drenched deals and dirty money: The housing hustle that sank itself

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September, 5 2025

Shanzila Fatymah: ACE arrests developer behind illegal housing scheme on Ravi floodplain as floods expose environmental and regulatory failures in Lahore.

In a decisive move against the unchecked expansion of illegal housing developments on environmentally vulnerable land, the Anti-Corruption Establishment (ACE) has arrested the developer behind a sprawling and unauthorized residential scheme constructed within the designated floodplain of the Ravi River. The unregulated settlement, spanning approximately 12,000 kanals, was recently swallowed by floodwaters following heavy monsoon rains, exposing the grave risks of building on ecologically sensitive terrain.

According to ACE officials, the arrested individual, who previously served as a constable in the police department, transitioned into the real estate sector by exploiting regulatory gaps and allegedly greasing palms to acquire land within the Ravi’s flood belt. He marketed it as legitimate residential property, luring unsuspecting buyers with promises of secure ownership and investment returns. The scheme, lacking any formal approval from city planning authorities or environmental clearances, was also devoid of basic civic infrastructure, including sewage and drainage systems.

The catastrophic flooding that engulfed the area not only rendered the entire settlement uninhabitable but also spotlighted the broader failure of regulatory institutions to prevent such developments. In response, ACE has formally sought records from the Ravi Urban Development Authority (RUDA) and the Lahore Development Authority (LDA) concerning all projects established along the Ravi riverbed. Officials assert that this investigation is part of a province-wide crackdown on unauthorized residential ventures, many of which have been operating with impunity. A spokesperson for the agency emphasized that any construction on floodplain land—whether ongoing or already sold—will be treated as a serious violation and prosecuted to the full extent of the law. The establishment of human settlements in river zones, the spokesperson said, not only flouts zoning regulations but constitutes a direct and unacceptable threat to public safety.

Investigators allege that the developer laundered the proceeds from the fraudulent land sales—believed to amount to billions of rupees—and transferred them abroad, adding a layer of financial crime to the environmental and civic violations already under scrutiny. The ongoing probe is also examining potential complicity among officials in relevant regulatory agencies who may have enabled or overlooked the scheme’s illegal operations.

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This case has drawn comparisons to a number of earlier real estate controversies involving politically connected developers who similarly expanded unauthorized residential projects onto ecologically delicate land. One such high-profile figure, who has held significant federal and provincial portfolios, was previously under investigation by the National Accountability Bureau (NAB) for the illegal extension of housing projects into restricted and environmentally unsuitable zones in both Lahore and Islamabad. These areas had been designated agricultural or riverine by planning authorities, and the Lahore Development Authority (LDA) had explicitly warned that any construction there endangered lives and violated multiple land-use regulations. In some instances, ACE launched anti-encroachment drives, demolishing illegal constructions built on government land within these projects.

However, in August 2023, NAB officially closed its inquiry into these illegal extensions. The bureau justified its decision under Section 31-B(1) of the amended National Accountability Act, 2022, which limits NAB’s jurisdiction in certain financial matters. This development sparked significant controversy, given the scale of alleged violations and the environmental consequences tied to these schemes. Although that particular investigation was dropped, a separate inquiry involving the same individual—relating to assets beyond known sources of income—remains pending. Critics have argued that the closure of the housing scheme probe reflected broader systemic leniency toward politically influential individuals, especially when such cases threaten to implicate entrenched networks of power.

The recurrence of such scandals has raised urgent questions about the effectiveness and accountability of urban regulatory bodies like RUDA, LDA, and local municipal authorities. Observers note that these institutions have repeatedly failed to curb unauthorized urban sprawl along the Ravi River corridor, one of the most environmentally sensitive regions surrounding Lahore. This negligence—or, as some argue, complicity—has enabled the proliferation of unsafe housing schemes, placing thousands of families and billions of rupees in investments at risk.

The recent devastation wrought by the flooding of the Ravi River has only sharpened the focus on these failures. Entire communities have been wiped out, with financial losses for residents estimated in the billions. Much of the area affected falls within the domain of the larger Ravi Riverfront Urban Development Project—a massive, controversial undertaking that spans nearly 46 kilometers. The project itself has come under intense scrutiny from environmentalists and civic groups, who argue that it poses significant risks to the region’s ecological balance and water security.

As investigations continue, public confidence in the government’s ability to enforce land-use regulations and protect citizens from predatory real estate practices hangs in the balance. The active involvement of ACE in this case has been viewed as a potential litmus test for the provincial administration under Chief Minister Maryam Nawaz. Whether the government will see the investigation through to its logical conclusion or bend under political pressure remains to be seen. What is clear, however, is that the consequences of inaction are no longer theoretical—they are now submerged beneath the floodwaters of a river that has reclaimed its natural course.