The Federal Board of Revenue (FBR) has announced auction Bahria Town property in Tehsil Murree causing a wave of fear and worry amongst investors over the possible loss of their hard-earned money.
In order to recover outstanding taxes amounting to Rs. 26 billion from Bahria Town, the FBR has decided to auction 527 kanals and 10 marlas of land in Tehsil Murree.
The auction will be held on February 16 which could have a direct impact on existing and potential investors.
Earlier, a Bahria Town plot on Park Road in Islamabad was successfully auctioned, adding Rs. 2.05 billion to the national exchequer.
For investors, this situation indicates that Bahria Town is currently facing severe financial and legal pressure.
Tax authorities have also issued public notices in Karachi regarding the auction of properties attached to Bahria Town Tower, indicating that the collection proceedings have spread to several cities.
The FBR has clarified that the purchase, sale or transfer of seized Bahria Town properties in Karachi is prohibited without the prior permission of the tax authority. Any transaction made without FBR approval will be considered legally void, which may expose both the buyer and the seller to legal and financial risks.
Risks for investors
The possible impacts of this situation include that existing investors may face delays or restrictions in the sale or transfer of the property.
New buyers are advised to invest with utmost caution and after legal verification.
According to FBR officials, any objection or claim regarding the seized properties can be submitted to the Large Taxpayer Office (Islamabad) under the existing tax laws.
