LDA Exposes Huge Fraud Scheme in NOC Issuance, Impacting National Treasury

A recent inquiry has brought to light a fraudulent scheme within the Lahore Development Authority (LDA), wherein official documents were manipulated to obtain No Objection Certificates (NOCs).

The orchestrators of this scam, corrupt officials within both the Housing Directorates and Town Planning Wings of the LDA, have caused substantial financial losses to the national treasury.

The Additional Director General (Housing) of the LDA, Owais Mushtaq, unearthed the fraud during a routine inspection of specific files. He observed that NOC reports with unclear language were being exchanged between the Housing Directorate and the Town Planning Wing, purposefully omitting any mention of outstanding dues on properties.

This deceptive practice not only resulted in financial losses for the LDA due to uncollected property transfer fees but also unfairly burdened property buyers with undisclosed outstanding dues.

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Responding to this, Owais Mushtaq issued a directive (LDA/ADG(H)/PS/198) on December 6, 2023, to all Housing and Town Planning Directors, stressing the importance of clear and accurate reports from the Town Planning Wing before NOC issuance.

The directive emphasized that non-compliance would result in strict action against the responsible officers.

Moreover, Chief Town Planners were instructed to ensure that all reports clearly state the commercial status of properties and any pending dues. A senior LDA officer from the Housing wing noted that if implemented effectively, this new practice would safeguard both the authority and property buyers from significant financial losses and inconvenience.

The officer recommended conducting a random internal audit of NOC cases to uncover similar instances of fraud and, if necessary, a comprehensive audit to assess the overall financial impact on the LDA. He advocated for stringent action against those involved in these deceptive practices.

In a statement, Owais Mushtaq highlighted that the discovery of this scam demonstrates the vigilance and seriousness of the LDA’s higher management. He assured that strict departmental action would be taken against anyone failing to comply with the new directive.