Court raises fraud case damages to Rs1.5 Billion

A Pakistani court has increased compensation in a decades-old property fraud case from Rs50 million to Rs1.5 billion, citing the substantial rise in real estate values and the plaintiff's prolonged deprivation of his investment.

KARACHI: A Pakistani court has increased compensation in a decades-old property fraud case from Rs50 million to Rs1.5 billion, citing the substantial rise in real estate values and the plaintiff’s prolonged deprivation of his investment.

In a ruling issued on Saturday, the Sindh High Court decided a 21-year-old dispute involving the purchase of a commercial plot in Karachi’s Defence Housing Authority (DHA), one of the city’s most sought-after real estate markets.

According to court documents, the plaintiff, Bashir Akhtar, paid Rs43 million in 1997 for the purchase of a commercial plot. Despite making full payment, the property was later transferred to another individual, triggering a legal battle that lasted more than two decades.

The plaintiff’s lawyer argued that the payment made by Akhtar was used as the purchase price in the transaction, a claim the court said was supported by the record. The court observed that evidence showed the pay order issued by Akhtar had been utilized in the agreement relating to the plot.

The court further noted that the current holder of the property failed to provide documentary proof demonstrating that payment had been made for the acquisition of the plot. It said a buyer could not claim to be a bona fide purchaser if another person’s funds had been used to complete the transaction.

In its ruling, the court said Akhtar had been deprived of both his investment and its potential returns for nearly three decades. It added that awarding only the original amount or a modest level of compensation would not meet the requirements of justice given the sharp appreciation in commercial property prices in DHA over the years.

The court therefore increased damages to Rs1.5 billion and directed that the compensation be paid jointly by the real estate company involved in the transaction and the current purchaser of the property.

The ruling also ordered the payment of a 15% annual markup on the compensation amount dating back to 1998, significantly increasing the financial liability arising from the case.

The judgment brings one of the longest-running property disputes in the province closer to resolution after years of litigation.