Rs. 7.59 Crore alleged corruption uncovered in Rs. 485 million model villages project in Toba Tek Sing

The Punjab Anti-Corruption Department has registered a case over alleged financial irregularities and embezzlement in the Rs. 485

LAHORE: The Punjab Anti-Corruption Department has registered a case over alleged financial irregularities and embezzlement in the Rs. 485 million Model Villages Project in Toba Tek Singh, with an estimated loss of more than Rs. 7.59 crore to the provincial exchequer.

The action has been taken as part of Chief Minister Punjab Maryam Nawaz Sharif’s stated policy of “Corruption-Free Punjab” and zero tolerance against corruption in government development projects.

The case was registered under the supervision of Director General Anti-Corruption Punjab Sohail Zafar Chattha following an inquiry and inspection conducted by the Chief Minister Inspection

According to the FIR and inquiry documents, the alleged irregularities occurred in several villages of Toba Tek Singh under development Packages FSD-5 and FSD-6.

The allegations include excess payments to contractors, use of substandard construction material, violations of Punjab Procurement Regulatory Authority (PPRA) rules and alleged collusion between government officials and private contractors.

Inquiry documents stated that an additional payment of around Rs. 4.94 crore was allegedly made under Package 5, while another excess payment of approximately Rs. 2.59 crore and Rs. 58,000 was reportedly made under Package 6.

The contracts involving Chak 521 G.B, Chak 335 G.B, Chak 325 J.B and Chak 296 G.B were allegedly awarded to five companies.

A case has been registered against the Divisional Coordinator of the Punjab Rural Municipal Services Company, Faisalabad Division, contractor Aamir Nadeem, Saleem & Co and other companies allegedly linked to the projects.

Sources familiar with the matter claimed that concerns were not limited to the projects under investigation in Toba Tek Singh. According to the sources, the Model Villages Project was initially designed to cover around 450 villages but was subsequently expanded to 7,500 villages.

Sources further alleged that seven companies were awarded more than 70 projects with a combined value exceeding Rs. 35 billion. Complaints submitted regarding the wider project claimed that some companies quoting lower rates were allegedly excluded from consideration while preferred firms were awarded contracts.

Muhammad Moin Uddin, a resident of Tala Gang, reportedly submitted a formal complaint and affidavit to the Chief Minister Inspection Team, requesting an investigation into the alleged irregularities.

Following directions from Chief Minister Maryam Nawaz, the Chief Minister Inspection Team, headed by Special Assistant Shoib Mirza, carried out a surprise inspection of the Model Villages Project in suburban areas of Toba Tek Singh.

During the inspection, the team reportedly identified poor construction quality and the use of substandard material at various locations. A laboratory report concerning the construction material was also declared unsatisfactory.

Following the findings, the Anti-Corruption Department initiated legal proceedings and moved towards further action against the relevant contractor and con

Inquiry No. 543/2026 reportedly found that substantial amounts had been paid for development work, while work at some locations was either incomplete, minimal or allegedly not carried out according to the required standards.

The inquiry also highlighted alleged excess payments, poor-quality construction material and possible collusion between public officials and private parties.

The provincial government has directed relevant departments to provide the Chief Minister Inspection Team with the necessary manpower and resources to investigate development projects and ensure accountability.

Further investigation into the allegations and responsibility of the individuals and companies named in the case is underway.