FIA arrests MDA director land in alleged Rs20 billion land scam, recovers Rs20 miillion cash and fake bank stamps

The Malir Development Authority (MDA) is facing serious allegations of financial irregularities involving the alleged disposal of land

KARACHI:   The Malir Development Authority (MDA) is facing serious allegations of financial irregularities involving the alleged disposal of land worth billions of rupees through a network of officials and private intermediaries. A Minute Mirror investigation has revealed that commercial plots worth an estimated Rs20 billion were reportedly dealt with over a period of 47 days.

The Federal Investigation Agency’s (FIA) Commercial Banking Circle in Karachi has arrested MDA Director Land Waqas Soomro and his alleged associate Yamin. Investigators reportedly recovered Rs20 million in cash, counterfeit bank stamps and other material during the operation. The agency has also seized official records from the MDA office and initiated an investigation into the alleged preparation and use of forged bank seals and payment challans.

Alleged Auction Manipulation

According to information obtained by Minute Mirror, MDA auctioned approximately 150 commercial plots across three schemes on September 23 and 24. The administration allegedly imposed a non-refundable participation fee of Rs50,000, which reportedly restricted the number of bidders.

The report alleges that after the auction, individuals who secured the first and second highest bids disappeared, allowing private intermediaries to offer the properties at substantially lower prices. Payments were allegedly collected in cash outside the authority’s office rather than through official banking channels.

In one cited example involving an approximately one-acre commercial plot in MDA Scheme-1, the highest bid reportedly reached Rs25 crore. However, after the leading bidders disappeared, intermediaries allegedly offered the same property for Rs7 crore, collected Rs3 crore as an advance and subsequently circulated the token further for additional commissions.

The investigation also raises questions about missing auction records and the alleged retention of property files by the Director Land.

Officials and Alleged Network

Waqas Soomro is identified as the central figure in the alleged arrangement. According to the report, he was originally a Grade 14 employee of a Town Municipal Corporation (TMC), with an employment-related case reportedly pending before NAB since 2012. Despite this, he allegedly secured a deputation posting in MDA against a Grade 18 position and subsequently held several important responsibilities, including Director Finance, Director Land and Chairman of the Auction Committee.

The report also identifies a recently retired Grade 21 officer associated with the Sindh Solid Waste Management Board as an alleged patron of the network. He reportedly received Rs5.8 million from the MDA Finance Department during the month of his retirement.

Several other individuals, including Waqas Wahab Sheikh, Yamin, Aamir, Masood Sheikh, Edhan Chandio, Manzoor and Mohsin Niazi, have been named in connection with the alleged handling of property files, intermediaries and Taiser Town Scheme-45 transactions.

Alleged Fraud Involving Citizens

The investigation further alleges that residents have been supplied with counterfeit residential and commercial plot files in Taiser Town since 2024. Fake bank stamps and payment receipts were reportedly used to collect money from buyers.

Former MDA directors general Saeed Salah Jamani and Bakhsh Ali Mahar have also been mentioned in allegations of patronage. Current DG Yasir Shar Baloch reportedly raised objections to the open handling of questionable files earlier this year.

FIA Investigation Underway

Under applicable auction procedures, successful bidders are required to deposit payments through authorised banking channels, either in a lump sum or through permitted instalments.

The FIA is questioning the arrested suspects and examining seized documents, counterfeit stamps and alleged financial transactions. The investigation is expected to determine the extent of the alleged fraud and identify other individuals who may have facilitated the operation.